When local pools of tech talent are tapped out, a remote software development center becomes a viable way to source software developers. One of the most significant benefits of this approach is that it comes with the overlapping coverage fostered by the cooperation of two teams operating in different time zones. Located in different regions, your remote and in-house units will clock in 8 hours per day each, which in many cases totals to 16 hours in a 24-hour timeline.  

Another notable benefit of this model is its flexibility, especially when it comes to mid-term projects spanning 1-2 years. A remote software development center lets you work with a team for the duration of your project. This eliminates the expenses and efforts associated with HR processes that often arise when disbanding a team upon project completion.  

Now, let’s review the steps to build your own remote software development center.  

Before you begin… 

Before you dive into building your own software development center, it’s important to know why you need it. Is this a question of saving costs, an overfished talent pool, or both? Next, think about the importance of working in the same time zone as a team. Then, consider how complex your project is and if it needs highly skilled talent. And most importantly, do you have the capacity to manage your remote software development center? Once you’ve addressed these questions, you’ll have a better idea of which region to choose for your remote center (in terms of the rates, time zone, talent availability, etc), which collaboration model suits you best, or whether sticking to in-house development is the right choice for you. 

Determine the scope of work for your remote development center

Before hiring remote software developers, you should define the scope of work for both your internal and remote software development teams. There are basically two approaches to dividing the scope of the project between your units. One approach involves the common work of both teams with full integration of your remote software development team. Alternatively, you can divide the project into components, which each team will deliver independently. The approach you take depends on your project as well as your management style. Regardless of the chosen approach, it’s essential to deconstruct the project into deliverables and set up time frames when you want each part to be delivered. That way, it’ll be easier for you to coordinate the teams, track progress, and measure success.  

Another crucial thing is the budget. Software developer rates differ significantly from region to region. A recent Accelerance report shows that launching a remote software development center can lead to significant savings – from 40% to 70% of overall costs. Based on our experience, the rates in LATAM and CEE are 2-4 times lower than those in the US, whereas in Western Europe the difference is 1.5-2 times lower. 

So, the outcome of this step should include a defined set of deliverables for both teams, a timeline, and a budget. Based on this input, the provider will take care of sourcing relevant remote software developers that will meet your demands when it comes to skillset, experience, and rates as well as handle the HR processes, equipment setup, and all operational costs.

Define the structure of your remote software development center

Team composition varies for different scenarios. It may consist of several software engineers fully integrated into your workflows, working closely with your internal staff. In this setup, you can communicate with each team member. directly Alternatively, you might opt for a comprehensive dedicated team approach, akin to a “turn-key” remote software development center. Such a team would involve essential software development roles, including a UX/UI designer, developers, QA professionals, and a project manager who serves as a singular point of contact. Whichever scenario you choose, our remote software development company will help you build the right team.  

The entire concept of a remote team for software development is that it allows you to bring in talent you lack on-site. Thus, after you’ve outlined the scope of work, you need to define who will be a part of your remote software development center. That is a necessary step because it’s impossible to start cooperation with a purveyor of tech talent without knowing the roles they need to source to complete your remote unit. The list of skill sets should be based on the type of product you want to build and your vision of the future product. 

READ ALSO: When do you Need Full-Cycle Product Development?

Start the candidate selection process

At this step, it’s essential to define whether the team members must operate from a single location. This factor may be critical for hardware and IoT products. In this scenario, the pool of candidates may be more limited. On the other hand, you may opt for a remote distributed team, which lets you access a broader pool of talent without being tethered to a single location. 

How does candidate selection for your remote software development center work? After you’ve chosen the provider of a remote software development team, you should establish a clear process for candidate interviewing. We recommend keeping it as concise as possible, including no more than 3 steps. This approach helps prevent frustration among your candidates, especially senior ones, as convoluted interviewing processes may prompt them to go with other options available in the market.

Furthermore, when selecting candidates, not only should your provider sift through the labor market for relevant candidates, but also pre-screen them for a variety of competencies, including English proficiency, culture fit, and tech skills.  

If you decide to set up your remote software development center in Eastern Europe, chances are this step won’t be time-consuming, as the pool of tech talent in this region boasts nearly 1.3 M software developers. Another popular software development hub, Latin America, is home to 1 million IT experts. Many developers in these regions have years of experience being part of European and North American companies, which means they have solid communication skills and the needed expertise. To be sure of that, all remote software developers that we pre-select for you undergo our internal HR and tech screening process.  

