How to build your own offshore development team in India?

Steps to Building Your Offshore Development Team in India

Building and overseeing a development team in India that works remotely requires a thoughtful and comprehensive plan. Here are the steps to build your offshore development team:

1. Setting the Foundation

Before you start assembling a team for offshore development, it’s important to outline your goals and needs clearly. Figure out the exact skills your project requires and define what needs to be done. This clear understanding will make it easier to find the right people and ensure your offshore team is set up for success.

2. Legal and Compliance Aspects

Knowing the legal rules and requirements is extremely important when establishing a team in another country. Take the time to learn about India’s labor laws, tax rules, and any other regulations that apply to your business. Doing this doesn’t just make the setup process easier, but it also helps you avoid legal problems later on.

3. Recruitment Strategies

India has a lot of talented people, but it’s important to recruit effectively to find the best match for your team. Work with trusted recruitment agencies, check online job websites, and tap into professional networks. By conducting thorough interviews and skill tests, you can bring people who meet your project’s needs on board.

4. Building a Robust Infrastructure

Communication is the backbone of successful offshore collaborations. Invest in technology infrastructure that facilitates seamless communication and collaboration. Video conferencing tools, project management platforms, and secure data-sharing systems are essential for bridging geographical gaps.

5. Cultural Integration

Cultural alignment is often underestimated but plays a role in the success of offshore teams. Bridge the cultural gap through team-building activities, regular virtual meetings, and fostering an inclusive work environment. A unified team spirit enhances collaboration and productivity.

6. Continuous Evaluation and Adaptation

Implement a continuous evaluation system, seeking feedback from both onshore and offshore teams. This iterative approach allows for timely adaptations, ensuring your offshore team remains aligned with evolving project goals.

7. Effective Communication Strategies

Effective communication is vital for remote teams’ success, especially when working offshore. Use various communication tools like video calls, messaging apps, and project management platforms. Set up regular updates to keep everyone informed and aligned.

8. Mitigating Time Zone Challenges

While the time zone advantage can be beneficial, it also presents challenges. Establish overlapping working hours for seamless collaboration. Communicate expectations regarding response times and project timelines to mitigate potential delays caused by time zone differences.

9. Addressing Common Challenges

Every venture comes with its own set of challenges. Anticipate and proactively address common issues such as cultural misalignment, potential language barriers, and differences in work methodologies. Establishing conflict resolution mechanisms contributes to a harmonious working environment.

10. Talent Development and Retention

Investing in the continuous development of your offshore team not only enhances their skills but also fosters loyalty. Provide training opportunities, mentorship programs, and a clear career growth path. Recognize and reward exceptional performance to boost morale and promote retention.

11. Data Security and Confidentiality

Ensuring the security of your intellectual property and sensitive data is non-negotiable. Implement stringent security protocols, including secure data transmission and storage practices. Communicate and enforce data security policies to instill confidence in your clients and team members.

12. Flexibility and Adaptability

Be open to adapting your strategies based on feedback and changing circumstances. This could include adjusting team structures, refining processes, or exploring new technologies to optimize efficiency.

13. Continuous Improvement

Reflection is a powerful tool for improvement. Regularly evaluate the performance of your offshore team, seeking feedback from clients and team members. Use these insights to refine processes, address pain points, and enhance collaboration.

14. Nurturing a Long-Term Partnership

Creating an offshore development team isn’t just a temporary plan; it’s a long-term investment in a partnership. Develop strong relationships, build trust, and consider visiting your offshore team to strengthen personal connections.

What Can be Outsourced to India?

The country’s skilled workforce, cost-effectiveness, and proficiency in English make it an attractive destination for outsourcing.

Here are some key areas that businesses commonly outsource to build dedicated offshore team in India:

1. Information Technology (IT) Services:

• Software Development
• Web Development
• Mobile App Development
• Quality Assurance and Testing
• IT Support and Maintenance

2. Digital Marketing:

• Search Engine Optimization (SEO)
• Social Media Management
• Content Marketing
• Pay-Per-Click (PPC) Advertising

3. Research and Analytics:

• Market Research
• Data Analysis
• Business Intelligence

4. Business Intelligence Services

• BI Reporting
• BI Consulting
• BI Implementation 

5. Power BI & Tableau Facilitation

• Data Integration
• Visualization Design
• Data Cleansing
• Visualization Design
• Data Warehousing
• Custom Reporting
• Data Modeling
• BI Tool Integration
• Data Transformation

5 Advantages of Setting up an Offshore Development Team in India

1. Skilled Workforce and Scalability

In a study by Statista, India scored highest in People Skills and Availability scorecard with 2.18, firmly establishing it as a skilled powerhouse. It also revealed that Indian developer’s hourly rates are as low as 20 USD to 40 USD.

