Establishing offshore dev teams has become a real big trend among companies that seek to streamline their businesses by involving additional high-skilled staff in other countries. What does this model mean, however? What are its benefits? Does it have disadvantages and what are they? Let’s figure it out.
Giving it out
Engaging teams overseas for software development has long become a common practice for many IT companies – from small startups to major market players like Google and Facebook. It’s not a secret that almost all UK or US-based companies eagerly deliver a lot of programming jobs to external professionals in Ukraine, India, or Argentina. The reason is obvious: offshore specialists in such countries are skilled enough but much less expensive than those in Silicon Valley. In addition, this allows for increasing the company’s resources without multiplying the in-house staff.
Traditionally, in such cases, they go for outsourcing – a good old business model when you find on the globe an appropriate contractor capable of fulfilling your task and work with it on a project basis. However, today we have a strong alternative which in many cases turns out to be far more efficient and safe.
What makes them dedicated
Let’s be honest, no matter how ingenious the outsourcing developers are, they are still outsiders. In most cases, this does not interfere with cooperation, but there are some risks, which have been already described in numerous related articles. These people are not as engaged in your business as your in-house employees. Plus, who guarantees that they don’t steal your product idea or use your code for their own purposes? Nobody, including your lawyer.
All this led to the idea of creating a new model often called a dedicated dev team. Instead of giving trust to professionals from another company, you form your own offshore team of developers in a country with a good choice of high-class programmers. Of course, you do not do it yourself, since such a task is a serious challenge even for large companies. In the out staffing market, there is a sufficient number of providers who will take over the entire routine of organizing a team. For example, in Ukraine, you can contact Newxel. By the way, their blog about dedicated teams https://newxel.com/category/blog/ is very informative on this issue.
What are they actually doing?
Taking into account your demands, they will assemble from scratch a development crew of the best local profs. It is important that although recruiting is mostly their job, it is completely transparent to you. You personally make the final decision on hiring this or that employee. Next, they will provide an HR with the appropriate background who will be responsible for developing team spirit, increasing motivation, and implementing your brand culture.
The account manager will be a kind of bridge connecting the team and you. He will conduct regular one-to-ones with team members and report to you on what is happening in the team at the moment.
The contractor also takes care of all the juristic routines associated with company registration, taxes, monetary transactions, etc. They will also take over the technical side of the matter: will find a suitable office and get all the necessary equipment.
As a result, you get a fully customized team, which actually acts as your representative office in another country and which you directly manage, without being distracted by any kind of routine.
Boons of the model
Let’s summarize all the advantages that you will get from building your own offshore dev team according to the mentioned blog from Newxel. Then we will move on to its shortcomings if any.
It’s remote, but it’s yours
In fact, this is a general benefit from which all other pluses come. The team belongs only to you. This is not the case when guys get distracted by your project, try to quickly finish it, and switch to other tasks. They are fully engaged in the goals of your company and are interested in its growth as much as you are. Their specialists are integrated with yours, you do everything together.
While everything in the outsourcing team is going behind closed doors, here you directly manage the work processes – from hiring employees to coordinating the team’s work with daily online meetings, regular planning, etc.
This is one of the key points of this model. People from other companies do not have access to your codes and will not be able to use them for the benefit of competitors.
While in outsourcing it is not always easy to predict in advance how much the final product will cost, in this model the cost is calculated quite precisely in advance. It includes salaries and bonuses for employees, expenses related to office rent and all necessary equipment, and a fixed fee to the provider.
Flaws of the model
Nevertheless, as the blog about remote team says, this model also has features that can be attributed to minuses. Fortunately, it looks like there are only three of them.
You are in charge of the fruit
While in outsourcing you only give an assignment and evaluate the work done, here you are completely responsible for the result.
The second drawback is directly related to the first. With the new offshore department, you will have to spend more effort on managerial work.
It takes time
In outsourcing, you contact an already existing company. The offshore team needs to be built, organized and equipped from scratch. Therefore, this model is only nice for a solid cooperation. But in the long term, it will give all the benefits listed above.