Case study: Young startup inspiring transition from outsourcing to cross-border remote work
Software outsourcing and bastardized Italian food can have a lot in common.
Let me explain.
During an episode of This Morning Chat Show, Italian celebrity chef Gino D’Acampo got angry.
As he was cooking with British Singer Rochelle Humes, she admits: “I like to add Salad Cream to my Pasta Bolognese or Lasagna. When I am in a restaurant, I always ask for it”.
Gino’s reaction was swearing in Italian, followed by: “This is what is wrong with this country.”
It would be unfair to try the above British-Italian fusion food and declare that all fusion food is terrible; for example, the Banh Mi that combines the French-style baguette with Vietnamese ingredients is fantastic.
It is the same way with outsourcing; some companies might have had a bad experience, and it would be unfair to say: All developers living in country xx are not good.
In this blog post, I’ll share a case study of one of our clients who had a bad experience with outsourcing and had way better luck hiring full-time remote developers internationally.
Of course, outsourcing still satisfies a need in the marketplace, and each company’s needs are unique. So here we are sharing one particular company story and what worked for them.
Maisha Labs’ experience with outsourcing
At some point, they worked with an outsourcing company and faced problems.
They will speak with a salesperson, making big promises to get the sale.
He promises to be in charge of the project, managing communication between Maisha Labs and the developers.
But once the contract is signed and the project starts, he will instead focus on getting the next sale.
Meanwhile, when complaining that the actual developer did not do the work properly, nothing was done by the company to solve the situation. Furthermore, communication was difficult as the developers did not speak proper English, which made it difficult to get things done.
Maisha Labs’ experience recruiting remote developers internationally
A common contact recommended FlatWorld to Maisha Labs, and since out of 7 developers, 4 of them were remote, they thought, why not work with FlatWorld to hire developers internationally.
By hiring full-time talent, instead of struggling with communications like with the outsourcing company, the developers are helping release products and functionalities faster.
On top of being able to hire quality engaged talents who help the company grow, here are two benefits Maisha Labs found from collaborating with FlatWorld to hire remote developers internationally:
1) Cost Saving
They hired developers in the country of Georgia, meaning the cost per developer is 2-3X cheaper than hiring developers locally.
While our clients save $60K-$100k per full-time hire, the developers get paid higher salaries than the local ones. So when going internationally to attract the best talents, you need to pay them more than the local salary; it helps attract the best talents, increasing employee satisfaction and retention.
2) Getting developers who can work independently.
Imagine having a business event for 40 business leaders and telling your assistant: Please order some champagne and 20 pizzas.
An assistant could simply call the pizzeria, order 20 pepperoni pizzas, and call it a day.
A better assistant will understand that some of the 40 business leaders might be vegan, lactose or gluten intolerant, eat Kosher, don’t drink alcohol, etc., and make sure there is a variety of food.
It is the difference between following the task to the letter and understanding what it is trying to achieve.
Maisha Labs doesn’t like to micromanage developers and prefers those who can work independently.
They want developers who not only do the demanded task but try to understand what the task attempts to achieve and realize that extra tasks might be needed to achieve the end goal. It is about taking ownership.
By spending time to understand Maisha Labs’ unique DNA and work culture, FlatWorld made sure only to send them developers who can work independently.
3) Improved employees satisfaction:
Before hiring remote developers, Maisha Labs had only one employee who understood the product architecture.
With the fierce competition for tech talent, hiring locally within a reasonable time frame was difficult.
It is risky when a company has only one employee that knows a critical part of the technology. What happens if that one employee gets hit by a bus or decides to leave?
By hiring remote developers internationally, they now have 5 employees who understand the product architecture.
As a bonus, now it is easier for the employees to take a much-needed holiday, and the employees’ work-life balance improved, which helps with work satisfaction and retention.
From our experience, when a company has only one employee who can do a specific task, it results in a high workload, which leads to burnout and reduced productivity.
In the past, we met many developers looking for new jobs because of how stressful the previous job was.
Maisha Labs understood that a bad experience with an outsourcing company meant only some remote developers from abroad were terrible. Instead, they wanted vetted developers to ensure they matched their way of working and unique technological needs.
The benefits of hiring international remote developers directly
1) You get talents who are the perfect match for your needs.
Shopping for tech talent can be similar to buying clothes.
Often, tall and skinny people complain it is hard to find clothes that fit. Most clothes are either too wide and baggy or too short for them.
Fashion brands make clothes for what they see as the standard figure, and if you differ from that figure, it is more difficult for you to buy their clothes.
It is the same when hiring tech talents, as your needs are unique.
An intermediary company will not hire tech talents based on your individual needs but rather based on the average needs of their clients.
By directly hiring remote developers internationally, you can get developers who are the best fit for your unique needs.
2) You get to hire tech talent faster.
Hiring international and remote talent makes it possible to get around the tech talent shortage.
For example, one of our clients, Deel, needed to hire tens of developers and managers in Latin America and Europe to support their rapid growth to a $12 billion valuation in 3 years. And we helped them hire developers in weeks instead of months, helping them hire 40+ developers.
3) Better Vetting
You wouldn’t buy a house based on the words of the real estate agent, would you? So instead, you will visit the place, every room in the home, and even multiple houses.
When hiring remote talents directly, you vet every talent individually to ensure they are the perfect fit. However, when working with an intermediate company, you don’t get to vet each developer’s tech skills, personality, work motivation, and communication skills.
That is why we believe in transparency, cutting the middleman, and having companies get to know every remote developer they hire (as opposed to speaking with a salesperson).
To avoid hiring mistakes when recruiting remote developers internationally, trust FlatWorld to match you with developers who will help you grow. Schedule a call with us today to learn more about how we can help you recruit the best remote talents.