5 Essentials to successfully extend your offshore software development team

How do you successfully extend your offshore software development team?

To extend your offshore software development team well, set realistic expectations, keep a strong technical lead in-house, prepare clear requirements, plan for the long term, and align on culture and values.

• Treat the partnership as a two-way effort built on trust.
• Stay active in the project, not just in picking a provider.
• Give your offshore team time, context, and a clear roadmap.

An outsourcing partnership works much like any other relationship. Both sides must put in real effort for it to pay off. In addition, trust and respect matter from day one. You would not partner with a person you did not respect. So the same rule applies to your outsourcing contract.

In previous articles, we covered the key areas for evaluating software development firms. Still, the provider does not carry the whole load. As the client, you also help manage the outsourced development team. As a result, the whole process runs far more smoothly.

In this post, we list five key points. Together, they help your business and your outsourcing partner work well.

You can also check out these six secret techniques to improve software development outsourcing.

1. Set realistic expectations.

Many clients hold one big myth about outsourcing. They think the provider will handle everything they cannot. In truth, that view often ends in failure. We know this from long years in the field. We at Arcanys avoid partnerships where too much is asked of the provider. Because of this, both sides stay protected from losses.

Remember, this is a partnership. So both parties thrive when the project wins. As a client, temper your hopes about what your partner can do. Yes, the offshore team may have the right talent and skills. Still, they will not hit the ground running on day one. Just as you give a new hire time to learn the ropes, your outsourced team also has a learning curve. So your role is to guide them early. As a result, the team reaches your level of quality much faster.

Usually, we suggest starting with a small team of about 2 to 4 developers. Then they can blend with your in-house staff. A good ratio is 2 to 5 outsourced developers for one in-house senior lead. In addition, start them on less critical work with no extreme time pressure. After all, you would not hand a new hire a vital project unless he was a proven expert. In software development outsourcing, miracles do not exist. Even Arcanys cannot do such things (although the stuff we actually do comes pretty close).

Next, be realistic about rates. For example, take time to understand what value for money means in outsourcing based on your particular needs. A good developer cannot cost as little as 5 dollars an hour. However, at about US$30 per hour, you can hire a fairly skilled developer. That is a cost saving of more than 50% versus local rates. Better still, you skip the hassle of recruiting, payroll, and office space. So you do not get top talent for next to nothing. Instead, your money simply goes much further than it would at home. To weigh the trade-offs, compare offshore versus onshore options before you decide.

2. Have a solid technical person on your side.

As a client, you need at least one strong technical lead. This person should know your software and the project well. You will see why fast. After all, the project still belongs to you, the client. The provider should augment your team with the exact skills you need. Still, it is your product on the line. So your side should take charge.

In some cases, we do take over the whole tech team. Even so, we then need at least a part-time CTO on our side to steer the work. This setup can bring extra delays or costs. Those issues would not appear if the client had a reliable technical person to begin with. In short, a weak technical bench creates other gaps, such as project or product management. In those cases, we have to cover your weak spots so the project cannot fail.

As a provider, Arcanys has found the most success with clients who bring strong team leads. These leads know what the project needs. For tech-enabled firms, the standards are clearer. Most of them already own the technology heads, core knowledge, and expertise in-house.

3. Get the requirements ready.

We like to work agile. So once the team starts, code and features should ship quickly. This means you must keep the team busy. In other words, a business expects its on-site staff to work fast and well. The same goes for an offshore team. However, this takes some preparation and a clear roadmap for the product.

Where it helps, the provider can add a business analyst to shape or finish the requirements. Still, some work needs deep business knowledge. For example, mining, medical, or finance apps can be very complex. In those cases, the client should own the requirements and the business analysis. Otherwise, the risk is simply too high.

4. Have a clear, long-term strategy.

A one-shot, short-term deal rarely pays off. The value shows up far more clearly over the long term. A good outsourcing plan takes some groundwork. So if you want a team for less than six months, it is likely not worth it. Think about it. Would you review resumes, shortlist, and interview just to hire someone for six months? We did not think so either.

Outsourcing rarely works in emergencies. If you suddenly need more developers fast, it usually means weak planning on the client side. In such moments, outsourcing is not the fix. In fact, it may cause more trouble down the road. When businesses weigh outsourcing software development, they want a reliable partner. That partner should build a capable team that ships features fast and at a good value. For more guidance, review these best practices for offshore teams.

As a client partner, give your provider some view into your business plans. This way, they can help you more. For example, they can build the skills you will need in the coming months. Later, they can add their own input as they learn your products. This also helps the partner plan the hiring and training of your offshore team. As a result, developers are ready when you need them.

5. Make sure you’re aligned on culture and values.

Communication is the key to success. In turn, shared culture and values drive good communication.

An outsourcing contract often links two countries with different cultures. So this should shape where you base your extended team. Many factors come into play. For example, language, time zones, cultural gaps, and even national holidays can affect your project.

A good provider raises awareness of these gaps on both sides. As a result, they do not grow into divisive issues later. The client and the developers must understand each other’s cultures. They should also stay sensitive to each side’s use of English. Because of this, misunderstandings drop and trust grows. Simple steps like cultural awareness training can help a lot.

Also, learn your provider’s long-term vision and check that it fits your own. This kind of partnership often bears fruit over time. So set clear expectations early. In addition, business goals change. When they do, update each other so both sides can adjust.

Now check out the top 11 reasons why Arcanys is Australia’s preferred choice for software development outsourcing in the Philippines.

Now’s the time to get started

Ready to add an offshore team to your software talent? Then your choice of partner may be the most important call you make. Keep one thing in mind. Your tech partner can only bring so much to the table. So the rest of the effort must come from you. Only then will your offshore team work smarter. In turn, they will give their highest quality of work, not just their time and skills.

In short, blend your partner’s technical skill with your own active role. As a result, you ship software to market faster and at a lower cost. So there is no better time to move your ideas from planning into development.

Ask us about our software development outsourcing services today.

We can start right away with a dedicated team built just for you. You may visit us in Cebu, where both co-founders are based. You can also give me a call or drop me an email at [email protected].

Arcanys has its main offices in Cebu and Manila.

Frequently asked questions

How big should an offshore software development team be at the start?

Start small, with about 2 to 4 developers. A good ratio is 2 to 5 outsourced developers for one in-house senior lead. Then you can scale as trust and output grow.

How much does an offshore software developer cost?

Rates vary by skill and region. At about US$30 per hour, you can hire a fairly skilled developer. That is often more than 50% cheaper than local rates. Still, be wary of very low prices, since quality can suffer.

When is offshore software development a poor fit?

Outsourcing rarely works in emergencies. If you need extra developers overnight, planning likely broke down earlier. For best results, treat offshore as a long-term plan, not a quick patch.

Do I still need a technical lead if I outsource?

Yes. You should keep at least one strong technical lead in-house. The provider augments your skills, but the product stays yours. So your side should guide direction and quality.

How do you keep an offshore team aligned with your business?

Share your roadmap and goals early. In addition, invest in clear communication and cultural awareness. As a result, the team builds the right skills and adapts as your needs change.