How to Hire the Perfect IT Outsourced Development Team

In today’s fast-paced digital landscape, businesses are constantly seeking ways to stay innovative. One strategy that has gained significant traction is leveraging outsourced development teams for IT projects. 

This approach offers numerous benefits, from cost savings to access to global talent pools. In this comprehensive guide of Newwave Solutions, we’ll explore the concept of outsourced development teams and why they might be the perfect solution for your next IT project.

1. What is An Outsourced Development Team?

An outsourced development team is a group of eligible employees hired by a third party to work for your firm on specific projects or tasks. Companies often choose to outsource business development tasks or hire an outsourcing team to capitalize on superior technical expertise that comes with the high overhead costs of a full in-house team.

The difference between an outsourced development team and an in-house team

In its most simple form, an outsourced development team is your offshore employees who are responsible for software development services. Such outsourcing development teams can provide services for various solutions including in the creation of basic smartphone or feature phone applications, through to large brave new enterprise software solutions..

Key characteristics of outsourced development teams include:

• Remote Collaboration
• Specialized skill sets
• Scalable workforce
• Project-based or long-term engagements
• Diverse geographical locations

With this knowledge of an outsourced development team and its usefulness, managers can make better decisions when managing this kind of teams. In cases where you need to hire an outsourced dev team for some particular project, or you are seeking to outsource development teams for permanent IT requirements, the benefits are quite obvious here.

2. Five Key Benefits of Hiring an Outsourced Development Team

Now that we’ve established what an outsourced development team is, let’s check out five compelling reasons why outsourcing might be the perfect solution for your next project:

Work remotely with your dedicated software development team for efficient project delivery

2.1. Speed Up Your Launch with a Ready-Made Team

Forget the time-consuming headaches of traditional hiring. Outsourced business development firms have a distinct advantage: a pre-built network of skilled professionals. This means that the team is selected strategically depending on just what the job that you are working on requires on the ground.  Here’s a breakdown of the traditional hiring approach vs. the outsourced team advantage:

With an outsourced development team, you will acquire your team and start the project immediately, which in today’s world could give you the edge you need. If you’re interested in learning more about outsourcing, take a look at the Guide to Outsourcing SaaS Development.

2.2. Reduced Costs and Improved ROI

The outsourced development team can significantly reduce your overall project costs. Here’s how:

• Reduced Operational Expenses: Eliminate the overhead costs associated with in-house development, such as office space, equipment, and employee benefits.
• No More Recruitment and Training Costs: Skip the hefty fees associated with traditional hiring and training. 
• Flexible Pricing Models: Choose a pricing model that aligns with your project needs.

The cost savings from outsourcing software development don’t stop there.  Your internal resources may be redirected to more important projects like marketing and customer acquisition by taking them out of development activities. This increases your return on investment right away and sets up your company for long-term success, especially when you focus on areas like outsourced product development and outsourced software product management, which can be handled by specialized external teams.

Invest in activities that drive growth and market share

2.3. Access to Global Talent and Expertise

Imagine having access to a worldwide network of IT superstars. Outsourcing unlocks a wealth of expertise across diverse technologies and industries. This talent pool brings a unique advantage to your project:

• A Spectrum of Skills: Gain access to developers specializing in cutting-edge technologies like React, Node.js, and AI/ML. No matter your project needs, there’s a outsourced developer team out there perfectly suited for the job.
• Industry-Specific Knowledge: Leverage the experience of teams that have worked on diverse projects across various sectors. This broad exposure translates into valuable insights and best practices that can significantly enhance your outsourced product development and outsourced software product strategies.
• Multicultural Perspectives: Tap into the power of a global team. Their diverse backgrounds can contribute to a more nuanced understanding of your target audience, especially when catering to international markets for your outsourced product development.

Gain valuable insights and expertise from a global talent pool

Outsourcing firms also prioritize ongoing education and skill development for their dedicated software development teams. This ensures you benefit from the latest technologies and methodologies, giving your project a significant edge. For more on how outsourcing software development can boost your coding capabilities, explore our Outsource Coding Services for Efficient Programming Solutions to enhance your development process.

2.4. Scalability and Flexibility

Outsourcing your development needs to external teams can offer significant advantages in flexibility and scalability. These outsourced development teams allow you to quickly adjust the size and composition of your workforce based on project requirements. Whether you need to ramp up for a new initiative or scale down after completion, outsourcing provides a streamlined approach without the complexities of permanent hires.

In addition, an outsourced development team understands the ability to manage the new requirements that are bound to arise in the course of the project. They can rapidly adapt to new tools, attract talent only when needed, and alter their organizational model depending upon shifts in project developments. This flexibility is quite important it keeps your projects on your start up responsive to market forces hence making your business page competitive in uncertain conditions.