At nCube, our clients are always a part of the interviewing process, as it lets them make the right decision when it comes to choosing who they want to add to their team. With that in mind, our clients interview all candidates before they decide whether or not to hire them for their remote software development center. We are always here to coordinate the process of interviews and answer any questions you may have. If you end up approving a candidate, we officially inform them that they are offered a position as a member of your remote software developer team. Essentially, in our model, there are no down payments before you approve the first member of your remote department, as we want you to be sure this model suits you before you commit to it.  

Launch your remote development center 

So, you hired remote software developers and are ready to put your remote unit to work. To officially launch your remote software development center, we prepare all the necessary paperwork, including signing a Service Level Agreement, Non-Disclosure Agreement, and contracts with your remote software developers. 

We recommend signing B2B contracts with your team members as it lets you negotiate a longer notice period, rather than adhering to the standard 2-week notice.

At this step, we aim to make the integration process as smooth as possible, so you can count on our assistance at any time. To that end, we assign a personal account manager to coordinate matters between you and your remote software development team. They will be available for you to contact 24/7.

The onboarding process holds the key to your remote team’s success. It’s important to integrate your new hires into your processes and include them in your internal meetings. This step is crucial for them to feel a part of your team and be more invested in its success. We at nCube help our clients establish the right communications between their internal and remote units.  

 

remote software development team

Benefits of a remote software development company

What do businesses seek when they partner with a remote software development company? Let’s break it down. 

Cost reduction. Trimming unnecessary costs is one of the most expected outcomes of a remote software development center. For many companies, especially startups, building a local team of developers is beyond their means. Studies reveal that in-house hires tend to cost from 40% to 100% on top of their salary. The cost of local hiring is snowballing, as talent acquisition, onboarding, training, employee retention, and administration tend to factor in. Hiring remote software developers is a way to cut back on extra expenses. The vendor typically takes care of team administration, retention, and IT infrastructure. 

Shorter time to hire. Launching a remote software development center lets you go outside your “four walls” and add talent from a diverse pool of technologists, for example, Eastern Europe or Latin America that have a total of 2 million ICT specialists combined. Thanks to this, your company can significantly reduce the time required to backfill vacancies. 

READ ALSO: Nearshore Product Development: Eastern Europe and Latin America Overview

Simple scaling. If you err on the side of being risk-averse, a remote software development company is the way to go. Scaling your remote unit up and down is easy – you can start with one or two remote software developers to take the approach for a spin and then scale up as you see fit. You can hire more specialists or disband the team if you decide to close your remote software development center. Vendors typically offer flexible engagement models where you only pay for the hours your remote employees invested in your project. 

Acceleration of processes. A remote software development center will help you get overlapping coverage where two teams invest 8 hours of work in a 24-hour timeline. That extra effort will speed up your development process and get you to market sooner. That way, hiring remote software developers helps your business operate around the clock by uniting the efforts of team members from different time zones. 

What will your remote software development center look like with nCube?   

In a nutshell, it will be your own team of remote software developers who will work on your project as if they were team members of your internal staff. The team will work with you full-time, 40 hours per week, Monday through Friday. As a client and a leader of your remote software development team, you will have direct access to all team members. Alternatively, you can hire a project manager through us who will run your remote software development center on your behalf.  

Our model allows you to have the benefit of managing the processes in your own unique way. Working under your management, your remote software developers will stick to your communication style and adopt your methods of software development. Thus, it can be your own Agile software development remote teams if you’re a proponent of this approach.  

The peculiarity (and the biggest benefit) of our model, in our opinion, is that you’ll keep control over everything, from who is going to work on your project(s) to team management and processes. This model allows you to truly embrace Agile software development with remote teams, as you can scale up and down whenever your project needs it. On our side, we at nCube will have your back when it comes to team member retention, providing such services as team building, insurance, HR and tax support, motivation, help setting up IT infrastructure for your remote software developers, and more.

When your team reaches a certain size, we offer to create an R&D center with a separate office, dedicated HR and operations managers. Thanks to this, our remote software development company boasts an average retention rate of 3.5 years, which means most developers endure throughout the lifetime of the client’s project.  

Let’s connect and discuss how we can help you build your remote software development center in 2024. 

In the last decade, offshoring business tasks and technical projects has become a widespread practice among businesses worldwide. From IT functions to BPO, most well-established companies have embraced offshore teams or even built entire remote R&D centers – and for a good reason. Effective offshore engagement has the potential to significantly enhance a company’s efficiency, prepare it for future challenges, and ultimately result in greater profits. However, the challenge of offshore talent acquisition lies in measuring and managing the performance of your team.

