How to Hire Offshore Software Developers

The only thing certain in these boisterous times is change and the winners of these complicated times are the businesses willing to adapt the quickest. No trend symbolizes that change more than the transition to offshore developers, which have grown to become quite the modern phenomenon in the new millennium.

 

According to Zippia, 80% of businesses report planning to outsource at least some portion or other of their work with large businesses being 128% more likely to do so than small businesses. This software development business model has helped many companies grow leaps and bounds, startups being no exception.

 

The biggest winners have been the leading developers in the IT world, including the likes of WhatsApp, Google, Amazon, and many more, outstaffing their jobs to Eastern Europe. From the very beginning, WhatsApp employed its software engineers in Ukraine starting in 2009. Just 5 short years later, Facebook saw no other choice but to buy up its competition for 16 billion dollars.

 

“Offshoring” is defined as the act of moving commercial activities off to a different country, typically away from a company’s headquarters. The appeals of this method of contracting programmers have become a trend mainly for two reasons:

 

1. 1. A broader portfolio of human resources
   2. Lower prices

 

As if it wasn’t popular enough before, the COVID-19 pandemic kicked the hiring of remote personnel up a whole other notch, as companies that hadn’t done so before had no option but to hire workers remotely.

 

Taking all this into account, it is important to learn the nuts and bolts of how to hire offshore developers for a startup. It’s not the most complicated thing in the world but by overlooking this crucial area, a company may fail to reap the benefits of this wise business decision.

 

The Benefits of Hiring Offshore Developers

 

Once you manage to find an offshore development team, you can begin to enjoy a breadth of major advantages for your company. The following include some of the main advantages:

 

Cost efficiency

 

Hiring offshore developers from countries such as India, Malaysia, or Ukraine offers dramatic savings compared to the cost of local or traditional hiring.

 

For example, the average monthly salary for ReactJS and Java developers in Ukraine is $5,500 and $7,000. Averages 35 USD/hour and 30 USD/hour in Eastern Europe and Latin America. This is about 2 times lower (11,000 and 13,000 USD, respectively) than the typical engineers make in the United States, let alone at Meta, where programmers average in the six figures. Hiring an offshore software development team from India to handle your iOS app development or Android app development will run you in the range of $20-$45 and $20-$35 per hour. One cannot help but consider the exciting areas where these funds could be reinvested.

 

Global Talent

 

Offshoring gives you access to a much larger pool of specialists. In fact, as of 2020, the total currently employable software developers worldwide, including such areas as India, Latin America, Eastern Europe, Africa, and East Asia number around 24.5 million people.

 

Skills and specialized knowledge

 

In hiring an offshore software development team, companies have the choice among truly sharp masters of their craft with in-depth knowledge that the business would otherwise be hard-pressed to find at home. In addition, by hiring such an expert, companies save themselves the time and money of having to train local personnel, which in many cases is impossible to afford.

 

The size of the global market and the talent that exists is awe-inspiring indeed, totaling at 245.91 billion per year. However, choosing the wrong market or onboarding the wrong engineers could cost a company more in the long run if done without forethought and without doing one’s due diligence.

 

Challenges of Offshoring

 

Opening up access to untold goldmines of professionals scattered across the globe and saving you over two-thirds of your budget is certainly appealing, but it doesn’t come without its downsides. Here are the main challenges you’ll have to prepare for in making the transition.

 

Different time zones

 

The time difference may pose an inconvenience if done without adjusting for this issue in advance. Otherwise, you may need to contact your software development team during their off hours, or conversely, they may be the ones needing to clarify a detail or two while you’re in bed and unable to respond.

 

Fortunately, regardless of the time zones your teams live in, this has long been addressed by project management tools, establishing work flowing, Agile methodology, and a smorgasbord of other crafty tools, which ensure that progress is always moving without a halt.

 

Language barrier

 

Communication issues may well arise when endeavoring to hire a person or a group of professionals from another country who may be located on another continent.

 

For that reason, ensuring that both your company and the offshore developers speak a common language that allows them to communicate clearly and promptly is a must. Globally, that language is typically English. Communicating the bulk of the work to be performed clearly and succinctly in writing handles this problem for the most part.

