Petr Gogolín26.8.2016Back

Best Guide to Outsourcing

British companies increase profit per developer by 100 % with outsourcing to Czech

If you are from a British tech company, you are probably familiar with these challenges:

  • Increasing difficulty to hire skilled web developers

  • Constantly growing average developer salaries, up to Ł60.000 in London

  • Fluctuation with up to 50%of new hires leaving in 12 months

One of the solution is to use dedicated developers outsourced from nearshoring countries where is enough available talent at affordable price. This allows you to:

  • Hire better and more experienced developers

  • Significantly reduce cost per developer

  • Fill open positions faster

  • Reduce number of missed opportunities due insufficient team

Video referral from happy client

Listen to Jono from London's digital agency Loft speaking about his experience with recruiting through Kurzor:

Jono Marcus from Loft talks about sourcing PHP talents with Kurzor

Benefits of outsourcing web development to Czech

Cost

Smart outsourcing means bigger profit and cost saving is usually considered the main reason why companies outsource. Based on our experience, there is up to 100% increase in profit per developer with some of our clients.

Developers cost their salary, but also other indirect cost that influences company’s bottom line. Consider comparison for a experienced web developer in London shown below:

  In-house Outsourced
Hiring £10,000 £2,000
Pay £50,000 £35,000
Class 1 NICs £7,000 £0
Administrative cost £1,000 £240
Facility, HW, SW £2,000 £0
Total £70,000 £37,240

Faster revenue growth

Some successful IT companies have more inquiries than they can comfortably fulfill. If they rely only on in-house developers, they can miss a new business opportunities due to lack of their manpower.

If you decide to use outsourced development, you can start creating value instantly and bid for projects with confidence that you will have required resources to fulfill, instead of turning potential clients down.

Ask yourself a question: How much extra profit could you make every year if you’d had enough developers at all time?

Time zone and distance

Benefit of nearshoring instead of relying on even cheaper developers from Asian coutnries is mainly proximity and similar time zone. The time difference between the UK and Czech is only one hour and there are frequent cheap flights directly to Prague and Brno. Going on a business trip to Czech is same as traveling to a meeting from London to Manchester.

Direct flights to Brno are operated by WizzAir from London Luton and Ryanair from London Standsted. Average return ticket price is £120 and flight time is just 90 minutes.

Mindset and culture

Czech web developers are independent thinkers who don't only take orders but are able to challenge the development requirements if they think there is a better way. This specific mindset is one of the main reasons why companies are switching to nearshoring after sometimes having difficulties with allignment of their work approach with teams in other parts of the world.

As a nation, we have a great track record in the IT sector. Best examples include Avast, ESET and AVG, three of the world's biggest anti-virus companies, all of which have roots in former Czechoslovakia and protect over 40 % of all computers on the Earth. IT is in our bloodline.

European culture and common values ensure smooth cooperation with partners from western countries. If you’re insecure about outsourcing to an eastern Europe, remember that Czech capital Prague is 100 miles western relative to Vienna :-)

Our current stack

  • PHP stack: Slim framework 2 + 3, Zend 1, MySQL, MongoDB, Nette

  • JS: ES6 / 2015, React, Redux, jQuery, NodeJS, Angular 1, Gulp, Grunt and other npm-based toolkits

  • Webcoding and responsive webcoding, Less, Sass, Stylus, Bootstrap, Material UI, CSS3 with the advanced stuff like Flexbox, animations.

  • AWS services: Lambda, IAM, API, AWS DBs  

  • APIs programming including Swagger definitions, usage of apiary.io, mobile apps APIs, oAuth implementations, JWT autentication

  • Payment gateways: GoCardless, PayPal, Stripe, Authorize.net, GoPay.cz

  • Mail services APIs: Mailchimp, Sendgrid, Mailtrap.io

  • CMS support  and development of custom modules, templates, set up: Wordpress, Magento, Drupal, Joomla, Shopify, OpenCard

If you need something else not on our current stack, we can recruit a talented developer who has what you need within a short time frame.

