Checklist To Follow While You Hire Offshore Developers

By Guest Author | offshoring | November 17, 2021

Visualise. You are now participating in the popular startup programme, and you have exactly one month to create something entirely new and offer it to venture capitalists on Demo Day. You, on the other hand, lack technical skills for this specific feature or product and want assistance. Would you still not consider relying and trusting on outsourcing?

According to Faylor’s research, over 90% of businesses fail, with 10% failing within the first year. The majority of startups fail between years two and five, with 70% falling into this group. Soon they break their own financial loops and finally run out of support. Why? Unorganized financial tactics is the answer. 

Most businesses fail because they tend to avoid the risks of leaving their comfort zone. Yes, outsourcing might have its drawbacks, but despite that, the concept of offshore software development has been trending and leaving the remarks in the world with all its cost-effective yet smart outcome strategies! All you need to do is trust the process with the necessary designed steps.

This article might help you check the different aspects of your list before jumping directly to hiring professionals for your startup.

4 Inherent Characteristics of a Startup

Business Pace

The sooner a startup matures into a polished product, the sooner it will begin to generate revenue. As a result, it is critical to locate a team for the startup that will not be delayed.

Budget Restriction

How much does it cost to launch a business?

Because startups typically have a limited budget, you should avoid immediately renting pricey premises and purchasing cutting-edge computer equipment. Otherwise, the startup may fail to begin at this rate. Investors are not always ready to fund the development of a business, which means that you, as the entrepreneur, have no idea when the money will come your way again. Your objective is to make prudent financial decisions. Payroll is one of the most expensive starting expenditures, costing roughly $300,500 for five employees throughout the United States, according to data from Smart Asset.


The first criteria for product production are quality. If your product does not function properly, it will simply not be used. This is especially critical when selecting an offshore team for a company, as entrepreneurs have no right to make mistakes given the failure rate. Everything should operate without a hitch!

Innovation and technological advancements

Today’s market for technological goods is incredibly competitive, and if you want to create a really innovative product that will be utilised by thousands of people, you’ll need to locate offshore software developers that are conversant with emerging technologies and eager to apply them to your firm. Additionally, it is critical that the specialist is always informed of new technologies that may be utilised in the creation of your product. The more original and technologically advanced your product is, the more people will speak about it and get familiar with it.

That does sound like a test, doesn’t it? Is it possible to combine all of these characteristics into a single remote team? It is achievable, but you must understand how to locate an offshore staff to work on your business.

Reasons For Hiring Offshore Developers?

According to Deloitte’s Global Outsourcing Survey, 72% of businesses prefer software development outsourcing versus in-house development. The following are the reasons behind this:

It is a cost-effective technique for product development

According to Quartz, 46% of companies fail due to a lack of funding. This issue is unlikely to occur if you engage remote developers. You will save money on overhead expenditures such as office rent, payroll, insurance benefits, vacations, and recruiting fees, among other things. Rather than that, you will allocate cash to the most crucial domain – developing an MVP.

Additionally, because of the reduced cost of living, developers in offshore nations often charge far less than their peers in the United States and Western Europe. Hiring a specialised development team from Eastern Europe, India, or Latin America might cost up to twice as much as hiring one in the United States.

Enhanced productivity and time savings

Not only can an offshore development team decrease expenses, but it can also accelerate the development process, saving you valuable time. As you are probably aware, time is critical for any company, as each one is born into a competitive environment. Additionally, with a dedicated offshore software development team, you will save time on training new staff, since all talented developers and software engineers already possess the necessary abilities. Finally, you will save time by outsourcing project management chores and human resource operations like staff retention to a vendor development business. As a consequence, you will be entirely focused on work.

More talent than is available on-site

Hiring developers and IT outsourcing enable you to tap a bigger pool of talent than would be available on-site. For instance, the majority of offshore developers in California are already employed by technology behemoths. They earn big salaries, have appealing benefits, and feel reasonably safe and secure with their existing companies, but startups imply risk; hence, it is considerably more difficult to acquire engineers for a company in the United States of America. On the contrary, offshore nations in Asia and Eastern Europe are brimming with talented engineers eager to join your firm.


