

The popularity of outsourcing has only gone up over the years, and in 2023 it’s predicted to reach $519 billion in 2023. In such a huge market, picking a dedicated team of software developers isn’t easy. Error is a human element, and we all make mistakes.
So, how do we go about hiring a dedicated team through nearshore or offshore outsourcing without making any huge mistakes?
To make it easier for you, today we’ll discuss 15 mistakes to avoid when hiring a dedicated team so you can make choices and business investments wisely. Without any delay, let’s get right into the list.
1. Choosing A Vendor Without Researching First
There are tons of agencies out there offering different services regarding software development. Of course, not all agencies can fulfill all business requirements since they differ from one company to another.
Choosing an agency without knowing the services they’re offering is a common mistake among newer business owners, who want to go for the shiny new agency without researching whether the agency is capable of handling the business requirements.
2. Only Wanting To Pay A Fixed Price
In a fixed-price setup, both the client and the vendor come to a mutual agreement based on the requirements of resources and deadlines. While the agreement seems logical, the biggest issue is that nothing is set in stone regarding software development.
Requirements and project scope keep changing constantly when it comes to modern software development. Unless you know exactly what you need and the project scope has zero chance to change later on, paying a fixed price model is a lose-lose situation.
The client may have to reduce the team’s output to stay within the fixed price, resulting in a mediocre product. The developer might revise the app after the client’s request, but in this case, the client loses more money than what was determined in the fixed price model.
3. Geographically Limiting Yourself
Most dedicated team builders only want to create a team with members from certain countries. But here’s a fact: the work quality of a dedicated team can be high regardless of the location.
For example, dedicated team members from Bangladesh charge low because of the low cost of living compared to other first-world countries, making the payment a cost-saving process for many clients while being fair to the vendors.
Hiring cheap doesn’t always mean the work quality is low, and you should focus on getting the right talent for a reasonable price instead of only wanting to hire from certain locations.
4. Prioritizing Pricing Instead of Value
Most small businesses look to save costs as much as possible and make the obvious mistake of hiring a dedicated team for cheap.
But as we mentioned earlier, hiring cheap only works if you hire from a region with a low cost of living, and the quality of work doesn’t falter due to the low prices.
When looking only for the cheapest option without going into the details, you have a higher chance of partnering with a vendor whose services are not on par with modern market standards and requirements.
Partnering with the wrong vendor and delivering a sub-par or bad product can have consequences as severe as a ruined brand reputation and loss of market shares.
5. Pressuring The Team With Unrealistic Deadlines
Time is the most valuable resource in software development, and maintaining deadlines is something a dedicated team has to do on a daily.
But software development isn’t a one-and-done process. There will always be changes and room for improvement, as well as the growth potential of the project scope.
Faster software development means lower time-to-market. Many businesses only want to finish up a product as fast as possible to enter the target market. To do so, they often set up deadlines that are unrealistic by any standard.
When the developers are rushed to reach an arbitrary deadline, it will either result in a product that is just horrible or a product that is not finished and lacks functionality.
6. Not Knowing Your Dedicated Team
A dedicated team is a diverse group of people, and they all have their different sets of skills and strengths, as well as weaknesses. If you’re a team leader or the product owner, it’s up to you to know your team and strategically place each member within the development cycle for the most efficiency.
Most businesses only see developers as a means to an end, so they don’t bother to connect with the developer team or individuals aside from business needs. However, creating a friendly work environment can help you get to know the developers better and help you determine how you can bring the most efficiency out of the entire team.
7. Not Being Careful About The NDA
An NDA (Non-Disclosure Agreement) is where the vendor agrees to keep every client’s data confidential in compliance with the local data security laws. Sounds highly important, right?
This is where many companies drop the ball. It’s up to the product owner company to create the NDA in compliance with the law, and the vendor has to follow every condition mentioned to ensure data privacy, along with complete discretion of the Intellectual Property (client) of their client.
But often, many product owners don’t create an NDA correctly by consulting with a law professional, resulting in data compromise or outright theft.
If you want to avoid legal hassle later on, consult a law professional specializing in data privacy laws who can help you create the perfect NDA to protect all your data and IP.
8. Picking A Team That Doesn’t Understand Your Industry
Dedicated teams offer a wide range of services; not all services are relevant to your industry. When you pick a team eager to work but don’t understand your industry, you will be disadvantaged.
When you pick a team that isn’t familiar with your line of work to handle your business processes, the resulting work will either be ineffective or of poor quality. This mistake occurs when you’re not researching the team’s services before hiring.
Before making the final choice, always research the prior experience of your potential dedicated team.
9. Ignoring Cultural Differences
Cultural barriers are very real, and cultural differences can create many issues between you and the team. Different team members can come from different countries when going offshore outsourcing.
If a business doesn’t create an ideal environment where people from different walks of life and cultures can thrive together, they can create amazing products and boost the business. However, many businesses don’t consider the aspect of cultural differences.
