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Home » Articles » Switching offshore development teams: A step-by-step guide

Switching offshore development teams: A step-by-step guide

switching offshore development teams - two developers writing code at office workstations

Key takeaways

Switching offshore development teams is a sequencing problem, and Philippine rules, used here as the example, set much of the order:

  • Under the Philippine Intellectual Property Code, code written in an employee’s regular duties belongs to the employer unless an agreement says otherwise.
  • The Labor Code requires one month’s written notice to resign. Final pay is due within 30 days of separation, subject to clearance.
  • Outsourced says most provider contracts need 30 days’ notice and some need 60, and some providers also charge a buyout.
  • Transferred GitHub repositories keep secrets and deploy keys attached, so old credentials stay live until rotated.
  • Outsourced says it transfers existing teams with offers before resignations, matched inclusions and honored tenure. It reports 98%+ staff retention.

Most companies don’t start switching offshore development teams over one bad sprint. The switch usually follows months of missed releases, rising rates or skills the vendor can’t hire.

The risk sits in the move itself. Code, credentials and the developers who know the codebase all stay with the old provider until the switch. A switch done in the wrong order can lose all three.

The four steps below use Philippine rules as the example and fit any software development outsourcing setup.

Step 1: Secure code, access and IP first

When switching offshore development teams, the client company needs control of its repositories, cloud accounts and credentials before the provider gets notice. The next question is who legally owns the code, because the answer may not be the client.

Repositories held in the provider’s organization should move into the client’s own. GitHub’s documentation notes that secrets and deploy keys stay attached to a transferred repository, and those keys need rotating afterward.

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switching offshore development teams - a developer reviewing code on a laptop
Securing code and access before switching offshore development teams

Under the Philippine Intellectual Property Code, code written as part of an employee’s regular duties belongs to the employer unless an agreement says otherwise.

When the developers are the provider’s employees, that employer is the provider. A signed IP assignment to the client company should be in place before the contract ends. A lawyer should check the wording.

Step 2: Check the exit terms in the contract

The current contract decides how fast a company can leave and what leaving costs. Three clauses in particular can delay the move or add a fee:

  • Notice period: most contracts need 30 days’ notice and some need 60, according to Outsourced.
  • Buyout or conversion fees: some providers charge a fee to release employed staff.
  • Non-solicit clauses: these can limit hiring the same developers through a new provider.

Dates, owners and handover tasks belong in a transition plan before anyone is told. The same plan helps budget for transition costs early.

Step 3: Move the developers in the right order

Switching offshore development teams means developers worth keeping must resign from the old provider and join the new one. Philippine labor law sets the timing. The order of offers, resignations and final pay matters more than speed.

Under the Labor Code, an employee may resign by giving written notice at least one month in advance. A developer who skips that notice can be held liable for damages. Offers come first, and resignations go in on time.

The Department of Labor and Employment (DOLE) then expects the old employer to release final pay within 30 days of separation. A certificate of employment is due within three days of a request.

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A typical switch runs in four stages:

StageWhat happensOwner
Before noticeRepositories, cloud accounts and the IP assignment securedClient
Notice periodOffers signed, resignations served, handover plannedNew provider and developers
Final weekWalkthroughs, documentation and an access reviewBoth teams
Day oneDevelopers start with the new provider; old secrets rotatedClient and new provider

Step 4: Run a short handover, then close access

The overlap should stay short. Shared standups, a walkthrough of open pull requests and a written deployment runbook give the new team what it needs on day one.

switching offshore development teams - a development team in a standup meeting
A short handover that prepares the new team for day one

After that, the old provider’s accounts are removed, API keys rotated and deploy rights reviewed. Standard security practices for offshore software development matter most in that first week.

Switching offshore development teams with Outsourced

Outsourced, a Philippine offshore staffing company, takes over existing teams from other providers. Its team transfer process aims for staff to finish with the old provider on a Friday and start with Outsourced on Monday.

  • Offers before resignations: formal offers go out before staff resign.
  • Matched inclusions: leave, HMO and shift pay are matched, and tenure is honored.
  • No redundancy trigger: developers resign to accept a new offer, which Outsourced says avoids redundancy.
  • Retention and security: the company reports 98%+ staff retention and data security that meets ISO standards.

Companies ready to move an existing development team can see how Outsourced handles the transfer.

Frequently Asked Questions

Can a company switch only part of its development team?

Yes. Moving one squad first tests the new provider’s onboarding before the whole team moves. Two vendors then run in parallel for a while.

Can the old provider hold back a developer's final pay?

Only until clearance. Philippine case law (Milan v NLRC, 2015) lets employers hold final pay until company property such as a laptop comes back. The pay isn’t reduced.

What happens to developers' unused leave?

It depends on what’s agreed before the move. Outsourced settles leave with the client in advance, and any carry-over should have each developer’s written agreement.

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