Hiring an offshore team is an appealing idea, it can save costs and increase efficiency. However, the possibility of critical mistakes while trying to establish your team away is high. Many companies repeat the same mistakes and follow the wrong advice. In this article, we will analyze the most common mistakes management makes while hiring offshore developers. 

1. Using the wrong technology

Monitoring:  controlling and monitoring developers requires suitable technology and approach. On the one hand, they should be feeling a sense of belonging and not over-monitoring- this will affect their satisfaction in the company/ project. On the other hand, it must be balanced in order for your company not to lose control and track. 

2. Focusing on costs only

 Outsourcing development is not a decision of numbers only, a simple comparison between salaries won’t guarantee the quality of results. Outsourcing companies often provide very attractive packages at a fixed cost or cost per hour of development. In reality, those types of packages are a real-time danger to the success of your company. This means that no distinction is done among developers based on skills and seniority. You might need a senior software architect but eventually, without your acceptance, a junior engineer is taking the lead. 

A common misconception is that a lower starting price will guarantee cost savings. Without achieving high-quality results, reduced payments have no meaning.  Remember that ROI won’t occur just by the action of outsourcing. In order to be able to save costs and at the same time guarantee quality, it will be crucial to choose a reliable and experienced partner. A reliable partner will walk you hand by hand and will not try to sell you “charming ideas on paper”. 

3. Compromising on proven skills

The level of developers you are considering to hire should never be lower than your home country based team. Many times companies hire developers in Ukraine/ India because they are close enough to meet coding capabilities required for the job and the screening process of candidates is completely technical. 

Our advice is to start slowly and invest in the process: any collaboration at Pillar starts with creation of a detailed job description, identifying all the skills and qualities required in order to deliver the results. Moreover, we apply trial periods in order to make sure that there’s a perfect fit. It might be difficult to test developers if you are considering establishing your own team but experienced sourcing companies might be able to provide this service. In countries like Ukraine the turnover of developers is lower than in financially strong countries. The high retention rate could be an amazing benefit especially if you hire the suitable people from the beginning.  

4. Not creating a strategy for retaining employees 

The competition is high and you should acknowledge that there is no exclusivity and developers particularly Ukraine are getting offers on daily bases. A common mistake is to consider the offshore team as a commodity- those developers require the same level of attention and “pumpepring” if you want to keep them satisfied and working for you. Our strategy is to provide benefits, training and professional development courses to our developers. Moreover, it is important to have an on site team to support the different HR needs. 

5. Counting on recruiting companies to find Talent for you 

Counting on external recruiters in forgein countries can be very tricky. We have observed a standard process of employees leaving in a short period of time, typically around 3 months in Ukraine. While you have already paid a high fee, you don’t enjoy the benefits of the investment. 

This situation is common as for many external agencies working with forgein clients, the main focus is on the fee only. Of course it is not the rule, but many agencies don’t invest in long term collaborations. 

6. Choosing project-based outsourcing companies

This is an available option for outsourcing services, however, you will not benefit from employees’    engagement and might find problems aligning with timetables.