This ignorance can create problems within the dedicated team and affect the collaboration between the internal and external teams.
Not everyone practices the same work ethics and practices, and learning everyone’s differences to nurture them accordingly can make the right difference in improving your organization.
10. Not Being Able To Communicate The Requirements
A dedicated team can offer you exactly what you want, but in exchange, you have to tell them exactly what you want. This means you have to express your requirements very precisely.
Many businesses only offer a vague description of their requirement from the application. Such vague requirements can create uncertainty between the developers. A lack of decisiveness can result in a product not aligning with the organization’s vision.
The best solution to this issue is to convey the requirements with visual information to overcome language barriers.
11. Either You Supervise Too Much Or Not At All
Micromanagement is the bane of software development. Any team that is micromanaged will fail to deliver anything, and it’s a common mistake many clients make frequently.
Trying to micromanage the team hampers the creativity of the team members. Dedicated teams are often self-managed, and not letting them work their way out of problems with creative solutions can harm team integrity as well as the quality of the product.
12. Compromising On Team Communication
Team communication is vital for keeping the development process smooth and highly optimized. Seamless team communication can be ensured when the team has the right collaboration tools.
Many businesses hire a team without backing said team up with the right communication and collaboration tools. This breaks team cohesion, and the team members are mostly out of sync. The problem can worsen when it’s not a nearshoring team but an offshore remote team.
When the entire development team is out of sync, and no one has any clear information to act on, the development cycle slows down inevitably, or worse, the project can come to a complete halt.
Always determine the right collaboration tools for your teams when you hire your own, and ensure constant communication during remote development. You can also go for software team extension models in some cases.
13. Hiring Developers Without A Proper Interview
The interview process before hiring a specific developer is a by-the-book process. However, the objective of an interview is not just to check a box on the list of pre-employment formalities.
An interview can give you an insight into the developer’s work ethic, strengths, and interests that can help you understand how you can utilize the developer’s abilities to benefit your project.
Many business owners only go on the face value of the fancy resume and hire developers without conducting a proper interview. In most cases, the developer is incompatible with the rest of the team or doesn’t appear as skillful as the client deemed them to be.
Always conduct a detailed interview with the developer you’re adding to your dedicated team so you know the extent of the individual’s abilities.
14. Choosing Vendors Who Are Falling Behind Technologically
Most vendors don’t bother updating to the latest tech stack and prefer to “stick with what they know works.” However, this mindset can only bring negative in the modern software development landscape.
The market is constantly changing, as are the demands and needs of the market. To keep up with these needs, all vendors must equip themselves with the latest tech stack that can help them achieve complete compatibility with all current systems.
Businesses often choose these outdated vendors due to a lack of technical knowledge and to save costs. However, the choice can be a total loss to the company since apps created with outdated tech stack can cause the app to be incompatible with modern systems and devices.
Suppose the company wants to update the app once it’s developed already. In that case, the client will have to pay even more to a different vendor to modernize the already developed app, which is a great loss of money and a big hit to the project’s overall budget.
Always inquire if the vendor is using the right tech stack and constantly organize workshops to keep their team updated and their tech stack upgraded.
15. Exceeding The Budget While Underperforming
If the requirements are vague and the team isn’t sure which direction to take, the project can and will continue forever. While the company bleeds money, the project will never reach any conclusion when it’s finally ready to hit the market.
While this can be considered a mutual fault of both parties, it relies more on how the product owner deals with the situation. Also, this mistake is more of an aftermath of all the previous mistakes.
When you hire a team without researching their background or expertise and try to rush them with unrealistic deadlines while only providing vague directions with zero support, the project will go nowhere, and the budget keeps inflating out of proportion.
To Wrap It Up
Before you leave, here’s a quick refresher on all the mistakes you should avoid when hiring a dedicated software development team
- Choosing a vendor without researching first
- Only wanting to pay a fixed price
- Geographically limiting yourself
- Prioritizing price instead of value
- Pressuring the team with unrealistic deadlines
- Not knowing your dedicated team
- Not being careful about the NDA
- Picking a team that doesn’t understand your industry
- Ignoring cultural differences
- Not being able to communicate the requirements
- Either you supervise too much or not at all
- Compromising on team communication
- Hiring developers without a proper interview
- Choosing vendors who are falling behind technologically
- Exceeding the budget while underperforming
Want to hire the best dedicated team to avoid all potential risks? Impala Intech is here with a team of professionals, ready to take any project-related challenges head-on!
FAQ
Include IP clauses in contracts and establish confidentiality agreements.
Yes, proper onboarding ensures everyone is aligned with project goals.
Discuss the issues, adjust timelines if needed, and set clear expectations.
Avoid micromanagement; trust the team’s expertise and monitor progress.
Provide constructive feedback and work together to improve quality.