Today, gaming is one of the most profitable and rapidly-growing niches. According to TechCrunch, the industry’s global revenue has reached $43.8 billion in 2018, which is 20% higher comparing to the previous years. The predictions for 2019 are promising – experts expect the numbers to go up one-and-a-half times or more.
Game development in Ukraine goes with the times and attracts the attention of the industry’s leaders. The most famous products created by professionals from this region are Cossacks, World of Warplanes, STALKER, Warface, and more. Ukraine is one of the most popular investment and outsourcing destinations on today’s market and numerous foreign companies benefit from Ukrainian tech development talent. However, there is another option some of them usually consider – creating a game studio instead of hiring distanced pros. Such companies as Ubisoft, Wargaming, and Plarium have opened a number of offices in Ukrainian cities. Indeed, creating a studio might be a beneficial option, but still hiring a distanced team can bring you even more amazing results. Let’s discuss the core advantages of outsourcing compared to establishing a studio.
Opening an entire studio in a foreign country will cost you a heap of money. A lack of knowledge about the market and economic situation puts you in an unstable condition and doesn’t give you too much control. Still, investors choose this option against outsourcing, because they think that the money they put up will return with time. This is a risky affair that might drag opposite results.
While the price for outsourcing may seem too high from the first glance, you should remember that it covers far more nuances and overhead expends, which allows you to forget about problems of running a distanced studio. You won’t have to spend money on:
- Recruiting and training
- Software license
- Office facilitates
- Supplies and social benefits
- Taxes and fees
When you sum these expenses up, this will make 30-35% additionally. Not only you will have to pay significantly more, but also tinker with administrative runaround. As for the outsourced team you hire instead, the nuances listed above are their own responsibility, not yours. So you can rest assured that they will take care of themselves.
More efficient recruiting
As we have mentioned in one of the points listed above, when outsourcing a team, you won’t have to spend time and effort on recruiting and training. The hiring process is pretty extensive: you need to reach the pool of experts, choose those that seem suitable, hold interviews, and invite the best ones to your team. Then come the training and the probation term. However, when it comes to game development studios located in foreign countries, it is almost impossible to carry every step out.
On the contrary, when outsourcing developers, you usually can rely on their own hiring strategies. Local recruiters have access to the databases of experts ready to get hired. Also, they have advanced strategies and knowledge of the concrete market situation in their country. This is very important, but there is no way you can have such information as a foreign employer.
What is more, to attract a team of reliable, experienced, and talented developers to your distant office, your company needs to have an attractive and internationally known brand image. If you don’t have one, you will have to spend time and effort building it.
Opening a distanced office is connected with thousands of risks. In most cases, it’s like shooting in the dark. The studio requires basic functions and departments like HR, IT, finance, facilities management, and more. If you don’t know the country and its market, this will bring a lot of difficulties and unexpected pitfalls.
When you outsource a team and cooperate with Ukrainian game developers, they will take care of these points instead of you. They know how the market works, so managing both coworkers and organizational processes is easier for them. This will certainly save your time and money.
Cooperating with a company from the other side of the world, you get access to their skills and experience. This might be extremely beneficial, especially when your approaches to work or main spheres of activity are different. You can share skills and find efficient solutions to problems.
Let’s say, your current company is focused on desktop games and mobile applications. Why not partnering with a game and VR studio? The developers from a studio of that kind surely use different technologies, tools, and software. This will expand your horizons and maybe bring some fresh air to your activity.
Flexibility is an incredible benefit that comes with outsourcing. You can hire a team for full-time or part-time and delegate a couple of projects to them and focus on the rest yourself. Also you can hire them for a certain period of time and stop your cooperation when the contract expires. Also, you can always find more outsourcers if you need more workforce. Luckily, you won’t have to waste your time and resources to do this, because the team of vendors will do it instead of you.
Outsourcing is a new trend in the tech world. As you can see, this cooperation method allows employers to reduce costs, save time, avoid risks, and even gain new knowledge to expand their existing projects. Outsourcing a team of Ukrainian developers is way more beneficial than building an entire studio out there. As a foreign employer, you won’t be able to explore the market and hire professionals as efficiently as local people can. What is more, choosing an already-present team, you avoid numerous issues with recruiting, maintaining, and planning. Whether you need a team for a single project or for a significant period of time, the flexibility of outsourcing strategy will allow you to choose any option. So keep these benefits in mind and think twice before you decide to open your own studio!