How to Hire Offshore Developers in 2024: Avoid Common Mistakes in Remote IT Outsourcing
Slava Khristich
Vlad Nazarov
This article doesn’t just detail how to hire offshore developers; it comprehensively addresses all concerns and factors involved in hiring offshore developers and other IT specialists. Moreover, many of these concerns are equally relevant to nearshore software development services, such as those involving project outsourcing to Latin American countries.
A more crucial business inquiry would extend to “how to hire an offshore development team” and…
- How to circumvent scams and fraud.
- How to safeguard your sensitive data and intellectual property.
- How to prevent vulnerability regarding offshore software developers.
- How to ensure maximum commitment and outcomes when outsourcing your projects to offshore regions.
| ? At TATEEDA, headquartered in San Diego, California, we possess rich experience in operating our offshore developer branches—an R&D office in Ukraine, along with resources allocated across several other European countries. Since 2013, we have amassed over a decade of hands-on experience in hiring offshore programmers for our outsourcing services and U.S.-based clients. This breadth of experience empowers us to speak authoritatively on the subject. For example, our offshore testing team and software engineers in Ukraine have assisted one of our largest American clients—Travel Nurse Healthcare (name changed due to NDA)—in developing their travel nurse management product, reducing their budget pressure by cutting IT costs by over 40% compared to hiring onshore specialists. If you require an estimation for your project please contact us today → |
With rising living costs in developed countries, tech companies in the U.S. are increasingly looking for an offshore development team to cut costs and access a global talent pool. The push to hire dedicated offshore developers is not just for savings; it’s about project scalability, skill access, and quicker market entry.
The software outsourcing services market is set to hit USD 512.50 billion in 2024, with a forecasted growth to USD 777.70 billion by 2028, highlighting the significant investment in external talent. The U.S. leads this demand, especially for overseas developers for startups, projecting revenues of USD 185.50 billion in 2024. This shift towards offshore software development services underscores the opportunities presented by the global digital workforce.
? At the same time, numerous risks can deter you from outsourcing your software development to popular offshore countries. These risks include situations where certain offshore entities might misrepresent their capabilities, exaggerate their team size, or fabricate testimonials and portfolios. In more severe cases, they could take payment without delivering any work or presenting stolen code as their own.
However, if you understand how to mitigate and manage these risks, hiring offshore developers can become an extremely beneficial and strategic approach, leading your projects to success with an improved ROI. Let’s begin by exploring why offshoring holds great potential…
| ? Does TATEEDA offer offshore developers for hire? Absolutely! We can augment your existing staff with our pre-vetted employees or assemble a new dedicated team tailored to your needs. All our resources are senior specialists and engineers with exceptional technical and interpersonal skills. Our expertise extends to hiring offshore developers, QA testers, DevOps engineers, UI/UX designers, IT project managers, digital marketing specialists, and other IT professionals for offshore custom mobile development, custom web development, custom IoT system projects, and more. Please contact one of our representatives for a free, in-depth consultation: |
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Table of Contents
Why and Where to Hire an Offshore Software Development Team for Your Business or Startup
☑️ Budget Optimization for Startups: Opting to hire offshore programmers can significantly cut costs in product development. It’s worth noting that financial hurdles are a major stumbling block for many startups, with about 40% of startups faltering because they need more funds.
By choosing to hire offshore dedicated developer teams, you avoid hefty overheads like rent, salaries, and insurance, enabling you to focus on the core of your project—bringing your MVP to life. Additionally, software project outsourcing in Ukraine, along with countries like Brazil or Colombia, where the cost of living is lower, can significantly reduce your expenses—sometimes allowing you to cut your costs by 50% or more.
☑️ Cost Reduction for Mature Businesses: Established companies find a lifeline in hiring senior engineers from offshore regions for tasks like AWS cloud development, significantly slashing costs on complex projects to maintain financial stability.
By spreading operational expenses more wisely, including areas like offshore web-based system development, companies can free up resources for growth. Especially in sophisticated projects like Azure cloud development—which could cost a small fortune if developed onshore in the U.S.—this approach allows businesses to dream big without the financial burden.
☑️ Access to a broader talent spectrum: IT outsourcing significantly enhances your ability to quickly and affordably connect with experienced engineers, sidestepping the complex demands for equity shares and social benefits often encountered onshore.
Compared to the protracted process and narrow talent pool available in regions such as California—where developers are largely committed to well-established tech giants, enjoying competitive salaries and benefits—the scenario shifts dramatically when looking overseas.