2.5. Focus on Core Competencies and Innovation

In the present fast growing business environment, operational success and creating competitiveness that charges with innovation are vital and are being defined both by management thought and academic literature in the following ways: Such a staffing model can greatly help within these areas by off-loading work from your in-house team and getting a new vital point of view.

• Product Innovation: Invest time into coming up with ways of adding value to the business through products or modification on existing features. You can use an outsourced product development team to add new features to your outsourced product on the cutting edge within a short time.
• Customer Relationships: Become more competitive by improving clients’ engagement and extent of relationship with them. An outside team can also give you input helpful in understanding the customers’ needs so that outsourced product development is relevant to what is current in the market is.

Sustain and direct organizational innovation and strategic processes capable of attaining sustainable business goals

The concept of outsourcing oftware development tasks means that by subcontracting the software development activities, one not only can cut costs but also get an outside idea and the benefits of hiring the outsourced software developers. This can foster a culture of innovation within your organization, leading to:

• Cross-Pollination of Ideas: Integrate the suggestions of your own dedicated software development team with the one which is outsourced to come up with innovative strategies and ideas.
• Challenging the Status Quo: What outsiders may do is have a different view of things and challenge the status quo in order to arrive at more efficiency.
• Continuous Learning: Attributes or exposure can bring new technologies, methodology, and interacting with and learning new ideas would improve one’s set of skills and methods continually.

In short, an outsourced development team allows you to focus on what truly matters: promoting the strategic management of your business based on ideas, creativity and customers’ needs. The drive for the key business competencies can result in new innovative products, aligned market positioning and therefore sound business development. To make more informed decisions, check out our guide on Outsourcing vs Offshoring to explore the best options for your business.

3. Important Factors Before Hiring an IT Project Management Team

Outsourcing projects is a complex process and it is very important to understand what your project requires and what is expected from the outsourcing process. Doing so will ensure that you work well with your chosen development team and set a good platform for the project.

What to consider before hiring IT project management outsourcing

3.1. Define Your Project Clearly

• Scope it Out: A well-defined project scope sets the stage for success. This includes project goals, deliverables, boundaries, and key stakeholders, ensuring alignment between your team and the outsourced product development team.
• Document Everything: Clearly outline technical requirements, programming languages, security needs, and desired timelines to facilitate communication with your outsourcing team.

3.2. Set a Realistic Budget

• Plan Your Spend: Consider the total project cost, including immediate expenses, long-term implications, and potential return on investment (ROI).
• Break it Down: Divide your budget into development costs, project management fees, quality assurance, infrastructure, and maintenance.
• Research Rates: Get quotes from multiple vendors and compare pricing based on location, expertise, and project complexity. This will help you hire outsourced development teams that fit your budget.

3.3. Establish a Timeline

• Phase it Out: Break down your project into distinct phases like planning, development, testing, deployment, and maintenance.
• Allocate Time Wisely: Estimate realistic deadlines for each task, considering complexity and dependencies. Factor in buffer time for unexpected delays.
• Communicate Expectations: Share the timeline with your outsourced team and stakeholders. Encourage regular progress updates to keep everyone on track.

3.4. Communication and Collaboration Approach

Outsourced relationships rely on two key factors

• Discover Techniques: Foster teamwork, open communication, and efficient conflict resolution, to ensure smooth collaboration with your outsourced development team.
• Choose Your Tools: Select communication tools that facilitate smooth interaction, like email for updates, instant messaging for discussions, and project management software for collaboration with your outsourcing development teams.
• Set Protocols: Identify when communication will take place whether it is daily, weekly or monthly, when certain types of information will be reported, and urgent items communicated.
• Foster Collaboration: Bring about communication and work on the cooperation. Communicate goals and objectives and get regular feedback from your outsourced developer team, and avoid conflict by handling it immediately.
• Clarify Roles: Clarify objectives and goals since all members of the team must know what they are supposed to do and who will be the best fit for a certain job.

3.5. Choose the Right Project Management Approach

• Pick Your Methodology: It is most preferable to decide on the kind of project management to adopt depending on your projects’ requirements and your team. Let it be Waterfall, Agile or Scrum, or even the Kanban.
• Define Roles and Structure: Relate main project responsibilities such as a project manager, development team, quality assurance team, and stakeholders.
• Set Milestones and Deliverables: Define tangible goals and objectives so that working toward them will be measurable and goals can be marked off as accomplished.
• Track and Report: Employ suitable project tracking gear to track progress and analyze those indicators that tend to slow the process plus create reports. The tracking is basic when developing outsourced software product project and allows you to keep a check on whether everything is on course or not.

