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FOR STARTUPS TALENT ACQUISITION Hiring Offshore Software Engineers that Deliver! VIRTUAL STAFFING

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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

  • 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

  • CHAPTER 1

    ADDRESSING THE TALENT-GAP

    STARTUP IDEA

  • 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.

    07

    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.

    08

    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.

    09

    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.

    10

    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?

  • 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.

    14

    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

  • 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