The COVID-19 pandemic has been a game-changer for industries worldwide. Organizations have uncovered multiple benefits of remote work, one being the ability to hire tech talent from across the globe according to the outsourcing model.

Outsourcing IT specialists is done for various reasons. According to a report by Deloitte, 59% of companies outsource to reduce costs, and 57% do so to concentrate on their core business functions. However, such staffing can take many forms. One of the popular engagement models in development outsourcing is distributed software development, which allows for assembling a development team of top specialists, even if they are spread across multiple geographical locations. So, what are the benefits and challenges of this outsourcing practice? How do you set up a distributed team? Below we cover all these questions.

Why Choose Distributed Software Development Team Model?

Forming distributed software development teams allows for reaching a whole new level of productivity during the project life cycle. The distributed nature of this staffing model entails that most employees will likely work remotely. Before the COVID pandemic, leadership had been cautious about remote work, claiming it might decrease staff performance due to the lack of supervision and office discipline.

However, after the COVID-19, the Statista report revealed that a majority of employees said that their company’s leadership trusted remote workers to be productive, with 54% believing all employees were trustworthy. 

While leadership is happy with the remote work results, employees are also not in a rush to return to the office. Globally, the percentage of remote workers increased drastically, rising from 20% in 2020 to 28% by 2023. The IT industry is, of course, the most prominent example, with 67% of its employees mainly working from home. The workforce is willing to work remotely due to flexible availability hours and the ability to work from any place.

Assembling distributed teams can help you find skilled app developers and cater to their needs, which is a significant factor in a successful development process.

Oleksandr Boiko: Delivery Director at SPD Technology

Oleksandr Boiko

Delivery Director at SPD Technology

“While working according to a distributed development model, we not only get the flexibility in terms of our working schedules but also gain access to the most diverse software engineering experiences and specific skill sets. This creates a truly unique collaborative atmosphere where anyone can share their knowledge and level up their expertise.”

Challenges of Distributed Software Development Project Management

If you are convinced that a team with members all over the world is what you need to complete your project, you still need to be aware of possible challenges. Understanding the issues that may arise during the development process can help you prepare to address them more quickly and efficiently.

Challenges of Distributed Software Development Project Management

Communication and Coordination Difficulties

In distributed software development, team members are more likely to work across different countries. While it is beneficial for some types of projects that we mentioned earlier, different time zones, languages, and cultural backgrounds still can lead to some miscommunications and, hence, errors in the development process. Delays in decision-making and product releases come as the result of this challenge. 

However, there are no challenges that are not possible to overcome. Therefore, to improve communication and coordination within a distributed team, it is necessary to:

  • Implement unified communication platforms (Slack, Microsoft Teams).
  • Utilize collaboration tools (Trello, Jira) for task management.
  • Schedule regular face-to-face meetings across time zones.
  • Encourage use of concise documentation.

Project Management Complexity

Dedicated development team management means that a project manager will be juggling multiple tasks, monitoring progress to make the project adhere to timelines and quality standards. With a distributed team, a project manager has even more tasks since some conflicts may arise due to miscommunications. On top of that, managing distributed development teams must involve making sure that the whole team can adapt to different working styles and local regulations.

If you are experiencing troubles with distributed development teams management, we suggest you to:

  • Employ agile methodologies (Scrum, Kanban).
  • Use project management software (Asana, Jira).
  • Maintain a centralized project timeline and task tracker.
  • Assign clear roles and responsibilities.
  • Conduct regular progress reviews and retrospectives.

Infrastructure and Tooling

To guarantee productivity and work efficiency, distributed development teams need to have access to the same development environments, version control systems, and communication tools. It is essential to make sure that every team member has the required software and hardware and know how to use them. 

