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FOR STARTUPSTALENT ACQUISITION
Hiring OffshoreSoftware Engineersthat Deliver!
V I R T U A L S T A F F I N G
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INTRODUCTION
CONTENTSCONTENTSFor startup founders, high-value technical talent acquisition is the first step to building their disruptive idea into a minimum viable
product. However, finding candidates that
are just the right fit for the product niche
and getting them onboard can be a tough
task. The best way founders can attract
talent to their new venture is by adopting
alternate talent acquisition hacks that can
work well with their early business stage.
In this ebook, we discuss how you can build
a structured offshore software engineering
team that not only counters all the usual
offshoring issues, but can help you scale
your startup much faster.
For startup founders, high-value technical
talent acquisition is the first step to building
their disruptive idea into a minimum viable
product. However, finding candidates that
are just the right fit for the product niche
and getting them onboard can be a tough
task. The best way founders can attract
talent to their new venture is by adopting
alternate talent acquisition hacks that can
work well with their early business stage.
In this ebook, we discuss how you can build
a structured offshore software engineering
team that not only counters all the usual
offshoring issues, but can help you scale
your startup much faster.
Chapter 1:
Addressing the Talent-Gap
Chapter 2:
Should I Consider Offshore Staffing?
Chapter 3:
Making Offshore Staffing Work
Chapter 4:
Advantages of Offshore Development
Staffing
Chapter 5:
Why Does Offshoring Fail?
Chapter 6:
What to Look for in an Ideal Offshore
Staffing Partner
Chapter 1:
Addressing the Talent-Gap
Chapter 2:
Should I Consider Offshore Staffing?
Chapter 3:
Making Offshore Staffing Work
Chapter 4:
Advantages of Offshore Development
Staffing
Chapter 5:
Why Does Offshoring Fail?
Chapter 6:
What to Look for in an Ideal Offshore
Staffing Partner
V I R T U A L S T A F F I N G
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CHAPTER 1
ADDRESSING THE TALENT-GAP
STARTUP IDEA
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Is Technical Talent ShortageHurting Your Startup Growth?
The ultimate challenge for any tech startup is
finding and acquiring the best technical talent.
Try hanging out in any startup community or
co-working space, and you will meet startup
founders desperately searching for that crucial
team member. Although technical expertise is
high in demand across many industries, none
depicts this demand-supply shortage like the
technology industry does.
With the emergence of tech startup hubs
across the U.S. acting as regional eco-systems
for startups to flourish, top engineering talent
from all over the U.S. is taking up work and
moving to these hubs. Tech startups at the
same time prefer being located at these hubs --
valuing the incredible networking opportunities,
stellar talent supply, access to funding, and
mentorship that they offer.
However, what happens if your startup is not
located in one of these tradition-disruptive
ecosystems? With an already acute talent
shortage and a concentration of top talent in
the tier-1 startup hubs, scaling a tech startup in
a non-traditional startup location can be quite
a daunting task.
04V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
Startup Idea
Talent Scope
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Is Technical Talent ShortageHurting Your Startup Growth?
The Effects that Talent Gap has on Startup Growth
Successful startups are all about disruptive ideas. Moreover, ideas need a strong team that can bring
them to life. Without the proper supply of talent, the tech industry loses the very essence that has
helped it grow over the years - intellectual brilliance. Here are four major challenges that tech
startups face as a result of the technical talent availability gap.
Challenge 1: Faster Time-to-Market
In an industry and culture based on innovation,
there can be nothing more game changing than
an early mover’s advantage. Whether it is
pitching to a VC with an MVP or rolling out that
all important product update to the market,
every startup needs talented people to get the
job done. With an inability to fill open positions,
startups can lose valuable time and competitive
ground costing them money or an important
opportunity.
Challenge 2: Scalability
Your startup is generating traction, and you are
looking at the next phase of product
development. Does your CTO have a tough
time delivering product updates at a pace that
meets VC expectations? If that is the case, then
it is about time you scale your engineering
team. Not having that crucial skill stack
required for your product’s next development
sprint can hurt your chances of keeping your
startup afloat.
05V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
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Is Technical Talent ShortageHurting Your Startup Growth?
Challenge 3: Focusing on Core Competencies
With product development at a standstill, the
founders have to concentrate on non-core
responsibilities like dealing with recruitment
firms, screening candidates, and initiating social
dialog to attract talent. Such distractions can
be quite disturbing and may affect their focus
on more important things like pitching to VCs
and product leadership.
Even with the current tech talent gap across the country innovative startups are finding ways to fill
their open engineering jobs. Startup founders must think strategically, be innovative and willing to
disrupt the tech recruiting norms and embrace alternative staffing as ways to work around this
talent gap. At the same time, the industry at large must figure out how to find both short-term and
long-term solutions to this problem.
