How to Manage an Offshore Development Team Effectively

March 4, 2021

By the end of 2021, the IT-outsourcing market value can exceed $413.7 billion according to Statista. It is no surprise since more and more companies have become interested in performing services in another country in recent years.

After entering the international market, the offshore software providers now present various prospective opportunities to the established companies in the US and Europe.

How to Manage Offshore Team Process

Offshore services are generally performed in countries where labor cost is much lower than in the country where the services are received, which is extremely profitable for the IT industry.

Nevertheless, there are still some points to consider, as it is really challenging to manage a huge offshore development team located miles away from you.

So, in this article, we will have a look at the ways to improve the offshore development team management and analyze the importance of software outsourcing for your business.

The Importance of Outsourcing Software Development

Outsourcing has become a promising alternative for companies, that have already experienced the talent shortage and now want to enhance their business performance.

According to McKinsey, over 87% of organizations have either encountered or expect this issue in a few years. For the offshore team of professional developers, it is just a perfect time for offering their services to various companies.

And both sides will get the benefits: for the offshore development team, it is new ground for work, and for the companies — a more cost-effective method for getting talented employees.

Challenges of Collaboration with Offshore Software Development Teams

However, there are still some points to consider before starting to cooperate with the offshore development team. Thus, you will be able to get ready for the various challenges and find profitable solutions for any issue.

  • Working around time differences. If the development team is located really far away, you can fail on its managing;
  • Language barriers. Without establishing the right communication, it will be extremely difficult to create an effective workflow.
  • Attending requirements & demands. It is quite challenging to manage the offshore development team and keep them updated with the latest strategy changes.

All these issues can certainly influence the entire company’s workflow, and that is why it is critical to think over the ways you can effectively organize the process and get the most of your employees’ productivity.

Tips on How to Manage Offshore Software Development Team

So, what are the main ways for enhancing the workflow and improving the communication with your offshore development team? Here are some effective tips for you:

#1 Consider the Key Project Knowledge

The employees onboarding process is one of the main aspects which every company should certainly pay attention to, as it can considerably influence the working performance of your new staff.

By providing all the project knowledge to your team members, you will be able to organize the processes more effectively and get the work done much better.

Furthermore, you can create a database for each project, and share it with your software developers. Thus, it becomes much easier for the development team to get started with the new project and run it effectively.

How to Manage Offshore Team Call

#2 Establish Clear Communication

Needless to say, communication with your offshore team is also critical for the working performance. However, the language barrier can sometimes make it difficult to present the tasks for your workers, especially for those who aren’t fluent in your native language.

For this purpose, use the specific software targeted at providing clear communication between the company members, like Outlook emails, Skype, or Zoom. That’s a quick and effective way to communicate with your developers and seek clarity where the verbal communication wasn’t clear.

As a result, you can easily track the progress and always point out the critical issues to the offshore software development team.

Additionally, it is a great option to regularly arrange the meetings for Q&A sessions during the project completion. This tip can greatly improve the workflow performance, so the project will be done much faster and better.

#3 Focus on the Working Conditions Improving

The skill gaps issue is the one every company has experienced at least once in their practices. And this issue becomes even more clear when you manage a team that gets constantly reshaped, as you lose a lot of time, resources, and investments on the employees’ onboarding and orientation.

That is why companies have now realized how difficult it is to find and how important it is to retain qualified and talented workers.

By improving the working conditions, and providing them with professional growth, training opportunities, fair compensation, you will be able to prepare a professional offshore development team.

Make your company attractive for the new talented employees, and try to build trustful, loyal and healthy communication between the teams, which is a must for a successful partnership.

#4 Use the Defined Tools for Work

The common problem of the offshore development team is that remote software developers can’t understand the project’s core idea and solutions. One of the main reasons it appears — the inconsistent development environment across the teams.

As a result, you can get the poor quality of software, late detection of bugs, and a list of core integration issues.

To resolve this problem, it is critical for all remote developers to use the defined tools for software development, control, and improvement.

This will help you to make sure all the essential processes are done according to the project plan, and greatly help you to manage an offshore development team effectively.

How to Manage Offshore Team Work

What Are the Hidden Costs for Offshore Team Software?

For sure, managing a remote team of developers implies huge investments in working resources, time, and costs.

Nevertheless, it is still much more cost-effective to hire offshore developers, as you will get the same, or even better quality of services with paying less money, that is why companies have already been using this model in their workflow.

The additional expenses you should keep in mind usually include

Though the costs may depend on the company’s specific targets and working processes, more and more companies find these methods really effective for managing the offshore development team.

Having mastered the offshore working processes once, your company will be able to hire talented workers from different parts of the world.

Furthermore, by enhancing the internal workflow processes of your company and the offshore teams, you will significantly increase the quality of the projects done and take your company to the next level of development.


All in all, the offshore team implementation now has become a useful and profitable method for the companies to perform their tasks effectively.

However, there are still some points to consider before hiring the offshore development team as it implies planning and managing the communication, workflow, project targets, and knowledge, etc.

But having created a dedicated development team, the companies can actually get a lot of benefits for their development and ROI improvement.

We know how important and challenging the offshore development team management may be. Our professional team at Intellectsoft, empower various companies and their workforces with innovative solutions and modern approaches.

So, if you and your organization are looking for some, talk to our experts and find out more about the topic and how your business can get the full advantage of collaborating with an offshore team!