For startups seeking to scale, human capital is a critical asset. One of the most effective and proven ways to access talent is staff augmentation. If done right, this service can help you accelerate the pace of hiring and create a sustainable engineering team. However, the spectrum of advantages of staff augmentation for startups doesn’t end here. In this post, we’ll address the question of why young companies need to consider remote teams.

7 reasons for startups to consider staff augmentation

Let’s dive deeper into why you should go with startup staffing solutions. We went over 7 key benefits of this approach based on our experience.

Attracting top talent easily

As a startup founder, you’re probably faced with a significant hurdle in pursuing scarce tech talent. One challenge is selling your company to potential candidates. You have to compete with other companies with deeper pockets that have the upper hand in terms of branding. Another problem is attracting top developers. They tend to expect a shared equity, as working with a startup usually requires certain concessions on their part, for instance, a cut in salary. 

Startup staffing solutions give you the benefit of working with top software developers without pushing too hard. As you probably know, staff augmentation companies dominate the IT job market in such skilled tech hubs as Eastern Europe and Latin America. Many local developers are glad to join these firms, as they are reputable local brands and offer exciting job opportunities. One of which could be your startup! For candidates, it means working at an established firm and enjoying all the due perks – from a community of like-minded people and competitive employee bonuses to an opportunity to work with the newest technology. For you, a startup owner, it means no trouble convincing developers (especially senior ones) to work for your fledgling company. 

Unprecedented access to a global talent pool

Hiring from an overfished pool of candidates, with established brands snapping up skilled developers, is something many startups have to grapple with. Thus, expanding your talent sourcing lens is a crucial step in team scaling – and startup talent outsourcing can be the optimum solution. While with in-house staffing you’re tethered to your location, staff augmentation helps you get a foot in the door of a much larger pool of technologists. For instance, Latin America boasts 1 million software developers. Central and Eastern Europe offers an even larger number – a whopping 1.3 million. 

If you want to build a team in any of these regions, we can be your gateway to the tech hub of your choice. Just choose the location, from Poland and Ukraine to Argentina and Brazil, and we’ll launch a team exactly where you want it. We’ll create a legal entity, handle HR and recruitment processes, set up IT equipment, and take care of all office operations – and do it efficiently thanks to the long history of providing staff augmentation for startups.

Scaling up on short notice 

Chances are you’re still on the fence weighing remote teams vs. on site teams for your startup. Getting expertise fast is the major selling point in favor of the first option. Let’s say you’re at the prototype stage. For sure, building a permanent team will be costly, without the guaranteed success. Instead, you can load off your requirements to the vendor and get outsourced talent for startups within a matter of weeks. Thanks to our recruitment power in Eastern Europe and LATAM, we can build a skilled team as fast as 2-6 weeks. 

We believe the key advantage of staff augmentation for startups is speed and flexibility. You can get an MVP done and say goodbye to the team at once. Alternatively, you can keep the team for the next stage – like prototype improvement in case you get positive market feedback. 

Reducing your software development budget

Lower labor cost is one of the obvious benefits of using staff augmentation solutions. By accessing the global workforce, North American and Western European startups can source skilled talent at a lower cost without any quality trade-offs. Moreover, the providers cover office space, administration, IT infrastructure, and related services, which contributes to significant budget savings. Take a look at the expenses that you can sidestep when choosing a remote team for your startup: 

  • Office space
  • Legally required benefits
  • Insurance
  • Paid leave
  • Retirement and savings
  • Supplemental pay (overtime, etc)

A provider of outsourced talent for startups typically covers all of these expenses. The client only pays for an FTE per month plus a service fee. 

Keeping engineers’ retention high

Talent management, and employee retention, in particular, is another aspect of back-office work that startup owners need to handle. Software engineers typically require a professional development plan to stay committed – and it’s the manager’s task to provide one. On the other hand, when you source talent through a staff augmentation company, you can leave this aspect to the vendor. They will take care of your engineers’ career growth. We’re proud to say that our retention rate is 3.5 years, which means, a software engineer sticks to the same project from start to finish. For example, our engineers have been keeping CrossEngage humming for more than 8 years now with minimal employee substitution. 

Building a stable team scaling process

Staff augmentation is a boon for startups looking to build up for gradual team scaling. Unfortunately, talent sourcing is a demanding and overwhelming process, especially for young companies. From pitching your company to potential candidates and assessing their tech competence to measuring their motivation and culture fit – the recruitment process can be intense. With staff augmentation, your startup can get a pipeline of strong candidates, which you can add to your team on an as-needed basis. 

That’s not to say that this model excludes you from the process of building your team. The providers take your vision, desired attributes for candidates, and tech stack to set up a multi-step team formation process that includes English tests, tech skills, culture fit, and soft skills screening. On your side, you have the right to approve or veto provided candidates. 

That way, vendors of staff augmentation for startups let you dedicate more time and resources to core business activities while scaling your team efficiently.

Skipping the overhead hassle

As a startup, your major need is the talent. What you don’t want for sure is to deal with the legal and administrative headaches of establishing a team. The good news is that providers of staff augmentation for startups take care of establishing a workspace for your team and cover all legal aspects as well as accounting, payroll, and more. If you dive into it alone, you risk walking the minefield of local regulations, taxes, and compliance issues. 

Moreover, this approach lowers the risks in case you have to let the team go. Providers of outsourced talent for startups let you part ways with team members simply by terminating the contract, which frees you from potential legal complications associated with layoffs. With the right kind of provider, like nCube, you can simply focus on managing your team. 

Let nCube build a skilled remote team for your startup

As a company that creates development teams for startups, we know for sure that sourcing tech talent in the USA, the UK, and Western Europe is challenging. At nCube, our mission is to help startups grow by accessing skilled developers from Eastern Europe and Latin America. Within our strategic approach to hiring developers for startups, we help tech leaders build remote units that will be a seamless extension of their core teams. Our key advantages are:

We provide access to global talent hubs

We’re the gateway to the most skilled technology talent hubs worldwide, including:

  • Central & Eastern Europe: Poland, Ukraine, Romania, the Baltics
  • Latin America: Brazil, Argentina, Mexico, and Colombia

We rigorously screen all candidates before they meet you

Each candidate we provide has undergone our multi-step validation process that includes tech competence assessment, English tests, and culture fit. We specifically focus on candidates with domain knowledge, OOP/OOD understanding, formal STEM education, problem-solving mindset, and adequate English proficiency. The decision to approve or veto our provided candidates is always yours.

We focus on high employee retention

Work with a stable team for as long as you need it – we’ll take care of keeping your team members around. We are a reputable employer brand and offer competitive perks, constant HR support, training, development opportunities, and regular team-building events – the type of company developers are happy to work with.

We share your sense of urgency

We understand the urgency of adding engineers to your team. Our efficient recruitment process ensures a swift turnaround:

  • Interview the first candidates within a week after our initial call;
  • Jumpstart your team on average within 2-4 weeks;
  • Access over 125,000 engineers in our network.

We’re pro a “dedicated team” approach

Your added engineers will work exclusively for your startup. They will operate under your direct management, seamlessly integrated into your operations as if they were in-house staff. They will participate in scrum calls, all-hands meetings, and adhere to your policies and practices.

While we understand that staff augmentation isn’t ideal for all startups out there, it’s still worth consideration. Contact us and let’s see if it suits your business. 

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. 

If you need to back up your already-existing tech unit or create a remote team from scratch, nearshoring to Poland sounds like a solid plan. As a software development company with a network of 100,000 software engineers located across Central & Eastern Europe, our team is expertly skilled in the local talent market. In this post, we’ll focus on how software nearshoring to Poland can positively impact your software development efforts, focusing on its distinct features in the context of other tech hubs in the CEE region. Let’s begin with a short definition.  

What is nearshoring?

Nearshoring is the practice of contracting out work to be performed in a nearby country. Although the term is similar to outsourcing, its meaning implies particular geographical proximity to the chosen country, while outsourcing is an umbrella term for all business activities performed abroad. Nearshoring is also different from offshoring as it covers transferring operations to a neighboring country rather than one that is further away. Now, let’s focus on software development in Poland

READ ALSO: Types of Software Development Companies in Poland

Overview of IT nearshoring in Poland 

Capital: Warsaw

Time zone: UTC/GMT +1 hour

Population: 38 million

Largest cities: Warsaw, Kraków, Łódź, Wrocław, Poznań, Gdańsk

Language: Polish

Currency: Złoty

In 2024, Poland’s IT services market shows competitiveness, growth, and recognition both globally and regionally. Below are several key numbers regarding nearshoring in Poland to bolster this statement. 