 

Cultural and social differences

 

Having a team locally and another one offshore can mean cultural challenges and challenges in connecting early on. With this in mind, it is vital to become better acquainted with each other’s customs to build camaraderie and ensure that these differences prove positive, not negative. For instance, in the Middle East, where an engrained age hierarchy has a hold in the office environment as well, there may be difficulty with older employees taking orders from a younger middle manager.

 

Physical distance

 

When you find an offshore development team, determine whether any items or employees will have to visit the location. Is there any equipment you would need shipped there?

 

Lack of transparency

 

It is very important that a company is able to operate cohesively and company policy and hierarchy play a major role in that. For instance, if a company has a special procedure for proposing and authorizing expense disbursements, employees must be trained on how it’s done to streamline the company’s processes and eliminate confusion.

 

 

Offshore Development Models

 

There are two predominant models for offshoring software development: outsourcing and outstaffing. It is important to know the meaning of both in order to maximize the rewards a company can obtain from offshoring.

 

Outsourcing

 

Outsourcing entails hiring an offshore company to handle an entire project performed by its own team. For the most part, the client company speaks with the management of the offshore team rather than dealing with individual employees.

 

Outstaffing

 

In this case, the particular employees are more intimately connected to the main office’s team. The outstaffing model entails the services of an agency with professionals ready to hit the ground running at a moment’s notice.

 

Preparation Steps

 

Set your goals

 

One of the first steps in deciding how to hire an offshore development team is to set the goals for your project. The clearer you are on what goals you intend to achieve, the better of a position you will be in to plan to hit them.

 

Establish your budget

 

Establish your budget to determine what funds you have available for the development of your project. This will allow you to most wisely choose an offshore team and get the most out of the money you spend.

 

Learn the market

 

Carry out a little research and find out what your alternatives are on the market. Get the best programmers the world has to offer for the best value based on what your priorities are.

 

Compare tech stacks

 

You want programmers that are capable of managing the technology you already use and can code in the language you prefer. For this reason, a developer’s tech stack is a factor that cannot be ignored. If you are going to stay at the top of your industry, you need the best tools to be at your disposal.

 

Prepare a shortlist

 

With all the information you have collected in this phase, you can now verbalize a short list of your major software developer candidates.

 

Where to Find Offshore Developers

 

Freelance Platforms

 

There are many platforms currently offering outsourcing services. Visit them and check out the options they offer:

 

1. 1. Upwork
   2. Fiverr
   3. Freelancer
   4. Toptal
   5. People Per Hour

 

IT Outstaffing Agencies

 

There is also a wide variety of companies or agencies that offer IT outstaffing services. You can find information about these companies in the following directories:

 

1. 1. Clutch
   2. G2
   3. Upcity
   4. Cyber Infrastructure Inc.
   5. Skelia

 

Python Django Development Agencies

 

Should you need your project to be developed in Python Django, there is a broad selection of agencies like ours readily providing developers and developer teams.

 

Professional Social Networks

 

Social networks have emerged as a rich source of labor and business information. Both companies and programmers usually have accounts on these platforms to offer their services. LinkedIn is a verifiable goldmine.

 

Job Sites

 

Another source of information is job vacancy sites, where you can find ads professionals have posted offering up their services.

 

Online Forums

 

Specialized forums are a nifty talent niche in their own right. They are easily accessible and put their know-how on display in the fields you are looking for.

 

Locations to Find an Offshore Development Team

 

South America

 

South American professionals are highly sought after due to their experience and affordable rates. The best developers there can be found in Argentina, Brazil, Colombia, Mexico, and Panama.

 

Asia

 

The Asian continent has a wealth of qualified human resources for offshore software development. Countries like India, Malaysia, Vietnam, and Indonesia are the best bargains in this regard.

 

Eastern Europe

 

In this part of the world, Ukraine and Poland steal the show. Professionals from both nations are the most popular to hire and develop applications and projects earning them a spectacular reputation and prestige.

 

How to Choose an Offshore Team

 

It is important not to be blinded by the savings so as to not end up having to pay more in the end. It is crucial to choose an offshore team whose qualifications and qualities match up with your priorities and needs. For instance, is your project based on Django? Make sure that the new staff members have a background in it. Is language proficiency important to you? Make sure their English level is high.

