If you’re thinking of hiring offshore developers, we need to warn you of something.
Hiring offshore does have its place, but it comes with a lot of risks.
In this guide, we’ll cover some of the benefits and risks of hiring offshore development talent, why we think onshore is the better option in most cases, and a quick process to follow to find the best talent in other countries.
We’ll also provide our favorite hiring platforms and some other industry tips along the way.
Let’s dive right in.
Table of Contents
Key Takeaways
- Hiring offshore developers can save costs and expand your talent pool, but it often comes with communication and quality challenges.
- Offshore risks include misaligned expectations, intellectual property concerns, and management difficulties due to time zones and cultural differences.
- For simple, short-term projects, offshore hiring might work, but complex or long-term projects benefit more from onshore teams.
- Popular hiring platforms like Toptal, Upwork, and Outsourcely can help you find offshore developers, but vetting candidates is crucial.
- Tools like Slack, Jira, and Google Workspace make managing offshore teams easier, but be prepared for added oversight and coordination.
Why Hire Offshore Developers?
Hiring onshore developers almost always results in better quality products, smoother processes, and better company culture.
However, hiring offshore developers is a good idea if you’re facing challenges like limited local talent, high costs, or tight deadlines.
For example, we all know that the US, Canada, and other “Western” countries are facing a shortage of STEM talent.
Only about 20% of graduates in the US have a STEM degree.
We can see why some companies opt to look for talent elsewhere, especially when they see the price tag (though we’ll cover why this is risky in the next section).
If you’re looking to optimize your budget or expand your talent pool, this approach can provide real advantages.
Here are some of the biggest supposed benefits of hiring offshore developers:
- Cost Savings: Offshore teams can deliver the same quality work at a fraction of the cost compared to hiring locally. It’s rarely ever the same quality, but it can happen.
- Access to Global Talent: You can hire skilled developers from anywhere in the world, expanding your options beyond your local area.
- Scalability: Offshore developers make it easy to scale your team up or down based on project demands. This is true in our experience, and it’s great if you’re in a pinch and pressed for time.
- Time Zone Benefits: Work continues even when your local team is offline, speeding up development timelines and customer support. Though this can also have its downsides. Projects almost always run more smoothly when everyone is synched up.
The Downsides of Hiring Offshore Developers
While offshore developers are often seen as a way to cut costs, we feel that many of the supposed benefits are overstated.
Most businesses turn to offshore teams to save money, but here’s the truth: going cheap often comes with hidden costs that outweigh the savings.
There’s an old saying—“If you buy cheap, you buy it twice.” That’s especially true with software development.
Here are some common downsides of hiring offshore developers:
- Communication Barriers: Time zones, language differences, and misaligned expectations can cause delays and misunderstandings.
- Quality Issues: Cheaper rates often mean less experienced developers, which can lead to poorly written code or missed deadlines.
- Lack of Accountability: Managing a remote team is harder when you don’t have the ability to meet in person or easily resolve issues.
You even run the risk of your intellectual property getting stolen and having no legal recourse.
Do you really expect to go overseas and win a lawsuit in India, the Philippines, or Eastern Europe? We doubt it.
At Daxima, we’ve delivered hundreds of projects using both onshore and offshore teams.
While offshore hiring has its place, onshore projects consistently run smoother, produce better results, and save time in the long run.
Common Challenges When Hiring Offshore Developers
We’ve worked on hundreds of projects and have used both offshore and onshore developers.
Offshore development can work in certain situations, but we’ve found it often comes with the same challenges every time.
Here are the most common issues we’ve seen:
- Communication Barriers: Time zones and language differences can cause confusion and delays. For example, we once waited an entire day just to clarify a small but critical detail.
- Quality Control: Offshore teams sometimes cut corners to keep costs low. On one project, we had to spend weeks reworking poorly written code, which wiped out any cost savings.
- Data Breaches: Transmitting sensitive data offshore increases the risk of breaches. In one case, a lack of proper safeguards caused client data to be exposed.