The solution? Directing attention towards key metrics that provide a clear understanding of successes and areas for improvement. In this article, we’ll review some essential metrics that can assist in evaluating your company’s performance and devising more effective strategies.

Essential metrics for evaluating the success of offshore engagement

Let’s assume you already have a remote software development team that’s been operating for some time. The team’s performance might look fine at a glance, or at the very least, you did not notice any issues so far. But what if the team is not working to its full potential? Then it’s best to apply a set of specific metrics to determine the team’s efficiency, identify potential blockers and bottlenecks, and ensure effective team dynamics management. 

Operating efficiency metrics

Ensuring punctuality with every deadline is critical to any organization, especially for small to medium-sized businesses. Even a slight delay can trigger a cascade of missed deadlines and potential revenue loss. Monitoring deadlines and milestone checkpoints with your offshore team serves several purposes:

  • Facilitates adequate planning for project changes
  • Ensures appropriate task allocation among team members
  • Provides accurate benchmarks for clients and partners

These operating efficiency metrics indicate whether your remote team is making progress or delaying it. Delivery delays, sometimes encountered with offshore teams, can pose challenges, particularly in the absence of effective communication. A proficient team will furnish timely deliverables along with milestone reports, ensuring clarity regarding project status.

Process performance metrics

While monitoring the team performance is an important aspect of your dream team formation, you should also monitor broader organizational health indicators. Throughput time, measuring the duration of executing a business process, serves as a pivotal metric in this category. Additionally, other informative process performance metrics include:

  • Return on investment: The performance of your offshore team greatly relies on its ability to innovate and elevate ROI. Seasoned business experts emphasize the importance of consistently analyzing ROI to gauge the effectiveness of remote team engagement. Essentially, ROI denotes the profit generated in relation to the investment made. If you’re grappling with managing offshore development due to technology and R&D expertise sourcing constraints, understanding the monetary value of your efforts will help you understand how effective your remote teams are. Improved efficiency, alongside reduced expenses, inevitably contributes to higher ROI. Evaluating ROI as a performance metric in offshore engagements provides insights into areas of success and areas needing improvement.
  • Quality indicators: Quality indicators for a software development team encompass various aspects such as code quality, adherence to project timelines, customer satisfaction, and the ability to meet requirements accurately. A high-performing team demonstrates consistent delivery of bug-free code, adherence to best practices, efficient collaboration, and proactive problem-solving, ultimately leading to successful project outcomes and satisfied clients.

These metrics gauge operational proficiency across two major areas – profitability and quality. They foster organizational transparency and facilitate effective communication channels. However, they do not give a comprehensive view of the team’s performance. This can be achieved by applying further metrics.

Feedback resolution metrics

Effective feedback resolution is paramount, especially when we consider agile offshore teams. It is common for bugs to arise during the app development phase, and offshore teams typically employ their bug detection systems to address these issues. However, achieving successful feedback resolution hinges on several key factors:

  • Prompt reaction: Your offshore team must prioritize bug-fixing tasks without delay. Swift actions are essential to address any issues that arise promptly.
  • Clear communication: Establishing clear lines of communication among offshore staff is crucial. This ensures that resources assigned to address bugs receive feedback constructively and work diligently to eliminate bugs in a timely and efficient manner.

Team building and trust between developers and other IT roles (for instance, QA) are also essential as they would result in quicker response and faster bug ticket resolution.

Examining SLA adherence

Creating a comprehensive Service Level Agreement (SLA) during the dream team formation is essential for both service providers and end-users to outline mutual expectations. While significant for all businesses, it holds particular value in the realm of offshore team building and managing offshore teams. Recognizing the importance of SLAs grants a clear understanding of deliverables, enabling the development of tools and procedures to assess outcomes accurately. This becomes indispensable in offshore team management, riddled with numerous challenges and implications. Analyzing SLA compliance becomes imperative as it ensures that your company delivers on its commitments to clients amidst offshore engagements.

Conflict management metrics

Effective communication assumes paramount importance in offshore talent acquisition, where differences in culture, social structure, and language can pose challenges. Monitoring conflict resolution metrics offers insights into the efficacy of the team building process. For instance, tracking changes in managerial engagement with subordinates provides indications of successful conflict resolution. Other relationship metrics, such as problem-solving abilities, positive interactions, and timely communication, also contribute to assessing conflict resolution efficacy.

Evaluating the internal resolution of conflicts serves as a barometer for the offshore team’s operational efficiency. Smooth talent dynamics management lays the groundwork for enhanced profitability and streamlined operations.

