A complete guide to hiring an offshore development team in 2022

The trend of outsourcing developers is growing around the world. The demand for hiring offshore developers is increasing day by day. But why is this happening? For starters, hiring offshore developers is affordable.Second, it allows access to a wider pool of talent. Apart from these two, there are many other benefits that you can gain by hiring offshore developers.

But before discussing its benefits let’s know why startups should hire offshore developers.

Why should you hire offshore developers for your startup?

According to Deloitte’s Global Outsourcing Survey, about 72% of companies prefer software development outsourcing to their in-house development. But why companies favor outsourcing so much? Below are some factors that will answer this question.

Effective cost

Cost is one of the major startup killers. According to one report of quartz, close 46% of startups fail As they ran out of money. However, startups are unlikely to meet the same fate if they hire offshore development teams. Because when you outsource, you don’t have to pay for overhead costs like salaries, office rent, vacations, insurance benefits, recruitment fees, etc.

Instead, you can divert that entire fund towards building an MVP. Not only that, the developer rate in offshore countries is also lower than in the US and Western Europe due to the lower cost of living

Reduce time and increase productivity

Hiring an offshore development team not only saves time but also increases overall productivity. Time is an important factor here as startups are born in an environment of cut-throat competition. With a dedicated development team, you don’t need to invest time in project management routines or other HR activities like employee retention, as it will all be taken care of by the vendor organization.

You also save time training new employees because each outsourced employee already possesses the necessary skills. It helps you focus only on your work as everything else is already taken care of.

Get access to a large pool of talent

A major advantage of outsourcing is that it gives you access to a large pool of talent. It’s hard to find good quality developers in countries like the US and Western Europe. Because tech giants have already hired many of the best developers where they get benefits, huge packages, attractive benefits, job security and a sense of comfort.

However, working in a startup implies risk. However, by outsourcing, you can hire a highly skilled and capable developer from Asia and Eastern Europe who will be more than happy to join a startup.


Flexibility is a major concern when it comes to in-house teams. This is due to the difficulty they face in scaling the team and changing the technology stack to suit the scope and stage of the project.

On the other hand, such changes are common in any startup environment. Outsourcing developers can easily move between projects and are extremely flexible especially when you collaborate with them through a web dev shop.

Outsourcing Developers: Where to Start?

Before outsourcing developers for your startup, consider the following points:

Clearly define your business goals

The first step is to clearly identify the problem you want to solve with your initial MVP. This is important because you need to explain those issues when you outsource to developers. You must determine the main purpose of your product. You can also break it down into smaller and measurable milestones with deadlines for each milestone.

Assess the skills required for the project

After defining the business goals, the next step is to identify the skills, technology stack, and skills you need for the project. You must define the roles required for the projects like do you only need Developer, QA, Business Analyst, PM?

Plan your budget

Budget is the most important factor as it determines the fate of a startup. So, you must be very careful in planning it. First, you must determine the initial size of your initial capital. Moreover, you must define the areas that can save you a large chunk of money. Once you’ve done that, find investors to whom you’ll pre-show your MVP.

Outsourcing Developers: Where to Look?

There are several offshore countries that you can choose from; They each have their own challenges and benefits. Try to pick countries that are close to your time zone and culture; However, you must consider the developers who offer you the best deal in terms of price and quality ratio.

Let’s take a look at the different geographies for outsourcing development team

Eastern Europe

Eastern Europe has earned a reputation as a reliable IT outsourcing destination due to its cost-effectiveness, growing talent pool and rapidly evolving IT industry.

Czech Republic, Ukraine, Bulgaria, Estonia, Hungary, Belarus Latvia, Moldova, and Romania Poland are some of the leading destinations for Eastern European outsourcing

The region has more than 1,051,000 software developers with more than 50 thousand ICT graduates entering marketing every year. Ukraine and Poland are the two countries with the most significant number of professional developers in the Eastern Europe region. If we talk about the number of offshore development companies, Ukraine tops the list with 1600 followed by Poland (500+), Bulgaria (500) and Belarus (500).