- Intellectual Property Theft: Without strong legal agreements, there’s a risk of stolen ideas or code. We’ve seen cases where offshore teams reused proprietary software for other clients.
- High Turnover Rates: Offshore teams often have higher turnover, which can disrupt project continuity. In one project, a developer left mid-sprint, setting us back significantly.
- Accountability Issues: Remote teams can be harder to manage. We’ve had cases where offshore teams missed deadlines and provided no updates until we followed up multiple times.
Trust us, outsourcing causes more headaches than it’s worth.
You can’t expect to pay half the price and still benefit from better quality and processes. It’s just not possible.
If you don’t mind reduced quality, headaches, and longer time frames, be our guest.
Offshore developers do have their place, though.
Here’s how to determine if it’s right for you…
Is Hiring Offshore Developers Right for You?
Offshore developers can be the right choice for some projects, but they’re not always the best fit.
It all depends on your goals, budget, and project requirements.
Here’s how to determine if hiring offshore is worth it for you:
- Project Complexity: If your project is simple and doesn’t need a ton of back-and-forth, offshore can save you money. For more complex projects that require close collaboration, onshore is usually the better move.
- Budget: Offshore teams are cheaper upfront, which makes sense if you’re trying to save. Just keep in mind that quality issues can cost you more down the road, so spending more on an onshore team might actually save you time and headaches.
- Time Zone Coordination: Offshore developers can be fine if you’re okay with delayed responses. But if you need real-time problem-solving, an onshore team will keep things moving faster.
- Quality Assurance: Offshore work often needs more oversight. If you don’t have time to manage it closely, onshore developers are probably your safer bet.
- Long-Term Needs: For quick, one-off projects, offshore teams can get the job done. But for anything that needs regular updates or ongoing support, onshore wins every time.
Best Platforms to Hire Offshore Developers
If you’re looking to hire offshore developers, there are plenty of platforms to help you connect with skilled talent.
We’ve hired developers from all over the world, and these are some of the platforms we’ve had the most success with:
- Toptal: If quality is your top priority, this is the place to go. We’ve used Toptal for high-stakes projects when we needed developers who could hit the ground running with minimal hand-holding. It’s not cheap, but the peace of mind is worth it.
- Upwork: We’ve found some great developers here, but it takes time to sort through profiles and find the right fit. Think of it like shopping at a massive marketplace—you’ll find what you need if you’re willing to dig.
- Freelancer.com: Similar to Upwork, but we’ve noticed the bidding process can get competitive (which sometimes works in your favor cost-wise).
- Joberty: For developers in Serbia and Croatia, this platform has been super reliable. Eastern Europe has some of the best IT talent we’ve worked with, and Joberty focuses specifically on those markets.
- HooHire: Another great option for Croatia. We used it on a recent project to hire a backend developer, and they delivered ahead of schedule with clean, well-documented code.
- Outsourcely: We like this platform for long-term remote projects. It’s perfect when you need someone who can work as part of your team, not just a freelancer.
Best Countries to Hire Offshore Developers
If you’re thinking about hiring offshore developers, some countries are just better for it.
We’ve worked with teams from all over the world, and here are five places we’ve seen deliver solid results without breaking the bank:
- Poland: Developers in Poland are great at what they do. They know their tech, communicate well in English, and are super reliable. You’ll pay around $40–$55 an hour, but the results make it worth it.
- India: India is one of the most popular choices for offshore development, and for good reason. The rates are super affordable—$25–$50 an hour—and there’s no shortage of talent. Just be ready to put in a little extra work managing time zones and communication. Of course, as always, you run the risk of low-quality work, turnover, and miscommunication as well.
- Vietnam: Vietnam has been on the rise lately, especially for web and mobile projects. Developers here charge $18–$32 an hour, and they’re dependable and easy to work with.
- Ukraine: If you’ve got a big, tech-heavy project like AI or blockchain, Ukraine is a great option. Developers charge $30–$50 an hour and are awesome at handling complex work without much hand-holding.
