5 Best Practices To Manage Offshore Teams

5 Best Practices To Manage Offshore Teams

A leading eCommerce platform required a group of experts to manage the application development services for its newly developed app. The company approached Skillmine with the need for a flawlessly operating web product. Skillmine’s offshore team formed a flexible and modern website development in the shortest time. The team could simplify the business’ complex workflow and improve its performance by 200% and data security by almost 50%. Let’s understand more about offshore development

Definition of off Shore Development 

Offshore development refers to transferring a project entirely or partially from a client to a third-party software development vendor.  

What is Offshore Development? 

Offshore development refers to transferring a project entirely or partially from a client to an external vendor. In the context of our rapidly expanding global economy, offshoring appears to be a sensible strategy for cutting operational expenses and expanding operations. The opportunity to secure exceptional tech talent at a cost-effective rate is an evident advantage. 

Numerous enterprises utilize it to tap into a vast reservoir of proficient and seasoned developers spanning diverse technologies and domains, achieving cost savings, while enhancing flexibility and scalability. 

By outsourcing development tasks, entrepreneurs can devote more attention to business growth without being hindered by operational hurdles like hiring and training staff. Furthermore, offshoring enables companies to develop high-quality software products within a shorter timeframe. Streamlining development time allows business owners to expedite their go-to-market strategy, potentially accelerating revenue generation. 

In the offshoring model, businesses engage a tech services provider, often from cost-effective countries, to lower their operational expenses. This arrangement allows for outsourcing specific tasks or even entire projects.  

Clients have the flexibility to hire an individual developer, a team, or an entire software development company. Offshore delivery centers typically provide services such as: 

– Software development
– Mobile app development 
– Web design 
– Software testing 
– Project management 
– Business analysis 
– Product management 

Popular locations recognized for delivering software development services include the Philippines, India, and China. 

Nevertheless, offshore development comes with certain drawbacks, such as challenges in communication and collaboration, potential risks to quality and security, concerns regarding legal and regulatory compliance, and disparities in time zones. If managing offshore teams is not effectively done, these issues can significantly affect the success and satisfaction of the project. 

Best Practices of offshore development 

Know your Team and Their Capabilities

The members of offshore teams are multi-talented, considering that team members were carefully chosen for their expertise by clients. It’s a good idea to identify each offshore team member’s skills and utilise them judiciously. The project scope should be well-defined to help you plan your team’s availability. 

Build Two-Way Partnerships

The partnership should ensure two-way collaboration for efforts to be reciprocated. Communicate your vision, challenges, and goals to your remote staff and get them on the same page as their in-house counterparts. Giving your offshore workforce a sense of ownership will inspire them to put in extra effort for you. Working with the same team for long-term projects develops trust, value, and knowledge that may also be helpful in future projects. 

Speed up Approvals

Delays from the client are one of the leading causes of poor progress of a project. To make the project cycle more effective, you can designate specific project managers to oversee the offshore teams. Businesses give their offshore teams unrealistic deadlines at times. The structured project cycle and the effectiveness of the solutions are hampered as a result of this. Clients must exercise due diligence to establish realistic deadlines for managing teams successfully. 

Choose The Suitable Engagement Model

There are three engagement models for outsourcing: Fixed Price, Time & Material and the Dedicated Team model. Each model has its own set of unique advantages and disadvantages. 

Fixed Price Model

This model is suitable for short-term projects. Here, the service provider quotes a fixed price for the project delivered to the client according to the defined project scope. This model is less flexible, and no significant project scope changes are generally entertained.  

Time and Material Model

 Here, the resource team is hired on a cost-per-hourly basis. This model allows the client to add new features to the project scope for payment based on the added hours. 

Dedicated Team Model

This is the apt choice for long-term projects that demand the utmost commitment and reliability. Here, the client can build his dedicated offshore team of developers through the outsourcing partner.  

Prioritise Security

Protecting the project’s IP and data from security breaches is one of the essential parts of managing offshore teams.  


Offshoring is no doubt competitive, economical, and efficient. Although leading an offshore team is challenging, its benefits make it worthwhile. Companies must first understand how to manage the talent they already have to realise offshore development’s benefits fully. Skillmine’s Offshore Delivery Centre (ODC) has been working as an extended arm of leading businesses for years now.

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