Poland, according to Emerging Europe, boasts the most competitive IT sector among 23 countries in CEE. With a robust CAGR of 7.60% expected by 2028, it’s one of the largest markets of IT services in Europe.

The IT Competitiveness Index in Central and Eastern Europe (CEE) places the country third in the region, surpassed only by Estonia and Lithuania. The country deserves such a high score due to the quality of software developers, the overall development of the IT sector, and the business climate.

The tech industry plays a significant role in the Polish economy. It’s accountable for 8% of the local GDP. In 2024, the IT services market shows dynamic growth and is expected to reach $8.31 billion. 

When it comes to the exports of IT services (one of its forms is nearshoring), Poland is expected to reach $13 billion by 2026. It’s a 3.6% growth as compared to $10 billion in 2021. 

When it comes to the global recognition of outsourcing in Poland, in 2023, the country took the 4th position as the most favored Customer Experience delivery point. It’s the only European destination to secure a position in the top 5. 

Finally, according to the Global Innovation Index (GII) 2023, Poland ranks 41st among 132 economies, which is an indication of a determined focus on exporting IT services.

Software development in Poland: IT companies and domains

 Poland has carved a strong position in the global software industry. It’s home to nearly 50,000 tech companies of various sizes, including 10 unicorns. The country also ranks within the top 40 startup ecosystems in the world, with strong innovation potential in Marketing & Sales, Hardware & IoT, and Healthtech

Over 1,300 companies offer software development in Poland, as per Clutch. Such a number can be chalked up to the availability of a skilled, well-educated IT workforce in the market. 

Another important factor in the growth of nearshoring in Poland is the increasing trend of foreign companies tapping into its talent pool. Capgemini, Amazon, Sii, Accenture, and IBM are the five tech behemoths that shape the Polish tech scene. These foreign-invested enterprises have development centers scattered across various regions of Poland. Moreover, these companies take the lead  in employment – they are accountable for employing 36,000+ IT specialists. 

Google, Samsung, Facebook, Amazon, Intel Google, Microsoft, Oracle, Nokia, and Cisco are other notable players in the market of software development in Poland. On the one hand, it’s a great testiment of a talent pool quality. On the other hand, the competition for engineers is growing rapidly pushing salaries up.

Finally, according to the Source Seek report, Polish software companies are strongly present in such domains as Security, Energy, Automotive, Education, and Finance & Banking.

Talent pool: The number, location, and skills of Polish developers 

The population of Polish developers is the highest in the CEE region –  the country boasts 430,000 technologists. This number is higher than that of its closest competitors, Ukraine (307,000 developers) and Romania (202,000 developers). Thus, nearshoring in Poland will give you access to almost a quarter of all developers available in CEE. 

Geographically, the majority of Polish developers reside in the three major tech hubs, Warsaw, Kraków, and Wrocław: 

  • Warsaw (23%)
  • Kraków (13%)
  • Wrocław (11%)
  • Silesian Agglomeration (Silesian Conurbation) (8.9%)
  • Tricity (8.3%)
  • Poznań (7.5%)
  • Łódź (5.8%)
  • Other (5%)

When it comes to the proficiency of Polish developers, JavaScript, SQL, HTML/CSS, and Python top the list of the most common programming languages. Here’s a full breakdown:

  • JavaScript 42%
  • SQL 39%
  • Python 32%
  • HTML/CSS 32%
  • TypeScript 30%
  • Java 27%
  • C# 18%
  • PHP 11%
  • C++ 7.3%
  • Kotlin 5.4%
  • Bash / PowerShell 3.9%
  • C 3.9%
  • Go 3.6%
  • Ruby 1.9%
  • Scala 1.7%
  • Swift 1.6%
  • Rust 1.4%
  • Groovy 1.3%
  • Dart 1.0%

Software development in Poland is a diverse landscape. The share of programmers in the overall pool of developers is at 53%. Other IT roles in the pool include:

  • Quality Assurance expert (14%)
  • DevOps/IT Administrator (10%)
  • Project Manager/Product Owner (6%)
  • Business Intelligence expert (5%)
  • Data Science/ML/AI expert (2.9%)
  • UX/UI designer (2.1%)
  • Software Architect (1.7%)

The salary of Polish developers 

The salary range of Polish developers is based on three types of employment contracts, such as Job Contracts, B2B Contracts, and Contracts For Specific Work. As a service company, we analyzed the data concerning B2B contracts. Here’s the average salary for this type of contract in 2023:

RoleSalary per month, EUR
IT Architect6,712
Project Manager/
Product Owner
4,690
Programmer4,756
Data Science
/ML/AI professional
5,253
IT Administrator/
DevOps
5,327
IT / BI Analyst5,077
UX / UI designer3,365
Quality Assurance3,916

Furthermore, we dived into various job boards to analyze the salary ranges of Polish developers in various technologies to see the current trends. So, here’s the salary of Polish developers in terms of technology based on our speculation:

RoleSalary per month, EUR
Java developer2500-6,000
JS developer1,600-4,300
Python developer2,500-5,300
.NET developer2,000-5,300
Scala developer3,400-7,000
PHP developer1,800-4,200
Android developer2,300-4,600
iOS developer2,300-4,600

Another significant report, shows the range of rates for software development in Poland.

RoleMin./EURAvg./EURMax./EUR
IT Director/ CIO6,200 10,70013,700
Software Development Manager5,7008,0009,600
Java Developer3,0004,1005,000
.NET/ C# Developer2,7003,8004,600
C/ C++ Developer2,7003,6004,100
Big Data Developer3,6004,3005,200
Front-end Developer2,7004,0003,600
PHP Developer2,3003,2003,800
Mobile Developer3,2004,1004,600
RPA Developer2,3003,2003,800
Automation Tester2,7003,6004,000
Manual Tester1,8002,3002,700
Business / System Analyst2,9003,6004,300
IT Project Manager2,9004,1005,000
Network Administrator2,7003,4003,800
Unix / Linux Admin2,9003,6004,300
Microsoft Windows Server Admin2,9003,6004,300
Infrastructure Manager3,8005,0005,700
Database Admin (Oracle, Microsoft SQL)2,9003,6004,100
ABAP Developer3,6004,3005,000
Security Manager6,1007,2009,100

Nearshoring in Poland: Education 

Nearshoring in Poland is driven by well-educated IT specialists. The country is home to 86,000 IT students, with 11,000 IT professionals graduating each year. Moreover, Poland ranks third among EU countries in the number of graduates in natural sciences, technology, and IT per 1000 population aged 20–29.

According to the survey, over two-thirds of Polish IT specialists have higher education, including 39% with Master’s degrees. Only 8% of respondents completed their studies without a diploma and acquired tech skills through self-education. 

Furthermore, Poland boasts over 400 institutions, 22 of which are featured in the QS World University Rankings 2024. The country’s 18 technical universities, including the famous AGH University of Science in Kraków and Warsaw University of Technology, contribute to the quality of technologists available for nearshoring in Poland. 

English skills of Polish developers

Polish developers have a solid command of the English language, with B2+ as an average proficiency level. As per the EF EPI index, in 2023, the country was ranked 11th globally and 9th in Europe, which solidifies its status as a country with “very high proficiency.” 

The focus on technical education, coupled with Poland’s excellent English language skills, makes outsourcing in Poland particularly lucrative for international clients. Moreover, the proficiency extends beyond English, which is crucial for nearshoring. In Poland, many ICT graduates are proficient in other European languages such as German, French, Spanish, or Italian. 

Why use nearshore IT services in Poland?

There are many factors to consider when deciding which countries are suitable for nearshoring. One important factor is the availability of skilled workers. CEE has a large pool of IT specialists, making it an attractive option for companies looking to nearshore. Additionally, labor costs in CEE are typically lower than in Western Europe, making it a more cost-effective option.

