How to Hire and Manage the Ideal Outsourced Development Team

“Time is money” for every business. For businesses trying to do everything with a small team, every cent (and, by extension, every second) really, truly counts. 

To grow, though, you need to bring in the necessary talent and you need to do it fast. 

Let’s say you need to get to market with a digital product, and you needed to do it yesterday.

Should you speed through the recruitment process and assemble an in-house development team? Or is leaning on the skills and experience of an outsourced development team the smarter way to go?

Let’s take a look.

In this article

• What is an outsourced development team?
  • In-house vs. outsourcing development teams
• Why should you choose an outsourced development team?
• Types of IT outsourcing
• How to hire an outsourced software development team
• How to manage IT outsourced teams
• The best countries for software development outsourcing
• How does nearshore outsourcing work at Cheesecake Labs?

What is an outsourced development team?

An outsourced development team is a group of experienced tech professionals hired from an external company to create a digital product based on your needs and vision.

With IT outsourcing, you delegate the technical heavy lifting to third-party experts. This accelerates project kickoff and shortens time to market — without the headaches of building an in-house crew.

In-house teams vs outsourcing software development

So, now we know what developer outsourcing is — what makes it a better choice than building your own in-house development team? 

Essentially, outsourced engineering teams come with none of the hassles of building a team yourself. They’re used to working as dedicated development teams and are ready to hit the ground running for your business’s success.

Here’s what that could look like:

• Your team is ready to go right away

With a pre-built development team, there’s no need to hire the right talent. It’s already there. This allows you to scale up or down as quickly as you need. 

This alone gives your business a huge competitive advantage. It allows you to be agile, claim a stake in the game, and compete with larger companies in your sector. 

An outsourced team can integrate with your existing team seamlessly, supporting their performance without disrupting the progress you’re making elsewhere.

• Outsourced team members already know how to work together well

Another one of the advantages of IT outsourcing is getting proven collaborators. There’s no need to establish effective processes, ensure good teamwork, or worry that personalities will clash. 

Not to mention that your outsourced team brings significant experience to the table. This can supplement your and your team’s skills and knowledge, fast-tracking your learning curve. 

• You can foster a positive culture quickly and reduce turnover costs

Likewise, an existing team will already have the excitement and motivation you’re looking for. They’ve already been onboarded and trained — they’re ready to show up and make your product a success.

They already work together daily, reducing the chances of disagreements, dissatisfaction, and other factors leading to unproductive, unhappy conditions. 

Learn more about when and how to choose between in-house vs. outsourced software development.

Why should you choose an outsourced development team?

• Focus on your business

You’re running a startup, and your energy is already stretched thin. There’s no need to push that limit even further by taking on the challenges and risks of building an in-house development team before you’re ready. 

Outsourcing your development keeps your schedule and resources balanced without compromising results. You can manage your time appropriately while your outsourced team supports you. 

• Mitigate risk for your product

Not only can an outsourced development team free up your time, but it can also mitigate risk.

Unlike building an in-house team, where you might not know if new hires are right for your project or company until you’ve already invested in them, an outsourced team has built-in credibility. 

Likewise, an outsourced development team will almost always have more collective experience than any team you can put together. That’s exactly what you need to launch a quality product for your target audience.

• Boost the integrity of your startup

An outsourced development team will provide your business with a sense of legitimacy and integrity. You can make promises to stakeholders more confidently, knowing that you have a team on your side who can provide the results you need. 

This allows you to deliver on your promises, contracts, and sales — even as you scale up in a short period. 

Other benefits of IT outsourcing

Want even more reasons why software IT outsourcing is the better choice? Here are three more to consider:

• Larger talent pool – Outsourcing lets you go beyond your local job market. You can tap into specialized global talent that may be rare or expensive to hire domestically.
  
• Proven teams – Working with established teams speeds up your project. They’re already synchronized and have effective workflows, saving you time and reducing risks.
  
• More expert knowledge – Outsourced teams can bring fresh insights and innovative solutions. This can be especially valuable for complex or novel challenges or when you need a fresh perspective.

What are some types of IT outsourcing?

You can outsource all sorts of IT services and projects. Some of the most popular forms of outsourced IT services for small businesses include:

• Apps – You can hire a development team to build your mobile app from scratch and handle everything, including concept, development, testing, and even post-launch support.
• Websites – From basic informational sites to full-scale e-commerce platforms, an outsourced team can handle all the front-end and back-end development tasks required to get your website up and running.
• Application management – Outsourced teams can manage your app’s maintenance, updates, and troubleshooting to keep it secure and working smoothly.
• Infrastructure management – Offshore or nearshore teams can oversee your cloud-based servers, storage, and networks to keep your IT infrastructure secure and scalable.
• Other services – You can also outsource data analytics, quality assurance testing, cybersecurity solutions, blockchain development, and much more.

Read our IT Outsourcing Guide: Types, Benefits, and Management Strategies

How to hire an outsourced software development team

Finding the right outsourced developer team can feel daunting. How can you be sure you’re getting a team with the knowledge and skills you need? ​

You’re about to shell out a lot of money on an important project for your business — you want to make sure you make the right choice. 

Thankfully, a little bit of legwork before you start looking for help can go a long way.