Mind the limitations of KPIs

While KPIs offer significant benefits across businesses of all sizes, it’s essential to acknowledge their inherent limitations. Consider the following points:

  • Not conducive to immediate action: KPIs require time for development as they rely on accumulated data over a defined period to illustrate the progression of a process. You need to observe the team’s performance for some time before setting any meaningful KPIs.
  • Learning curve: Implementing KPIs involves comprehending vast amounts of information about various aspects of your business, necessitating research and understanding to optimize their utilization.
  • Potential for misuse: Occasionally, employees may attempt to manipulate the system, resulting in less accurate KPI information and potentially misleading insights.

Despite these limitations, KPIs remain invaluable tools for evaluating the effectiveness of offshore teams. While selecting relevant metrics aligned with your offshoring objectives is crucial, maintaining a broader perspective can offer supplementary insights. Monitoring the return on investment from offshoring endeavors is vital. Otherwise, adjustments to staffing or communication practices may be necessary to ensure optimal outcomes. You should also consider the disruptive impact of future trends on the team creation process, as they will also impact the use of KPIs.

Wrapping up

Assessing the productivity of an offshore development team poses challenges, yet it remains crucial for maximizing team efficiency. Employing the strategies and techniques outlined in this blog post can optimize your team’s performance and uphold your standards. Here are additional recommendations for gauging and enhancing offshore development team productivity:

  • Utilize diverse metrics: Avoid relying solely on one metric for productivity assessment. Incorporate a range of metrics, including task completion time, bug identification, and customer satisfaction, to gain a comprehensive understanding.
  • Establish benchmarks: Once data on productivity is gathered, establish benchmarks for comparison purposes. This facilitates tracking your team’s progress over time and identifying areas for improvement.
  • Address areas for enhancement: Upon pinpointing areas where productivity can be enhanced, devise strategies to tackle these issues. This may entail offering additional training, adjusting workload distribution, or refining workflow processes.
  • Maintain regular communication: Foster consistent communication with your team to convey expectations and deliver feedback on their performance. This practice ensures alignment with your objectives and helps monitor progress.

By implementing these techniques, you can effectively evaluate and enhance the productivity of your offshore development team, maximizing the value they deliver. 

When it comes to measuring the effectiveness of R&D, we at nCube always help our clients establish proper communication channels, track performance, and provide support when building offshore R&D centers. With us as your partner, you can access the talent pool of your choice, while we take care of all the hard work – setting up a legal entity, finding a workspace, talent sourcing, and HR.  

Let’s connect and discuss how we can help you with this model.

When local pools of tech talent are tapped out, a remote software development center becomes a viable way to source software developers. One of the most significant benefits of this approach is that it comes with the overlapping coverage fostered by the cooperation of two teams operating in different time zones. Located in different regions, your remote and in-house units will clock in 8 hours per day each, which in many cases totals to 16 hours in a 24-hour timeline.

Scope of work 

Before hiring remote software developers, you should have an idea of what the team is going to work on. Thus, you may want to begin by defining the scope of work for your remote software development team. You can break it down into deliverables and set up time frames when you want each chunk of work to be delivered. That way, it’ll be easier for you to coordinate the team, track its progress, and measure success. Another crucial thing is the budget. When you work with a provider of a software development remote team, your budget will be essential for finding employees for your remote unit. 

So, the outcome of this step should include a defined set of deliverables, a timeline, and a budget. Based on this input, the provider will take care of sourcing relevant remote software developers that will meet your demands when it comes to skillset, experience, and rates. 

Team Structure 

The entire concept of a remote team for software development is that it allows you to bring in talent you lack on-site. Thus, after you’ve outlined the scope of work, you need to define who will be a part of your remote software development center. That is a necessary step because it will be impossible to start cooperation with a purveyor of tech talent without knowing the roles they need to source to complete your remote unit. The list of skillsets should be based on the type of product you want to build and your vision of the future product.

As a remote software development company, we help businesses scale up by sourcing Eastern European tech talent aimed to augment their in-house staff with skillsets they may lack locally. Remote software developers that we add become integral to the software development processes of our clients, seamlessly expanding their internal units. We also help companies build a full-blown remote software development center, which will entail all roles needed to build a product. Such teams may include software architects, web or mobile designers, Quality Assurance specialists, project managers and other talent. Our clients, including CrossEngage, FlightRight, and Life360 have chosen this route and are currently running fully staffed remote software development centers

READ ALSO: When do you Need Full-Cycle Product Development?