Nearshoring to Poland is an increasingly popular option for Western businesses thanks to its relatively low costs, well-developed infrastructure, and a large pool of English-speaking talent. Poland is also located in Central Europe, making it easily accessible for businesses based in the region. There are many reasons to go with software nearshoring in Poland, including the following: 

  • Poland has a large pool of highly-educated and skilled workers, especially in engineering and programming. It makes it easy to find talented staff for your nearshoring team in Poland.
  • The cost of living and doing business in Poland is relatively low compared to Western European countries. 
  • Poland has a large population of highly-educated, English-speaking workers
  • Poland is situated in a convenient location for companies who want to do business in both Eastern and Western Europe. 
  • The Polish government is very supportive of foreign investment and has created several special economic zones that offer tax incentives to companies. 
  • Poland is in the same time zone as much of Europe, making coordination and collaboration between teams easy.
  • As a member of the European Union, nearshoring to Poland offers businesses access to a large and lucrative market.
  • Poland has a stable political and economic environment, which provides a secure and predictable business environment that can help reduce risks associated with running an IT operation.
  • Poland is home to some of the world’s leading technology companies, such as Accenture, IBM, Cisco, Uber, and more. It provides access to the latest tools and technologies to help your business stay ahead of the competition.

Bottom line

There are many reasons to nearshore IT services to Poland, but some of the most common reasons include reducing costs, accessing skilled labor, and improving communication. Let’s 

  1. Reducing costs. When companies choose to nearshore, they often do so to take advantage of lower wages in other countries. Nearshoring services in Poland can help reduce costs associated with labor, infrastructure, and other overhead expenses. 
  2. Accessing a skilled workforce. One of the most significant advantages of nearshoring is that it provides access to skilled labor that may be difficult to find in your home country. When companies go with a nearshore approach, they get the advantage of lower wages in other countries. Nearshoring also eliminates the need for expensive infrastructure and other overhead costs associated with traditional outsourcing.
  3. Improving communication. Another crucial advantage of nearshoring in Poland is that the country is located in a convenient time zone. It gives a comfortable overlap for unimpeded communication between the teams.
  4. Staying flexible. Decent nearshoring to Poland gives you the ability to scale your workforce up or down as needed, allowing you to be more agile in responding to changes in demand.
  5. Increasing efficiency. When nearshoring to Poland (or any other country), you can improve communication and collaboration by locating your team closer to your customers, leading to an increase in the team’s productivity.
  6. Enhancing customer satisfaction. With nearshoring, you can provide your customers with a local point of contact, improving customer satisfaction.

Contact us to discuss your needs and let’s see if nearshoring to Poland is a viable option for you.

When it comes to building remote technology departments, there are three key models to consider: R&D vs. Outsourcing vs. Staff Augmentation. These options have proponents among software development firms and are common in many domains. 

A popular opinion is that these models apply to any kind of project. However, it’s only sometimes the case. Before you pick any of these approaches, it’s worth taking a look at the differences between them. 

While our article focuses on the differences between R&D vs. Outsourcing vs. Staff Augmentation, feel free to reach out to us to see which model suits your business best. As a company that launches remote teams of software engineers across Central & Eastern Europe and LATAM, we’ll gladly shed more light on these and other models of remote cooperation. Let’s begin with definitions. 

What is R&D? 

An R&D (Research and Development) Center is a branch of a tech company located abroad. The core goal of an R&D team is to generate innovative solutions. It may involve improving an existing product or developing a new solution. 

What is Outsourcing? 

Outsourcing is a model where a company hires a provider to delegate the software development process. During this cooperation, the provider sets up a team on their own, assigns a Project Manager, and is fully responsible for the delivery. The client has a limited influence on the SDLC.

READ ALSO: Outsourcing vs Outstaffing: Which one is Best for you?

What is Staff Augmentation?

Staff augmentation is a way to add team members on an on-demand basis. Not only does this approach let tech leaders find the needed skills but also helps them stay in full control over the remote team.

R&D vs. Outsourcing vs. Staff Augmentation: What is the difference?

In the R&D vs. Outsourcing vs. Staff Augmentation standoff, what are the key differences between these approaches? Let’s take a look at several parameters to find out. 

Team access

R&D: R&D units function abroad under the umbrella of the company brand. There are several possible setups. First, it can be a stand-alone engineering team under the vendor’s roof. The vendor covers HR, recruiting, retention, accounting, legal services, IT infrastructure, etc. Alternatively, you can create a stand-alone unit with a separate office, dedicated HR, accountant, and office managers. If you are looking to create a separate company, this option is best for you. 

Outsourcing: This approach lets you offload the work to the provider and wait for their team to achieve the pre-defined milestones. Typically, you neither have access to the software development team nor can oversee the SDLC. Instead, the project manager will be in touch with you to help you stay on top of the progress

Staff augmentation: With this arrangement, you’ll communicate with the team throughout the entire SDLC. You’ll track the team’s performance, progress, and day-to-day work. You’ll also build your own company culture as you see fit. And what is more important – you’ll stay in charge of the development process.

The difference: In the Staff Augmentation vs R&D vs Outsourcing paradigm, if you want to communicate and work with the team directly, it’s best to choose R&D or Staff Augmentation. Outsourcing will typically leave you out of team control. 

Team member selection

R&D: With an R&D center, a vendor will hire staff for your organization according to your vision, with the help of a dedicated recruiting team on their side. On behalf of your brand, they will ensure your R&D team is both skilled and fits your brand culture-wise.

Outsourcing: In this model, the step of team member selection is non-existent. It’s up to the provider to pull together a suitable team regarding skills and experience for your project, no matter whether it consists of shared or dedicated resources.

Staff augmentation: This arrangement obliges the provider to consult with the client during team creation. The provider handpicks and pre-approves team members according to your needs but the decision to hire is yours.

The difference: If you are choosing between Outsourcing vs. Augmentation vs. R&D, the choice typically boils down to whether you want to know who exactly works on your project. With Staff Augmentation or R&D, you’ll approve all team members yourself. 

Your project goals

R&D center: The goal with this model is more ambitious than with Outsourcing or Staff Augmentation. R&D units aim to increase your company’s value, create a long-term team,  generate and implement new ideas, build an innovative product, and introduce innovation that may disrupt the industry. 

Outsourcing: If you don’t have software development expertise, outsourcing is the way to go. The outsourced team can build a product from scratch or perform a part of development, for instance, a specific task like Quality Assurance or Cloud migration. 

Staff augmentation: The goal of this model is to resolve the scaling problem in your organization. The vendor of this model will help you access experts with the skills you need and integrate them into your team. 

The difference: When choosing between R&D vs. Outsourcing vs. Staff Augmentation, do you need to increase your company profitability, bring in the lacking software development expertise, or fill in the gaps in tech talent? Choose the model based on these goals. 

Timelines for your goals

R&D: R&D centers tend to include from 20 up to 100 people, and even more. Given its volume, building one can be a long-term game. Thus, R&D can be that high-level goal that you aim to achieve in the next 3-5 years or even longer. 

Outsourcing: It can be a long-term strategy as well, as you need a team to cover the entire SDLC, from ideation through design and development to deployment. 

Staff augmentation: Short time-to-hire is the hallmark of this model. This model lets you add the experts with the required skills within a matter of weeks – as opposed to months as with in-house staffing. It’s an effective way to add specialists for short to mid term. 

The difference: When comparing R&D vs Outsourcing vs Staff Augmentation, R&D takes more time than other approaches. If we were to compare Outsourcing vs. Staff Augmentation, the latter offers short time-to-hire. Finally, outsourcing teams can be set up fast in case of a bench, and up to 3-6 months depending on the size of the project and specifics. 

Structure 

R&D: It should be considered as a division of your company. Moreover, an R&D center may further include a director of R&D at the helm, several branches, for instance, an idea discovery department, a product development department, or an Intellectual Property department. In the tech sector, the common roles for an R&D unit are:

Supporting roles

  • Regional manager
  • HR/recruiters/people partner
  • IT infrastructure specialist
  • Office managers
  • Accounting managers

Product development roles

  • Software architect
  • Software developers
  • UX/UI designers
  • Quality Assurance experts

Outsourcing: The structure of this model is straightforward:  Client, Provider, Team, and Project Manager. This type of cooperation doesn’t leave room for the client’s involvement in the SDLC. The provider decides what kind of team structure is the best fit for the project. Instead, the client typically communicates with a project manager and isn’t concerned about what is under the hood of the development. 