3.6. Due Diligence

• Research Reputation: Investigate the background and track record of potential outsourcing partners. So, what a client needs is to look for recommendations by other clients, approvals, and experience.
• Evaluate Skills: The ordinary technical competence of the outsourcing software development team can be easily determined by taking a look at their previous works, checking whether the required technologies are used by the team and asking whether there is any on-going process for the continued enhancement of team skills.
• Consider Cultural Fit: Make sure the assembled team complies with your company’s culture and everything you stand for..
• Discuss Data Security: Address data protection measures and confidentiality agreements. Inquire about secure data handling practices, compliance with industry regulations, and protocols for safeguarding sensitive information.

By applying these procedures, you will be able to deal with the issue of IT project management outsourcing with a relaxed mindset. Realistic expectations paired with a trustworthy partner will be instrumental in smoothening the project and building meaningful relations with the outsourced development team. For the sake of understanding essential differences better, and having a better basis for decision making, check In House Vs Outsourcing to see which approach will be more convenient for your needs.

4. Effective Tips for Collaborating with Outsourced Team Members

Outsourced development, software product management, or tech products can be a great upside for businesses. When developing an outsourced product or managing outsourced software, these practices will help you manage the interactions with your outsourced development team.

4.1. Set Clear Goals and Expectations

Setting clear goals and expectations is an important practice for effective collaboration. See them as the guideline framework that shapes the performance of your outsourced development team. For this type of project, it may help to offer a step-by-step approach in order to focus the attention of your team on specific tasks and avoid misunderstandings. This will ensure that all necessary personnel understand their responsibility in relation to the delivery of the outsourced software product.

Just make sure to keep using the regular checks on the schedule – through computer conferences held via Zoom, for example, while tools like Trello or Asana see to various aspects of the project in hand. A well-defined plan helps everyone stay on course and makes decision-making easier.

4.2. Communication is Key

Effective communication helps remote teams feel close. It still makes it clear for everyone involved – be it the outsourced product development process or the management of an outsourced software product’s milestones.

Clear, open communication forms the foundation of successful collaborations

Be proactive in your communication by holding regular calls, sending clear emails, and using collaborative platforms to keep everyone in sync. Strong communication fosters trust and teamwork, especially when working on complex outsourced projects, ensuring the team is united toward a common goal.

4.3. Regular Check-ins

Check-ins are one of the important ways you remain in touch with your outsourced development team. Whether a new outsourced software product is being created or an existing one is undergoing outsourced product development, there is a need for regular meetings to discuss progress, problems, and upcoming goals.

These sessions not only keep you on your timelines but also serve as a platform to appreciate achievements and uplift spirits. When implementing project management solutions, you are able to all tasks and deadlines in order not to let anything slip through, particularly in the case of rapid-paced outsourced product developments.

4.4. Be Culturally Sensitive

Collaboration with a global team will inevitably involve the interaction of various cultures, customs, and modes of work. Attempt to appreciate and respect such differences in order to foster a proper working relationship. No, don’t ethnocentrically treat your fellow team members and remember their cultures and important days.

This kind of respect facilitates relationships and makes others feel appreciated and understood, qualities which are crucial in the environment of team projects such as outsourced software product development.

4.5. Build Meaningful Relationships

Your outsourced development team should be able to effectively adapt to the needs of your business and your company as a whole. Build relationships by engaging beyond work tasks—share personal stories, hobbies, and interests. Regular video calls help establish rapport, making interactions feel more personal. 

The same applies to the development of an outsourced product or to the supervision over the progress of any outsourced software product – once a team is valued and appreciated, the collaboration expands, and the generation of creative solutions becomes easier and less time-consuming.

By implementing these strategies, you will not only achieve your business goals regarding outsourcing your business development plans but also work on a sustainable partnership. By creating an atmosphere based on trust and openness, an outsourced product development team can introduce new concepts and operational efficiency to meet a client’s requirements to ensure that an entire package of an outsourced software product is successful. If you are considering of the option to outsource your project look at the Top 10 Software Outsourcing Vietnam Companies In 2024 to know where you should go for a good outsourcing service.

5. FAQs

Q: What are the risks associated with hiring an outsourced development team?
A: The following are key risks typically linked with employing an outsourced development team:

• Communication Barriers: The time zone gap and language gap might span a pool of communications and result in narrow endings.
• Quality Control Issues: Quality level maintenance covenants are difficult to keep containing all parties of the outsourcing development team.
• Data Security Risks: If professional measures are not taken while working with outsourced dev teams, it would be dangerous as your company or business will be sharing sensitive information with people who are not in house.
• Cultural Differences: Different working environments may lead to differences in the way people collaborate, impacting teamwork as well.