- Brazil: If you’re in the US or Canada, Brazil is a good option. Rates are around $18–$30 an hour, and you’ll avoid the time zone struggles that come with working on the other side of the world.
Steps to Hire Offshore Developers
Hiring offshore developers can seem overwhelming at first, but breaking it into clear steps makes the process much easier.
Here’s how we’ve done it—and how you can too.
Define Requirements
Before you even start looking, get clear on what you need.
What skills are essential? What’s your budget? What’s your timeline?
The clearer you are upfront, the smoother the process will be.
We’ve learned the hard way that vague requirements lead to mismatched hires and wasted time.
Pro Tip: Write down everything—tech stack, project goals, deadlines—so you can communicate it clearly to potential hires.
Research Hiring Platforms
Not all platforms are the same, so it’s worth spending time finding the one that suits your needs.
For example, if you’re looking for affordable options, Upwork and Freelancer are great.
For vetted, top-tier talent, check out Toptal. If you want region-specific hires, platforms like Joberty (Eastern Europe) or HooHire (Croatia) can help.
Pro Tip: Read reviews and ratings carefully to avoid wasting time on unreliable platforms.
Choose Potential Candidates
Once you’ve found a platform, shortlist candidates who match your requirements.
Look for experience in similar projects, good reviews, and clear communication in their profiles.
We always prioritize candidates who’ve worked on projects like ours—it’s a major green flag.
Conduct Interviews
Interviews are your chance to really figure out if someone’s the right fit.
Don’t just focus on their technical skills—dig into how they work, communicate, and solve problems.
We’ve avoided plenty of bad hires just by asking questions like, “How do you handle tight deadlines?” or “What’s your process for tackling a new project?”
Make a Decision
Once you’ve interviewed everyone, choose the candidate who best matches your needs.
Sometimes it’s tempting to go with the cheapest option, but remember—cheaper isn’t always better.
It’s about finding the right balance of cost, skill, and reliability.
Training and Trial Period
Even the best candidates need time to get familiar with your systems and processes.
Set up a trial period (a month is usually a good start) to see how they handle the work and fit with your team.
We’ve found this approach minimizes risk and helps everyone hit the ground running.
Pro Tip: Use this period to give clear feedback and see how they respond. It’s a great way to gauge long-term potential.
Follow these steps, and hiring offshore developers will feel a lot less stressful—and way more manageable.
Tools for Working with Offshore Teams
After working with teams across time zones, these are the tools we rely on to get things done:
Communication Tools
- Slack: Great for quick updates, sharing files, and staying connected throughout the day.
- Zoom: Perfect for video calls when you need face-to-face communication or team meetings.
- Microsoft Teams: Combines chat, video, and file sharing in one platform, which is helpful for larger projects.
Project Management Tools
- Trello: Ideal for simple, visual task tracking. We love using it to map out smaller projects.
- Asana: Perfect for managing complex workflows and keeping everyone aligned on deadlines.
- Jira: Best for development-heavy teams. It’s built for tracking sprints and managing technical projects.
Collaboration Tools
- Google Workspace: From Docs to Sheets, Google’s tools make it easy to collaborate in real time, no matter where your team is.
- Miro: A digital whiteboard that’s great for brainstorming sessions and visualizing workflows.
- Figma: Perfect for design teams working across borders. It’s our go-to for collaborating on UX and UI projects.
Time Zone and Scheduling Tools
- World Time Buddy: Makes it simple to schedule meetings across different time zones.
- Clockify: Tracks team hours, making sure everyone stays on schedule, no matter where they are.
Pro Tip: Pick a handful of tools that work best for your team and stick with them. Too many tools can lead to confusion, so simplicity is key.
Conclusion
In the end, hiring offshore developers LOOKS enticing, but in our more than two decades of experience, we think that the costs greatly outweigh the benefits.
Offshoring your development typically leads to lower-quality products, longer time-to-market, management headaches, and hidden costs.
Not to mention employee turnover.
If you’re interested in a free consultation, give us a call or send us an email, and we’ll explain to you the benefits of using an onshore team and guide you on pricing.