Staff Augmentation: The structure of this approach is akin to that of outsourcing but with one significant difference: Staff augmentation puts the client in the spotlight of the SDLC. The client leads the remote software development process, and augmented engineers are fully integrated into the client’s company processes – from recruitment to team management.  The provider helps access tech talent as well as recruit, integrate, and retain team members. 

The difference: When it comes to R&D vs Outsourcing, the structure of R&D is more comprehensive, consisting of various departments overseen by a director of R&D. Outsourcing has a straightforward structure involving the client, provider, team, and project manager. When comparing Outsourcing vs Augmentation, the latter shares a structure similar to outsourcing but implies higher levels of client involvement. 

READ ALSO: Launching an R&D Center: An Expert Addresses Key Questions

Intellectual Property (IP) Protection

R&D: Launching an R&D is a good practice to keep IP within the company. With an R&D team, the client has direct oversight of security measures and procedures. 

Outsourcing: In this model, IP protection takes a significant place in the contractual agreements. Most providers prioritize security as their main selling point, but working with external staff always requires special legal frameworks and protocols to mitigate risks. Also, the codebase is stored on the vendor’s server until production ends and is paid in full.

Staff augmentation: Generally, the IP generated by the remote team members stays on the client’s side. Just like with outsourcing, data encryption, access control, NDAs, compliance with industry standards, IP ownership, and other measures are necessary to keep threats at bay.

The difference: In the R&D vs Outsourcing battle, R&D has the upper hand when it comes to IP protection. R&D is typically a secure environment as the client maintains direct oversight of security measures and procedures. If we look at Outsourcing vs. Staff Augmentation, the latter ensures that the IP stays within your organization. With outsourcing, IP ownership is defined in the agreement. 

Cost control

R&D: Given that R&D is like an offshoot of the client’s organization, the client’s board of directors decides on the budgeting and expenditure of their R&D efforts. It’s also worth mentioning that upfront investments and ongoing operational costs go hand in hand with launching an R&D. You can significantly reduce the cost of R&D in case of an under-the-roof scenario where the team will be located in the vendor’s office. In this case, the vendor will also cover all the necessary related team services.

Outsourcing: When comparing R&D vs. Outsourcing in terms of cost control, the latter is a more flexible approach. The client has the freedom to negotiate the price based on the type of services. Outsourcing is an ideal approach for smaller projects with fixed scope, as the price for the works can be agreed on beforehand. 

Staff augmentation: With this approach, you can pay for the time an FTE has invested into your project per month, plus a vendor’s fee. This structure is best for long-term cooperation or projects where the scope isn’t set in stone and requirements can change. 

The difference: In R&D, the client maintains control over budgeting. When it comes to R&D vs. Outsourcing, both approaches require upfront investments. However, with Outsourcing the price is typically fixed. In the Outsourcing vs. Staff Augmentation paradigm, the price for augmentation is defined by the time an FTE invests in the project each month, along with a vendor’s fee. 

Wrapping up

The choice between R&D vs. Outsourcing vs. Staff Augmentation boils often down to your goals, team dynamics, your involvement as a client, cost, and IP protection. We’ve wrapped it up in the table below:

CriteriaR&DOutsourcingStaff Augmentation
Team accessDirect Limited Direct
Team
format-ion
Through a local managerUses a provider’s teamThrough a vendor, the client approves
Project goalsInnovation, idea generationAccess to software development expertiseResolving team scaling problems
TimeLong-term Depends on the project sizeFast time-to-hire
Struct-ure A comprehensive division of your companyProvider+Client +Project ManagerIntegrated into the client’s team
IPSecure, direct client oversightDefined by a contractIP stays with the client
Cost controlDefined by the clientFixed, Project-basedFTE monthly salary+vendor fee
R&D vs Outsourcing vs Staff Augmentation

READ ALSO: Remote Teams: Why Should You Build One in 2024?

Whether you’re looking for an R&D, Outsourcing, or Staff Augmentation partner, it’s best to pick one who will help you achieve success, no matter the model you select. As a company that builds remote teams for global companies, we can offer:

  • We are present in such offshore/nearshore zones like Central and Eastern Europe and Latin America so you tailor your experience with the team based on the time zone of your choice.
  • We have a proven track record in the realm of software development to walk you through the procedures of your chosen model. We’ve built skilled teams for Greenpeace, Encore, CrossEngage, Life360, and AstraZeneca, to name a few. 
  • We offer an established recruiting process with a personalized candidate assessment conducted by senior–level engineers, English testing, and soft skills check.
  • We are flexible enough to provide you with various engagement models and are ready to align with your specific technology needs – from R&D and Outsourcing to Staff Augmentation. 
  • We take care of all the hassle connected to HR management, accounting, vacation and sick leave management, etc. You can fully focus on your project and team performance.
  • We have the adaptability to rapidly scale your team within 2-6 weeks so you can optimize your resources faster and achieve your business goals efficiently.
  • We have experience across multiple domains. We’ve helped over 120 companies in e-Commerce, Fintech, Healthcare, Marketing, Telecom, to name a few. 
  • We have a network of 125,000+ technologists with expertise not only in generic technologies but also specializing in AI/ML, Big Data, Data Science, IoT, and more.

Let’s connect.

If you’re reading this post, you’re probably wondering if it’s worth building an offshore development center vs. an in-house one. As a provider that augments our clients’ in-house software development units with remote tech talent, we’ve seen the best of both worlds. In this post, we’ll shed light on both options so that you can make an informed decision.

If you have a software idea, the reasonable question is how you will turn it into a reality. In many scenarios, it’s not even a question of how you will develop but who is going to work on it. The question of offshore development center (ODC) vs. in-house squads starts with realizing that your local talent pool no longer limits you. Instead, in the connected world we live in, you can assemble an ODC remote center consisting of talented people scattered worldwide and work with them virtually as if they were next door.

In fact, 58% of companies, as per Gartner research, have tech talent working across national borders.

Let’s see how the offshore development centers vs in-house development battle stack up when it comes to various parameters.




Criteria



In-house development



Offshore Development Center (ODC)
LocationOn-premises, without the help of external resourcesRemote, often in offshore zones like Eastern Europe or Latin America
CostHigher costs due to expenses associated with permanent staff and overheadCost-effectiveness due to zero overhead and employee benefits, as well as lower software development rates
ControlThe client has direct, immediate controlThe client has direct control but at a distance
Talent availabilityLimited to the local pool of tech talentAccess to a global pool of tech talent
ScalingLimited scaling potential due to local talent pool scarcityFlexible scaling due to larger pools of talent
CommunicationImplies the benefit of face-to-face communicationPossible communication challenges due to time zone differences and language barriers
ManagementSimpler control and engagement due to closer proximityManagerial effort required to ensure smooth team synchronization
CultureEasier to build a unique company cultureEffort required to instill culture due to a remote setting

Now, let’s dive in and take a closer look at how you can organize the remote software development process. 

The concept of an ODC remote center

In today’s world, we are all familiar with the concept of working remotely, but working remotely and having an actual ODC remote center can be vastly different things. Our model at nCube aims to build an ODC remote centre that will act as an extension of your in-house development unit, as in being fully dedicated to your project, following your company’s workflow, and communicating with you directly. At the same time, you’ll stay in control of the remote development process. 

Many companies delegate the task of building an ODC remote center to providers that specialize in setting up teams in a particular region. For example, we build remote teams of Eastern European and Latin American software developers. 

Whether you go with our model or decide to build an ODC remote center yourself, we want to show you the benefits and downsides of this solution. 

ODC Benefits

Budget optimization. The question of an offshore development center vs. an in-house department often comes down to cost. Although building a remote team requires a lot of effort, especially if you do it on your own, that effort can be warranted by affordability. It’s common knowledge that a remote workforce is cheaper than hiring in-house development staff, as you can save on overhead. If you choose our model, you’ll get even more coverage, given that we as a provider take care of IT infrastructure, office space, insurance, HR support, employee motivation, team building, and more. 