Challenge 4: Exuberant Salaries
With the rules of demand and supply in place,
salaries for top talent have gone up
significantly in recent years. With top
employers like Apple, Google, Facebook,
AirBnB, and Uber willing to pay highly inflated
salaries to attract top talent, early stage
startups are forced to settle for mediocre talent
at best.
06
Throughout this ebook we will address these challenges and provide a viable, structured
alternative for you to scale and manage offshore teams effectively, in turn supporting your
onshore founding team.
V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
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Strong Social Media Presence
Candidates often search for your company
information on social media as it is the easiest
way of evaluating your brand. A strong social
footprint showcases an active startup culture,
and it is an indicator that you value the people
you work with and the daily milestones that
they achieve.
Employees as Brand Advocates
Your current employees are your biggest assets
when it comes to positively expanding your
brand perception. A good way to get the most
out of your employee network is encouraging
them to share their daily experiences on social
media in real-time, hence supporting the claim
that you have a great startup culture. Educate
your team on how they can post engaging
content that echoes your brand personality.
Developing your employees into tech
evangelists not only leads to higher retention
rates, it also ensures that your startup attracts
the top upcoming talent.
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1. Brand Your Startup Organization
The first step to finding the perfect people for your startup team is to know who you are, and why
someone would want to join your organization. Effectively managing your brand perception across
both online and traditional mediums can be the catalyst to attract great talent.
STARTUP CITYSTARTUP CITY
V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
4 Startup Hiring Strategiesto Overcome Talent Shortfall
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Founder Referral Network
For a startup founder, building a stellar network
is key to growing your startup idea into a
multi-million dollar firm. Not only that, it can
lead to getting excellent talent referrals from
the startup community. Founders must go out
and frequent networking events, get to know
the influencers in their niche, and seek out their
referrals for not only startup growth but also
for growing their team.
Employee Referral Programs
Fifteen employees with 300 friends or
followers on social networks totals 4,500
contacts alone. And since there’s a high
probability that your employees have a
network with people in their area of expertise,
your next great talent acquisition is just an
employee referral away. Having an employee
referral program in place makes sure that your
current team has a vested interest in the
recruitment drive for technical talent.
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4 Startup Hiring Strategiesto Overcome Talent Shortfall
2. Utilize Referrals
Hiring through referrals is still one of the most effective ways to get the right kind of talent in the
least amount of time. Employees that are hired on referrals generally start working sooner than
those hired independently, as hiring managers are able to assess whether they are suited for the
position a lot faster without going through extensive interviews and background checks.
V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
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Hackathons
Attending or organizing a hackathon in your
area is one of the best and most innovative
ways of networking with the top technical
talent available. These software collaboration
events are a beehive for the finest software
developers, interface designers and project
managers, and should be a top priority on
every startup CTO’s itinerary.
Engaging Upcoming Talent
For talent seeking to be tomorrow’s leaders, an
active social presence begins very early in their
academic life. These aspiring innovators are
best engaged early on, through recruitment
drives at their college or university campuses,
or at startup institutes that offer immersive
learning programs for fresh graduates.
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4 Startup Hiring Strategiesto Overcome Talent Shortfall
3. Recruit Disruptively
A startup culture revolves around disrupting the conventional norms of business, and that can be
applied to your recruitment strategy as well. Hiring in an unconventional manner shows candidates
that you are an innovation focused startup, and ultimately a great place to work. A multi-level
recruiting strategy that utilizes multiple channels of attracting talent can increase your chances of
finding the right candidates for your startup much faster, even when you are seeking talent with
very specific skill stacks.
V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
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Establish a System for Offshore Teams
Software firms opt for outsourcing their
projects to offshore service providers, but that
is not the right approach for a startup venture.
Startups can have more control over the
offshore resources if they opt for staff
augmentation through a hybrid staffing firm
instead, having an extended offshore team
working directly alongside the founding team
on product development. As a project owner
this allows you full control over which
developers are selected for your team, right
down to how they are managed. It also ensures
that the product vision is still translated into
the development process, and the startup
culture remains intact.
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4 Startup Hiring Strategiesto Overcome Talent Shortfall
4. Embrace Offshore Staffing
With the current shortfall of talent in U.S., offshore staffing has emerged as an alternative to hiring
in-house resources. No matter what your philosophy is on offshoring, you have to accept it as a very
viable alternative if applied correctly. Many startups employ dispersed teams, where an onsite
project manager communicates daily with remote staff in other parts of the world. Part-time or
full-time virtual teams have many proven benefits such as faster product development, reduced
costs, and vast scalability options. By hiring the right talent in a remote setting, you can utilize
experience and specialties not available locally.
