What Matters When You’re Searching For An Offshore Outsourcing Company

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When a promising idea lights up in your head, you start looking for the opportunity to bring it to life in a beneficial way. If we're talking about online startups, one of the paths leads to offshore IT outsourcing.

In some cases, such an approach facilitates saving the lion's share of the budget. But if you aren't an experienced entrepreneur, the task of selecting an offshore outsourcing company traditionally makes you feel puzzled

Let's get under the skin of the issue and find out which questions should be answered before you start cooperation with an offshore team. 

What an offshore IT outsourcing is and why it can be a rewarding choice for a startup

It's not a secret that the standard of living differs in various countries and it impacts the final cost of services you can get there. The US-located UX designers will charge more than their colleagues from India or China.

What Matters When You're Searching For An Offshore Outsourcing Company

This incoincidence wakes up an idea in entrepreneurs' heads to search for contractors overseas. So, when you're hiring specialists from other countries to perform some work or an entire project, it's called offshore IT outsourcing

When does it make sense to hire an offshore IT outsourcing agency?

Imagine you're planning to find a highly skilled UI/UX design team in order to create a prototype of your app. The US-based experts are used to pricing that spins around $120-150 per hour.

At the same time, employees from third-world countries are ready to perform this kind of work for $18-25 per hour.

So, if you multiply the number of hours the work requires by the hourly rates, you'll be impressed by the difference in the project budgeting. 

Sometimes you can acquire IT services for 3-5-7 times less money thanks to offshore IT outsourcing than it's available in your own country

So, if you're looking for a budget-friendly strategy for your young enterprise, offshore IT outsourcing can play a significant role in this game. 

But whether this parsimony is worth exploiting? What about the underwater rocks waiting for you on the way to the goals? Let's talk about the pros and cons of hiring experts overseas.

Hidden dangers of offshore IT outsourcing

It would be too pretty if the barrel of honey was absolutely safe. But, of course, there's a 

fly in the ointment when we're talking about cooperation with foreign teams. Let's point at the most sensitive of them. 

Different cultural codes

Cultural background matters. When it comes to building corporate communication, you can face some illusions and misconceptions, caused by mindset differences.

For example, you can feel disappointed with the style of working, if the foreign team doesn't respect deadlines and spends too much time with side activities

Another side of the issue is the necessity of understanding the psychological portrait of the final user. 

For UI/UX designers it's a critical requirement: people with a European mentality can feel unsatisfied with the Asian colorful palette of the product, and vice versa, strong and disciplined European design can be hardly accepted in the eastern part of the world.

To keep the end users satisfied, it's essential to take into account the coincidence of cultural definitions. 

Different time zones

Considering offshore IT outsourcing as an alternative for product development, entrepreneurs often underestimate the comfort conditions of communication due to the close daily regimes.

When you've got an insight about the project and you are eager to discuss it with the team but there's a deep night where they are located, it makes the creative process stuck.

Of course, there are always some exclusions. But before you sign up an agreement, find out whether the team will be available in a comfortable time slot for you

Communication with obstacles

China is known for its strong specialists in the IT industry, but there's a lack of those who can speak English fluently. India provides more experts with an appropriate level of language skills. 

Communication with obstacles

For a fruitful offshore IT outsourcing, excellent communication skills and fluent English are must-haves. Make sure that you and your contractor are on the same page before you set up an agreement. 

Ideally, when the level of comprehension is above average: you have the same sense of humor and aesthetic preferences. 

Where to search for offshore IT outsourcing services?

To answer the question, assess the complexity of the project and its main requirements.

If you're preparing to launch a simple product with a minimal set of complex functionality, you can invite contractors from countries with the cheapest prices.

For example, specialists from the Philippines can demonstrate sufficient skills for implementing standard features.

But if you're targeting an innovative product with unusual architecture and fresh, uncommon, and stylish design, pay attention to the countries with a high concentration of well-qualified engineers and designers. 

From this point of view, the place where you can discover valuable resources can turn out to be Eastern Europe. Why do its agencies deserve exploring? Judge on your own. 

Highly qualified IT specialists at lower prices

Many business people from developed countries find attractive conditions purposefully in eastern Europe: while the quality of work is the same as in the US, the cost is 30-50% lower

From the perspective of balanced pricing, it's an outstanding solution since you can exploit the most precious human resources and cut costs significantly.

For example, experienced American UI/UX designers charge about $150 per hour while equally skilled expert from Eastern Europe earns about $50 per hour. 

Close corporate culture and style of working

Cooperation with offshore IT outsourcing from Eastern Europe or nearby is usually linked to strong discipline and result-oriented processes

Close corporate culture and style of working

Work in agile methodology and demonstration of achievements in every sprint (two-three week timeline for the performance of concrete tasks) equips customers with control over the creative process and lets them correct it if needed. 

Effortless communication

Since many highly skilled experts have native-like fluency in English, they can flawlessly catch exactly what you want and explain any nuances of the implementation from the technical side.

It's very convenient when you can understand your contractor as if he were your country's citizen.

Add to all these benefits of offshore IT outsourcing in Eastern Europe close cultural traditions and partly coinciding time zones, and you will understand why many large enterprises like Google or Epam hire employees there

Moreover, it makes sense for small and average businesses. 

What type of cooperation to choose?

When making a decision to get in touch with foreign IT specialists, you can feel the splitting between two opportunities for collaboration: freelance experts or agencies. 

International freelance marketplaces offer to connect you with programmers, copywriters, and designers from any part of the world.

Internet resources like Clutch or Goodfirms are ready to provide you with fully staffed development agencies with excellent reviews and impressive portfolios. What fits better for offshore IT outsourcing? 

You can guess that the right decision depends on the uniqueness of your project.

So, if you need a simple landing page for testing your product on the internet, you possibly can entrust this task to the jack-of-all-trades from a freelance platform.

But if you have serious intentions towards your online business, lean in favor of an agency

You can invite a UI/UX design agency to perform this part of the work, and when the visual part of your product is ready, search for backend developers.

But the Purrweb practice says, it's more convenient for a customer and for the development team when you create the product with one agency: from the seed stage to delivering to the market.

Full cycle agencies let you bring your idea to life in short terms, as they are able to perform some types of work simultaneously.

And the second point, you don't need to share your project idea with a new team, but you continue cooperating with people who know your product as well as possible. 

Three tips to select a professional IT agency

When you're searching for an offshore IT outsourcing agency, pay attention to the next points. 

Three tips to select a professional IT agency
  • Check their portfolio on Behance. If the agency's works are recognized by the professional community, it's a good sign. It indicates they are tuned to work seriously and have a good basement for qualified service performance.
  • Check their corporate blog and read reviews on Good Firms or Clutch. So, you will see if you're on the same vibe and if the previous clients are satisfied with the results of cooperation. 
  • Trust your intuition. Sometimes a good company only starts to conquer professional heights, and if they have a great desire to work on your project but don't have the same work in their portfolio, it can be a win-win story: you get a contractor at a lower price, and they get experience.

To draw a bottom line: though offshore IT outsourcing is valued by the opportunity to cut costs, don't lose from view:

the talented team's services can't be too cheap. So, sometimes it's reasonable to stay the budget the same but to get more services of better quality for your startup enterprise. 

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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