In offshore areas, there exists a wealth of eager developers, ready to engage in startup projects with dedication and without the hefty compensation packages expected by onshore IT engineers.
Popular Destinations for U.S. Companies to Find Offshore Developers
Asian Countries: Countries like India and Vietnam are home to a substantial IT workforce, offering favorable conditions for American companies looking to find offshore developers. These areas are rich in a variety of programming skills at competitive offshore development service rates by country. However, pursuing web development offshore in these regions comes with its challenges.
Based on experiences some U.S. clients faced, issues like time zone differences, logistical hurdles, cultural disparities, and high staff turnover have been reported, each adding complexity to project management.
Eastern Europe (Ukraine, Poland, Romania): These countries are celebrated for their robust educational systems and technical capabilities, presenting cost-effective options compared to Western Europe and North America. Though the talent pool may be smaller and the development costs a bit higher than in Asia, the high quality of work stands out.
Ukraine, in particular, strikes an attractive balance between cost and skill, making it a compelling choice for U.S. clients seeking an offshore software developer. Additionally, the cultural and time zone alignment with the U.S. contributes to smoother project management and communication.
| Country | Frontend Developer | Backend Developer | Full-stack Developer | Mobile Developer |
| Ukraine ?? | $25 – $45/hr | $28 – $48/hr | $30 – $48/hr | $25 – $45/hr |
| India ?? | $15 – $30/hr | $15 – $32/hr | $18 – $40/hr | $15 – $35/hr |
| Vietnam ?? | $18 – $38/hr | $18 – $38/hr | $20 – $43/hr | $18 – $38/hr |
| Poland ?? | $35 – $65/hr | $35 – $65/hr | $40 – $70/hr | $35 – $65/hr |
Leading Tech Stacks in Offshore Development: Asia vs. Europe
When comparing Eastern European and Asian offshore destinations, specifically by analyzing Ukraine and India, we highlight the most popular and characteristic areas for offshore development within these regions.
Surveys reveal that in India, a significant 35% of developers prefer Python, indicating a strong inclination toward AI, ML, and IoT sectors. Java and C++ follow with 15% and 12% respectively, essential for enterprise software and complex mobile applications.
On the other hand, in Ukraine, the top skills according to developer preferences include JavaScript, with 19% of developers reporting its use, followed by TypeScript at 16.7%, and C#/.NET at 14.4%. These preferences underscore Ukraine’s focus on offshore web development, as well as backend and full-stack applications.
| Country | 1st Skill | 2nd Skill | 3rd Skill | Potential Industries |
| India | Python (35%) | Java (15%) | C++ (12%) | AI, ML, IoT, Enterprise, Mobile Apps |
| Ukraine | JavaScript (19%) | TypeScript (16.7%) | C#/.NET (14.4%) | Web Development, Backend, Full-Stack |
*This summary, based on industry surveys, aims to provide insights into the prevalent skills and potential industries served by developers in India and Ukraine, though it may not capture the complete diversity or preferences of all developers within each country.
Comparing Costs: The Price of Hiring Software Engineers Onshore vs. Offshore
Hiring remote software engineers reveals significant cost differences between onshore (the U.S.) and offshore rates.
Notably, in the U.S., experienced C# .Net developers, who are in high demand for telecommunications and enterprise-scale projects like CRM/ERPs, command hourly rates from $70 to $200 or more, not including bonuses or social benefits, which substantially increase the total cost.
Offshore developers, however, offer a more cost-effective solution. In Eastern Europe, C# .NET developers’ rates range from $30 to $40+, and in Asia, it’s $20 to $35.
? This cost-saving trend is consistent across various programming languages. For JavaScript developers, essential for web-based projects, U.S. rates span from $60 to $150 per hour, compared to $23-$33 in Eastern Europe and $15-$28 in Asia.
Flutter developers, pivotal in offshore mobile app development, also illustrate this trend with U.S. rates between $60 and $150 per hour, whereas Eastern Europe and Asia offer more affordable rates at $20-$35 and $18-$30, respectively.
Here’s a concise comparison table for a quick overview of hourly rates in the United States, Asian countries, and Eastern Europe including Ukraine:
| Developer Type | The U.S. | Eastern Europe | Asia |
| C# .NET | $70 – $200+ | $30 – $40+ | $20 – $35 |
| JavaScript | $60 – $150+ | $23 – $33 | $15 – $28 |
| Flutter | $60 – $150+ | $20 – $35 | $18 – $30 |
How to Hire an Offshore Software Development Team: A Step-by-Step Guide
Hiring an offshore software development team not only offers significant cost savings but also access to a global talent pool. By following a structured approach, clear communication, and careful planning, you can effectively extend your development capabilities, access specialized skills, and efficiently achieve your project goals.