V I R T U A L S T A F F I N G
Chapter 1: Adressing the Talent-Gap
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Create a List of Must-Have Traits for Your Remote Employees
Your offshore teams must be organized in such a way that they are productive towards your
startup environment on their own. You or your offshore staffing partner must make sure that your
extended team has all the right skills and tools to bring value to your product venture. Here are
some of the top traits to look for in offshore development teams.
Chapter 1: Adressing the Talent-Gap
11
4 Startup Hiring Strategiesto Overcome Talent Shortfall
Required toolset to perform the assigned tasks and a reliable internet connection
Ability to absorb new knowledge and apply learning quickly
Excellent verbal and written communication skills
Commitment to overall product goals.
Self-management and the ability to work on deadlines
V I R T U A L S T A F F I N G
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CHAPTER 2
SHOULD I CONSIDER OFFSHORE STAFFING?
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Does an Offshore WorkforceKill the Startup Culture?
Startup cultures are defined by the kind of
talent the founders hire, and by the
value-based environment created around the
collective ideals of the startup’s initial team.
Different startups value different things – but
the ultimate goal is to create a unique working
environment with a culture of innovation,
brainstorming and peer-to-peer networking.
To create an optimal culture, a number of
startups implement culture hacks ranging from
quirky work habits to long term incentives.
Hubspot’s random desk-shuffle for their
product team, Dropbox’s Hack Week, and
Palantir’s product release t-shirts are just a few
examples of how innovative tech startups seek
to build their cultures around innovative ideas.
For an early-stage startup seeking cost-saving
measures, hiring an offshore team for initial
product development is a good approach to
scaling the startup at a fast pace. But having
an offshore workforce can affect the culture
development over time if the offshore
resources are not managed properly. Remote
teams can at times get disconnected from the
vision that the startup resonates, leading to a
shift from the ultimate objectives that the
product development is based around.
13
Here are 4 key tips to managing an offshore workforce in a way that they support your startup culture:
V I R T U A L S T A F F I N G
Chapter 2: Should I Consider Offshore Staffing?
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1. Opt for Staff Augmentation over Project-based Teams
A significant number of outsourced
development teams work in a project-based
model, where an offshore project manager
deals with the startup’s CTO, hence cutting off
any direct access to the development
resources. This is a very limited approach, as it
blocks out any cultural assimilation of the
remote workforce into the startup environment.
A viable alternative is having augmented teams
that work directly with the startup founders in
order to gain a stronger understanding of the
product idea. Direct offshore resources are
more invested in the product development as
they have a clear path to the founders’ vision.
They don’t see the product as just another
development task but as a disruptive solution
to a social need.
2. Take a Hybrid Approach
A hybrid approach to offshore development
teams is the key to a synchronized startup
culture that transcends boundaries. Having a
team relations expert that understands
international cultures working alongside your
project manager or CTO, to manage the
offshore resource, can be the difference
between an awesome offshoring experience
and an awful one.
Having a hybrid team can lead to a strong,
culturally fit global startup team that can help
the startup owners scale their business model
internationally.
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Does an Offshore WorkforceKill the Startup Culture?
V I R T U A L S T A F F I N G
Chapter 2: Should I Consider Offshore Staffing?
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3. Foster Cultural Understanding
A cultural gap often prevents offshore workers
from effectively communicating their ideas to
the startup’s CTO or project manager,
preventing the startup from taking full
advantage of the offshore team’s creativity and
technical skill set. This can be avoided by
organizing virtual activities focused on building
a stronger bond between the onsite and
offshore teams, thus strengthening the startup
culture as a whole.
4. Arrange Global Team Meets Annually
Startups, which are past the initial funding
stage, can have their offshore teams visit the
startup’s main hub in the U.S. once a year.
Annual team meetups will not only ensure that
the offshore team is up-to-speed on U.S.
technology trends, but will help build stronger
working relationships among your global roster.
15
Having an offshore workforce does affect startup culture greatly, but managing your
remote teams while utilizing the above approaches can eliminate 80 percent of this
adverse effect. The value that technically strong offshore teams offer in terms of cost
saving, scalability to meet project demand, and faster time to hire resources, makes up
for the remaining 20 percent of cultural difference.
Does an Offshore WorkforceKill the Startup Culture?
V I R T U A L S T A F F I N G
Chapter 2: Should I Consider Offshore Staffing?
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How Do Offshore Software DevelopersCompare to Local Talent
1. Cost: The vast difference in cost is the most
prevalent benefit of offshore developers. An
offshore resource generally costs one-third the
salary of U.S.-based software engineers.
