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24/01/2025 6 min read

Offshore Dedicated Team: How It Works and Why It Might Be the Solution for Your Business

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Big players like Google, Amazon, and others dominate the job market, making it harder for smaller companies to attract skilled engineers. At the end of 2024, Amazon.jobs had over 20,000 openings. It’s like they never stop hiring, right? Back in 2023, the company had more than 1.5 million full- and part-time employees, up from less than 800,000 in 2019. And if that wasn’t tough enough, add the volatile global economy to deal with.

Top companies by employee count

So it’s hard for small and medium companies to hire skilled engineers without paying a fortune, to say the least. Even if the startup attracts investment, it still has to pave its way to success, which translates into tons of hard work and limited resources for hiring top talent. Add the fact that many once-successful startups are not immune to closing their doors either and we can understand why experienced engineers are not eager to work for a small business instead of giants like Google. I mean, if the startup’s lifespan is considered to be around five years, can you be fully confident the company has what it takes to thrive?

So, what’s the solution then? How to build a high-performing software development team when the market is pure chaos and all the best talent is being snatched by the tech giants?

The answer is to expand your search globally and build an offshore dedicated team.

If you want to learn why offshore developers are the right choice for your growth strategy, keep reading. In this article, we will take a closer look at the offshore dedicated development team and see how it compares to other options available.

Offshore dedicated development team. Is it really worth it?

According to the Global Outsourcing Survey 2024 by Deloitte, back in 2020, cost reduction was the biggest reason companies went for outsourcing, with around 70% of respondents citing it as their top priority. Two years later, nearly 48% of businesses focused on saving money. By 2024, however, the focus had shifted, with only 34% of companies looking to reduce costs with outsourcing.

Cost reduction as a key factor to hire offshore development teams

It doesn’t mean the outsourcing market has slowed down, just the priorities changed. Cost savings aren’t the main focus anymore. Now it’s about getting access to top talent, keeping up with rising customer demands, and many more.

Reasons why businesses choose to hire offshore software development team

With that said, let’s take a closer look at the reasons that might convince you to hire a dedicated offshore development team.

Find the best talent, no matter the location

Whether it’s Ukraine, India, or Mexico, you can hire the right experts, regardless of their region. Even better, you don’t have to handle all the hiring mess. With an offshore service provider like Kultprosvet, you can simply share your tech requirements, and we’ll deal with the rest. Our team will take care of shortlisting candidates, assessing skills, and conducting technical interviews. You get to interview and approve the final hire. Just like that.

Save money without cutting corners

Hiring an offshore dedicated development team is cost-effective as you can engage vetted talent from countries with lower salary expectations. You get the same high-quality work while staying within your budget. Just to compare, according to Glassdoor, a React Native developer in the USA earns over $123,000 a year or approximately $10,000 monthly, while in Ukraine, it’s around $3,200 a month or $38,400 a year.

Here is a real-life example. A startup saved at least $25,000 when hiring offshore teams.

Reddit thread about experience of hiring a dedicated team

Smooth collaboration with no fuss

Offshore development teams shouldn’t be like kids you need to babysit. These engineers are thoroughly vetted to meet your project needs so they know their stuff and can handle tasks independently. Of course, no one cancels check-ins to monitor progress and catch any issues, but with today’s advanced communication tools and processes, working with an offshore development team is smooth. At Kultprosvet, for example, you’ll have direct access to all developers and keep updated with everything that’s going on within the offshore dedicated development team.

Scale your team without headaches

Imagine you’re building a product from scratch. You’ve got an internal team that you painstakingly selected from a diverse talent pool, spending a ton of time and resources on recruitment, vetting, interviews, onboarding, and more. One day you realize you need more people to meet your deadline. What do you do? Go through all those circles of hell again to find the right person unclear when? That sounds like a nightmare, right?

But if you partner with an offshore provider, they can find the needed candidate fast. For instance, at KPS, we shortlist candidates for a dedicated software development team in just 2-3 days while it takes from 2 to 4 weeks to fill the vacancy. In case you need just 1 or 2 engineers for temporary tasks, we can offer staff augmentation services, which is also fast and cost-efficient.

Interested in how we manage to handle it so quickly without sacrificing quality? Keep reading to discover our secret.

Dedicated offshore development team: how KPS does it

Honestly, it’s not really a secret. At Kultprosvet, we don’t just assemble teams. We also make them stay on track and deliver exactly what’s planned.

When you work with us, you get dedicated offshore developers who become an extension of your in-house team. They are fully integrated into your operations, sharing your goals, values, and commitment to your success. Here is what your partnership with Kultprosvet looks like.

Offshore dedicated developers fully committed to your project

The software programmers we hire work exclusively on your project. It’s not like they are trying to meet overlapping deadlines switching between multiple projects. KPS hires a dedicated development team for you, so your project is the only one on the list.

