Offshore Dev Team Decision Framework
7 Critical Questions Before You Sign That Contract
All Decision Frameworks • Fractional CTO Framework
Discover if you're ready for offshore development before it costs you six figures and six months.
Your Readiness Score
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1. The Foundation Test
Do you have a solid technical foundation already built?
- Do you have detailed technical specifications and architecture docs?
- Is your core product logic already defined and tested?
- Can you hand someone a complete blueprint, or are you figuring it out as you go?
The Truth: Offshore teams execute plans, they don't create vision. If you're still in "let's try this and see what happens" mode, you'll spend more time explaining than they'll spend building.
Red flag: If you don't have wireframes, user stories, and technical specs ready, you're not ready for offshore. You'll pay $25/hr for developers and $150/hr worth of your time explaining basic concepts daily.
2. The Communication Reality Check
How much of your day can you dedicate to managing an offshore team?
- Can you do daily standups at 6 AM or 10 PM?
- Are you willing to over-document every single decision?
- Can you review code and give feedback within 24 hours?
The Truth: Budget 10-15 hours per week minimum for communication overhead. That's not development time—that's just keeping everyone aligned.
Red flag: If you think "I'll just explain it once and they'll figure it out," prepare to rebuild everything in 4 months. Offshore requires 3x the documentation of local teams.
3. The "What Could Go Wrong" Scenario
What happens if the team delivers complete garbage in month three?
- Do you have enough runway to start over?
- Can you afford to lose 3-6 months of development time?
- Do you have a backup plan that doesn't involve panicking?
The Truth: 60-70% of first-time offshore engagements fail. Most founders don't have a Plan B. They bet the company on saving money.
Red flag: If this offshore team is your ONLY path to launch, and you have less than 9 months of runway, you're gambling with your startup's life.
4. The Technical Evaluation Test
Can you personally evaluate if the code they're writing is good?
- Can you review a pull request and spot problems?
- Do you know what good architecture looks like?
- Can you tell if they're building technical debt bombs?
The Truth: Cheap offshore teams count on you not knowing the difference between working code and good code. By the time you realize it's unmaintainable spaghetti, you've paid them $40K.
Red flag: If you can't read code or don't have a technical co-founder/advisor reviewing everything, you're flying blind. You'll approve terrible work because "it looks like it works."
5. The Price Reality Check
Are you choosing offshore purely to save money?
- Is budget the #1 reason you're going offshore?
- Have you calculated the TRUE cost including your time?
- Did you compare $25/hr offshore vs. $75/hr nearshore vs. $150/hr local?
The Math Nobody Does:
- Offshore at $25/hr × 160 hrs = $4K/month per dev
- Your management time: 15 hrs/week × $150/hr value = $9K/month
- Rework and delays: Conservatively 30% = $4K/month
- Real cost: $17K/month for output you could get from one good local dev at $12K/month
The Truth: The cheapest teams become the most expensive mistakes. Elite offshore teams ($80-100/hr) exist, but at that price, local talent gives you fewer headaches.
Red flag: If the primary pitch is "they're cheap," run. Good developers cost good money everywhere in the world.
6. The IP and Security Question
Have you thought about who actually owns the code being written?
- Do you have ironclad IP assignment agreements?
- Are you comfortable with your code living on servers in another country?
- What happens if there's a dispute or they ghost you?
The Truth: Horror stories of offshore teams holding code hostage or selling your IP to competitors are rare, but they happen. And when they do, you're screwed.
Red flag: If the contract isn't crystal clear about IP ownership, code escrow, and termination terms, you're exposed. Cheap legal now saves expensive legal later.
7. The Gut Check Question
Why are you REALLY doing this?
- Are you trying to move faster, or just spend less?
- Are you solving a skill gap, or a budget gap?
- Deep down, do you believe this will work, or are you hoping?
The Honest Truth: Most founders go offshore because:
- They're scared of their burn rate
- They think they can't afford "real" developers
- They believe the hype about "5 devs for the price of 1"
But the founders who succeed with offshore go because:
- They've already built the foundation with local talent
- They have specific, well-defined modules to build
- They have technical leadership reviewing everything
- They treat it as scaling capacity, not replacing strategy
Red flag: If you feel even a little bit of desperation about this decision, it's probably the wrong decision. Desperation leads to bad contracts with bad teams.
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