Salaries for in-house senior programmers range
from $60K to $120K per year, whereas you can
hire 3-4 senior developers in the same amount
at an offshore destination. You can further this
cost difference to your advantage by utilizing
the savings and investing that amount into
your software architecture, and in turn build a
more feature-rich product or application. With
onsite engineers, another consideration is the
benefits package, including the cost of health
insurance, 401K, etc.
As a tech. entrepreneur, you will inevitably be faced with the decision of whether to hire an in-house
developer or to outsource your software development offshore. Most recently, offshoring has
emerged as a popular trend in the IT industry due to the increasing demand of software
development services. However, going offshore has both its benefits and drawbacks. By
understanding the contrast between engaging offshore software developers vs. hiring in-house
help, you will be able to make the best decision for your company.
Offshore Developers vs. Onshore Talent
16V I R T U A L S T A F F I N G
Chapter 2: Should I Consider Offshore Staffing?
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How Do Offshore Software DevelopersCompare to Local Talent
17
2. Skill Stacks: Offshore locations such as
Pakistan and India have a wide range of STEM
graduates, trained on the latest software
technologies. Although, there can occasionally
be a noticeable gap in practical experience
working with latest backend technologies. This
is often due to the fact that offshore
developers are seldom given direct access to
the project owner, or provided the explanation
of the final vision for the product they are
working on. This project-based approach to
offshoring lends to a major understanding gap
in regards to how the development stack
affects the overall infrastructure and the future
growth of the software application.
The Fix: A staff augmentation approach.
Make sure your offshore developers are an
extension of your onsite team. Additionally,
enable them to work directly with an in-house
project manager, who can fully outline the
project vision and expectations.
3. Time to Hire: In the U.S., most backend
software development positions remain open
for an average of 45 days. This means the
acquisition of an onsite (or even remote)
onshore engineer is considerably
time-consuming, a costly difference to seeking
an offshore resource who is typically available
much quicker. The only concern when opting
for an offshore team is taking the time to find
the right service provider to meet your
requirements.
V I R T U A L S T A F F I N G
Chapter 2: Should I Consider Offshore Staffing?
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How Do Offshore Software DevelopersCompare to Local Talent
4. Code Collaboration and Security: Being on
the same page in terms of project
requirements and delivery is often challenging
when working with offshore developers, mainly
due to differences in project management
approaches and contrasting business
cultures.Collaboration with offshore resources
on the project and the code can be more
difficult as compared to in-house developers
primarily due to the difference in location. On
top of this, code security can be a concern,
especially since legal contracts may not hold
up in offshore locations.
V I R T U A L S T A F F I N18
5. Infrastructure and Logistics: Offshore
development providers can lack the necessary
infrastructure, prohibiting their staff from
successfully working full-time and properly
testing applications. Conditions such as poor
network bandwidth and inaccessibility to the
latest hardware can hinder a provider’s ability
to perform as needed. On top of this, the time
difference can wedge a gap in real-time
communication, and further hurt project
timelines when there is a breakdown in
understanding of project requirements, due to
this inability to communicate.
The Fix: An offshore team with onshore
American management. This will enable you
to directly collaborate and implement the
latest project management approaches, such
as Scrum. Most importantly, you would also
be able to enforce code confidentiality
agreements sustainable under U.S. law.
The Fix: State-of-the-art service centers and a
working hours overlap. Inspect the quality of
environment that the developer is working under,
including their Internet speeds, hardware etc.
Also, make sure your offshore team is available at
least 80 percent of the time that your company is
available for the best collaboration.
Chapter 2: Should I Consider Offshore Staffing?
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CHAPTER 3
MAKING OFFSHORE STAFFING WORK
Hybrid offshore Model
OFFSHORE DEVELOPMENT TEAM
ONSHORE CLIENT ONSHO
RE CLIENT LIAISON
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The Benefits of a Working HoursOverlap for Hiring Remote Engineers?
Having a dispersed offshore team means
working with different geographical locations
and time zones. For clients in the U.S., the
preferred locations for offshoring projects are
European and Asian regions. Near-shore
development centers in Europe offer a time
difference of 3-4 hours at most, but if the
remote team is based in Asia, the time
difference is almost 12-13 hours. So how do you
make your offshore team productive when it’s
10 AM here and 10 PM there?
20
Offshoring is a very fragile working
arrangement in the software development
industry. 1 in 3 project owners recount their
offshore development experiences with horror
stories of how badly the product development
was affected by the shortcomings of their
offshore partners. It all comes down to how
well the offshore team manages their
understanding of working for a U.S. business
venture.
If offshore deployment is done properly, it
adds a lot of value to your bottom-line,
reducing your cost and more importantly
giving you access to a talent pool that is not
available elsewhere. Combining these two
attributes allows for faster product scalability,
opening the doors for more agile product
update releases.
