If you decide to hire an offshore team, you will have to consider many details of working with your future team. One important issue will be how much it costs to hire an offshore team. What unforeseen costs can arise, and how long will it take to find the offshore team?
We advise you to look for an offshore team that works on the Time & Materials model. This model will allow you to avoid risks and determine the benefits of your team. As a client, your trust in the team should come first, because you will work on a joint project. So before you start calculating the remote team services, make sure you find a team that is safe to hire.
Next, we will talk about 7 main points that you need to pay attention to when calculating the cost of the offshore team services.
- Have a Clear Understanding of What Your Project Represents
This is the first step that will help not only in negotiating with your remote team, but also provide clarification for you to understand what services you really need. You will understand what features you need, what is missing and the structure of your project. This will greatly facilitate the negotiation process, project management, the reporting process and calculation cost for the remote team services.
- Take Into Account Each Detail
Once your project is started by offshore developers, it’s time to write them down on paper, especially if it is a startup. This will allow you to more accurately calculate the cost of remote team services.
Ideally, discuss with your team in advance the condition of using tracking platforms with which you can track how much time, who performs the tasks, and what is spent on tasks.
- Time to Estimate the Cost of the Offshore Team
Valuation is not the same as the final cost of the remote team services. The cost estimate can roughly determine the final cost of services, so you need to be as careful as possible and take into account delays, incidents, and changes, approvals that may change the final cost of the remote team services. Therefore, the main task when estimating the cost for the offshore team is to take into account all possible contingencies and deviations from the most probable final cost.
- Find Offshore Developers Who are Right for You
It is at this stage that you will know exactly how much money and time you have, and these criteria will help you choose the offshore team of developers and hire it safely. You will be able to compare different offshore teams based on your resources. To optimize your costs and time, set an hourly rate for the team.
5. Don’t Forget About the Extra Costs
Remember that you are not just hiring a developer, but a whole team. So be prepared for the fact that you may have additional costs for the offshore team in the form of additional equipment, programs, licenses, business trips, if necessary
6. Do you Need Additional Services?
The offshore team is not only developers and QA engineers who are responsible for the technical component of your project, but also designers, customer service, and sales managers. Therefore, your task is to determine whether you need additional services; for example, some offshore teams continue to lead the project and are responsible for it after the technical part. Discuss whether your team provides such services.
7. The Final Cost for the Services of an Offshore Team
Now that you have considered all the previous points, you get the final price you pay. You have a clear picture of how much it costs to hire the remote team and what you are paying for, and what unforeseen costs may arise. Some people think that hiring an offshore team is easy, but this is not that case; you need to pay attention to many details.
In the process of performing the work for the project, there are unforeseen costs to make the project successful and high quality. Therefore, it is important to set an hourly rate; this will help control the payment process. At Israel IT, we guarantee that you, as a customer, only pay for the work actually done and that you do not have to overpay for a service that did not actually exist.
Premium Offshore Software Development Services
We at Israel IT provide a wide range of software development and staffing services to our clients. We have 5 years of experience providing successful projects for worldwide companies. Our company has 160+ first-class specialists who take into account the conditions and needs of each client and select a team that will perfectly meet the needs. In addition, we guarantee full transparency during the work, especially while calculating the cost for offshore team services. Saving up to 60% on general labor cost you will get a perfect dedicated team with extensive experience and no resource sharing.