Latin America

Mexico, Brazil and Argentina are the best options for outsourcing professional developers in

However, Chile has also shown good growth in the market, claiming 27th place in the Hacker Rank rating of the world’s most skilled professional developers.


There are about 4 million software developers in Asia. India, China and the Philippines are the leading countries with the largest number of developers. India leads with 2.75 million developers, followed by China and the Philippines with 590K and 190K developers respectively

Checklist on how to hire developers for a startup

To make your job easier, we have created a checklist for your recruitment process. This checklist will help you identify the signs of a perfect offshore team for your startup.

Look for their proven track record

Find proven track records of developers or teams by looking at their rankings on websites like touch Or check their LinkedIn profile to check their previous clients. You can contact their previous clients and ask if they would recommend that developer or a team.

Make sure you have access to the latest code

In the worst case scenario, the developer may refuse to release the code due to personal conflicts. To avoid such situations, it is recommended to access the code. This should be one of the prerequisites for any developer or team participation in your project Moreover, you must be an admin of all accounts ie. Cloud, Github, TFS, and other platforms.

Ask for the workflow of the outsourcing company

It is essential to inquire about company workflow outsourcing. You can find out how they communicate with their clients or allocate their resources to projects. You can also ask how flexible they are, such as whether they can increase the number of assets over the course of the project. There is a possibility that the company’s workflow may not suit your needs. Therefore, it is important that you find out before hiring a team.

Reject cheap quotes

Your focus should be on cost-effective rates rather than cheap quotes. If you decide to go for the cheaper rate you may end up paying a lot of money at the end of the project because you have to rewrite poorly written codes.

Avoid fixed-price payment models

You must stay away from the fixed price payment model as it includes a minimum 25% additional cost to cover the risks. Instead of paying a fixed price, you should go for the time and material model as it allows more flexibility for your project.

You will know exactly what to pay for. Moreover, you won’t need to negotiate for every small change. There are some offshore companies that operate under a fixed-price model that charge extra for uncertainty. And you all know that startups are full of uncertainty, so fixed price model becomes a bad choice for any startup.

Determine whether the group agrees with all your suggestions or prefers to argue

If a developer or a team of developers claims they can literally meet all your requirements, that’s a red flag. Any company coming forward with such a claim means that they haven’t studied your requirements well enough to see if they have the necessary resources and skill sets available. All offshore development companies specialize in different skill sets. So, none of them can do everything without making some adjustments.

Find a good project management tool

Nowadays, you can’t just rely on long email exchanges. You must use advanced and modern project management, collaboration and tracking tools like Trello, Slack, Jira etc. These tools help you track your team’s work and progress, make comments, lead discussions, and more.

be careful

Being proactive is very important for a startup founder, especially when working with an offshore development team. You can try to stay ahead of the next day’s work, this works especially when your team is working and you are sleeping. This will give you confidence that everything is going the way you want.

Frequent deployment requests

Ask your developers to demo the MVP by the end of every sprint, usually on a weekly or bi-weekly basis.


In this article, we discuss the various aspects of hiring an offshore development team and why it is the best choice for a tech startup. This approach helps startup owners save their time and funds while getting the best quality MVP.

In this article, we first discussed why you should hire an offshore development team. Next, we have also discussed various geographies, regions and countries that offer cost-efficient and quality offshore development teams. Then, we discuss the things you need to keep in mind when hiring or outsourcing developers.

If you are also a startup owner and want to hire an offshore development team then PeerBits is the best choice for you. Peerbits has a large pool of talented and skilled developers, QAs, PMs and business analysts to cater to all your offshore development needs. So, if you are looking for offshore development, choose Peerbits for timely fulfillment of goals, scalability, seamless communication, 24×7 support etc.

Back to top button

Adblock Detected

Ad Blocker Detect please deactivate ad blocker