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Collaboration
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The Value of Real-Time Collaboration
Over the years, offshoring consultants have
tested working arrangements with varying time
zones. But when you consider the effectiveness
of real-time collaboration, it can never be
replaced by static communication like
exchanging overnight emails. Managing your
remote teams with a 1-2 hour overlap means
that there is only so much time available to
coordinate over project discussion.
While managing a remote resource in a
different time zone, it is also important to
consider their role in your team dynamic. If the
resource is of a strategic nature – leading the
architectural design of your application or
mapping the strategy for your next marketing
campaign – meeting with them once a day or
even once a week would make sense. But when
you are working with more transactional
resources like mid-level developers who are
writing code in collaboration with your onsite
project team, it is essential to have real-time
communication with them in order to make
sure that they remain on track with the current
development sprint. Questions can arise at any
point in time, and even one slight deviation
from the mapped out path can eventually cost
the offshore developer 3-4 hours of work if
they do not get the reorientation immediately.
Say you have an offshore team working with a
4-hour overlap. You have a scrum meeting to
discuss plans at the beginning of the 4 hours,
and then another one at the end to discuss
accomplishments and remaining tasks for their
day after you sign off. But what happens if the
developer gets stuck or has questions during
their remaining working hours? They will spend
that time deviated from their actual tasks,
resulting in them having to start again from
where you left off, hence costing you those
remaining work hours by being unproductive.
21
The Benefits of a Working HoursOverlap for Hiring Remote Engineers?
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Collaboration
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Utilizing a Work Hours Overlap for Cost Control and Scalability
One of the main reasons offshoring
engagements fail is due to the makeup work
required to cover for inefficiencies that results
from task deviations. Your offshore partner
then ends up billing you 3,000 work hours,
after initially providing an estimation of 2,000
hours. The additional hours end up costing you
the 25-30 percent of intended offshoring
cost-reduction.
The best way to counter communication gaps
while working with different time zones is to
engage offshore teams that can provide the
maximum working hours overlap. Ideally, the
working time overlap should be at least 80
percent of the shift time. Also, your onsite
project manager must have the ability to
identify deviations and bring the offshore
resource back on track.
Having your onsite and offshore teams work
during the same hours will also allow you to
better integrate the dispersed team members
into your organization culture. If you are
operating in a startup environment, it’s not just
about having that 15 minute meeting. A
real-time overlap gives you the opportunity to
interact with your global team on everything
from discussing the implications of new
technology updates to sharing a laugh over the
latest viral memes. This kind of interaction
helps nourish strong working relationships and
adds value to your startup culture.
22
Chapter 3: Making Offshore Staffing Work
Your offshore partner should be a strategic
asset for you: If your CTO/PM is getting a 100
percent overlap with the offshore team, they
can get more productivity out of the offshore
engagement, making your cost control more
effective and utilizing the offshore talent pool
to scale your product faster.
Collaboration
The Benefits of a Working HoursOverlap for Hiring Remote Engineers?
V I R T U A L S T A F F I N G
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adapt to the norms of business in U.S.,
resulting in a cultural gap between your onsite
and offshore teams.
The best way to counter this cultural gap is to
have an onshore team relations expert that
understands how to communicate with people
from diverse cultural backgrounds. This person
would ideally be an American client relations
liaison from the service provider’s side, tasked
with making sure that the offshore team
perfectly understands your needs. A hybrid
offshore staffing model like this with an
onshore contact person ensures that your
offshoring arrangement works well in the long
run.
We have established that having your
dispersed teams collaborate with you in
real-time can be beneficial in eliminating a lot
of remote hiring pitfalls such as deviation from
product development goals and the resulting
unproductive work hours. On top of that,
overlapping work hours help build a more
productive working relationship between your
onsite and offshore teams. But how do you get
your offshore resources to rapidly develop an
understanding of U.S. business culture without
compromising on productivity?
One of the biggest reasons th at offshore teams
fail is a lack of cultural understanding.
Combining remote workers from different
geographical locations and diverse cultures can
be difficult to do. No matter how technically
strong your offshore developers are, they will
be ineffective if they fail to understand and
23
3 Ways a Hybrid Team Facilitates Communication in Offshore Development
Here are 3 ways a hybrid approach facilitates communication with offshore developers:
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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1. Fosters Cultural Understanding for Better Team Collaboration
The primary task of an onshore relations
manager on your hybrid team would be to
make sure that the offshore resources are able
to understand and adopt your startup culture.
