Last Updated on 2025-02-20
Finding top talent is a challenge that often comes with a hefty price tag. IT recruiters, the gatekeepers to some of the industry’s best talents, can charge fees up to 20% to 30% of a candidate’s annual US salary.
This expense is staggering, especially for startups and small businesses operating on tight budgets.
However, there’s a silver lining to this cloud that can save companies a significant amount of money and offer more flexibility: hiring offshore developers.
The Cost of Hiring Through IT Recruiters
Imagine you’re looking to hire a new developer. In the US, the average salary for a software developer can be well over $100,000. IT Recruiter fees could cost you $20,000 to $30,000 per hire.
This figure needs to account for the onboarding costs, benefits, and the risk that the new hire might not work out. This kind of expenditure can significantly strain a startup or small business’s resources.
Furthermore, the recruitment process itself can be lengthy and time-consuming. Finding the right candidate can take weeks or months, and your project timelines can suffer. Even after you’ve found the perfect fit, there’s no guarantee they’ll stay with your company long-term, meaning you might have to repeat the costly process.
Now, consider an alternative: for the same cost as the recruiter’s fee, you could hire an offshore developer for 4-6 months without additional recruitment fees.
This approach isn’t just about saving money; it’s about optimizing your resources and getting the most value for your investment.
Why Hiring Offshore Developers Makes Sense
Offshoring software development has evolved from a cost-saving measure to a strategic business decision that offers access to a global talent pool, flexibility, and scalability.
1. Cost Efficiency
One of the primary reasons companies choose to offshore is the significant reduction in labor costs.
In countries like the Philippines, a software developer’s average salary is markedly lower than in the US, not because of a lack of skill but due to the lower cost of living.
You can hire highly skilled developers for a fraction of what you’d pay locally.
2. Access to Talent
With the ongoing IT talent shortage in the US, finding qualified developers locally can be daunting. The demand for software developers is projected to grow 22% from 2020 to 2030, much faster than the average for all occupations.
Offshoring opens up a global talent pool, enabling companies to find the skills and expertise needed for their projects without being limited by geographic location.
3. Scalability and Flexibility
Offshore teams can be scaled up or down based on project requirements without the long-term commitments and overheads associated with local hiring.
This flexibility is invaluable for startups and companies in growth phases. You can bring in additional resources when needed and scale back when you don’t, ensuring you only pay for what you need.
4. Round-the-Clock Productivity
Thanks to time zone differences, work can continue even after the local team has clocked out, ensuring faster project turnaround times and higher productivity levels. This 24/7 development cycle can significantly speed up your time to market, giving you a competitive edge.
Making Offshore Hiring Work
Successful offshore hiring is more than just about finding a cost-effective solution; it’s about building a partnership based on trust, quality, and mutual growth.
However, managing an offshore team comes with its own set of challenges. Cultural differences, communication barriers, and lack of direct oversight can all impact the success of your offshoring initiative.
This is where partnering with a company like Full Scale can make all the difference.
Full Scale helps bridge the gap between businesses and offshore talent, ensuring a seamless integration that aligns with the company’s goals and culture.
By pre-screening candidates and providing ongoing support, they mitigate the risks associated with offshoring and help companies leverage the full benefits of a global workforce.
Full Scale’s rigorous screening process ensures you get access to the top 1% of IT talent. Their developers are technically proficient, have excellent English communication skills, and are well-versed in Western work culture. This eliminates many of the common pitfalls associated with offshoring.
Moreover, Full Scale provides dedicated support throughout the engagement. From managing the hiring process to providing IT infrastructure and HR support, they take care of the nitty-gritty, allowing you to focus on your core business.
They also offer flexible engagement models, so you can choose the one that best suits your needs, whether it’s a dedicated team, staff augmentation, or project-based work.
Conclusion
In a world where IT recruiters can charge up to six months of a developer’s salary in fees, looking offshore for software development talent is not just a cost-saving measure; it’s a strategic move.
It offers access to a broader talent pool, financial flexibility, and the ability to scale quickly and efficiently. With the right approach and partner, offshoring can be a game-changer for businesses looking to stay competitive in the digital age.
As we navigate the complexities of hiring in the tech industry, it’s clear that offshoring presents an opportunity that’s hard to ignore.
It’s not just about saving on costs; it’s about optimizing your resources, tapping into global talent, and pushing your business forward in an increasingly digital world.
Partnering with Full Scale enables offshore benefits with minimized risks for long-term business success.
Offshore Your Software Development
Matt Watson is a serial tech entrepreneur who has started four companies and had a nine-figure exit. He was the founder and CTO of VinSolutions, the #1 CRM software used in today’s automotive industry. He has over twenty years of experience working as a tech CTO and building cutting-edge SaaS solutions.
As the CEO of Full Scale, he has helped over 100 tech companies build their software services and development teams. Full Scale specializes in helping tech companies grow by augmenting their in-house teams with software development talent from the Philippines.
Matt hosts Startup Hustle, a top podcast about entrepreneurship with over 6 million downloads. He has a wealth of knowledge about startups and business from his personal experience and from interviewing hundreds of other entrepreneurs.