 

Check out their portfolios

 

One of the best tells when it comes to how to hire offshore developers for a startup is looking through candidates’ portfolios and seeing the level they’re capable of performing at. It’s a good sign of what’s to come should you decide to hire them

 

Study their experience

 

Validating candidates’ expertise is vital. Experience breeds predictability and consistency. The more situations a programmer has been in, the more skills they have and the more quickly they can adapt to bottlenecks.

 

Our Client Outcomes

 

Read testimonials

 

The opinion of other clients is a godsend. These will serve as tips from other developer companies with similar needs to yours. This will guide you on crucial details early on, such as how promptly they do their job, what their attitude is like, whether they go the extra mile and all kinds of other qualities.

 

Finding out these previous experiences couldn’t come at a better time, as you are literally operating in uncharted territory. This will give you much-needed confidence and shorten the learning curve for operating in that country.

 

Check the pricing

 

This is one of the most key areas determining how to hire offshore software developers. As you verify or consult the talent your offshore candidates have, the rates of the programmers or programming teams are one of the biggest reasons for offshore jobs in the first place.

 

Conduct the first interviews

 

Based on all the information you have collected in the previous steps, you can start screening applicants in your first interviews.

 

Your first meeting is important. Through communication, various details will surface that will be very critical in deciding whether to move forward.

 

Pay attention to your candidate’s tonality in the interview, and as they respond to your questions regarding their experience in critical areas. Find out if they’ve developed a project similar to the one you need for your startup, and the finer details of how they did it.

 

If you notice too much rambling and wandering off-topic, you can take that to be a bad sign. An experienced professional typically communicates clearly, to the point, and displays profound expertise.

 

Ensure your requirements align

 

In this respect, make sure that your candidate’s professional interests and ambitions coincide with that of your company. Make sure not to hire a lone wolf or one who is uninterested in getting with your program.

 

Review your contract

 

This is the last step, however, it is just as important as the previous ones. You must meticulously check each clause or point of the contract before having it signed.

 

Meticulously validate the terms as to delivery time, security, as well as data confidentiality. Specify whom the property of the final product belongs to and how it can be handled, to avoid serious legal or financial issues later.

 

Advantages of PLANEKS as an Offshore Development Team

 

PLANEKS is a cutting-edge smart technology company with a focus on Python development, producing each custom development project from scratch and on an individual basis. Here are some of our proudest qualities.

 

Meeting deadlines

 

By choosing PLANEKS as your offshore software development team, you guarantee that all delivery deadlines will be met. This is due to the sense of responsibility our company’s professionals take and the pride they invest in everything that they create.

 

Reliability

 

The offshore software developers at PLANEKS are highly trained professional engineers with prestigious degrees. Programming and technology is what we spend all day on, first and foremost because we love them. For that reason, we produce top-flight quality only, no matter what.

 

Experience

 

PLANEKS has completed projects for over 100 clients across over 20 countries. Most of our software engineers have extensive experience and stay at the forefront of technology, constantly familiarizing themselves with new tools, tricks, and best practices in the industry.

 

Our Core Business Focus

 

We produce nothing but top-notch software to help launch startups to a hot start with total transparency, keeping our clients up on all the details in every phase of the development process.

 

We’ve completed projects not only for small companies and giants alike in the eCommerce, eSports, healthcare, and manufacturing industries in addition to financial institutions, media, B2B, tourism, leisure, and a number of other industries.

 

Prompt Response Time

 

We are available at a convenient time and always respond swiftly during our operation hours to the complete satisfaction of your needs. We also ensure that whatever issue arises is swiftly eliminated, ensuring that your product is operational at all times.

 

Risk mitigation

 

By choosing to hire the PLANEKS team, you will considerably minimize the major risks that your project faces. We are always quick to adapt and are well-versed on the latest technologies. Our engineers are among the best when it comes to planning ahead, adapting quickly when necessary, and securing you against any downtime or technical issues.

 

Reasonable prices

 

The value in the quality-to-price ratio that you get from PLANEKS is a major asset for your company. We will not only accelerate your growth in terms of technology and team size, but we will also strengthen all other areas of your business thanks to the finances you will retain.

 

Key Roles in an Offshore Development Team

To build and maintain a successful product, offshore development teams must bring together specialists across multiple disciplines. Each role focuses on the specific phases of development, covering the entire lifecycle from planning and coding to testing and deployment. As an entrepreneur, you should be aware of these roles to set realistic expectations, ensure proper communication, and evaluate whether your offshore partner is structured for success.