Schedule a call and learn more about your options

If you're a growing British IT company, give us a quick call so we can understand exactly your current needs and come up with a proper gameplan for you.

He and his development team saved British clients more than £250.000 the last year just with smart outsourcing.

Give it a try and there's a high chance that together we'll find a solution for your situation so you can rapidly decrease your development cost, accept more local clients (which you maybe have to reject now)... and thus in most cases increase your profit per developer by 100%.

Now schedule the call and let's talk...

Schedule a Free Consultation Call

Hungry for more? Read how to get started with development outsourcing

Types of outsourcing

Dedicated outsourcing

If you need full capacity and attention of one or more developer, then your choice is dedicated outsourcing when one or more developers are dedicated to working only for you, subject to your management and supervision.

The developers are employed by us, provided with hardware, software and modern working environment. We can also offer supervision and management from our end.

Project based outsourcing

If you never outsourced before or if you never managed an international or remote team, you should first go for project-based outsourcing.

Project-based outsourcing means that we start working on simple tasks that may not have the highest priority for your business. Project management, communication and the development approach are similar to full-time outsourcing, but you manage the amount and type of work our developers do.

Once you feel safe and you've tested what works for you in that setup, we can move on to more complex and difficult projects.

Outsourcing process

If you need a generic developer that doesn’t have very specific skills, we usually already have staff available within a short notice. If you need specialized developer, we are able to hire just the right fit for your team.

Our hiring process for specialized developers:

  • defining role, neccesary skillset, cost and duration of contract

  • creating appropriate job description

  • locating suitable candidates

  • testing their technical skills through our sample tasks

  • selecting suitable candidates for first interviews

  • testing technical skils on task given by you

  • psychological review and recommendations for management

  • trial period and onboarding

  • start of contract period

How we get the best talents

  • Strong brand by working for various international clients, innovative projects and sound financial health ensuring stable earning opportunity for local talents

  • Good working environment, no big open space, maintaining friendly athmosphere

  • Rigorous candidate testing on technical skills as well as psychological review

  • Experienced HR personell and recruiting strategies

Preparation Period

In case of dedicated outsourcing, we suggest you allow at least two or three months for preparations. Especially if you request senior or more experienced developers, there is a chance we won't have the perfect candidate available immediately.

Based on seniority, we are able to provide you with a list of possible developers within several weeks to two months. A professional HR specialist is a part of our team and we are constantly recruiting new talents.

Smaller projects or tasks under project-based outsourcing are usually covered by an existing team without any long waiting period.

Evaluation and onboarding

In case you request dedicated developers, we want you to feel comfortable before you commit. Therefore we employ this proven, three-step process:

First, we recommend you prepare a set of tasks with graduating difficulty to assess if a candidate is a good fit in terms of skills and competencies. After this initial evaluation you'll also have a better picture about the candidate's soft skills and ability to communicate and solve problems.

If the first stage is successful, we hire the developer for a trial period of no more than three months and he starts working for you. This period includes adaptation to a new working position, continuous evaluation and development of working standards that meet your specific needs. In addition, our specialist prepares a comprehensive psychological report on each candidate at the beginning of this stage.

After you see how the candidate performs within your team and what is being delivered, we can move on to the third step, which is a signed contract. The usual time span for the first contract to be signed is one year per developer. This period is long enough to do serious work and also short enough in case that your company needs to modify its strategy or refocus its effort elsewhere. While one year is the most common, it's obviously not the only possible option.

On-site visits (or Inspections!! :-)

If you wish to check out our team and make a trip to Brno, we'll be very happy to host you. There are direct flights to Brno from London Stansted and Luton as well as Eindhoven (and they are cheap – check out Ryanair and Wizzair for schedules and fares).

The Czech Republic is famous for great and astonishingly cheap beer, beautiful women, and some great architecture. See for yourself! :-)

 

Petr Gogolín
peter@kurzor.net
+420 776 346 943
Petr specializes in marketing and sales.

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