How to Hire Offshore Developers in 2023?

How to Hire Offshore Developers in 2023 | Optymize

If you’re planning to hire offshore developers for your software development project, it can save you money and still deliver quality code. However, it’s crucial to vet your contractors properly to ensure you’re getting a reliable team. 

Developing software can be a challenging process, and with intense competition for talent, many companies end up hiring less qualified engineers. This can result in less reliable development and inferior quality output.

Fortunately, with offshore software development, businesses have a new option. So, to get a wider talent pool consider to hire offshore developers. It will result in more dependable development and higher-quality output.

If you’re unfamiliar with offshore software development services then don’t worry – we’ve got you covered. In this article, we’ll cover the fundamentals of how and why to hire offshore developers and show you how to find the most affordable, practical, and reliable software development services company for your long-term needs.

Who are Offshore Developers?

Offshore developers are software developers who are located in a different country or region than the company they are working for. Companies hire offshore developers to work remotely from different countries. Offshore developers help with software development projects.

What is an Offshore development Center?

An offshore development center (ODC) is a dedicated development facility located in a foreign country. 

An offshore development center is a means to hire offshore developers. It is a branch of a software development center/company established in a different location to leverage lower labour costs, tax benefits, and access talented offshore developers.

An offshore development center offers you to hire offshore developers who are highly skilled developers, project managers, quality assurance engineers, and other technical experts. They work together to deliver high-quality software solutions to clients.

What are Offshore Software Development Services?

Offshore software development services refer to the process of hiring a dedicated team of developers and establishing a new office for them in a different country. These developers become permanent employees of the organization and are responsible for delivering software solutions while being based in a different location. 

The key distinction is that they work as an extension of the company’s workforce, adhering to the same quality and performance standards as local employees.

Related Post: Why is Offshore Staff Augmentation Becoming the New Norm?

Who are the Members of an Offshore Development Team?

An offshore Development team will have the following members- 

  • > Project managers 
  • > UX/UI designers 
  • > DevOps 
  • > Business analysts 
  • > Development team lead 
  • > Front-end engineers 
  • > Back-end engineers 
  • > Quality assurance engineers and others 

Why Hire Offshore Developers?

There are many advantages for you when you hire offshore developers. The offshore hiring model offers several advantages, including cost savings, access to a larger talent pool, 24/7 support, and a flexible and scalable workforce. Let’s learn them in detail.

Cost savings

Offshore development centers let you hire offshore developers at a lower cost. The cost is lower compared to hiring in-house teams. It allows businesses to save on operational and labour costs.

Access to a larger talent pool

If you choose to hire offshore developers, your businesses can tap into a global talent pool and leverage the expertise of skilled developers from around the world.

24/7 support

If you hire offshore developers you will get 24/7 support. They also ensure if your projects are completed on time and issues are resolved quickly.

Flexible and scalable workforce 

Offshore development centers let you hire offshore developers with scalability and flexibility. This allows businesses to quickly ramp up or down their development capacity according to requirements.

Focus on core competencies

Hire software development teams from an offshore development center to focus on core competencies. Hire offshore developers to take care of the software development needs with higher productivity and efficiency.

The top 5 Disadvantages of Offshore Development Centers are – 

  • > Communication challenges due to time zone differences and language barriers.
  • > Reduced control over the development process and project management.
  • > Increased risk of data security breaches and intellectual property theft.
  • > Cultural differences leading to misunderstandings and conflicts.
  • > Potential for hidden costs, such as travel expenses and additional management resources.

Hire Offshore Developers from These Top Companies

Are you looking to innovate on a budget without setting up an in-house team? This is a list of the top 10 companies in popular outsourcing destinations like the USA and India, which have provided quality services to even Fortune 500 companies. You can hire software development teams from these outsourcing companies for a quick and reliable development process.

  • Optymize
  • > Your Team In India
  • > Simform
  • > BairesDev
  • > ValueLabs
  • > Confianz
  • > ValueCoders
  • > Key ideas Infotech
  • > Trigent
  • > Net Gains
  • > Saigon Technology

How to find the Offshore Development Team?

Tech Company Directories: Websites like Clutch, G2, and Goodfirms are great resources for you to hire offshore developers with verified reviews and specific expertise areas.

Freelance Websites: if you have smaller projects, you can hire offshore developers from freelancer sites like Upwork. But it can be unreliable and may require middlemen that will increase project costs.

Work with Development Agencies Directly: Finding an offshore development center with streamlined processes and a single point of contact can be a reliable option.

LinkedIn, GitHub, Twitter: Hire offshore developers by checking the social activities of employees, particularly CTO and tech leads. It can be a good indication of a curious and active dev team.

Evaluate Properly: Ensure that project scopes are evaluated correctly and avoid bait-and-switch tactics by getting third-party evaluations.

Hire Offshore Developers team in 6 Steps.

Step 1: Define Issues and Create Action Plan – Explicitly define the main goals and divide it into manageable stages with due dates.

Step 2: Determine Requirements and Collaboration Model – Take into account the project type, location, and participation form and choose the collaboration model that works best for your start-up.

Step 3: Establish Evaluation Criteria – Decide on the criteria to evaluate prospects, including work history, portfolio, project results, soft and hard talents.

Step 4: Prepare Interview Questions – Prepare a set of interview questions that cover all essential requirements.

Step 5: Identify Potential Candidates – Choose the offshore IT firms that may be a good fit for your start-up.

Step 6: Select Team and Sign Contract – Begin collaboration with a satisfactory candidate through a contractual agreement.

What are Offshore recruitment agencies?

Offshore recruitment agencies are utilized by companies to outsource their operations to skilled workers in offshore countries. These agencies are third-party organizations that connect businesses with highly-skilled workers who can provide specialized services.

