February 16, 2024
Offshore Hiring vs. Onsite Hiring
As businesses grow and evolve, hiring talented engineers becomes a priority. But, acritical decision emerges—should you go for onsite hiring or explore offshore hiring for your engineering needs? In this blog, we’ll explore why offshore hiring, particularly from countries like India, Philippines, South America and Eastern Europe are becoming an increasingly popular choice, comparing it to onsite hiring in terms of cost , talent , scalability , and more. We’ll also introduce you to different offshore hiring models, and present GoGlobal.dev —an innovative solution to help you hire the right talent, the right way.
One of the most significant advantages of offshore hiring is the cost savings . When hiring onsite engineers in the United States or Europe , the average annual salary for a senior software engineer can easily reach $150,000-$200,000, excluding benefits and overheads. By contrast, hiring offshore engineers from can bring substantial savings, with average salaries around $25,000-$40,000 per year for comparable skill levels.
The total cost difference is not just limited to salaries. Onsite hires entail additional expenses such as office space , equipment , and employee benefits like insurance , paid vacations , and retirement plans . In contrast, with offshore hiring, these expenses are reduced or eliminated, resulting in significant overall savings. Companies that have embraced offshore hiring have been able to redirect their savings into other areas of growth, such as expanding product lines , increasing marketing efforts , or investing in new technologies to stay competitive.
By choosing offshore hiring , businesses can save between60-80% in staffing costs, making offshore engineers an attractive proposition for companies looking to maximize their budgets. For example, companies like Slack have successfully used offshore teams to scale their engineering operations while keeping costs manageable. Offshore hiring has allowed these companies to invest more heavily in customer acquisition and product development ,thereby fueling overall business growth .
The demand for skilled engineers has never been higher, especially in specialized fields like AI , data science , and cloud computing .Offshore hiring opens the door to a diverse and highly qualified talent pool from around the globe . Countries like India, Philippines, South America and Eastern Europe have a large supply of engineers with expertise in cutting-edge technologies. In fact, produces over 1.5 million engineers annually(source: All India Council for Technical Education), and many of them have experience in areas such as AI/ML , cloud technologies , and software development frameworks .
By hiring offshore, you can tap into these resources without geographic limitations , allowing you to bring on the best and brightest talent quickly and effectively . The diversity of talent also means that you can find engineers with niche skills that may be scarce or extremely expensive in your local market. Many companies have benefited from this approach by building specialized teams with expertise in areas like blockchain , big data , and cybersecurity , allowing them to stay ahead of industry trends and deliver innovative solutions to their customers.
Scaling a team onsite can be challenging , especially if you have time-sensitive projects or need to quickly adapt to changing requirements . For example, companies like GitHub have successfully scaled their teams offshore to manage rapid development needs, allowing them to onboard skilled engineers swiftly and meet tight project timelines. Offshore hiring offers the flexibility to scale your team up or down based on project needs ,without long-term commitments. This agility is particularly beneficial for startups and small to mid-sized businesses that need to stay nimble in a competitive landscape .
For example, instead of spending months finding the perfect local candidate, companies can onboard an offshore team in a matter of weeks ,ensuring that critical projects proceed without delays . Offshore hiring also makes it easier to manage fluctuating workloads . During peak periods, you can quickly scale up your offshore team to handle the increased workload , and then reduce the team size once the workload returns to normal levels . This level of flexibility allows businesses to optimize resource allocation, ensuring that they are always operating efficiently without overcommitting to permanent hires.
When it comes to offshore hiring, there are two main options: hiring through an offshore development company or hiring freelancers through platforms like Upwork . Both options have their advantages, but there are also critical differences to consider.
Reliability: Offshore development companies offer are liable, structured approach to hiring. They have processes in place for managing productivity , ensuring quality , and overseeing communication . This structure helps minimize risks and ensures that projects are delivered on time and within budget . Many offshore companies also offer project management support , which can be a significant advantage for businesses without in-house project management capabilities.
Accountability: Hiring through a company means that you have a partner who is accountable for the work delivered . In case of any issues, there is always a support system to assist . Offshore companies typically have dedicated customer success teams that work closely with clients to ensure that their needs are met , providing a level of support that is difficult to achieve when hiring freelancers.
