“Remote is the new normal!” — I think this is one thing most of us will agree upon.

In a seemingly post-COVID era (well, let’s hope so), with the myriad of challenges businesses worldwide have faced, one clear shift has emerged — the transition to everything remote.

It’s not just a trend; the numbers back it up.
According to a report by Business Wire, the global IT outsourcing market is expected to reach USD 397.6 billion by 2025, registering a CAGR of 4.5%.

This paradigm shift driven by the pandemic has made it inevitable for companies to engage with remote partners based offshore.
Within IT, application development continues to be one of the most frequently outsourced functions.

According to Deloitte’s Global Outsourcing Survey 2021, more than 60% of tech companies were outsourcing at least a part of their application development.

So, whether it’s now or later down the road, whenever you plan to engage with a remote agency for application or product development, it’s essential to be aware of certain must-know factors.

Based on our experience working with clients in North America, Europe, and Oceania, here are the top 5 things we’ve learned:

1. Choose the Right Destination

India, China, Ukraine, Philippines, Mexico, and Brazil are the most popular destinations to outsource software development.

Among these, India stands out due to several compelling reasons:

• Large Talent Pool: India produces 1 million engineers every year.
• English-Speaking Workforce: A significant advantage when working with international clients.
• Competitive Pricing: India offers some of the most competitive rates compared to other countries.
  

As a testament to its popularity, India was top-ranked in Kearney’s 2021 Global Services Location Index for outsourcing attractiveness.

2. Is Your Partner Remote or Distant?

A remote partner shouldn’t mean someone who is invisible or whose work is not visible.

Ensure that your remote partner:

• Communicates regularly and keeps you in the loop.
• Provides transparency throughout the project lifecycle.
• Implements processes and tools to maintain visibility from the get-go.

Use these basic hygiene factors to evaluate potential remote partners before engagement.

3. Are They True Partners or Mere Contractors?

One of the most important questions to ask yourself:
Are you engaging with true partners or mere contractors?

How to spot the difference?

• True partners add overall value to your business.
• They understand your business intent and align their execution to it.
• They don’t just deliver what’s asked; they strive to add more value through technical expertise and execution maturity.

Be cautious of vendors who merely execute without adding value. This business relationship has unlimited potential to be more than just transactional.

4. Don’t Let Distance Become a Barrier

Engaging remotely means partnering with a team located thousands of miles away.
It’s easy for this distance to become a barrier, but it doesn’t have to be.
Best Practices:

• Find a partner who “owns it”: A partner who takes tremendous ownership of their work is invaluable.
• Establish open communication channels: Make transparency a non-negotiable.
• Set clear project timelines and deadlines: When both partners have a say in the process, deadlines are more likely to be honored.
• Insist on visibility: Stay updated on the nitty-gritties of your project.

5. Beware of the Low-Cost Trap

We agree — cost savings are one of the primary reasons companies choose to work with remote partners.
But a lower price tag doesn’t always mean higher quality.

Before considering cost as a deciding factor, ensure that the following hygiene factors are in place:

• Value Proposition: Are they genuinely committed to your business goals?
• Partner’s Attitude: Are they proactive or merely reactive?
• Communication: Are they accessible, transparent, and responsive?
  

Engaging with a remote partner can open doors to immense growth and innovation — but only when the right groundwork is laid.
Keep these factors in mind, and you’ll be well-positioned to make the most of your remote partnerships.