A vast talent pool. This is one of the biggest benefits of ODC: It allows companies to access a variety of skills, both general and niche ones. More so, many remote developers are on par or exceed many companies’ local markets in terms of skills. Another significant benefit that comes with it is that it takes less time to bump into seasoned specialists. This way, you can build an ODC remote center on short notice. The pool of talent we rely on exceeds the 2 million software engineers available in Eastern Europe and Latin America, which lets us source skilled engineers quickly. 

Scalability. Another ODC benefit is that working with a partner like us gives you the flexibility to add, remove and replace staff at will, so you can be more pragmatic and never compromise when it comes to your project needs. Compared to an in-house software development unit, it’s much easier to move resources around in an ODC remote center and even build a team faster. For example, at nCube we set up a typical tech team in 2-4 weeks for an offshore development center vs. in-house which takes less time than building a home-based squad. 

Simple hiring. Going for an ODC remote center allows you to forget about the hassle of vying for the top talent with tech giants in your home market. More so, if you partner with a vendor who has expertise in building a tech unit (similar to what we do at nCube), they will pre-select employees according to your ideal candidate profile, so you don’t have to wade through tons of resumes each time you need to backfill a vacancy. 

Downsides of ODC remote centers

Communication barriers and time zone. Although external employees usually vibe well with in-house development staff, there may be some challenges related to time zone differences and language barriers. However, if you partner with the right vendor, those can be alleviated and even turned to your benefit. For example, if you’re based on the East Coast and hire specialists from Eastern Europe for remote development, you will get a lot of coverage, given that they are 7-8 hours ahead of you. Thus, coupled with your in-house software development staff, you’ll get people pushing your project forward around the clock. The downside here is that, with an ODC remote center, it always comes down to the proper management, which sometimes can be laborious.  

Management difficulties. Although your remote employees know they work for you (and your brand), it can be problematic to gauge their commitment and loyalty. Let’s be honest: it’s hard to know how your workers feel when you’re separated by distance. Thus, the question of personal engagement of a team member may arise, which can be rectified by regular surveys and one-on-one meetings, just as you do with your in-house software development specialists. 

in-house development vs ODC

What is in-house development?

An in-house software development squad is an internal company unit assembled to handle a specific project on the company’s premises. Traditionally, in-house development staff is co-located. However, now that most in-house units have gone with remote work, the term “co-located” has lost its meaning since team members aren’t tethered to the office anymore. 

One of the reasons why leaders choose to hire an in-house team is the notion that remote team members are only productive when they are physically present at the office. Another reason is the need to build a team for the core activity that requires close cooperation between all team members, for example, at the start of the project. Let’s take a look at the pros and cons of an in-house team. 

Pros of in-house development 

A deeper understanding of the inner workings of your business. An in-house software development unit typically accumulates knowledge about your company, domain, market, etc. Thus, it has a lot of business acumen that can be applied to product development, which can be hard to achieve when team members are scattered around the globe. 

Face-to-face communication. When everyone is inundated with emails and chats, which is typical for distributed communication, there is a chance your staff might miss something important. As such, the benefit of face-to-face communication definitely speaks in favor of in-house development teams. 

With this in mind, if it’s vital for your business to make decisions fast, an in-house development workforce offers a shorter feedback loop and a quicker approval process facilitated by face-to-face communication. When a team works in-house, it’s easier to stay on top of what they are currently working on and shuffle their priorities at hand. Co-located staff is also better positioned to respond to emergencies, given that they operate in the same time zone. 

That’s not to say that ODC remote centers can’t provide the same level of control and communication. It’s just that it takes managerial effort to establish stable communication processes. We at nCube help our customers with that, and to that end provide our teams with everything needed for solid communication, including equipped meeting rooms and modern IT infrastructure. 

Team spirit. Although it takes a lot of effort to build a strong company culture, in-house software development teams exhibit a sense of camaraderie, which can be put to good use in building strong communication, mentorship, and day-to-day work. As a result of strong chemistry, employees can remain creative, passionate, and productive. 

Downsides of in-house development 

Talent scarcity. Gathering all the needed experts in one place can be challenging. The demand for good developers is at an all-time high, making it much harder to find the needed skills locally. You can overcome this difficulty with an ODC remote center. If you choose to partner with a provider that builds such centers (for example, nCube), the weight of recruitment will be carried by the partnering company of your choice. You will only need to interview and approve the pre-selected candidates. 

READ ALSO: Software Engineer Shortage in the World

High cost. ODC remote centers have the upper hand over in-house development teams in terms of cost-effectiveness. Running a local unit, the employer covers health insurance, days off, IT infrastructure, severance pay, and other benefits. Moreover, when a project is at a standstill, having a team of full-time employees can also strain your budget. 

Huge investment. It takes time and resources to keep people happy. In light of high demand, software developers tend to change the working place quite often. Finding new developers is always time-consuming when a dozen other companies are vying for tech talent. As a result, you may face some challenges with finding replacements and therefore lose precious time.  

pros and cons of in-house development

ODC or in-house development: How to choose?

If you’re still weighing offshore development center vs. in-house, we should admit that both models have their benefits and shortcomings, but at the end of the day, the choice depends on your company’s needs. Before diving in, you might want to consider deadlines, budget, and your management experience. To sum it up, here are the typical scenarios for the two options. 

When to go with an ODC remote center:

  • You are looking for ways to optimize your budget by trimming unnecessary expenses;
  • You need to add a set of rare skills to your unit you can’t find locally; 
  • You want to scale the team up and down, depending on your project needs; 
  • You want to speed up the recruitment process.

When to go with in-house software development:

  • Building a close-knit team and a one-of-a-kind company culture is crucial for you; 
  • It’s key to keeping all expertise in-house;
  • Your project is at an initial stage where face-to-face communication is vital;
  • You lack experience in remote software development and management. 

How to start a remote development team with nCube

Select the location of your offshore development team. In this day and age, it’s possible to launch a remote software development team anywhere in the world. However, certain regions can be more advantageous than others. For instance, you may want to build a nearshore or offshore development team. For that, it’s best to consider such regions as Eastern Europe and LATAM – both regions can suit you best, depending on your location. 

Are you located in the USA? Then Eastern Europe will be your ideal location for an offshore development team thanks to its reputation for a vast talent pool with a diverse range of skills and innovation-oriented software development. 

If you’re a US-based company seeking nearshoring opportunities, LATAM can serve as an ideal destination due to its complete workday overlap with North American companies.

For UK and Western Europe-based companies, Eastern Europe stands out as the optimum nearshoring destination. Apart from minimal time zone differences, remote development providers located in this region offer solid knowledge of Western business practices and exceptional cultural proximity. 

READ ALSO: Offshore Product Development: Eastern Europe, Latin America or Asia?

Define a suitable collaboration model. Selecting the right collaboration model is vital and depends on your specific requirements and technological needs. You can launch your remote development teams based on the following approaches:

  • Staff augmentation

Staff augmentation is an essential collaboration model where you source remote development talent through a provider in your chosen location. With staff augmentation, you will gain access to skilled technologists who work exclusively for your project as if they were members of your internal team. This model offers scalability, cost-efficiency, and the ability to quickly augment your team’s capabilities as needed. For instance, you can add one or several professionals with competencies your team requires, for instance, a QA expert, a front-end developer, a Data Science expert, etc. 

  • R&D center

If you intend to expand your organization and add a substantial number of employees, including administrative staff, establishing your own R&D center is the recommended collaboration model of remote development. This approach facilitates the setup of a stand-alone offshoot of your remote office, which can become a valuable asset to your organization. 

  • Dedicated team

If your goal is to build a full-fledged remote software team solely focused on your product, you should select a dedicated remote development team. In this model, you will work with a provider who will assist in setting up and launching a remote team according to your project requirements. The provided team will work under your leadership.

Choose members for your remote development team. The selection process is the centerpiece of the success of your remote software development team. It’s important to remember that remote staff isn’t merely hired hands, but rather an essential extension of your local tech unit.