Scaling your in-house team or changing the technology stack to accommodate the project’s stage and scope will be hard. However, because such shifts are common in startup contexts, adaptability is critical. The good news is that high-quality offshore developers are adaptable and can simply be shifted between projects, particularly if you work with them through a development shop.

There are less disputes

Typically, startups are the outcome of personal interactions between co-founders that develop into commercial relationships. Due to the fact that business contacts differ from personal interactions, this might result in disagreements and misunderstandings. For instance, a guy you’ve known for years may exhibit a darker part of their personality while conducting business. An offshore software development company, on the other hand, can assist you in avoiding such disagreements throughout the MVP development stage.

Considering the growth of the software development industry nowadays, outsourcing development may help simplify your startup. After all, outsourced teams produced products such as Skype, Slack, and Github, among others.

Considering all these factors may smoothen your hiring process and help you hire developers in the best way possible.

Checklist To Follow While You Hire Offshore Developers

What Is Your Project and What Will It Require?

This is the first step you should do before you begin to hire offshore developers for your business. Once you get an idea, you instantly begin thinking about it and jotting down your thoughts. Thus, the project will begin as a dream and evolve into reality step by step, and you will have a better understanding of what you want and the needs of mankind that your product addresses. Hiring the best offshore developers enables you to properly define your requirements when employing an offshore workforce, and the resulting product will far surpass your expectations.


Naturally, you’ll need to establish a budget for your business. You’ll recruit a remote crew(e.g. project manager) for your startup on a budget basis. Here are some fundamental principles for budgeting: Bear in mind additional expenditures (licencing, probable business trips, additional equipment), sketch out your requirements item by item, and pay attention to the tiniest details (consider how you will govern working hours and pay that is common in IT industry – hourly or at the rate).

Choose the Country in Which You Would Like to Hire an Offshore Team for Your Startup

There are several offshore sites worldwide, each with its own set of pros and disadvantages. You should create a shortlist of nations that are the most ideal for you based on their time zones and less cultural differences, as well as their price/quality ratio in order to hire the best developers with soft skills and a proven track record.

The benefits of offshore teams for startups are self-evident, as are the difficulties that may arise while searching for an overseas team out of your office space.

Diverse Time Zones

This may be a significant difficulty if, for example, you are still working during the day but your team is already working into the evening or night, and you are unable to resolve a critical work issue instantly. To avoid such issues, discuss the work strategy in advance and then monitor its progress throughout the day. Additionally, if the startup’s offshore staff is located in Europe, a few hours will overlap with your personnel, therefore attempting to settle any difficulties during this period of overlap.

Inadequate Face-to-Face Communication

To some, this may appear to be a test, but to others, it is not. Given the pandemic’s current duration, this issue has gradually ceased to exist, and even Google has indicated that all employees would work remotely until spring 2021. However, if this is a concern for you, it may simply be addressed by organising daily online meetings to stay connected with your tech talent working remotely.

Numerous Offshore Team Options for Startups

That is quite a task! After deciding to recruit an offshore team, you are presented with a plethora of alternatives for nations, locations, firms, competency, experience level, and team structure, among others. Therefore, as previously said, pay attention to time zones and cultural similarities, compare price/quality ratios, narrow the list of countries and then firms to a maximum of ten, and study evaluations regarding these offshore companies’ collaboration.

Cultural Divide

To make collaboration with an offshore development team as comfortable as possible, hire a remote team from a country with similar cultural and managerial values to your own, for example, in the United States and Europe, the horizontal management model, in which all employees are equal; they are individuals who perform their jobs because they are interesting and help them develop. Personality, independent decision-making, and accountability are all included in the horizontal management approach. In Japan, for example, the vertical management paradigm, which establishes a clear hierarchy of who is the leader, who is middle, and who is bottom, ensures that the leader always has the last say.


Starting a business is not simple, and picking an offshore team is even more challenging. Now that you’re aware of the various obstacles you’ll face, work to prevent them and determine what your business truly requires. Establish a budget and then pick an offshore crew for your startup, depending on your requirements. Do not underestimate remote professionals; they provide several benefits, including increased quality and efficiency.