This includes not only an understanding of your
founding team’s working style, but also U.S.
business culture as a whole. Offshore workers
are generally lacking when it comes to
understanding the importance of task
commitment and deadlines, and an onshore
liaison working alongside them can keep the
offshore team accountable for their work and in
constant communication.
2. Immediate Problem Solving in a Cross-Cultural Setting
Face-to-face interaction is very important at
times to be able to trust a new staffing service
partner. Having an important initial onboarding
meeting with an onshore liaison in person will
clarify your business goals to them clearly and
make sure that expectations of trust and
openness are in place. If a problem arises
during your working relationship with the
offshore team, technical or not – having a
hybrid team with an onshore touch-point to
address the situation can save you a lot of time
and effort in troubleshooting.
24
3 Ways a Hybrid Team Facilitates Communication in Offshore Development
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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An offshore service partner with a registered
U.S. presence and dedicated contact person for
your company gives you the assurance that
you can maintain control over confidential
project information and enforce legal contracts.
For startup owners, protection of intellectual
property is a huge concern when building a
3. Legal Safety and Control under U.S. Law
unique idea into a practical product. A hybrid
team with a U.S. representative not only
guarantees that information security remains
intact, but also educates your offshore team on
the significance of bringing a disruptive idea
first-to-market.
25
3 Ways a Hybrid Team Facilitates Communication in Offshore Development
Chapter 3: Making Offshore Staffing Work Communication
A hybrid onshore-offshore staffing model effectively eliminates the typical issues that prevent
startup owners from opting for offshore development resources, even if they are open to hiring
remotely in the U.S. Just make sure that your offshore partner has the right hybrid structure in
place, and you are all set to make your move on the next big application with an internationally
mixed development team.
V I R T U A L S T A F F I N G
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While some service providers would like to
pretend it’s never an issue, the truth is that
sometimes when working internationally, you
will encounter cultural barriers. No matter how
minor those barriers may be, the primary goal
for any cross-cultural training program should
be to increase intercultural competence – the
ability to communicate effectively with people
1. Determine Cross-Cultural Training Needs
of different cultures. In a hybrid working
environment, the onshore managers must be
able to understand the cultural norms of their
offshore teammates, in order to effectively
train them to adapt to the onshore team’s
culture.
Today it’s the norm for businesses to have employees work remotely, often times in multiple
countries. No matter where your employees are based, from the beginning of their employment, it’s
vital to address your company’s culture, and to orient them with the standards your company has in
place. However, when you’re working from opposite sides of the globe, this feat can initially seem
daunting. But overcoming locational setbacks with your teams can actually be quite simple. Follow
this step-by-step guide to create the absolute best cross-cultural training program for your
offshore development teams:
26
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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27
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
Before you can officially begin your training
program, you’ll need to define what you hope
to accomplish at each step, and translate those
goals into measurable objectives. All goals and
expectations should be set into clear
objectives, each with their own deadlines for
completion. Here’s an example:
Now that you have a well-defined broader
objective, divide it into a set of milestones that
together will makeup the larger objective and
contribute to its completion. An offshore
team’s collective intercultural competence
depends upon the understanding and adoption
of the rules, norms and subsequent
2. Define Training Objectives and Milestones
Increase Intercultural Competence of
Hybrid Team by 40 percent in 2016
expectations of U.S. business culture. Keeping
this in mind, actionable training milestones for
an offshore team working with U.S. managers
should be based on these factors:
Degree to which the team is upfront
about work related tasks,
commitments, and deadlines
Degree to which the team
understands U.S. business and cultural
terminologies and norms
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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28
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
Your training program should be structured in
such a way that it complements the broader
objective, your set milestones, and each
individual team member’s training success.
Compare this to a teacher’s lesson plan. Your
plan should cover both work-related and
general cultural principles, so the offshore
team is able to comprehend the values and
norms of U.S. business culture as a whole.
After you have defined both the broad and
detailed objectives, establish a routine
schedule for team discussion. These meetings
will not only provide a means to stay well
informed on your team members’ progress, but
also another method to share relevant cultural
information with them. Here are some
examples on how to do so:
To further involve your team in these
discussions, ask team members to come up
with discussion topics. By doing so, you can
lean on these meetings to give you a good grip
on your team’s understanding.
3. Establish a Structured Training PlanIntroduce cultural tidbits or
information in each meeting, or
facilitate a discussion on globally
trending positive news topics
Participate in group learning activities,
such as a webinar or forum discussion
Provide occasional fun extracurricular
activities, such as film or book club,
then regrouping to discuss plot points.