Since, India surpassed China in terms of population, and is one the youngest countries in the world, with 65% of the population is under the age of 35 years, and around 37.4 million enrolled in higher education like technology, innovation, engineering, core sciences, business, commerce etc.

Around 1.3 million engineers graduate every year. The country has a strong global reputation for excellence in fields like data engineering, analytics, financial services, software development, etc. 

2. Cost Arbitrage

One of the most compelling reasons to build your offshore team in India is the significant cost savings. India offers highly competitive pricing for services, mainly due to the lower cost of living compared to Western countries.

This allows companies to access high-quality services at a fraction of the cost they would incur in their home countries. For example, offshoring teams for software development or customer support to India can result in savings of 50-60%.

Additionally, many Indian offshoring team providers offer flexible pricing models, such as fixed-cost or hourly rates, further improving cost management for businesses.

3. Quality and Reliability

Indian offshoring teams have built a reputation for delivering high-quality services. Many of them are certified under global standards such as ISO and CMMI, guaranteeing consistent delivery of top-notch services.

Over the years, India’s offshoring industry has evolved to be more professionally sound, with increased focus on quality.

Companies setting up their offshoring teams in India can expect a strong adherence to deadlines, service-level agreements (SLAs), and excellent quality control measures. 

4. Time Zone Advantage

India’s geographical placement offers another strategic benefit, that is a viable time zone, especially for businesses eyeingto set up an offshore team in India from US, Europe, or other regions.

India is typically 9 to 12 hours ahead of these countries, allowing for round-the-clock operations.

This advantage allows businesses to have their tasks completed overnight, accelerating project timelines. Also critical functions like customer support or technical maintenance are available 24/7. 

5. .Technological Expertise

India’s technological ecosystem is well-developed, with strong expertise in IT, software development, data analytics, and emerging technologies like artificial intelligence, machine learning, and blockchain.

The country is home to numerous IT hubs, such as Noida, Bangalore, Hyderabad, and Pune, which host global leaders in technology.

With robust digital infrastructure, and ever churning entrepreneurial wheel, India is a hot spot for techies around the world.

How To Choose The Right Partner for Setting up an Offshore Team in India?

Lets now explore how to identify the right partner to build an offshore team in India:

1. Define your requirements and Budget

Clearly outline each and every aspect of your expectations and requirements. Make detailed budgetary estimates within which you are wanting to complete your project. This also includes roles and responsibilities for the offshoring team you are looking for. 

2. Thorough Partner Research

Conduct your in depth research on their track record, client testimonials, industry expertise, and certifications. Also, verify their experience with similar projects, scalability, and most importantly have some knowledge of their financial stability. Verify their capabilities, reliability via reference checks and case studies.

3. Clear and Detailed Contracts

Once you are clear of what you are expecting, draft a very clear and detailed  engagement contract about the scope of work, deliverables, expected timeline, KPIs, clauses for any changes during the course of the engagement, terms of confidentiality, IP rights, etc. Also establish dispute resolution mechanisms and other terms & conditions to prevent any unforeseen issues.

4. Regular Updates and Communication

Establish a regular communication schedule to track project progress and address any issues promptly. Use various tools like video conferencing, project management software, and regular status reports to maintain transparency. This has been discussed in detail in the above section. 

5. Cultural Sensitivity

Since India is a multicultural country, one may find diverse cultural imprints. Almost 1721 languages are spoken here, and hence to outsource work to India demands the understanding and respect of cultural differences for a positive working relationship. This also reflects the Indian population’s ability to accommodate different cultures and to be able to maintain harmony. 

6. Risk Assessment  & Data Security

Study the country’s laws and regulations regarding intellectual property and other related rights, how the judiciary resolves such issues if it arises. Know about the data security protocols and security measurements for the technologies. Make sure that your chosen partner abides by global data protection standards and cybersecurity.

Choose ScaleupAlly as Your go-to Offshore Development Team

Creating an offshore team can be tough and requires patience. Selecting team members who share your enthusiasm for work is important to avoid future problems.

ScaleupAlly is experienced in supporting your offshoring requirements. We specialize in overseeing skilled global teams and bringing top talent into various organizations since our inception.

With locations in Australia and India, ScaleupAlly has a talented pool of professionals to offer a productive workforce that meets your business goals.

Get in touch with ScaleupAlly today to assemble a successful IT offshore team for your company.

Conclusion

An offshore software development center saves you from the hassle of setting up your infrastructure, managing a team, overseeing resources, and handling administrative, legal, financial, and other expenses. Moreover, it gives you access to global expertise, enabling you to create custom software for your business at an affordable price. Let’s get in touch if you are still considering hiring an offshore development center for your next project!