Here’s a step-by-step guide to prepare you for finding the right outsourced development team:

1. Understand your project – Clearly outline your project’s scope, objectives, and specific requirements.
2. Set your budget – Factor in the app’s complexity, project timeline, and other elements that could influence the final cost.
3. Interview and assess – Speak to various software development outsourcing companies, check their portfolios, and ask for client references.
4. Consider cultural and language factors – Choose a team that effectively communicates and aligns with your business culture. Nearshore software development is often better than offshore development in this regard.
5. Make your decision – Outsource to a software development company that meets your needs, working style, and budget.
6. Engage and manage – Work closely with your outsourced team through regular updates, reviews, and feedback loops to keep the project on track.

Key factors to consider when hiring an outsourced development team

During the process of vetting outsourced professionals, keep these things in mind to help guide your decision.

• Architectural approach – Look for well-defined development, project management, and quality assurance processes to ensure your project stays on course.
• Technical expertise and portfolio – Check their relevant experience, certifications, and key employee profiles to assess their qualifications.
• Infrastructure and technologies – Verify that they have the necessary hardware and software for your project and can invest in specific technologies if needed.
• Security, privacy, and data protection – Ask about how they guard their clients’ data against unauthorized access and theft.
• Market reputation – Use review platforms like Clutch and Glassdoor to check their credibility and reliability.

Red flags to watch out for

Of course, it’s not always that easy to determine who’s a trustworthy partner. The companies you don’t want to work with come with some red flags, like:

• Limited online presence and lack of reviews or portfolio.
• Vendors that pressure you into decisions or quick commitments.
• Too-good-to-be-true promises without data or strategies to back them up.
• Firms that only offer one-size-fits-all solutions, no matter the project or scope.
• Extremely low prices often hide extra costs or indicate compromised quality.

If you see any of these telltale signs, it’s best to look elsewhere.

Want more great advice about choosing your outsourced development partners? Check out: “How to Choose the Right IT Outsourcing Partner”.

How to manage IT outsourced teams

Once you’ve hired your top choice, you’ll need to set up a productive, collaborative working relationship between your in-house staff and your outsourced development team.

Here are some key tips to ensure the process goes smoothly:

• Set up a communication plan: Set up regular check-ins and updates via your preferred channels, whether that’s video calls, emails, project management tools, or messaging apps. 
• Define the project plan: Make sure you and your outsourced software team clearly understand the project’s goals, deliverables, and ideal timelines.
• Build a culture of trust and collaboration: Involve your outsourced team in relevant meetings and discussions so they feel like an extension of your in-house team. Encourage all team members to freely share feedback and ideas.
• Adapt as needed: Be prepared to adjust your processes or approach based on what works best for the project and your in-house and outsourced teams. 

If you have any issues with your outsourced development team, contact your outsourcing partner and see what they can do to help. They should be ready and willing to help you resolve any problems to ensure your project’s success.

The best countries for software development outsourcing

For companies in North America and Western Europe, nearshoring to Latin America is often the best choice regarding costs, time zone alignment, and cultural compatibility.

Brazil, in particular, is a rising star in nearshore software development. The country has a community of over 500,000 software developers, including the world’s largest group of Java experts. Its growing tech and IT investment scene also makes it a prime outsourcing destination.

Brazil-based Cheesecake Labs is proud to be the number one provider of software development outsourcing services in Latin America.

With our strong foothold in this booming tech landscape, we are uniquely positioned to deliver world-class services that are both cost-effective and culturally aligned with Western business needs.

How does nearshore outsourcing work at Cheesecake Labs?

Cheesecake Labs has a four-phase approach to product development, emphasizing customization and client collaboration throughout the process.

We work closely with you to make sure the digital products you build align with your overall business goals. Here’s how we do it:

• Phase 1: Product definition: We kick off with strategy alignment and dive into market analysis and preliminary tech assessments. By the end of this phase, we will deliver a development roadmap, customer journey map, and initial wireframes — all setting the stage for success.
• Phase 2: Product design: This phase involves early tech validation and creating low-fidelity layouts. Our UI designers breathe life into the app, adhering to a design system that reflects your brand identity.
• Phase 3: Product development: Depending on your needs, you can choose between two product development options:
  • Full-product delivery: After completing Phases 1 and 2, we create the entire product for you, managing all aspects from additional development to final testing.
  • Dedicated team: We provide a team of experts to act as an extension of your company. Composed of project managers, UI/UX designers, and front- and back-end engineers, this team works solely on your project to deliver a polished final product.
• Phase 4: Product optimization: We offer two product improvement approaches for dealing with undiscovered bugs, UX hiccups, and other performance bottlenecks:
• Ongoing optimization – We proactively monitor your app’s performance, suggest enhancements, and remain alert to changes that may affect it.
• Here when you need us – We can also provide periodic updates as needed, rather than constant monitoring.

What sets us apart from the rest

• Remote-first culture: Since becoming a remote-first company in 2020, everyone at Cheesecake Labs has honed our long-distance collaboration strategies. We can seamlessly sync with clients worldwide, ensuring clear communication and timely delivery regardless of location. Plus, being remote-first has expanded our talent reach beyond our Florianopolis base, meaning we attract the best talent from all over Brazil.
• A proven track record: From interfaces for Europe’s first helicopter booking platform to a first-of-its-kind app for car enthusiasts to a token factory for Mercado Bitcoin, our portfolio speaks for itself.

Our team of experts can supplement your business’s development needs with the experience and expertise you’re looking for — letting you avoid the struggles of building an in-house team. There’s really nothing to lose and everything to gain. Let’s chat and make your app idea into a reality!