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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29
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
If you do not have the ability to track training progress, you will be unable to gauge whether or not
your objectives are going to be achieved. Implement a tracking system with established parameters
to measure progress by the effectiveness at each step, and/or by determining the progress to
achieving the final, broad objective. There are various ways to quantify this information, but it’s
recommended you build a percentage-based scale, with a specific percentage amount given to the
completion of each step. Here is an example of some metrics to track activity based on
effectiveness at each step:
Additionally, to receive the most thorough information on team progress, consider other metrics to
monitor beyond the specific set goals, such as:
4. Create Measurable Tracking Metrics to Monitor Training Progress
Team A’s intercultural competence has
reached 25 percent (out of 100 percent) in
April 2016
Individual X’s intercultural competence has
reached 25 percent (out of 100 percent) in
April 2016
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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30
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
Seeking the answers to these questions will
give you a better understanding on how to best
direct your team, and each individual team
member, to success.
Does the team as a whole, and each
individual within the team,
communicate effectively?
Are the efforts of each individual
hybrid-team member well-coordinated
and synchronized to support their
team and company’s goals?
Is each team member contributing
their expertise to the group? Are their
skills being fully utilized to meet the
common goal?
Are there any weak links in the group?
If so, are other team members
willingly or unwillingly covering for
those weak links?
At what level is the team trust and
cohesion? Is the team self-supporting,
and willing to assist each other?
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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31
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
5. Delegate and Assign Ownership
After defining time-specific objectives with
your team, it’s valuable to entrust certain
individuals, from both the onshore and offshore
teams, additional responsibility. Assigning
ownership to these individuals, and having
them become part of the training, will provide
progress security and help bolster productivity
within the team. It creates an extra filter to
ensure progress continues, even in your
absence.
Keep in mind; the individuals selected must
have extraordinary interpersonal skills, so
they’re able to connect with their teammates
from other cultures. As with all management
roles, personality and experience should be
considered when considering individuals for
these roles.
If you frequently work with offshore teams, you
could consider having an onboarding manager
to work with these teams, preferably someone
who has experience working with cross-cultural
team training. Individuals with backgrounds
and/or degrees in International Studies with
specialization in regional cultures can be a
valuable alternative if you are newly beginning
your working relationship with an offshore
team.
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
RESUME
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32
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
6. Put Extra Emphasis on Mentoring
Beyond having onshore regional leaders to
assist with or oversee the training program,
every trainee should be given a mentor,
dedicated to monitoring their performance.
This can be as simple as assigning team lead
ownership to an offshore team member, with
responsibilities to monitor specific fellow team
members, new team members only, or even the
team as a whole.
Individual growth objectives can only be
achieved if the team member and their team
leader are both held accountable based on
training performance and progress. The team
leader must be dedicated to guiding their
assigned team, or team members, with clear
expectations to meet specified training goals.
7. Ensure Team Cooperation
One of the most common reasons training
programs fail is because they are often seen as
a burden by the trainees, and the trainees are
not motivated enough to fully participate in the
training. This typically occurs when the training
program is never properly explained and lacks
well-defined objectives. Make certain that every
involved team member completely understands
the purpose of the training program, and the
value it can provide to each individual, to
ensure the team has a vested interest in
program and objective completion.
The training program must also include
individual objectives, so that each team
member’s progress can be accurately measured
throughout the training process.
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Communication
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Chapter 3: Making Offshore Staffing Work
33
Communication
Step-by-Step Guide to Cross-CulturalTraining for Offshore Development Teams
A cross-cultural training program should not be
a one-time thing, but rather an ongoing
process within your organization. If you make
training programs a normal practice for all
employees as needed, your hybrid teams will
be more open to recurring training activities,
8. Make Training Programs a Standard Procedure
and will be able to assist with and participate
more in future sessions. Most importantly,
they’ll understand the value of those training
programs, enabling you to further develop your
team.
While there are numerous ways to build a cross-cultural training program, or to evolve the
basic process as listed, the need for one to exist in the first place will never change. Set your
company up for success by integrating offshore development teams with your company culture
from the beginning.
V I R T U A L S T A F F I N G
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4 Key Tips to Make Your Offshore Team Accountable
Just like any standard employee to employer
relationship, accountability plays a major role
in how effective an offshore working
arrangement is, or will be. The need for
standards of measuring accountability
becomes even more necessary when extending
your team to offshore locations under a
sub-contractor.
More and more leading startup businesses are finding strength within globally dispersed workforces.
Regardless of the reason, whether it be to attract global talent that is unavailable locally, or in order
to grow the business beyond borders, knowing the best practices of hiring, retaining, and managing
offshore employees is vital for all current startup managers.