1. Define Your Project Requirements
Clearly outline your project needs. Determine the scope, objectives, required technologies, and specific roles. If tech expertise is lacking, consider help from an outsourced CTO or software architect, especially important for SaaS products, mobile apps, or custom offshore software solutions.
2. Research Potential Offshore Development Teams
Identify strong IT talent regions like Eastern Europe and Asia. When aiming to hire an offshore development team, choosing partners known for reliability and expertise is crucial. Use platforms like LinkedIn, Clutch, G2, or GoodFirms for research.
3. Evaluate Their Expertise and Experience
Assess each team’s technical skills, project management capabilities, and experience. This step is critical if you need to hire offshore testing team members to ensure your product’s quality and reliability.
For additional insights, you might find this article on the top six .NET software development companies for the U.S. market useful. It provides a comparison of offshore software service companies that could help you make an informed decision.
4. Assess Communication and Cultural Fit
Ensure the team can integrate well with your in-house or freelance workforce. Effective communication and a good cultural fit are key to smooth interactions and collaboration. Additionally, consider the importance of time zone overlap to synchronize working schedules.
Achieving a suitable alignment of working hours can significantly enhance collaboration and ensure timely communication. Here’s a table that compares time zones in Ukraine and India with both coasts of the United States, illustrating potential overlaps:
| Location | Time Zone | Overlap with EST (New York) | Overlap with PST (Los Angeles) |
| Ukraine | EET (UTC+2/UTC+3*) | 7 hours ahead | 10 hours ahead |
| India | IST (UTC+5:30) | 10.5 hours ahead | 13.5 hours ahead |
| Eastern US (EST) | Eastern Standard Time (UTC-5/UTC-4*) | — | 3 hours ahead |
| Western US (PST) | Pacific Standard Time (UTC-8/UTC-7*) | 3 hours behind | — |
5. Discuss the Project Scope and Requirements
With potential partners shortlisted, engage in detailed discussions about your project. Contact each company personally to test their communication skills and their fit with your project vision. Involving another experienced IT specialist by your side can make these discussions more productive.
6. Plan for Security and Intellectual Property Protection
Ensure your offshore team has robust security protocols and policies for intellectual property protection. Agree on non-disclosure agreements (NDAs) and intellectual property rights (IPR) arrangements.
7. Finalize the Contract and Onboard the Team
Finalize contract details, including payment terms, milestones, and legal agreements. Then, proceed with onboarding the team, setting up communication channels, and integrating them into your project management tools.
8. Establish Regular Communication and Updates
Set up a structured communication plan that includes regular updates, meetings, and progress reports. Use tools like Slack, Zoom, and Jira to facilitate collaboration and ensure transparency throughout the development process.
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What is an Offshore Development Company and How Does It Work?
An Offshore Development Company (ODC) specializes in providing remote software services, often bridging various time zones. Such companies are ideal for businesses looking to hire offshore web developers, as they offer extensive expertise in custom web development services.
Additionally, they cater to those seeking to hire offshore app developers, with a focus on mobile platforms, and they cover a wide array of other IT services. Skilled developers from ODCs work on projects from the initial requirement gathering to the final deployment, maintaining continuous communication and offering regular updates throughout the development cycle.
? For companies aiming to hire offshore developers, managing remote teams can pose challenges, especially in overseeing vendors that are based overseas.
A viable approach to mitigating these issues is to partner with an ODC that operates offshore and has an established office within the U.S., along with executive staff on-site at both domestic and remote locations. This setup ensures direct communication with the ODCs, which is critical for efficient project management.
Below is a table that outlines these different ODC service models:
| Vendor ODC | Operated by a third-party; manages all setup and provides ready-made solutions for projects. |
| Project-Based | Creates teams tailored to projects, offering flexible, cost-efficient resources that disband after completion. |
| Staff Augmentation | Provides temporary expertise to address skill gaps, integrating with existing in-house teams. |
| Customer Model | Ideal for large companies, operates as a subsidiary with full-time staff and local senior management. |
| Contractor Model | Offers offshore contractual experts for specific projects, allowing for easy scale-down when needed. |
Advantages & Disadvantages of Hiring Offshore IT Resources Independently vs. Outsourcing Agency
When it comes to expanding your team, hiring offshore developers independently can be a double-edged sword. While it may appear to be cost-effective, bypassing an outsourcing company to directly hire remote employees introduces a layer of complexity.