The primary reasons for using offshore recruitment agencies are to reduce costs or to find specialized skills that are not available locally. Companies can choose to hire offshore developers through a local offshore recruitment agency or establish an onsite office in a foreign country. The latter option may be more expensive, but it provides greater control over operations and results in a higher employee retention rate.

Related Post: Top Reasons Why Offshore Talent is in Demand

How to Hire Offshore Developers with Better Quality?

While you hire software development teams via outsourcing go through your offshore partner’s experience in similar projects, technology expertise, quality references, project management capabilities, ability to handle communications challenges, and understanding of business needs.

Experience in Similar Projects

Choose offshore software development services with prior experience in handling projects similar to yours to ensure that they comprehend your objectives and implement appropriate methods to match all regulatory standards established by the sector.

Technology Expertise

Hire offshore developers with quality after selecting a software development company that can manage several release cycles and have expertise in product conceptualization, design, documentation, and modernization throughout the life cycle of the software product.

Quality References

Verify the credibility and dependability of offshore software development services by selecting a software development business with a reputation for completing several similar projects. 

Project Management Capabilities

Hire offshore developers with solid project management capabilities – the kind of experience and exposure required to meet your goals.

The Ability to Handle Communications Challenges

Consider the time difference when dealing with language and cultural barriers and hire offshore developers who offer a single point of contact to prevent delays and misunderstandings.

Their Ability to Understand Your Business Needs

Any offshore development partner you choose should fully understand the specific needs of your business and make sensible financial decisions, stay out of unneeded debt, and deliver the finished product on schedule.

Challenges of Offshore Software Development Services

Time-zone Differences

Managing employee productivity with offshore development services requires efficient time management and flexible schedules due to significant time zone differences.

Cultural Differences

Differences in work ethics and conformity can lead to errors, holdups, and poor communication, but diversity can generate new ideas and promote high communication and quality standards.

Communication Obstacles

Engaging an overseas company where English is not the native tongue can result in communication issues that require careful understanding and management through various channels.

Continuous Management

Offshore teams require continuous monitoring and management to ensure adherence to project requirements, and a project manager may be needed for additional charges.

Security Risks

Data security is critical when working with third parties, and hiring background checks can reduce the risk of information leakage, especially if your company depends on being the first to market.

How to Manage Offshore Development Team?

Selecting the Right Offshore Team

Look for low-cost, English fluency, talented and experienced engineers, effective communication, and trustworthiness. 

Clear Project Vision

Share the whole picture of the project to motivate and help developers understand what needs to be done. Prioritize understanding the product vision before starting an Agile project.

Break into Milestones

Hire offshore developers and divide the project into specific requirements and milestones, prioritize customer schedule, project gates, and key performance indicators, and invest time in making a plan.

Optimize Communication

Hire offshore developers who use software for transparent communication, limit vocabulary and avoid metaphors, have agile team meetings and short calls, and provide immediate and clear feedback.

Overlap Work Schedules

Create a shared daily work schedule with offshore development team members and schedule several hours daily for live communication.

Direct Management

Regularly supervise offshore development teams to assess performance and project completion.

Agile Methodology

Use this popular and effective team management process that promotes iterative development and team collaboration, prioritizes quality and efficiency, and adapts to market conditions and feedback.

Offshore Developer Salary Based On Different Criteria

Offshore developer hourly rates in different places

Region Average Hourly Rate
North America $41 to $71
Western Europe $20 to $35
Eastern Europe $13 to $18
Latin America $4 to $20
Ukraine $11 to $16

Offshore Developer Salary in USA

City Software Developer Web Developer
San Francisco $49.57 $33.91
Los Angeles $44.43 $30.39
New York $46.94 $32.11
Boston $46.54 $31.83
Chicago $43.91 $30.04
Chicago $30.04 $30.04
Seattle $45.50 $31.12

Offshore Developer Salary in Latin America

Countries Software Developer Web Developer
Brazil $7.35 $3.54
Argentina $10.72 $8.79
Mexico $14.21 $11.63
Colombia $8.59 $6.81
Chile $19.85 $15.6
Peru $10.95 $8.43

Offshore Developer Salary in Asia (Average Hourly Rate)

Countries Average hourly rate
China $24.76
Bangladesh $4.73
India $5.32
Nepal $2.14
Sri Lanka $4.61
Kazakhstan $8.35
Uzbekistan $6.5


Through the comprehensive process described above, we have gained insight into the growing demand for offshore software development teams and the numerous advantages they offer. We have presented convincing reasons for partnering with such teams and provided valuable resources for locating them. 

Offshore software development services provide a viable solution for those seeking to expedite their time to market while maintaining high-quality standards.


Hire Offshore Developers – FAQ

Which country is best for offshore development?

Central and Eastern Europe, India, China, and South America are the most preferred global destinations for offshore software development services.

What is meant by offshore development?

Offshore software development refers to the practice of hiring a team located in a different country to develop software for your business needs. This process is a type of business outsourcing where the service provider is based in a foreign country.

What are offshore development services?

An Offshore Development Center (ODC) is a business model that can be used by both small and large companies. It involves creating a team of IT professionals who work remotely and are dedicated to supporting the company’s on-site team. This approach can help augment the existing team’s capabilities and provide additional support for business growth.

Why hire offshore developers?

By hiring offshore developers, companies can have a flexible and scalable team that can easily adapt to changing market needs. This is particularly beneficial for smaller companies looking to grow quickly, as it allows them to respond promptly to market demands.

What Companies Hire Offshore Developers?

Eight companies that hire offshore developers are – 

  • WhatsApp
  • Google
  • Amazon
  • Wise (formerly Transferwise)
  • BigCommerce
  • Ford Motor Company
  • Samsung
  • TCS (Tata Consultancy Services)


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