To ensure that all members of your team are on the same page, you can: 

  • Standardize development environments using containerization (Docker).
  • Provide access to cloud-based collaboration tools (GitHub, Bitbucket).
  • Ensure robust cybersecurity measures and VPNs.
  • Offer training on the necessary tools and technologies.
Oleksandr Boiko: Delivery Director at SPD Technology

Oleksandr Boiko

Delivery Director at SPD Technology

“It’s also crucial to emphasize the importance of maintaining security and data integrity across different locations. Distributed teams often access sensitive information and critical systems from various regions, which introduces potential vulnerabilities. To mitigate these risks, we suggest implementing robust security protocols, including end-to-end encryption, secure access controls, and regular security audits.”

Performance Monitoring

When it comes to monitoring in a distributed software development model, it means that you need to track both individual and collective progress against project milestones. Having geographically-dispersed team members can complicate this task. Since you cannot see what each individual is doing and how, they need to put a lot of trust into developers. Moreover, project managers need to be proficient in working with tracking and analytics tools.

To facilitate performance monitoring, managers can:

  • Implement automated performance tracking tools (Jenkins, SonarQube).
  • Set clear performance metrics and KPIs.
  • Conduct regular code reviews and pair programming sessions.
  • Use time-tracking software to monitor productivity.

Knowledge Management

The challenge of knowledge management in a distributed development team lies in ensuring that all the files are accessible and updated in real-time. However, since there is tons of information and hundreds of documents, keeping all of that clean and organized is extremely difficult. 

Yet with document management systems, communication channels, and management methodologies, there are ways to solve this challenge, for example:

  • Create a centralized knowledge repository (Confluence, SharePoint).
  • Foster concise and up-to-date documentation practices.
  • Use version control systems (Git) for collaboration.
  • Facilitate regular knowledge-sharing sessions and workshops.
  • Implement onboarding programs to efficiently integrate new team members.

Resource and Cost Management

The distributed nature of development teams requires thorough planning and constant monitoring in terms of local labor costs, exchange rates, expenses related to infrastructure and tools, as well as economic conditions. Those factors are tightly interconnected with budgeting. Overlooking them can cause both team members dissatisfaction and overcharging the client.

However, it becomes much easier to manage budget and resources when you choose to:

  • Utilize resource management tools (Resource Guru, Float).
  • Regularly review and adjust resource allocation.
  • Negotiate favorable rates and contracts with remote workers.
  • Monitor alternative infrastructure and tools providers to optimize cost without sacrificing quality.

How to Set Up an Agile Distributed Software Development Team: Best Practices

We’ve already shared 6 tips to help CTOs in outsourcing product development. However, we also decided to specify tactics for an effective collaboration when it comes to a distributed development team.

How to Set Up an Agile Distributed Development Team

Decide on the Hiring Approach

At the beginning, you need to choose how you would like to hire developers. There are three common ways to do it. You can opt for direct hiring, virtual office, or an offshore development center (ODC). 

In the first case, you can recruit team members yourself, which gives you the privilege of ensuring they meet your specific requirements. In the second case, a virtual office allows you to create a centralized remote workspace with a good expertise involved in the project, while saving resources required for a physical location. In the third case, ODC can help tap into local talent pools and reduce operational costs.

Feel like setting up an offshore development center makes most sense for your business? 

Our article will help you strategically build a value-driving ODC!

Gear Towards Building Cross-Functional Teams

To create a goal-oriented attitude within a team, it is essential to switch from building a functional team to assembling a cross-functional distributed team. The latter involves creating different roles, including front-end and back-end developers, a project manager, team lead, designers, and quality assurance experts. This makes it possible to equip the project with a spectrum of skills and expertise.

Furthermore, encouraging open communication among team members is crucial since it promotes problem-solving. In order to empower individuals within a distributed development team, increase their engagement, boost overall accountability, as well as promote team ownership and independent decision-making.

Ensure Competent Project Management

Since we have already mentioned that the best option for a distributed development team management is Agile, you need to take the case about project managers being assigned to each team. With managers, it becomes possible to establish correct Scrum processes and maintain control over the project with regular meet-ups, task supervision, and KPI tracking.

In case you want to choose a more specific Agile approach, like Scrum, it won’t do any harm if the role of Scrum master will be taken by a project manager or a team lead. The main point is to delegate management tasks to the person who is responsible and skillful enough to organize the development process.

