Magic Ingredients To Get Outsourced IT Working In Your Software Company

Andy Charters
.
August 18, 2023
IT Outsourcing

Are you looking to outsource your company’s software development projects? Well, that's a great decision. Outsourcing is now more common than before, especially among startups. While some adopt the practice simply to cut down part of their operational cost, others outsource for flexibility and faster turnaround time. Regardless of the reason you have decided to push some or all of your tech operations to an external team, you undoubtedly want the move to work out well for you.

Here at Cloud Employee, we’ve seen the immense improvement in our client’s operations in terms of workforce efficiency thanks to our premium offshore staffing solution. With this article, we’ll run you through some of the ingredients that'll get you the best out of outsourcing.

In the end, you'll have a better understanding of outsourcing, what to expect from offshore talent, and overall, how to be successful with your decision to hire an offshore development team.

What is Outsourcing?

Outsourcing simply means giving some of your business operations to an external firm to execute on your behalf. The reasons include saving money, increasing the speed of project completion, shortage of specific IT skills, etc. However, on top of that list is saving money. It's often common to think that once you talk about outsourcing, it automatically involves going offshore. It's not always the case.

While lots of companies leverage on the exchange rate difference between the American dollar and the currencies of many developing nations, money isn't the only factor or reason why business owners source for talent thousands of miles away. Understanding these reasons ensures you get the best out of your decision to outsource.



Tips For A Successful Offshore IT Development Firm

Identify your approach

As earlier said, saving money is at the top of the list when it comes to outsourcing for most companies. That's because cutting down costs will impact your profit in the end. Now, getting people to design software for cheaper wages is just one approach. That shouldn't lead you right down the route of looking for a bunch of talents. Lack of proper planning is like pointing a loaded gun in the wrong direction.

You need to determine the aspect of software development you want to allow the external team to handle. You can outsource the task based on the skill you lack in your company. Also, it makes sense to outsource some jobs while it's ideal or safer to leave some tasks with the in-house team.

For example, there may be parts of the project that require alteration or fine-tuning. It'll be a lot easier to communicate and integrate any changes with the team closest to you.

Also, you have to determine the number of extra hours the offshore team will add to the timeline to make the project complete. All of these put together will make it easy to establish a budget. The last thing you want to do is throw money away on a hiring-binge

Make known the specs of your project

This next tip is particularly essential when you have a long term project. It might sound like a cliché, but it's crucial to let your offshore team know the delivery date of your project.  Let's assume you understand the strategy of setting a date earlier than when you want the project. This way, the offshore team will likely have the project ready way before schedule, since you would have factored in any delay or breaks, such as developers calling in sick.

It might be best to split long/large projects into smaller milestones. This is the best time to give a detailed explanation of what you want. If you are a tech expert yourself, point out the exact programming language you want to use. On the other hand, if you are a novice, it's even more ideal to discuss what to expect at the end of the project or each milestone.



Select the vendor & location

A software development project may be short term, e.g. a few days or a week. It's easy to pawn that off to a trusted freelancer. However, if you have a massive project that could last many months, you need to understand that you are entering a partnership. Therefore, you’ll likely need a team and you don't want to select them just from anywhere. In that case, you can either choose by recommendation or from a trusted website like Toptal, Upwork, etc.

In terms of location, some countries are known for low wages no doubt, e.g. Thailand. However make sure you are not entering into a deal with an agency that won't deliver situations outside their control such as electricity shortage, poor cellular network, violent uprisings, kidnapping, etc.



Five Things To Expect From An Offshore It Development Firm

   1. Do they have the IT talents you need

Top on the list of things to expect from the offshore vendor you are about to hire is that they meet your requirement in terms of tech talent. If you are a developer as well, you can ask for a one-on-one interview with the developers to ascertain their level of competence.

   2. Ensure language won't impair communication

Whether you'll be managing the team directly or there's an intermediate manager in place, your offshore team must be able to communicate in your chosen language and channel, e.g. email, phone call, Skype, etc.

   3. Ensure they are open to signing a Non-disclosure agreement

In the course of working for you, they'll likely have access to confidential data or information. It cannot be overemphasized how much you need to enforce a non-disclosure agreement. It will protect the intellectual property contained in the project.

   4. SLA (Service Level Agreement)

SLA ensures your offshore team operates and delivers according to certain standards and time frames. You should expect an SLA from a reputable vendor as it guides the project journey. A typical SLA should contain the maximum time to respond to emails, check-in time, report submission, etc.

   5. Extra support

You are probably going to be thousands of miles away from your offshore team; it may be best to have a dedicated project overseer/manager. Not only that, it reduces the stress of managing the team, but a project manager will also be responsible for the prompt delivery of projects as he'll likely know the team better than you.

Final Thoughts

Software development outsourcing has tremendous benefits, but it can also come with some risk. However, knowing what to expect; proper planning, putting in place your expectation, and an NDA to protect confidential information is necessary. With this, you'll get the best out of your decision to hire an offshore team.

