June 24, 2020 Vladyslav Kyrychenko

6 Stages You Need to Pass while Creating a Software Development Team Abroad

Creating an offshore development team is always different from the same process in-house. Because of this, many leaders don’t even dare to try this model for their businesses. To bring you more courage, Lemapp consultants created a step-by-step guide to help you build an outsourced team from abroad.

These days, many companies fancy the idea of digitalization. And so, businesses in many niches and industry areas request software development services for certain tasks. At the same time, in-house developers are always costly. In the given circumstances, outsourcing is the solution that satisfies the growing demand for an affordable price. Some countries, like Ukraine and India, make it so well that they have turned into the entire labor market for this service. 

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Companies frequently opt to hire software developers from these countries, being cautious of possible problems simultaneously. Since companies from Asia and Eastern Europe frequently face the requests for outsourced software development services, there’s a risk of hiring a careless provider. The challenges may arise when the company seeks for market expansion, strengthening its R&D center, or increasing the development team. It’s not simple to satisfy all these demands in one solution – especially when hiring is not under your total control. Frequently, it’s simply impossible to ensure individual engagement, maintain interpersonal interactions, and stand all the cultural and distance difficulties.

In the given circumstances, Lemapp is eager to facilitate this task for you and make your outsourcing plans true. To avoid all the team-building difficulties, make sure you follow these stages in the process:

  1. Investigate the local market,
  2. Note all the clashes of cultures in advance,
  3. Determine measurable criteria for the project,
  4. Select the team roles,
  5. Communicate effectively,
  6. Consider the opportunity of in-person meetings.

Continue reading to see the peculiarities of all the actions made on the way.

1. Investigate the local market

Before diving into collaboration, make sure you understand the context you face. Generally, you won’t face complex bureaucracy and long negotiations while signing the contract with your freelance offshore company. Nevertheless, opening the offshore development center or establishing a software development team requires more effort from you. To facilitate this task for yourself, make sure you notice all the problems in advance:

  • Investigate all the legal requirements you will face in the new market. Study laws and taxation rules carefully. Not to miss important things, hire a local legal consultant who will not only present all the needed documentation but also explain how it will work in the case of your company.
  • Take over all the relevant legal issues for your cooperation. Among the needed steps, register your offshore entity legally. Here, Lemapp recommends considering the option of establishing foreign subsidiaries instead of entering the local market directly. It’s cost-effective and easier to register and work with.
  • Check the rates per hour and renting pricing in the area. In our blog, you can find the overviews of different markets. Also, you can ask Lemapp to hire a dedicated development team for you to make sure you have value-for-money.
  • Consider all the possible bureaucratic problems that arise. At this stage, you will really need a legal consultant who knows the market you’re about to enter.
  • Register your company and find the office for workers. Of course, you need not only the place but also equipment, agreements with utility providers, and administrative staff. Don’t hesitate to hire an advisor to help you manage these problems. 

In the situation when you have limited knowledge and time constraints about investigating the local market, don’t spare funds on hiring local consultants. This will help you get maximum and save your nerves. But how not to make a mistake here? Check the list from Lemapp experts:

  1. Read the website. Get the maximum information and check the tone of voice.
  2. Investigate the reviews. Make sure the consultant has both positive and negative reviews, which shows that the company is actually real.
  3. Visit the office. Meet your consultant in-person to establish mutual trust in your relations,
  4. Discuss all the peculiarities of cooperation. Make sure you clarified everything in advance.

2. Note all the clashes of cultures in advance

In addition to conducting market research, it’s important to note all the possible differences in education and culture. Cultural differences and problems can interfere with your cooperation and become an unexpected obstacle. As an employer, be ready to manage all the possible challenges in this dimension and train your in-house workers to address them properly. Be open to seeing the problem from both angles. By managed wisely, cultural differences may bring your project management to the next level. Thus, ensure you get the maximum from them and establish careful team-building sessions and informal training.

3. Determine measurable criteria for the project

To make your cooperation with IT outsourcing company smooth, set the relevant aims for its work. Lack of understanding in roles can interfere with effectiveness, both in-house and for the remote team. In the latter aims, clear milestones are even more important, since you cannot control the performance personally. 

Set achievable aims and document them carefully. For an offshore company, working in accordance with your mission and vision is critical. It ensures that you both move in the same direction and supplement each other. To measure your goals, use SMART methodology – they should be smart, measurable, attainable, realistic, and time-effective.

4. Select the team roles

It’s important to determine what each participant will do in the project. The selected set of responsibilities goes together with the requirement of top quality from each team member. Thus, put maximum resources in strategizing each team role. Also, be attentive to recruitment – and come there with a plan. 

Lemapp recommends sketching your team in detail: which functions will complete each worker, what roles will they fulfill, and what will be the overall structure. Then, hiring will be much more enjoyable and measurable.

Of course, don’t eliminate the stage of preliminary research here. You should investigate the labor market, local recruiting platforms, and education level. Again, picking a consultant will help you tremendously. As a result, you can be sure you’ll find the talent for a reasonable salary level.

5. Communicate effectively

Investment in communication is always beneficial. When it comes to an outsourcing company, it’s strategically crucial to establish transparency and mutually advantageous communication policy between your teams. Here are recommendations from Lemapp experts to facilitate negotiations:

  • Select the leader and determine how this person will manage conflicts and disagreements,
  • Clarify tasks and responsibilities for all your teams and select clear boundaries between them,
  • Create a unified set of obligations and regulations for everybody,
  • Schedule meetings and corporate events for all the corporate workers,
  • Forereach all the possible distance-related problems and how you will manage them,
  • Concentrate on incorporating effective communication as the core of your corporate culture.

6. Consider the opportunity of in-person meetings

When managing a remote team, it’s hard to meet with its members face-to-face. At the same time, it’s important to participate in the hiring process fully. In addition, establish direct contact, which is beneficial for maintaining long-term motivation in your remote team. If you have an opportunity, don’t neglect to visit your offshore development center and taking to your dedicated developers directly. Pay special attention to talking to project managers, since they possess the key role in linking both offices. 

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