Q: How do I find and select the right outsourced developers?
A: Fumbling to locate suitable developers for their outsourced business development would seem a normal reality for many business owners. In order to ease any difficulties experienced while selecting, here is a friendly guideline.

• Define Your Requirements: To begin, specify the skills and technologies to be provided by the outsourcing team and the scope of work required.
• Conduct Research: Use services like Upwork and LinkedIn for searching outsourced development teams.
• Evaluate Portfolios: Their previous projects along with feedback from their clients should help in knowing their level of expertise.
• Conduct Interviews: Such a measure includes personal explanations which helps in assessing the level of both technical and cultural integration deserved by the audience.
• Start with a Trial Project: While creating a long-term association, one should start off with a small trial plan that enables the developer to create deliverables rather than just metrics.

Q: What are the typical costs associated with using an outsourced development team?
A: Moving on, whenever once plans in using an outsourced development team, one must be oriented with the related costs in order to plan and allocate the budget properly. Here’s what you need to consider:

• Location: The geographical area of your outsourced developers will influence costs.
• Experience Level: More experienced developers typically command higher rates than their junior counterparts.
• Project Complexity: If it needs more skills or is more complicated, expect to pay a bit more.
• Engagement Model: There is a huge difference too in how pricing structures are based on fixed-price contracts, hourly or dedicated team models.
• Cost Range: For outsourcing, the hourly piece of work ranges from $20 to $150 depending on these factors.

Q: Which tools/software I should use to collaborate with an outsourced development team?
A: No outsourcing development team is complete without effective collaboration. With the use of the right tools, communication, and project management can be a lot smoother. So here are some types of software to consider:

• Communication Tools: Use Slack/Teams for instant messages and conversations between team members.

• Project Management Software: Tools like Trello, Asana, or Jira can help maintain the flow of tasks along with keeping them organized.

• Version Control Systems: Use GitHub or Bitbucket to manage code changes

• File Sharing Services: Google Drive or Dropbox makes sharing documents and collaborating between team members easier.

Q: How can I be sure that my product will end up being quality when it comes through an outsourced development team?
A: Of course, product quality is also very important, especially when the team is working remotely. Though, setting the right processes and practices can attain highest standard.

• Set Clear Expectations: Provide detailed specifications and guidelines, place your hopes on clear expectations.
• Implement Quality Assurance Processes: Regular code reviews and testing protocols help catch issues in advance.
• Encourage Continuous Feedback: Keep communication open for course correction.
• Use Agile Methodologies: Agile facilitates iterative development and continuous enhancements that are refined with feedback.

Q: What are the current trends in outsourced software development?
A: Keeping up with trends can help you adjust yourself accordingly and stay in the game. Some of the current trends are as follows:

• Increased Adoption of Agile Methodologies: Increases flexibility and responsiveness
• Focus on Cybersecurity: Being one of the paths to outsourcing, IT outsourced projects are under increasing pressure for security.
• AI and Automation Integration: A lot of organizations are experimenting with artificial intelligence and automation to maximize outcomes with minimum resources in their development processes.
• Remote Work Normalization: The transition toward the remote and hybrid work model has lowered the entry barrier for companies to access a global talent pool by hiring skilled developers within minutes.

6. Conclusion

An outsourced development team who works remotely is not just a cost, it can be “in the cloud”, not only for speed in terms of development but also for bringing large amounts of other benefits to your future IT project. With benefits ranging from improved efficiency, access to global talent, and unmatched scalability, to a sharper focus on innovation — outsourcing allows you to create a competitive edge in this fast-paced world.

The merits of an outsourced development team are clear, but the selection process can seem intimidating. If you want to have a seamless and successful IT project, it would be better to partner with an outsourcing company known for outsourced product development or otherwise outsourced software product solutions like Newwave Solutions.

Newwave Solutions has 12+ years of experience, a pool of 300+ high-skilled tech experts in Vietnam & a trifecta offering (affordability, expertise & global reach). Working with a consulting firm that is solely focused on outsourcing can be beneficial due to their experience, proven track record, and access to a huge talent pool which makes sure you get the best of minds and skills batching into your project.

Contact Information:

• Head Office (Hanoi): 1F, 4F, 10F, Mitec Building, Duong Dinh Nghe Street, Yen Hoa Ward, Cau Giay District, Hanoi City, Vietnam
• Branch Office (Tokyo): 1chōme118 Yushima, Bunkyo City, Tokyo 1130034, Japan
• Hotline: +84 985310203
• Website: https://newwavesolution.com 
• Email: [email protected]