Establish HRM Processes

One of the most common pieces of advice for managing any team, including a distributed one, is to establish clear HR processes for each geographical region. 

It will considerably improve the team relationships and culture when there is a person assigned to solve any issues between members of the team. Plus, an HR should be familiar with local employment laws, cultural norms, and regional challenges to help resolve any problems and help an employee focus on the project. 

Build a Secure Infrastructure

Make sure you use various layers of permissions to protect your projects by limiting access to critical information to only authorized workers. In order to defend against cyber attacks, make sure that the members of a distributed team have access to the newest security tools and technology. And if you wish to safeguard remote connections, make sure your staff uses VPNs and that pre-installed software on their devices guarantees adherence to security guidelines.

Finally, but just as importantly, remember to sign Non-Disclosure Agreements (NDAs) in order to preserve confidentiality and safeguard sensitive information. These precautions aid in preventing data breaches and protecting the intellectual property of the business.

Stay Smart with Current and Upcoming Costs

To ensure that a distributed software development team work stays uninterrupted by a sudden fiscal gap, you need to analyze rates and the economic environment in the target region. Thus, you can allocate optimal financial resources to salaries. 

Also, invest in reliable communication tools, project management software, and secure network infrastructure. In such a way, you guarantee that your company’s infrastructure is ready for remote collaboration. In the case of opting for ODC, additional items of expenditure are office rent, as well as expenses for utilities, maintenance, and local taxes.

Project Monitoring and Control

For ensuring that all the deliverables will be met in a timely and correct manner, you can use various best office suites and bug trackers. Tools like Okta and Google Workspace can make reporting and communication within a distributed team simple, while also providing real-time updates. On top of that, such systems help track progress, manage tasks, and identify issues that arise.

Oleksandr Boiko: Delivery Director at SPD Technology

Oleksandr Boiko

Delivery Director at SPD Technology

“Assigning core roles is crucial. Specific individuals should be designated as the Chief Technical Officer, System Architect, and Director of Product Management. This ensures that employees have clear points of contact for expertise and support when project bottlenecks arise.”

Outsource Your Distributed Development: Our Experience

SPD Technology’s professionals have experience in working according to a distributed software development model. One of our projects, where our task was to develop an Aggregated Merchant Portal (AMP) for a gift card distribution company, involved collaboration with various teams across different locations. 

Since Spafinder was the first card program that needed to be moved on the new platform, our team in Cherkasy and Kyiv had to collaborate with the Pleasanton product and development teams as well as the Miami Spafinder team. We also had to work on-demand with other teams in order to integrate with the concurrently created internal payment system.

Our cooperation with multiple teams resulted in:

  • Successful implementation of the AMP;
  • Automated business onboarding to the platform that took less than 24 hours compared to the 7 hours required for onboarding previously;
  • Reduced onboarding cost thanks to the speed up process;
  • Added over 8000 businesses to the platform in 2 years.

Conclusion

Distributed software development remains widely adopted even after the COVID-19 pandemic made this approach to building applications commonplace. The reasons for this are access to a global talent pool, cost savings, especially when it comes to office expenses, increased flexibility and resilience, rapid recruitment, and business continuity. 

However, anyone who will decide to assemble a distributed team needs to be familiar with the challenges associated with this strategy. Those may include issues with communication, project management, infrastructure, performance monitoring, knowledge and resource management. If you want to overcome those challenges, you need to compile a team according to the best practices of distributed development. 

They include the right hiring approach, cross-functional team model, transparent HRM processes, infrastructure security measures, correct approach to budgeting, and control over the projects. And if you need help in navigating the intricacies of distributed software development, you can always contact us to leverage our experience and knowledge.

FAQ

  • What Is Distributed Software Development?

    Teams working on software projects from several geographic locations are referred to as working on distributed software development. It increases flexibility and scalability by leveraging global talent and frequently utilizing remote work to build, test, and deliver software jointly across time zones and cultural barriers.