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Full stack RoR/VueJS Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Fullstack Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Remotely
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Full Time
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Fullstack .NET Developer

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Remotely
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Full Time
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Lead/Senior Frontend Developer (UI/UX) - Brazil

Cloud Employee is a UK-owned business established eight years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

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Remotely
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Marketing Specialists

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Remotely
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Backend Developer (Python)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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WORK LOCATION
Remotely
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Full Time
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Senior Full-Stack PHP Developer

Cloud Employee is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

POST DATE
January 2, 2024
WORK LOCATION
Remotely
JOB TYPE
Full Time
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Magic Ingredients To Get Outsourced IT Working In Your Software Company

February 16, 2024

Are you looking to outsource your company’s software development projects? Well, that's a great decision. Outsourcing is now more common than before, especially among startups. While some adopt the practice simply to cut down part of their operational cost, others outsource for flexibility and faster turnaround time. Regardless of the reason you have decided to push some or all of your tech operations to an external team, you undoubtedly want the move to work out well for you.

Here at Cloud Employee, we’ve seen the immense improvement in our client’s operations in terms of workforce efficiency thanks to our premium offshore staffing solution. With this article, we’ll run you through some of the ingredients that'll get you the best out of outsourcing.

In the end, you'll have a better understanding of outsourcing, what to expect from offshore talent, and overall, how to be successful with your decision to hire an offshore development team.

What is Outsourcing?

Outsourcing simply means giving some of your business operations to an external firm to execute on your behalf. The reasons include saving money, increasing the speed of project completion, shortage of specific IT skills, etc. However, on top of that list is saving money. It's often common to think that once you talk about outsourcing, it automatically involves going offshore. It's not always the case.

While lots of companies leverage on the exchange rate difference between the American dollar and the currencies of many developing nations, money isn't the only factor or reason why business owners source for talent thousands of miles away. Understanding these reasons ensures you get the best out of your decision to outsource.



Tips For A Successful Offshore IT Development Firm

Identify your approach

As earlier said, saving money is at the top of the list when it comes to outsourcing for most companies. That's because cutting down costs will impact your profit in the end. Now, getting people to design software for cheaper wages is just one approach. That shouldn't lead you right down the route of looking for a bunch of talents. Lack of proper planning is like pointing a loaded gun in the wrong direction.

You need to determine the aspect of software development you want to allow the external team to handle. You can outsource the task based on the skill you lack in your company. Also, it makes sense to outsource some jobs while it's ideal or safer to leave some tasks with the in-house team.

For example, there may be parts of the project that require alteration or fine-tuning. It'll be a lot easier to communicate and integrate any changes with the team closest to you.

Also, you have to determine the number of extra hours the offshore team will add to the timeline to make the project complete. All of these put together will make it easy to establish a budget. The last thing you want to do is throw money away on a hiring-binge

Make known the specs of your project

This next tip is particularly essential when you have a long term project. It might sound like a cliché, but it's crucial to let your offshore team know the delivery date of your project.  Let's assume you understand the strategy of setting a date earlier than when you want the project. This way, the offshore team will likely have the project ready way before schedule, since you would have factored in any delay or breaks, such as developers calling in sick.

It might be best to split long/large projects into smaller milestones. This is the best time to give a detailed explanation of what you want. If you are a tech expert yourself, point out the exact programming language you want to use. On the other hand, if you are a novice, it's even more ideal to discuss what to expect at the end of the project or each milestone.



Select the vendor & location

A software development project may be short term, e.g. a few days or a week. It's easy to pawn that off to a trusted freelancer. However, if you have a massive project that could last many months, you need to understand that you are entering a partnership. Therefore, you’ll likely need a team and you don't want to select them just from anywhere. In that case, you can either choose by recommendation or from a trusted website like Toptal, Upwork, etc.

In terms of location, some countries are known for low wages no doubt, e.g. Thailand. However make sure you are not entering into a deal with an agency that won't deliver situations outside their control such as electricity shortage, poor cellular network, violent uprisings, kidnapping, etc.



Five Things To Expect From An Offshore It Development Firm

   1. Do they have the IT talents you need

Top on the list of things to expect from the offshore vendor you are about to hire is that they meet your requirement in terms of tech talent. If you are a developer as well, you can ask for a one-on-one interview with the developers to ascertain their level of competence.

   2. Ensure language won't impair communication

Whether you'll be managing the team directly or there's an intermediate manager in place, your offshore team must be able to communicate in your chosen language and channel, e.g. email, phone call, Skype, etc.

   3. Ensure they are open to signing a Non-disclosure agreement

In the course of working for you, they'll likely have access to confidential data or information. It cannot be overemphasized how much you need to enforce a non-disclosure agreement. It will protect the intellectual property contained in the project.

   4. SLA (Service Level Agreement)

SLA ensures your offshore team operates and delivers according to certain standards and time frames. You should expect an SLA from a reputable vendor as it guides the project journey. A typical SLA should contain the maximum time to respond to emails, check-in time, report submission, etc.

   5. Extra support

You are probably going to be thousands of miles away from your offshore team; it may be best to have a dedicated project overseer/manager. Not only that, it reduces the stress of managing the team, but a project manager will also be responsible for the prompt delivery of projects as he'll likely know the team better than you.

Final Thoughts

Software development outsourcing has tremendous benefits, but it can also come with some risk. However, knowing what to expect; proper planning, putting in place your expectation, and an NDA to protect confidential information is necessary. With this, you'll get the best out of your decision to hire an offshore team.

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