You are informed every step of the way

Apart from the offshore dedicated team, we assign a dedicated project manager to oversee the development process. They’ll keep you in the loop about our progress and any hiccups to avoid unpleasant surprises right before the release. In case any questions arise, you can directly contact any offshore dedicated team member and ask.

A single team that knows your product inside out

We help you set up an offshore dedicated team that stays with you from start to finish. The same software developers who build your solution will also handle testing and making improvements as needed. In case the client isn’t satisfied with the performance of the developers, or vice versa, we provide replacements at no extra cost. The core dedicated development team stays consistent and fully aligned with your goals.

Dedicated offshore developers are more than just task-following

We’re adaptable to project changes, but we don’t follow instructions without considering the consequences. For instance, when we need to change a feature, we first assess how it affects the schedule and budget, and what value it brings. If it doesn’t add value, we won’t do it. Plus, our dedicated project manager ensures that every step is documented. We never compromise on documentation, even for tight deadlines.

All of this helps us build a high-performing offshore dedicated development team. Here is how we did it for one of our clients.

Building a dedicated software development team for Gifted, a US-based B2B gifting platform

We’ve been assembling dedicated teams for years now, so we have worked out an approach that helped us partner with great product owners. One of them is Gifted, a gifting platform for employees that onboards 3,500+ clients worldwide.

What’s the approach? We enter the project on the go with a highly experienced full-stack team, get to know the product and all of the details from the inside, build a hiring strategy then and implement it while supporting HR, finance and on-demand R&D tasks.

Anton Trakht, CEO at Kultprosvet

Gifted is an early-stage startup that succeeded in Israel. To expand their reach to the USA, the founders decided to launch a new product and turned to us for help. Here is how we approached the hiring of an offshore dedicated team for Gifted.

Kultprosvet has a total understanding of not just the technical aspects of the project, but also the business side of it — they can see how everything impacts our clients and have a much broader scope.

Micha Berkuz, CEO at Gifted

1

Getting to know the product through maintenance

The product had an engineering history and to discover it from the inside, we started with day-to-day maintenance tasks. We entered the project with the KPS core team, these are primarily senior software engineers and a band of fast and curious juniors. After a few months of maintenance tasks performed, we felt knowledgeable enough to start building an offshore dedicated team for Gifted.

2

Transitioning to the dedicated development team model

Once we knew the platform’s unique requirements, challenges, and technology stack, we could make an informed decision on team building. Four software engineers, a QA and a part-time PM – this is how we started.

Today, the Gifted team consists of 12 experts plus our PM-as-a-service and CTO-as-a-service. We also take care of the people management. We recruit and onboard new specialists if needed, run payrolls and appreciation programs.

3

Providing on-demand R&D

During the project, Gifted decided to build a simple cross-platform mobile application for its merchants and needed engineers to do that. We did not hire mobile app developers but provided software-as-a-service by booking some hours of React Native engineers from our core team. It helped Gifted save costs while getting the required technical expertise on demand.

Gifted solution developed by KPS offshore software development team

And what’s the cost of hiring offshore dedicated developers?

With Kultprosvet, there’s no guessing when it comes to costs. Everything’s laid out for you, from your developer’s salary to admin expenses and our service fee. Everything, down to a single penny, is counted.

For example, if you need an offshore dedicated development team, your monthly budget will include an actual engineer’s salary plus a service fee.

KPS monthly budget program

We also offer a dynamic loyalty program that reduces the service fee as your team size increases. For instance, if you need a dedicated development team of 2 members, the fee is $1300 per person. However, if you expand to an offshore dedicated team of 5 members, the fee decreases to $1000 per person.

Offshore dedicated development team - Pricing & Loyalty Program

What’s more, you are free from administrative and operational expenses associated with an in-house team, including HR setup, retention costs, office rent, and taxes.

Another reason you save when partnering with KPS is that we work with dedicated engineers from Ukraine. With the relatively low cost of living and lower tax rates, outsourcing to Ukraine helps you save up to 70% compared to US-based teams.

Here’s a quick comparison of how much software developers cost in different parts of the world.

Offshore dedicated team - average software developer salary by country

Check out our latest article to see why Ukraine is such a popular spot for setting up a dedicated development team.

Bottom line

Competing with industry whales like Google or Amazon for talent is tough, but you don’t have to. KPS helps you build an offshore development team without compromising quality or blowing your budget. We connect you with skilled professionals worldwide and make sure they deliver.

Got questions about dedicated development teams?

  • What do you do to retain developers in dedicated offshore teams?

  • Why should I choose an offshore dedicated team over freelancers?

  • Can I interview the dedicated development team members before they start?

  • Can I scale my offshore dedicated development team as my project grows?

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