What is Offshoring? Outsourcing services can be divided into three categories: onshore outsourcing, nearshore development, and offshore outsourcing.
1- Onshore outsourcing involves working with a vendor from a different company within the same country and allows companies to access the services they need without hiring an in-house team.
2- Nearshore development involves working with a vendor in a nearby country that operates in a similar time zone and is geographically close. This allows companies to hire technical experts without building an in-house team.
3-Offshore outsourcing involves partnering with a vendor in a distant country, often in a different part of the world, and can be a cost-effective solution for companies.
How to get maximum productivity from the offshore team
Lay a Solid Foundation
When considering outsourcing, it is important to choose a reputable vendor. One way to do this is to research the company's profile on independent platforms such as Clutch and GoodFirms, where you can find verified reviews from customers and learn more about the company's expertise and past projects. It is also a good idea to conduct technical interviews with potential team members and assess their English proficiency, as effective communication is important for the success of the project.
Choose a Proper Cooperation Model
IT outsourcing vendors offer different cooperation models with varying pricing. There are typically three main pricing models to choose from: Dedicated development team: In this model, you hire a team of experts that work exclusively on your project for a set period of time and regularly update you on progress. This model is often cost-effective because you get a wider range of services for a longer period of time. Fixed price: This model is suitable for smaller, shorter-term projects. You define the scope of work, a fixed price, and a delivery timeline in a contract with the vendor. Once the agreed upon time is up, the development team will no longer make changes to the product. Time and material: This model is a good option when it is difficult to estimate the amount of work to be done, the services needed, and the time required to complete the task. Instead of a fixed price, you pay for the amount of work that is done based on an agreed upon rate for different types of services.
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Set Clear Delivery Expectations
Establishing clear expectations is crucial for the successful and timely delivery of a product. It is important to be transparent about your expectations for quality, team size, and the services that need to be outsourced in order to avoid unexpected costs and delays. A clear agreement outlining rules for working management, invoicing, communication, and progress tracking can help ensure the success of the project.
Hire a Project Manager
If you are unable to directly supervise the team, it is important to have someone oversee their work on your behalf. A project manager can organize and monitor the development process, suggest solutions based on their experience, and serve as a mediator between the client and the development team. They can help simplify the workflow, especially if the client lacks technical expertise. The project manager serves as a bridge between the client and the development team, able to communicate effectively with both parties.
Evaluate the Progress and Provide Instant Feedback
Even with mutual understanding and trust, it is important for clients to regularly evaluate the progress of the project. Time tracking software and project tracking tools can be used to assess how much time the offshore team is spending on each task. Some popular options for progress tracking include; Trello, Jira, and Kantree.
Foster communication
Effective communication is crucial for the success of outsourcing software development projects. However, working with a vendor in a different country or part of the world can present challenges. To improve communication, it can be helpful to choose a vendor with whom you share some overlap in working hours. You can also use tools like World Clock Meeting Planner to visualize time differences and establish regular times for meetings with the team. It is also important to consider language and cultural barriers. The National Outsourcing Association in the UK found that 75% of survey respondents said they would take culture into account more when outsourcing in the future. It can be helpful to evaluate any differences in organizational culture and values between your company and the vendor, and to ensure that the dedicated team has sufficient English proficiency.
Avoid the Risks
When working with a vendor, it is important to ensure that security measures are in place to protect personal and project-related information. This includes following GDPR regulations and limiting access to networks and databases. To prevent issues with code integration and bug detection, it is important to ensure that all teams involved in the project are using the same tools for development and testing. It is also a good idea to get all agreements and details in writing, including provisions for delays, additional payments, project timelines, and confidentiality.
Applying best practices for managing offshore resources isn’t as easy as ABC. It requires time, effort, money, and a reliable outsourcing partner. Safeshore offers profound expertise in building and managing productive and result-oriented offshore teams. We value our clients’ ideas, share up-to-date information about the development process, and provide regular financial reports. Every bit of your data is strongly protected, and every risk is assessed.