34
Here are 4 essential tips to make your offshore team accountable:
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Accountability
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1. Set Clear Expectations
It is impossible to hold someone accountable
for something they don’t fully understand. Take
the initial time to educate your employees on
what your expectations are from the very
beginning. This is easily accomplished in the
beginning by clearly defining and explaining
their role, briefing them on the project and
tasks at hand, prioritizing said project and
tasks, and finally, having them take ownership
of their work by allowing the opportunity for
feedback. Introducing an offshore employee
into your team with such clarity from the start
of the relationship will enable them to be aware
of what exactly is expected of them and what
they will be held accountable for going
forward.
2. Define Methods of Performance Monitoring
Performance management and review is
imperative in order to get the most out of your
team. Like your expectations, these methods
need to be well defined and clear from the
beginning. Provide all team members with
quantifiable KPIs, such as task completion
within a planned time and budget, bugs
tracked, tickets issues, etc. Additional
qualitative indicators, including feedback from
the project manager or team lead, are also
valuable to consider. Once your remote
workforce understands how performance is
being evaluated, they will be able to meet and
accomplish more company goals head-on.
35
4 Key Tips to Make YourOffshore Team Accountable
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Accountability
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3. Build an Infrastructure of Tools for Follow Up
While implementing those performance
monitoring methods is essential, the act of
following up on each of the KPIs and goals you
have put in place is potentially even more vital.
Establish a means to actually track the KPI
progress, and inspect for compliance routinely.
Organization is easily managed through various
practices, and is a necessity; if you have no
process to continually evaluate team member
progress, your KPIs in turn will eventually lose
their purpose. There are numerous tools to
determine how well your team is performing,
and to ensure your goals are on their way to
being met.
4. Align Your Remote Workers with the Greater Team Vision
Hiring offshore employees does include its own
share of risks. One of the main issues faced
when working with an offshore staff, is a
perceived lack of initiative and big-picture
understanding from those employees, which
can mostly be attributed to a cultural gap.
However, this is also one of the easiest issues
to resolve. Make time in the very beginning to
fully explain both your company’s mission and
the greater vision of the specific project, to
confirm all team members understand what the
end results should be. No employee can
effectively build something they don’t
understand. Once you have given them clear
insight, have a manager regularly meet with
them on those greater goals.
36
4 Key Tips to Make YourOffshore Team Accountable
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Accountability
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Then, utilize online communication tools to the
fullest, to prevent any disconnect that physical
distance threatens to cause. By making it a
habit to incorporate offshore or remote team
members into your company culture from day
one, these employees will gain a better sense of
ownership, accountability, and project
understanding, and will most importantly,
significantly improve in performance.
V I R T U A L S T A F F I N37
Chapter 3: Making Offshore Staffing Work
4 Key Tips to Make YourOffshore Team Accountable
Accountability
Accountability is critical to the success of any project or initiative. Regardless of your staff’s location, make them a true part of your team by providing them the training, tracking, and attention you would for any employee. Only when you give your team the vision, direction, and tools necessary to accomplish the end-goal, will you set everyone on the path to success.
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38
How can Startups keep Flexible Contracts in Offshore Software Development?
One of the more common reasons startups shy
away from outsourcing their product
development offshore is the lack of legal
accountability. Enforcing contracts with a
service provider that has little to no physical
presence in the U.S. can be painstaking, should
the service partnership go awry. To ensure that
there is full legal security, it is essential that
your outsourcing vendor has an active and
dedicated management team in the U.S., not
just an American forwarding address.
Other than the necessary stateside presence,
project owners must make sure that they enter
into flexible contracts when working with their
service partners. In its essence, a flexible
contract is designed to deliver rapid value, by
not tying a project owner to long-term
commitments that may be unprofitable, and by
not limiting the ability to adapt to changing
requirements. An appropriately flexible
contract can add a great deal of value to the
client-service provider relationship.
Here are 3 ways to structure a flexible contract for your startup offshore product development:
CONTRACT
$
V I R T U A L S T A F F I N G
Chapter 3: Making Offshore Staffing Work Flexibility
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39
How can Startups keep Flexible Contracts in Offshore Software Development?
1. Monthly Renewals
To keep liability and exposure to a minimum,
project owners must seek month-to-month
contracts that allow them control over contract
continuity. A monthly renewable contract
allows for modular project delivery and
subsequently greater accountability for both
parties. Also, because it’s not uncommon for
the project needs to change at various points in
the project, it is critical that a contract is
structured in a way that allows for maximum
flexibility and doesn’t require renegotiating
with every minor change.
2. Resource Scalability
In a flexible contract, the staffing requirements
can be defined as tightly or loosely as desired,
and the project owner can scale their teams up
or down as needs evolve. This allows startups
the option of hiring only task-specific
developers at any given time, instead of
keeping an entire team on the payroll for the
full project duration.
The flexibility found in offshore destinations
gives companies access to large pools of
technical talent and allows for a more nimble
development team. This wa
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