Software Engineers

At the core of any development team are software engineers. These tech professionals are responsible for writing clean, maintainable code and implementing the application’s logic based on technical specifications. Depending on the project’s complexity, they may specialize in front-end, back-end, or full-stack development. In offshore settings, such engineers are often highly experienced and capable of working across multiple time zones, adhering to Agile principles to stay aligned with the client’s goals.

Project Managers

Project Managers (PMs) play a vital coordinating role. They are responsible for establishing smooth communication between the offshore team and the client, tracking milestones, allocating resources, and mitigating risks. A strong PM keeps the project on schedule and within budget while turning business requirements into technical action items. Especially in distributed teams, a project manager’s leadership and communication skills are essential to prevent bottlenecks and misunderstandings.

Quality Assurance (QA) Engineers

QA engineers are tasked with identifying bugs and verifying that the software functions as intended. Such experts design test cases, perform manual and automated testing, and work cohesively with developers to handle issues. With offshore QA specialists, businesses benefit from continuous testing cycles that often extend outside their core business hours, accelerating time to release while meeting the high-quality standards.

UX/UI Designers

User experience (UX) and user interface (UI) designers contribute to the product’s look and feel. They conduct user research, design intuitive interfaces, and create interactive prototypes. Offshore UX/UI teams typically use collaborative tools like Figma or Adobe XD to stay in sync with clients, allowing real-time feedback and iteration. A strong design team ensures that your product combines the core characteristics, such as being functional, engaging, and user-friendly.

DevOps Engineers

DevOps engineers bridge the gap between development and operations. They manage deployment pipelines, monitor infrastructure, automate repetitive tasks, and ensure high availability of the software. Offshore DevOps teams can set up scalable, secure environments and enable faster, more reliable releases by integrating CI/CD (Continuous Integration and Continuous Deployment) practices.

Business Analysts

While not always comprised, Business Analysts (BAs) often bring significant value to offshore development setups. They gather requirements from stakeholders, clarify ambiguities, and help align business goals with technical decisions. Offshore BAs ensure that the team builds what the business truly necessitates, surpassing what was initially documented. Their presence significantly cuts the risk of costly rework and strengthens the link between vision and execution.

Cost Comparison Across Regions

When planning to work with an offshore development team, one of the first considerations is cost. Rates can vary significantly depending on the region, local market conditions, and talent availability. Gett acquainted with the average hourly rates across different regions to make informed decisions based on their budget, expectations, and required level of expertise.

Eastern Europe

Eastern Europe is one of the most popular destinations for offshore software development due to its balance of cost and quality. Countries like Ukraine, Poland, and Romania typically offer hourly rates between $30 and $60, depending on the seniority and specialization of the developer. This region stands out for its strong technical education systems, high levels of English proficiency, and time zone compatibility with Western Europe. Teams here are well-versed in Agile methodologies and have a track record of delivering complex software solutions for global markets.

Asia

Asia (particularly India, Vietnam, and the Philippines) remains a cost leader in the offshore development landscape. Hourly rates generally fall between $20 and $40, making it an appealing option for businesses seeking budget efficiency. While the lower rates can be attractive, differences in communication practices and time zones can require advanced project management effort. Nevertheless, many teams in Asia have matured their development processes and now offer specialized services at competitive rates.

Latin America

Latin America is increasingly popular for nearshore development by companies based in North America. Countries such as Argentina, Brazil, and Colombia typically charge $35 to $65 per hour. One of the key benefits of this region is the shared or overlapping time zones with U.S. businesses, which makes real-time collaboration more practical. Developers here are often chosen for adaptability, strong communication skills, and growing experience in cloud, e-commerce, and fintech solutions.

Western Europe & North America

Western European countries like Germany, the UK, and the Netherlands, as well as the U.S. and Canada, represent the higher end of the hourly rate scale. Developers in these regions often charge anywhere from $80 to $150+ per hour. Undoubtedly, the proximity and cultural alignment are valuable, but the significantly higher costs are often only viable for enterprises or mission-critical projects where minimal risk tolerance is a priority.

Let’s sum up the average monthly offshore software development rates by region in a comprehensive table.