While you will be guided in your search by your vendor, here are some tips to identify the best remote development professional:

  1. Assess candidates’ motivation: Along with evaluating technical skills, consider the candidate’s motivation, as in what drives them to join your project. 
  2. Conduct several rounds of interviews: It is advisable to conduct multiple interviews to gain a comprehensive understanding of each candidate. It’s also essential to provide timely feedback as tech talent markets are highly competitive, and candidates may have other options to consider.
  3. Consider soft skills: While tech expertise is important, don’t overlook the importance of soft competencies. Look for candidates who demonstrate strong communication, teamwork, problem-solving, and adaptability skills that resonate with your existing team dynamics.

The process of building your remote software development teams is a strategic step in the expansion of your organization, so it’s worth investing time and effort. nCube, as a trusted vendor in remote development, can provide valuable assistance in your journey.

Contact us if you’re interested in building an ODC remote center. 

By definition, the model of Agile nearshore development is two-fold and combines the best of a nearshore development approach and Agile, a common methodology used in software development. Due to the deficit of software developers, many EU and UK-based businesses bet on the combination of these approaches to tap into the pools of IT talent located in neighbouring countries and optimise their budgets. In this post, we review how Agile nearshore development can benefit your company as well. 

Nearshore Agile development: Pros of Agile 

Agile is a modern methodology used in software development, which allows teams to build software gradually via short-time development cycles, including such key stages as development, testing, and analysing the results. 

Agile excels at dealing with the uncertainty associated with the ever-changing market. When it comes to nearshore units, it helps to tame the chaos that can potentially appear when two distributed units work together. 

The Agile approach facilitates effective management, communication, efficiency, transparency, and control over the project progress. All of these aspects play a great role when it comes to creating a seamless collaborative environment for Agile nearshore software development. Below, we go over the benefits of Agile and why it’s adopted by many tech units. 

READ ALSO: How to Benefit From Distributed Engineering Teams

Focus on a high-quality product. The core aspect of Agile is flexibility, which allows you to change the project’s priorities instantaneously. Thanks to this, any changes needed for the sake of better quality within the development process can be fulfilled without impeding the overall workflow. Moreover, Agile nearshore development prioritises testing the product as a part of the project execution phase, which enhances the quality of the final product.

Enhanced control over the processes. Thanks to transparency, ongoing communication, integrated feedback, and quality control, Agile lets stakeholders and project managers retain full control over the software development process, which is critical for remote teams. When going with Agile nearshore development, you can have regular progress reports using a wide range of tools and methods. 

Reduced risks. Agile guarantees projects a more safe landing due to increased risk prediction and failure prevention methods. The approach offers excellent ways to identify and mitigate mishaps and ensure a more predictable outcome. For example, you can rely on backlogs (a document of features to be delivered) to boost visibility, estimate workload, and plan your future targets.

Continuous improvement. The centrepiece of the Agile approach is continuous improvement. Agile allows teams to develop software gradually, within a continuous process where each version of the product is tested to ensure it’s better than the previous one, which lends itself to better product quality. 

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

More relevant metrics. When it comes to projects with unpredictable outcomes, there’s a lot of unknown. When software development milestones are in flux, so are the priorities and KPIs you set for the teams. With nearshore Agile development, it’s easy to cover all essential metrics within the software development process and make effective data-driven decisions. The methodology lets you keep track of the progress and the team’s performance in an efficient way for each team member using such features as lead time, cycle time, work in progress, flow efficiency, throughput, and more. 

 

pros of agile nearshoring

Agile nearshore software development: Pros of nearshoring

Nearshoring is an approach to the formation of a tech team in a neighbouring country. Provided by the vendor of Agile nearshore software development services, the team will work on your project together with your in-house squad while adopting the best practices of the Agile methodology. Here are the key benefits of nearshore units:

Lower rates. While onshore teams are out of the price range for many EU and UK businesses, nearshoring lets companies eliminate the costs for recruitment, onboarding, administrating, and retention of a team of developers. Working with an Agile nearshore software development unit guarantees lower software development costs, so you can further invest that money into growing your business. 

Solid expertise. It’s a fact that Western Europe suffers from a lack of tech talent, especially when it comes to the latest technologies, for example, AI/ML, Blockchain, IoT, Cloud, Computer vision, etc. If you’re hard-pressed to add specialists of this caliber, you can bring in the needed talent from neighbouring countries, and even faster. A reliable Agile nearshore development partner, for example, nCube, will provide you with a skilled squad based in Eastern Europe. 

Geographic proximity | Time zone. Compared to offshore teams, nearshore units don’t take a full day to fly to, so you can check in on your team in person as often as you need without the added stress of a long journey. Another benefit of close geographic proximity is the time zone, which significantly simplifies communication between your local and nearshore units and puts your teams in a close collaborative Agile nearshore development environment. 

READ ALSO: Your Guide to Offshore vs. Nearshore Product Development Comparison 

Similar culture. Different cultures can potentially be a complication in establishing a smooth communication process. There’s always a risk of a project going awry due to miscommunication or misinterpretation of messages. Nearshore Agile development lets you work with software developers who are located close enough to be familiar with your culture and share your values. For example, many developers based in Eastern Europe have harbored vast experience working in a multi-cultural English-speaking environment. 

pros of nearshore

How Agile software development nearshore can boost your business

The benefits of an Agile methodology and a nearshore development model tend to overlap in many cases. Batched together in one project, these approaches can increase the efficiency of your tech units, add to the transparency of the distributed engineering process, and help you to create a quality product within an optimised budget. Here’s a rundown of the key benefits that come with Agile software development nearshore:

A hands-on approach. Many companies choose the model of Agile nearshore development because it allows them to be personally involved in every aspect – from team creation to guiding a software development process. The benefit of this approach is that it allows firms to adjust the workflow and implement changes instantaneously – unlike other software development models. Also, the client doesn’t hand the keys to the castle to the provider when they work with nearshore units. In nearshore Agile development, they have the ability to manage the process as they see fit – unlike the outsourcing model. 

Budget optimization. Agile nearshore development is typically associated with reducing software development costs, as it allows businesses to source talent from more affordable locations. With this methodology in place, you can combine the benefit of lower developer rates with the increased efficiency of Agile methodology where making the changes costs nothing, which significantly reduces your IT budget. 

Easy scale-up. The backbone of Agile’s philosophy is flexibility. With Nearshore agile development in place, you can make the most of this benefit, as providers of Agile nearshore software development services typically let you expand or shrink your team on short notice. Nearshoring also enables you to add the needed talent fast, without having to grapple with the formalities associated with increasing or disbanding your team. 

READ ALSO: How Software Team Augmentation Helps Achieve Sustainable Results

Autonomy. Some firms prefer to build a nearshore unit to execute a certain type of task, for example, cloud migration or Quality Assurance. Agile nearshore development lets you build self-managing units with increased autonomy that will yet act as an integral cog in your software development project. Following Agile’s best practices, your nearshore unit will share the responsibility for the whole project thanks to the sense of belonging to the bigger unit promoted by the methodology. Providers of nearshore Agile software development can help you to create a unit just like that, guiding you in establishing the right kind of communication and collaboration processes. 

Reduced staff attrition. Agile nearshore development helps firms to cope with the biggest problem of IT staffing – tech talent attrition. The methodology lets developers feel that their ideas are valued and appreciated, which turns them into active participants in the software development process. Working in such an environment gives developers fewer reasons to consider other opportunities. 

Fast team creation. Building an Agile nearshore development unit is possible at record speed since it gives you access to vast pools of tech talent. With that in mind, businesses located in the UK and the EU tend to seek partners in Eastern Europe where they can enjoy a repository of over 1M developers with experience in Agile nearshore development. The team formation process can take less than a month if you work with a vendor who has a solid network of developers, for example, nCube.

agile nearshoring development

READ ALSO: Five Software Development Success Stories by nCube

What to keep in mind when hiring a provider of Agile nearshore development?

When you plan to go for Agile nearshore outsourcing, it’s best to consider the following aspects in advance.

Determine the scope of the project. Before you dive into nearshore Agile outsourcing, it’s best to define your project scope and goals. By doing so, you will set up the venture to success – with a clearly articulated strategy it will be easier for your nearshore Agile software development partner to understand your requirements and expectations, which enables them to provide the right kind of Agile nearshore team. 