Vetting candidates, ensuring their reliability, and managing them from a distance can be fraught with challenges. Remote communications may suffer due to language barriers and cultural differences, potentially leading to misunderstandings and project delays. Moreover, coordinating across time zones adds another hurdle, potentially disrupting workflow and efficiency.
Conversely, partnering with an established IT outsourcing company with an extensive outsourcing development portfolio can alleviate these risks. Such companies are adept at navigating the nuances of global recruitment and can manage the entire hiring process for you.
| Hiring Aspect | Independent Offshore Hiring | Outsourcing Company Hiring |
| Cost | Potentially lower initial costs due to direct negotiation. | Higher initial cost but includes project management and QA, often leading to long-term savings. |
| Skill Access | Access to a global talent pool, but requires self-managed vetting and recruitment processes. | Expertise in global recruitment, providing access to pre-vetted, specialized talent. |
| Project Management | Self-managed, which can be challenging with remote teams. | Professional project management included, ensuring streamlined and efficient processes. |
| Quality Assurance | Responsibility falls on the hiring company, requiring additional resources. | Dedicated QA teams are included to meet standards and requirements. |
| Time Zone Management | Coordination challenges can disrupt workflow. | Experienced in managing cross-time zone collaboration effectively. |
| Cultural Integration | Potential for misunderstandings due to cultural and language differences. | Skilled in cross-cultural management, reducing communication barriers. |
| Quality of Work | Concerns over consistency and meeting deadlines due to distance management. | Established processes ensure consistency and adherence to timelines. |
| Administrative Overhead | High, due to handling recruitment, management, and compliance independently. | Reduced, as the outsourcing company handles the administrative tasks. |
Avoiding Pitfalls: Key Mistakes to Steer Clear of When Hiring Offshore Developers
When hiring offshore developers, especially for the first time, there are several key mistakes you’ll want to avoid to ensure a smooth and successful partnership:
- Not Defining Clear Project Requirements: Without precise project specifications, it’s difficult to find a team that aligns with your needs.
- Inadequate Vetting and Reference Checks: Skipping thorough due diligence on the offshore team’s past work and client satisfaction can lead to partnering with a less-than-reputable provider.
- Underestimating Language and Cultural Differences: Failure to consider communication styles and cultural nuances can create misunderstandings and affect project flow.
- Disregarding Time Zone Challenges: Overlooking the complexities of coordinating across different time zones can lead to inefficiencies and frustration.
- Overlooking Legal and Security Measures: Not securing proper contracts, including NDAs and IP rights, exposes your project to unnecessary risks.
- Focusing Solely on Cost: Prioritizing low rates over quality can result in substandard work that may cost more in the long run.
- Neglecting the Integration Process: Not properly integrating the offshore team into your existing processes can cause disconnects and impede project progress.
Keeping these considerations in mind can greatly enhance the outcome of your offshore hiring efforts and help you build a robust, effective international team.
Hire Offshore IT Specialists with TATEEDA GLOBAL
Headquartered in the vibrant tech hub of San Diego, California, TATEEDA GLOBAL offers comprehensive offshore and nearshore IT staffing solutions. We provide augmentation services and craft dedicated remote development teams tailored to the unique needs of each client, for both short-term and long-term projects.
Our approach is designed to help clients avoid the extensive costs and complexities associated with recruitment and HR processes. At TATEEDA GLOBAL, we pride ourselves on our in-house team of seasoned professionals. We do not rely on freelancers or gig workers; our commitment is to quality and consistency, which is why we only employ pre-vetted senior developers and specialists.
Our talent pool is diverse and skilled, encompassing a range of expertise to meet the dynamic needs of the tech industry:
- .NET C# Developers adept in creating robust, scalable applications.
- QA Engineers, dedicated to maintaining the highest quality standards through rigorous testing protocols.
- Azure Developers experienced in cloud infrastructure and solutions.
- AWS Developers skilled in harnessing the power of Amazon’s cloud services.
- Full-stack Web Developers capable of handling both front and back-end development.
- Frontend Developers who bring the latest UI/UX designs to life.
- Backend Developers to ensure your server, database, and application communicate effectively.
- JavaScript and Angular developers to create dynamic and responsive web applications.
- Software Architects for strategic technological planning and design.
With TATEEDA GLOBAL, you gain access to a full spectrum of IT expertise without the overhead of managing a recruitment process, ensuring that your projects are powered by top-tier talent.