Region	Countries (Examples)	Average Hourly Rate (USD)
Eastern Europe	Ukraine, Poland, Romania	$30 – $60
Asia	India, Vietnam, Philippines	$20 – $40
Latin America	Argentina, Brazil, Colombia	$35 – $65
Western Europe & North America	Germany, UK, USA, Canada	$80 – $150+

Please keep in mind that while cost is a critical factor, it’s not the only guidance within your choice. Time zone alignment, communication quality, development expertise, and cultural compatibility are equally important when choosing an offshore development partner. You should prioritize value over raw cost, which is guaranteed to result in better long-term outcomes.

Engagement Models Explained

Choosing the right engagement model is essential for maximizing the effectiveness of your offshore collaboration. Each model caters to diverse use cases and provides unique opportunities, depending on your project scope, timeline, and internal capacity. Their concept can help you define which setup aligns accurately with your project aims.

Dedicated Team Model

The dedicated team model provides a full-time offshore team that works exceptionally on your project. Thus, you achieve maximum flexibility and long-term value, especially for fast-advancing products or startups planning to scale. The offshore team becomes an extension of your in-house team, adopting your workflows, communication practices, and tools. It’s a smart choice for entrepreneurs seeking the maximum control over the development process and the ability to adhere to changes quickly within modifying priorities.

Project-Based Model

The project-based model suits businesses with clearly defined requirements, deadlines, and deliverables. You collaborate with an offshore vendor to complete a specific project from start to finish. The scope and cost are typically fixed, which helps you cut unexpected setbacks and optimizes budgeting. Nonetheless, this model provides less flexibility, so it’s less suitable for projects where requirements tend to change over time. It works excellently for one-off tasks, MVPs, or feature development with minimal need for ongoing support.

Staff Augmentation

Staff augmentation allows you to bring offshore developers into your existing team to fill skill gaps or scale temporarily. It’s a great way to boost capacity without committing to long-term hires. The augmented staff performs under your management and integrates into your daily operations. This model suits companies that have already assembled strong internal leadership and infrastructure but need specialized skills or extra hands for a limited time.

Legal and Security Considerations

Legal protections and data security measures should be prioritized, especially for businesses that operate within highly regulated domains. Such elements set the backbone of a trustworthy partnership and secure your company from risks that could derail your project or expose your business to liability.

Non-Disclosure Agreements (NDAs)

The Non-Disclosure Agreement (NDA) is a foundational legal tool to safeguard your information. An NDA legally binds the offshore team to keep your confidential information, such as business strategies, source code, and client data, private. Given the geographic and jurisdictional differences that often come with offshore partnerships, NDAs are widely applied to minimize the risk of unintended leaks or misuse. They also ensure a clear framework that defines what data is protected, for how long, and the consequences of breaches. Having an NDA in place establishes transparency and creates expectations from the outset.

Intellectual Property Rights

Protecting intellectual property (IP) is vital as well. Before the project implementation begins, contracts should explicitly confirm that all software, inventions, or creative content developed during the project belongs to your company. The clarity prevents disputes over ownership that can be costly and delay product releases. Without well-defined IP rights, you risk losing control over your proprietary technology or innovations. Ensuring IP ownership allows you to maintain competitive benefits and secure investment opportunities without legal uncertainty.

Compliance with Data Protection Regulations

Offshore teams often operate across various countries, each with its own data protection laws. In these terms, deeply comprehending and complying with regulations like the European Union’s GDPR, the U.S. HIPAA for healthcare, or other regional frameworks is a must. Compliance incorporates implementing secure data storage, encryption, and strict access controls. Besides, it requires your offshore team to audit their processes and be transparent about data handling regularly. In case you fail to comply with the set guidelines, this can lead to severe fines, reputational harm, and loss of customer trust. Consequently, you should take data protection into primary consideration, safeguarding both your users and your business.

Time Zone Management Strategies

Successfully managing time zone differences can significantly enhance collaboration with your offshore team. It requires solid planning and tools supporting synchronous and asynchronous communication to keep projects progressing smoothly.

Overlapping Working Hours

Schedule daily or weekly meetings during overlapping hours to create windows for live interaction. Even a small overlap of one to two hours is pretty sufficient to synchronize efforts, resolve blockers, and clarify priorities in real time. These shared hours promote stronger teamwork and prevent communication lags that may hinder progress. Planning tasks that require close collaboration during these windows maximizes efficiency.