Ensure a smooth collaboration process. All team members need to be in perfect sync when it comes to the SDLC and communication. This is especially true for nearshore Agile software development teams where close-knit collaboration between the client and the team is essential. Your nearshore developers need to be “in the thick of things” when it comes to communication with your local team. Thus, it’s crucial to ensure transparent communication channels from the beginning.

Maintain agility throughout the project. A nearshore Agile approach assumes high levels of flexibility on the part of the client and the team. So, it’s essential for all to stick with an Agile mindset and make sure you’re prepared for adjustments and adaptations throughout the SDLC. 

Build trust. The process of Agile nearshore software development requires a great deal of trust, given that the teams are separated from each other. As such, it’s crucial to regularly share project updates, address concerns, and ensure common understanding. Regular updates, reports on the progress, and team-building activities (even remote ones) will help nearshore Agile teams stay on the same page. 

nearshore agile development checklist

Overall, Agile software development nearshore is a complex endeavor, and choosing a suitable partner is key. As a company that provides nearshore Agile teams to companies worldwide, let us share more detail about how we work.

Agile nearshore software development services | nCube

At nCube, we provide Agile nearshore software development services for our clients from the EU and the UK by sourcing tech talent based in Eastern Europe. We know the ins and outs of the region’s labor market and spare you the task of seeking skilled team members to add to your squad. 

We have 15+ years of experience building tech teams who work in a nearshore Agile software development environment. We work with companies stemming from many business verticals, including such industry leaders as AstraZeneca, Green Peace, doTerra, and Dentsply Sirona, to name a few. When it comes to creating tech teams, we cover all fields, from generic programming languages (Java, Python, PHP, JavaScript, etc) to in-demand technologies, such as ML/AI, IoT, Big Data, Cloud, Blockchain, etc. 

As a vendor of Agile nearshore software development services, we can help you to build more than just a nearshore team – it can be an offshoot of your company with engineers fully integrated into your workflows while adopting your company’s best practices when it comes to collaboration and communication. 

If you’re a proponent of the Agile approach (or any other methodology), contact us to learn about the possibilities of building your own Agile nearshore development squad. 

Businesses need efficient tools to handle customer relationships. One such tool is Salesforce, a multifunctional platform, that is the right fit for this purpose. As a CRM, it gives companies various tools to improve customer relationships, automate the sales process, integrate third-party services, and boost marketing and customer service. 

However, Salesforce goes beyond managing customer relationships. It offers a wide range of Cloud solutions, including Sales Cloud, Marketing Cloud, Experience Cloud, and Commerce Cloud, to name a few. 

Salesforce developers are experts at integrating these features. They can create and configure solutions based on this platform according to the needs of a company. 

The popularity of Salesforce developers is evident, as world-famous companies like Adidas, Spotify, AWS, Canon, Philips, Toyota, American Express, Western Union, Cisco, and KLM source these professionals for Salesforce custom development. 

Overall, 150,000+ companies globally across every major vertical grow their businesses with Salesforce. With top-tier companies being hungry for top Salesforce talent, it’s no wonder other businesses have to struggle with Salesforce developer hiring. 

As a software development company, we’re dedicated to helping you build an excellent team of Salesforce developers. In this post, we’ll go over tried and tested hiring ways to add Salesforce developers to your team. We’ll also highlight the crucial skills of these professionals you can use during the interviewing process. 

What to look for while looking for a custom Salesforce software developer?

Salesforce developers make the most of various Salesforce tools to develop functionalities tailored specifically to the needs of a business. If you want to add salesforce developers to your team, it’s key to understand their skills. Let’s take a closer look at them:

  • Apex programming

Apex enables Salesforce custom development, giving the possibility to tailor software to the business’s needs and interact with the Salesforce database. Simply put, it’s the glue that holds Salesforce-powered solutions together. 

  • SQL 

Knowledge of this programming language is crucial for effective work with Salesforce databases.

  • Visualforce and Lightning

Salesforce developers use these crucial frameworks to create intuitive and attractive user interfaces fit for various tasks. Moreover, thanks to Lighting, they can create reusable components which reduces development time. 

  • Web development 

Given that Salesforce is a common technology for web development, Salesforce developers need to keep their skills sharp when it comes to such frontend staples as JavaScript, HTML, and CSS. 

  • Integrations

Social media, email, and payment gates – your product may require all these integrations and more. A Salesforce developer’s task is to effectively connect your software with services and solutions your business requires. 

  • Salesforce certification

The platform provides various certificates that demonstrate the proficiency of Salesforce developers from basic like Salesforce Certified Platform Developer I to more advanced like Salesforce Certified Technical Architect. 

  • Business acumen

Not only does Salesforce custom development require tech skills but also an understanding of your domain and the specifics of your business. A Salesforce developer must be able to analyze your business needs to come up with optimal solutions. 

‍So, we’ve highlighted the key Salesforce developers’ skills. Now let’s cover the essential steps of building your Salesforce team.

salesforce developers skills

How to build your Salesforce custom development team

Today’s IT market offers ample opportunities for adding Salesforce developers to your team. The most common options include hiring off freelance platforms, looking for Salesforce development services, or in-house staffing. 

  • Freelance Salesforce developers

Freelance platforms offer excellent opportunities to source self-employed Salesforce developers for your team. In many scenarios, this is a good solution if you’re looking to bring in more hands to your internal team. However, it requires the internal capability to conduct tech skills interviews and identify the best-in-class candidates to join your project. 

Advantages

Integrating freelancers into your Salesforce custom development team can help you reduce the software development budget, given this is one of the most cost-saving options for hiring developers. Also, it’s a great repository to find experts for routine tasks or add developers for sporadic projects – whenever extra hands are needed.

Challenges

The biggest concern is that freelance experts require constant control on your part. From communication to verifying the quality of their work – you’ll need to keep your hand on the pulse all the time. Besides that, freelancers tend to go off the grid, which may put your project at risk of missing deadlines. 

  • An in-house team of Salesforce developers

Having a team of Salesforce developers working from your office gives you more control over the development process than adding freelancers. 

Advantages

Building an internal team for Salesforce custom development is a good idea for long-term projects. Such projects require in-depth involvement of team members, which freelancers can hardly provide. 

Challenges

The biggest challenge with in-house teams of software developers is a long time to hire. On average, according to Glassdoor research, it takes about 40 days to add a developer. The hiring cycle is typically multi-step including several rounds of interviews. Developers, typically, cannot start immediately. It can be weeks before they are fully onboarded. Another challenge is that you often have to compete with other companies salary-wise and be quick at hiring before seasoned developers are snatched away quickly. Moreover, apart from salary, you need to include employee bonuses, perks, the cost of overhead, and IT infrastructure in your budget. At the same time, solutions such as Salesforce development services let you only pay for the hours invested by Salesforce developers, plus a vendor’s fee. 

  • Salesforce development services

Nowadays, adding Salesforce developers through such approaches as Staff Augmentation or a Dedicated Team has become commonplace. Salesforce development services like nCube will help you build your own remote team fast. Moreover, sourcing developers in such affordable regions as Eastern Europe or LATAM will help you from 40% to 70% of overall costs, according to Accelerance. These regions are ripe with skilled software developers with experience in many domains working in a distributed environment. 

READ ALSO: Dedicated Development Team: Why you Need it and How to Build one

Here’s a breakdown of Salesforce developers’ population and salary by country, according to LinkedIn and PayScale data. 

salesforce developer salary

Advantages

The biggest benefit of Salesforce development services is that they can provide you with a Salesforce developer for as long as you need them. Vendors typically have access to a network of Salesforce developers at their fingertips, which lets you kickstart your project much faster. For instance, we can provide you with suitable candidates within 24-48 hours after our initial call. Additionally, you can add more developers when your project needs it or shrink down the size of the team as the project runs its course. Most importantly, the team formation process is tailored to your needs and only you decide who you want to add to your squad. Finally, a provider will take care of the full integration of Salesforce developers into your staff and help you establish the right communications. 