Candidate selection

This step goes after you’ve chosen the provider of a remote software development team. They will familiarize themselves with your project and requirements for remote software developers and put their HR department to the task of sourcing candidates who are a good fit for your project. Selecting candidates, not only should your provider sift through the labor market for relevant candidates, but also pre-screen them for a variety of competencies, including English proficiency, company fit, and tech skills. That way, we at nCube ensure that our clients speak only with relevant candidates. 

If you decide to set up your remote software development center in Eastern Europe, chances are this step won’t be time-consuming, as the pool of tech talent in this region boasts nearly 1.3 M software developers. Many developers in Eastern Europe have years of experience being part of European and North American companies, which means they have solid communication skills and the needed expertise. To be sure of that, all remote software developers that we pre-select for you undergo our internal HR and tech screening process. 

At nCube, clients are always a part of the interviewing process, as it lets them make the right decision when it comes to choosing who they want to add to their team. With that in mind, our clients interview all candidates before they decide whether or not to hire them for their remote software development center. We are always here to coordinate the process of interviews and answer any questions you may have. If you end up approving a candidate, we officially inform them that they are offered a position as a member of your remote software developer team. Essentially, in our model, there are no down payments before you approve the first member of your remote department, as we want you to be sure this model suits you before you commit to it. 

Launch 

So, you hired remote software developers and are ready to put your remote unit to work. To officially launch your remote software development center, we prepare all the necessary paperwork, including signing a Service Level Agreement, Non-Disclosure Agreement, and contracts with your remote software developers. At this step, we aim to make the integration process as smooth as possible, so you can count on our assistance at any time. To that end, we assign a personal account manager to coordinate matters between you and your remote software development team. They will be available for you to contact 24/7. 

remote software development team

Benefits of a remote software development company

What do businesses seek when they partner with a remote software development company? Let’s break it down. 

Cost reduction. Trimming unnecessary costs is one of the most expected outcomes of a remote software development center. For many companies, especially startups, building a local team of developers is beyond their means. Studies reveal that in-house hires tend to cost from 40% to 100% on top of their salary. The cost of local hiring is snowballing, as talent acquisition, onboarding, training, employee retention, and administration tend to factor in. Hiring remote software developers is a way to cut back on extra expenses. The vendor typically takes care of team administration, retention, and IT infrastructure. 

Shorter time to hire. Launching a remote software development center lets you go outside your “four walls” and add talent from a diverse pool of technologists, for example, Eastern Europe or Latin America that have a total of 2 million ICT specialists combined. Thanks to this, your company can significantly reduce the time required to backfill vacancies. 

READ ALSO: Nearshore Product Development: Eastern Europe and Latin America Overview

Simple scaling. If you err on the side of being risk-averse, a remote software development company is the way to go. Scaling your remote unit up and down is easy – you can start with one or two remote software developers to take the approach for a spin and then scale up as you see fit. You can hire more specialists or disband the team if you decide to close your remote software development center. Vendors typically offer flexible engagement models where you only pay for the hours your remote employees invested in your project. 

Acceleration of processes. A remote software development center will help you get overlapping coverage where two teams invest 8 hours of work in a 24-hour timeline. That extra effort will speed up your development process and get you to market sooner. That way, hiring remote software developers help your business operate around the clock by uniting the efforts of team members from different time zones. 

What will your remote software development center look like with nCube?   

In a nutshell, it will be your own team of remote software developers who will work on your project as if they were team members of your internal staff. The team will work with you full-time, 40 hours per week, Monday through Friday. As a client and a leader of your remote software development team, you will have direct access to all team members. Alternatively, you can hire a project manager through us who will run your remote software development center on your behalf. 

Our model allows you to have the benefit of managing the processes in your own unique way. Working under your management, your remote software developers will stick to your communication style and adopt your methods of software development. Thus, it can be your own Agile software development remote team if you’re a proponent of this approach. 

READ ALSO: How to Build an Offshore Software Development Center

The peculiarity (and the biggest benefit) of our model, in our opinion, is that you’ll keep control over everything, from who is going to work on your project(s) to team management and processes. This model allows you to truly embrace Agile software development with remote teams, as you can scale up and down whenever your project needs it. On our side, we at nCube will have your back when it comes to team member retention, providing such services as team building, insurance, HR and tax support, motivation, help setting up IT infrastructure for your remote software developers, and more. Thanks to this, our remote software development company boasts an average retention rate of 3.5 years, which means most developers endure throughout the lifetime of the client’s project. 

Let’s connect and discuss how we can help you build your remote software development center in 2023.

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