Asynchronous Communication

Not every message requires an immediate response. Asynchronous communication through platforms like Slack, Trello, or Jira allows team members to update tasks, share documents, and provide feedback at times convenient to them. Using these handy solutions, you can reduce the pressure of synchronous meetings and let individuals work focused hours without interruption. Asynchronous tools also create a transparent audit trail of communication that can be referenced later.

Clear Documentation

Comprehensive documentation is a core part of bridging time zone gaps. Meeting notes, decision logs, project roadmaps, and task descriptions must be clear and accessible. As a result, when team members log in after hours, they have full context without needing to wait for clarification. Well-maintained documentation helps you handle any possible misunderstandings and maintain alignment despite physical distance and time differences.

Cultural Sensitivity and Communication

Cultural differences straightforwardly shape how teams communicate, approach problems, and interact daily. The following nuances allow you to proactively address the possible issues and build strong, respectful offshore relationships.

Cultural Training

Providing cultural training to both your in-house and offshore teams promotes empathy and awareness. Cultural norms such as communication styles, holidays, or attitudes toward hierarchy reduce the chances of unintentional offenses or misinterpretations. Training, in turn, encourages adaptability, enabling teams to work harmoniously despite different backgrounds and expectations.

Open Communication Channels

Create open, judgment-free channels for communication so that team members can express concerns and share ideas freely. Your team should feel psychologically safe so that they can collaborate more effectively and bring their opinions to the table confidently. Using video calls, chat apps, and collaborative tools creates multiple avenues for interaction, increasing transparency and rapport.

Regular Check-Ins

Scheduling consistent check-ins (both formal and informal) is a great strategy to maintain personal connections and team cohesion. Regular touch base allows you to monitor morale, uncover hidden challenges early, and celebrate successes. These moments build trust and show that everyone’s contribution is valued, building a positive team environment where all ideas are valued and appreciated.

Post-Launch Support and Maintenance

The completion of a software project is the primary step of its entire lifecycle. As part of the entire flow, ongoing support and maintenance aim at keeping your product resilient, efficient, and relevant in the current market conditions.

Bug Fixes and Updates

Post-launch, software inevitably requires bug fixes and updates to address unexpected issues and security vulnerabilities. An offshore team committed to responsive maintenance can quickly handle any arising problems before they impact users, minimizing downtime and preserving your brand reputation. Regular updates also keep the product compatible with newly emerging technologies and platforms.

Performance Monitoring

Monitoring software performance in real time is a solid technique your team can use to identify and address inefficiencies or errors as soon as they occur. They can track the key metrics such as load times, error rates, and user behavior to prioritize improvements and ensure smooth operation. Proactive performance monitoring supports scalability and user satisfaction.

User Feedback Integration

It’s also reasonable to listen to users after launch, which provides insights into how the software performs in the real-world ecosystem. This feedback should then be integrated into development cycles, allowing continuous enhancement of features and usability. Besides, you demonstrate responsiveness to user needs, achieving higher loyalty and long-term retention.

Frequently Asked Questions

 

What is the main advantage of offshoring?

 

The main advantage of this employment model is that the service can be obtained at much cheaper rates, compared to local contracting. It also comes with a much larger pool of talented applicants to choose from who are available to work when it’s nighttime at the region of the head office.

 

How much does offshore software development cost?

 

Rates vary according to the offshore software development team or professional you hire, and the size of the project. But the range for outsourcing rates across countries such as Vietnam, Colombia, Poland, and Ukraine is between $18 and $50, usually on the lower end, according to Glassdoor. This is substantially lower than that of programmers in the United States, UK, and Switzerland, who are now earning just below six figures on average.

 

Conclusion

 

Searching, finding, and hiring the services of offshore developers for a startup is by no means a complicated process. However, one mustn’t deceive oneself – it does require your due diligence. You must do a thorough, prudent job in the very beginning if you are to truly benefit from such a move.

 

Having professionals who dedicate themselves immersed exclusively in developing your project will yield incredible dividends in a short period of time. Remote hiring is worth the initial effort, as it will afford you the luxury of completely taking your mind off your application and concentrating solely on the key processes of your business.

 

By following this guide on how to hire an offshore development team, you’ll hire the right people and enjoy high-level development for your business along with extra money to redirect to the further growth of your business.