Switching offshore development teams: A step-by-step guide
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.
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.
A typical switch runs in four stages:
| Stage | What happens | Owner |
|---|---|---|
| Before notice | Repositories, cloud accounts and the IP assignment secured | Client |
| Notice period | Offers signed, resignations served, handover planned | New provider and developers |
| Final week | Walkthroughs, documentation and an access review | Both teams |
| Day one | Developers start with the new provider; old secrets rotated | Client 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.
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.
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