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Why Outsourcing Your Software Development Makes Good Business Sense

Business.com / Hiring / Last Modified: May 8, 2018
Image credit: Wright Studio/Shutterstock

Outsourcing software development overseas can help your business grow faster and provide more value. Here's what you need to know if you're considering offshore hiring.

Your customer base is expanding and your sales are increasing, so you want to take your company to the next level. To do this, you need to add new features to your software. You need to scale your products – fast. You need to improve your performance.

The challenge is, how do you get all of these things done?

You could hire a new in-house software developer, but there are a lot of advantages to going offshore and outsourcing this work to a freelancer or contractor. Hiring an experienced expert who knows what they're doing can bring tremendous value to your company, and save you a lot of money in the process.

Below are some simple, smart tips for hiring offshore software developers, even if you’re a non-tech CEO or human resource manager. But first, let’s look at why it makes sense to outsource software development rather than use in-house employees.

The Advantages of Outsourced Software Development

The first major advantage of hiring an offshore developer is the cost. Your top priority for your company is to nip your expenses in the bud and power your sales machine. With outsourced workers, you don’t have to worry about the overhead costs of rent, leases, office equipment, payroll taxes, etc. You also don’t have to pay employee perks that in-house employees often enjoy, like insurance and 401(k) plans. Instead, you can focus on serving your customer with great value, and put your money where your company needs it the most: product development, HR, or marketing.

You can also save a lot of money by looking for talent in certain regions of the world. This global map from Eastern Peak shows that software developers typically charge between $29 and $150 or more an hour, depending on their home country, skills and expertise. While U.S. and Western Europe-based developers command the highest rates, skilled workers from Asian and African countries only charge a fraction of the cost.

The second advantage of hiring an offshore developer is the attraction of new, diverse talent. Your next offshore software developer may come from any background, from any part of the world. You might be in U.S. and hire a India-based developer to build your programs, or you may be from Dubai and hire a talented software developer from Russia. The background, worldview, experiences, and expertise of those overseas talents add up to be a great asset to your company’s growth.

The final advantage is flexibility. You can hire an offshore software developer anytime when you want, asking them to create your software programs for the next week or two, instead of taking nearly 30 days just to hire an in-house employee, and spending thousands of dollars on recruiting and training. 

If the outsourced developer is what you were looking for, you can retain them for long-term projects. If not, you can easily let them go. This process is much easier with offshore contractors than with in-house employees.

Now, let’s look at better ways to hire an A-level software developer that will provide a ton of value for your company.

Three Ways to Hire an Offshore Software Developer

1. Employee referrals. This is the best way for a software company to tap top offshore software development talent. When your employee or freelance contractor refers someone to you, it’s because they know your company and think that the other person will be a perfect fit. Because of this, there’s a better chance that the partnership will work.  

2. Professional network. Seminars, conferences orprofessional networks like LinkedIn are all great avenues for hiring offshore talents that can work wonders for your company. It’s easier to get them on board, as you get to see them as themselves in these places, unlike in the formal settings of interviews. 

3. Freelance marketplaces. Rather than inviting your potential hire to come for an interview and wasting a lot of time, energy and resources on the recruiting process, hire an offshore developer via freelance marketplaces like Upwork. This way, you can simply ask for a paid trial service, and you can see the freelancer’s ingenuity, creativity, and skill set in real life. Then you can decide whether to hire them for future work.

Hiring software developers is challenging. You may have great vision, ideas, and software products that you want to build, but employing the wrong software developer can turn your business dream into a nightmare.

As a company, you need to cut costs, innovate, and move fast. That’s why you need smart developers to help you grow. And one of the smartest ways to hire overseas software developers is to focus your attention on those who have been referred to you by other contractors, those in your professional network, or those who have shown you their real-life work samples.

You’re minimizing your risk of bad hires and maximizing your chances of hiring the best of the best that can move your company to the top.

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