Team Fit: Offshore companies typically consider the cultural and team fit when matching engineers to your project , which is important for long-term collaboration . They understand the importance of communication styles , time zone compatibility , and shared values , which can make a big difference in how smoothly a project runs . This focus on team fit leads to better collaboration, higher productivity , and a more cohesive team overall .
Cost-Effective: Freelancers are generally cheaper than offshore development companies, which can be beneficial for very small-scale projects or proof of concepts . For startups or businesses with very tight budgets , freelancers can be a viable option for getting projects off the ground without making significant financial commitments .
Lack of Reliability: Freelancers may have multiple commitments, leading to missed deadlines or inconsistent performance . However, for short-term or low-priority projects , freelancers can still be a beneficial and cost-effective option .Freelancers can be particularly useful for tasks like website updates ,creating marketing materials , or conducting quick research —tasks that do not require a long-term commitment or heavy oversight.
Limited Screening: While Upwork has a rating system ,the hiring process lacks the extensive vetting that companies provide, which means the quality of freelancers can vary widely. For projects that require a high level of expertise or involve sensitive data , the lack of rigorous screening can be a significant drawback, making freelancers a less suitable option compared to offshore companies.
Goglobal.dev offers a unique approach to offshore hiring . We understand that finding the right engineer is not just about skillsets—it’s also about finding someone who fits your company culture and values . At GoGlobal, we do the heavy lifting for you:
Curated Engineers: We select developers based on your specific requirements , taking into account the skills needed as well as cultural fit and team dynamics. We believe that successful teams are built not just with technical expertise but also with individuals who understand and embrace your company’s vision and values .
Rigorous Screening: Our engineers go through an extensive interview process , including coding challenges and technical tests . We ensure that each engineer we recommend knows how to leverage AI tools to improve productivity, such as GitHub Copilot and ChatGPT, which help streamline coding and problem-solving processes. This ensures that you have access to engineers who are not only skilled but also efficient and up-to-date with the latest technological advancements .
Affordable Rates: We offer better rates compared to traditional offshore companies while delivering top-tier, reliable engineers—something you won’t easily find on freelancing platforms like Upwork. Our focus on affordability without compromising quality means that you get the best value for your investment .
End-to-End Support: At GoGlobal.dev, our support does not end once an engineer is hired . We provide ongoing support to ensure that our clients and engineers are set up for long-term success . Whether it’s managing time zone differences , providing tools for better communication , or helping resolve any issues that arise , we’re here to make offshore hiring as seamless as possible.
By choosing GoGlobal.dev , you gain the advantages of a highly vetted offshore team without the high costs associated with onsite hiring or the reliability issues often encountered with freelancers . Our approach balances quality , affordability ,and reliability —ultimately helping your business grow efficiently .
Reduced Costs: Save up to 70% in hiring costs while maintaining high standards of quality . Offshore hiring allows you to allocate your budget more strategically, ensuring that you are investing in areas that drive growth and innovation .
High-Quality Engineers: Only the top engineers make it through our rigorous vetting process , ensuring that you get the best talent available . Our emphasis on AI tools and productivity-enhancing practices ensures that our engineers are well-equipped to deliver results quickly and effectively .
Culture Fit: We focus on finding developers who fit into your company culture , ensuring a smoother integration and long-term collaboration . Our engineers are not just technical experts ; they are also team players who are committed to contributing to your company’s success .
Scalable Solutions: Whether you need a single developer or an entire offshore team , we offer scalable solutions that can grow with your business . As your needs evolve , we provide the flexibility to expand or reduce your team size based on your project requirements , ensuring that you are always optimally staffed.
Offshore hiring presents a powerful opportunity for businesses to grow their engineering teams cost-effectively while maintaining access to high-quality talent . By partnering with GoGlobal.dev , you’ll gain the benefits of curated talent , a reliable team fit , and competitive pricing —all essential for scaling your business effectively . Our focus on quality , affordability , and support sets us apart, making us the ideal partner for your offshore hiring needs.
Explore our services and start building your dream engineering team today . Visit GoGlobal.dev to learn more .
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