READ ALSO: Research and Development Centers in LATAM: Key Hubs, Pros, and Cons

Challenges

Salesforce development services imply a remote type of work. If you work with a provider in Eastern Europe or LATAM, you must find ways to work through the time difference. This is more challenging than managing a team onsite. Yet, if you source a Salesforce developer from a country located in a country with minimal time difference, it will be much simpler to synchronize your teams. 

how to hire salesforce developers

Why hire Salesforce developers with nCube

  • nCube is a global staff augmentation company with 15 years of experience in software development. We have successfully augmented multiple teams around the world specializing in eCommerce, Fintech, Healthcare, and Marketing. 
  • We have established long-term partnerships with such market leaders as Greenpeace, AstraZeneca, Dentsply Sirona, Life360, and Encore Capital, to name a few. 
  • We have a vast network of Salesforce developers located in Eastern Europe and LATAM, so your company can benefit from geographic proximity, a minimal time zone difference, and cultural similarity. 
  • The team we provide will be dedicated to your project, working for you 5 days per week/8 hours per day. Within our model, you’ll manage the team directly, while we take care of the rest – employee’s comfort, payroll, bonuses, and more. 

We will help you get the most out of staff augmentation by providing personalized team formation, a fast launch of your remote branch, a full dedication approach with all engineers, and a focus on building a sustainable Salesforce team. Let’s connect. 

IT outsourcing has become a cornerstone in the tech industry. Both startups and multinational enterprises use this approach to optimize budgets, access talent, and speed up time to market. Remarkably, more than 60% of companies outsource at least a portion of their app development activities!

If you’re also among the proponents of outsourcing, there’s a possibility you’d like to take it to the next level by building a sustainable offshoot of your company in an offshore/nearshore zone. This approach is known as Build-Operate-Transfer IT outsourcing, offering some benefits that traditional outsourcing might not fully cover. In the Build-Operate-Transfer paradigm, you can enjoy all the benefits of traditional outsourcing while retaining full control over the development process, technologies, Intellectual Property, and other assets. 

Are you intrigued by this approach? Here’s what we’ll highlight in this post:

  • Definition of Build-Operate-Transfer outsourcing;
  • It’s distinctions from other outsourcing models;
  • How Build-Operate-Transfer software development works;
  • Benefits that companies get with Build-Operate-Transfer IT outsourcing.

What is Build-Operate-Transfer in outsourcing? 

Build-Operate-Transfer (BOT) is a type of engagement, which involves partnering with a provider of R&D centers in a foreign country. The scope of services in Build-Operate-Transfer in outsourcing includes: 

  • Providing office space and infrastructure;
  • Assembling a full-fledged IT team;
  • Offering legal and finance assistance;
  • Managing payroll;
  • HR and recruitment;
  • Other functions related to operating a remote tech branch. 

The provider’s task is to ensure the branch and the team works like a well-oiled machine, smoothly and efficiently. 

A distinguishing aspect of this model is the eventual transfer of the remote office to the client. That includes the team, technologies, accumulated expertise, and IP. The date of transfer is typically specified in the contract. 

BOT assumes collaborating with a partner in a nearshore or offshore destination for a pre-defined duration, commonly around 3 years. Throughout this period, the partner is responsible for building your software development team and managing ongoing operations. After that time is up, your company gets 100% of the fully operational team, technologies, and acquired know-how.

Build-Operate-Transfer model vs. Outsourcing: The difference

If it sounds familiar, you’re correct. The Build-Operate-Transfer model has a lot in common with traditional outsourcing. In both approaches, the provider builds a team of software developers based on the client’s needs, goals, budget, and other parameters. However, the main distinction is the ownership of the team:

  • Outsourcing: The team remains under the ownership of the provider throughout the project’s duration; 
  • Build-Operate-Transfer: In contrast, this approach revolves around the eventual transfer of the team to the client’s organization. 

In essence, BOT combines the best of both worlds – creating your remote tech unit and partnering with a vendor to handle it. 

Both models let you forge strategic partnerships that contribute to accelerating software development processes, optimizing your budget, accessing talent, and more. Outsourcing lets you hand off any operation, including minor tasks. However, in the context of Build-Operate-Transfer, you can enjoy a larger scope of services, related to building a fully-equipped remote tech unit catered to your needs.

READ ALSO: IT Offshore Outsourcing: Pros and Cons

Build-Operate-Transfer software development: How does it work? 

Build-Operate-Transfer is exactly what it says on the tin. It entails 3 distinct functions: Build, Operate, and Transfer. Now, let’s examine each one individually. 

Build 

In this phase, the provider creates a foundation of Build-Operate-Transfer outsourcing – a team of software developers with the underlying infrastructure. Using their internal resources, they set off team formation, onboard team members, rent an office space in your chosen tech hub, and provide the necessary IT infrastructure. 

Operate

After the team is assembled, a wide range of management duties come into play. It includes overseeing the team’s work and supporting employees as well as taking care of the office. Thus, the provider takes care of all day-to-day functioning of the team and monitors software development tasks. Most importantly, they integrate the offshore/nearshore team into your internal operations. Besides that, the partner provides team management services, focusing on the employees’ well-being and comfort, HR support, and fostering their career growth. The primary focus for the provider is enhancing the team’s retention. Before the next stage kicks off, the team’s efficiency should be at its best.

Transfer

Finally, the pivotal moment for both parties in Build-Operate-Transfer outsourcing arrives: Preparing for the complete ownership of the unit by your company. At the date specified in the contract, the provider launches the transfer process of the team and all operations to your organization. The provider also facilitates the registration process for your company’s foreign subsidiary. At the same time, a comprehensive transfer takes place, including team members, knowledge transfer, IP, and other assets. The outcome of this stage is a fully functional branch completely integrated with your organization, operating without any middlemen. 

Build-Operate-Transfer

READ ALSO: Your Guide to Project Transition Plan from one Vendor to Another

Why opt for Build-Operate-Transfer outsourcing?

Why do CTOs go for Build-Operate-Transfer outsourcing? To address this question, we’ve listed a few key benefits of this approach below. 

Access to a wide range of skills

Among the biggest beneficiaries of the Build-Operate-Transfer model are businesses located in the US and EU regions, which often have to struggle to source talent for their projects. This challenge arises due to the high demand for skilled software engineers. The BOT model is a viable solution, as it provides access to approximately 2 million software developers with solid skills in a variety of technologies located across Eastern Europe and Latin America.  

A seamless extension of your company

Unlike an outsourcing model, Build-Operate-Transfer software development refers to directly hiring team members as your company’s employees. They will work specifically under your brand and follow your culture. It means that there will be no third party between your company and the solutions generated by the team. This setup is similar to in-house staffing, with the distinction of working out of an office in a nearshore/offshore location. 

Substantial cost savings

Build-Operate-Transfer IT outsourcing lets companies trim initial setup expenses as well as long-term salary costs. This approach enables you to create an R&D center in an offshore/nearshore zone where the rates of developers are considerably lower than in the US or the EU.

According to Clutch.co, a platform aggregating data from global firms, the average hourly rate for software development in most Eastern European countries ranges between $25 and $49. The same price goes for LATAM countries. On the other hand, software developers in the USA charge up to $100-$150 per hour, according to PayScale. Thus, we can say that Build-Operate-Transfer in IT outsourcing is a good solution to reduce the cost of software development, especially for companies operating on a shoestring budget. 

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

A turn-key approach to your remote branch

Most importantly, Build-Operate-Transfer in IT outsourcing lets you leverage the knowledge of a provider when it comes to the local talent market and business landscape. They will do all the heavy lifting – from securing an ideal office and handling all administrative tasks to building and managing your team. We at nCube, for instance, will help walk you through all the local business practices, labor laws, and tax regulations and help you overcome any challenges. With that in mind, this approach frees you from the routine processes, which leaves you more time to dedicate to your business. When the transfer period is due, the provider will prepare all the paperwork. 

Build-Operate-Transfer software development with nCube

At nCube, we specialize in Build-Operate-Transfer software development,  sourcing tech talent based in Eastern Europe and Latin America. We have a deep understanding of the IT sector in these regions and have been operating in software development for over 15 years. We have successfully launched remote operations for many companies across various business verticals, including AstraZeneca, GreenPeace, doTerra, and Dentsply Sirona, to name a few. As your reliable vendor, we’ll help you build more than a remote branch – we’ll build a tech unit that will be fully integrated into your workflows and adopt your company’s best practices and culture. The unit we provide will be prepared to be transferred to you as a seamless extension of your local operations. Let’s connect. 

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