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Tips for Product Owner: How to manage offshore development teams?

06/11/2024

857

Linh Le

As product owners, you often struggle with balancing high-quality development and budget constraints. From the business owner’s perspectives, offshoring has become a go-to strategy to reduce costs without compromising the quality of products. However, managing offshore teams effectively requires a thoughtful approach to bridge the gaps. Those gaps can be geographical, cultural, and operational differences. A dedicated team abroad, when managed well, however, can deliver outstanding results and provide insightful ideas. Here’s a quick guide to how to manage offshore development teams effectively.

What is an offshore development team?

An offshore development team refers to a group of professionals located in a different country, who work on software development projects for a company in another country. These teams are usually contracted to perform technical tasks such as coding, testing, and maintaining software. Offshore teams are typically hired to achieve cost savings, access a borderless talent pool, and scale resources more flexibly.

Key characteristics of an offshore development team

There are many types of offshore development team, but all of them should share some common characteristics:

  • Geographic Separation: They operate in a different country, often in a different time zone.
  • Lower Costs: Offshore teams are usually located in regions with lower wages compared to the company’s home country.
  • Technical Expertise: Many offshore teams have specialized skills and experience in various tech stacks and development methodologies.
  • Collaboration Models: Offshore teams may work under various engagement models, such as dedicated teams, project-based outsourcing, or staff augmentation, depending on the company’s needs.

Though commonly mistaken, offshore development teams are distinct from nearshore teams. Nearshore teams are usually located in neighboring or nearby countries with closer time zones. Sometimes, they share the same cultures as well.

How to Manage Offshore Development Teams Effectively?

After deciding that offshoring can be a successful strategy for your project, you’re entering a more challenging phase. That’s how to onboard and manage an offshore team efficiently. The process should be as smooth as possible to avoid any unwanted collision with your existing product team.

Let’s deep dive into the guidelines for your streamlined offshoring experience.

1. Choose the Right Partner

First and foremost, you should seek for an offshore partner with a solid reputation for quality and experience in your industry. What’s the traits that you should take into consideration?

  • A proven track record of successful projects.
  • Domain expertise aligned with your product needs.
  • Responsiveness and professional working manners.
  • Established communication protocols and cultural fit. Conduct thorough due diligence, including reviews, testimonials, and a pilot project if possible.

2. Set Clear Expectations and Goals

Secondly, you need to clearly define project goals, timelines, and quality standards are crucial. Here’s how:

  • Document Specifications: Provide detailed documentation, mockups, or even interactive prototypes.
  • Define Success Metrics: Quality benchmarks, key performance indicators (KPIs), and timelines need to be agreed upon from the outset.
  • Establish Milestones: Use milestones to check progress and ensure alignment.

3. Prioritize Transparent Communication

Open, consistent communication is fundamental in overcoming time zone and cultural differences. Implement these strategies to foster effective communication:

  • Use Collaborative Tools: Tools like Slack, Zoom, and project management platforms (like Jira or Asana) keep everyone connected.
  • Set Up Regular Meetings: Schedule regular check-ins that accommodate both time zones. These could be weekly sprints or bi-weekly reviews.
  • Create Documentation: Ensure all project requirements, changes, and feedback are documented for easy reference.

4. Embrace Agile Development

The Agile framework can provide a structured way to manage offshore teams. Moreover, Agile’s iterative approach allows for ongoing feedback and adjustments, keeping development on track:

  • Conduct Daily Stand-Ups: Even brief virtual stand-ups can keep the team aligned.
  • Use Shorter Sprints: Shorter sprints ensure regular deliverables, fostering a continuous feedback loop.
  • Retrospectives: Post-sprint retrospectives allow the team to discuss improvements, helping to adapt and optimize workflows.

5. Invest in a Strong Onshore-Offshore Collaboration Model

Building a hybrid team model, where some team members are onshore and others offshore, can improve collaboration and oversight. Having a product owner, project manager, or tech lead onshore helps maintain quality by providing immediate feedback and clarifying requirements. Likewise, the offshore development team should ensure project management roles to tackle issues promptly. Sometimes, the management roles of offshore team are not equally valued. And that can be a huge mistake right there.

6. Monitor Quality Assurance and Testing

Ensure the offshore team has a robust QA process in place to catch issues before they reach production:

  • Automated Testing: Implement automated testing to streamline quality checks.
  • Regular Code Reviews: Encourage a culture of code reviews where team members cross-check each other’s work.
  • Performance Metrics: Track performance metrics related to code quality, including bug count and resolution times.

7. Build Trust and Foster Team Culture

Building rapport and trust is essential. Make efforts to:

  • Celebrate Achievements: Recognize individual and team accomplishments.
  • Encourage Openness: Create an environment where team members feel comfortable sharing feedback and challenges.
  • Offer Learning Opportunities: Provide training resources to help your offshore team keep up with the latest technologies and methodologies.
  • Frequent Visits: After all, face-to-face communication is irreplaceable to tie the bond. Do not underestimate the importance of business visits to your offshore team’s country and vice versa.

8. Control Costs with Clear Budgeting and Transparent Billing

Finally, while cost-saving is a significant driver for offshoring, keep an eye on the budget with:

  • Fixed Price Milestones: Setting fixed price milestones helps control costs.
  • Detailed Invoicing: Request detailed invoices to ensure you’re paying only for what’s necessary.
  • Avoiding Scope Creep: Keep the project scope clear and tightly controlled.

By taking a proactive approach to managing offshore development teams, you can balance cost savings with high-quality results. With the right planning, communication, and collaboration strategies, your offshore team can be a powerful asset in delivering quality products on time and within budget.

Explore SupremeTech’s offshore development team

By following these best practices, you can leverage offshore development to deliver high-quality software while managing costs effectively. If you’re looking for a trusted partner with a proven track record, consider SupremeTech. Our offshore development team has experience working with Japanese corporations on multi-million-user products, ensuring a strong focus on quality, scalability, and reliability. We emphasize win-win collaboration, proactive problem-solving, and transparent communication to help you achieve your goals smoothly.

For more insight, check out our case study on successful collaboration with Japanese enterprises. If you’re interested in our services, book a free consultation with us now.

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It shows how custom programs can be more than just a tool for discounts, they can strengthen the relationship between brand and customer by staying true to the company’s values. >>> Read more related articles:  Restaurant Mobile Ordering App: Transform or Lag behind the CompetitionHow Loyalty Apps Can Improve Customer Lifetime Value (CLV) Why Luxury Brands Are Creating Their Own Loyalty Financial Control & Profitability One of the biggest reasons luxury brands and retailers choose to run their own point systems is financial. Large national networks charge brands based on user activity, meaning the more customers use points, the more the brand pays out in fees. On top of that, when points issued by third-party systems expire, the unclaimed value is recognized as profit for the operator of that network, not for the brand. By creating their own loyalty system, brands can keep this financial upside in-house, turning expired points into pure profit and avoiding ongoing external charges. Ownership of Customer Data & Identity When a retailer runs its own loyalty program, it gets direct access to data: what customers buy, when, where, how often. More than that, it can design the “feel” of the loyalty experience, how it looks in the app, what kinds of rewards are offered, and how membership levels are structured. For many brands, preserving this identity is crucial. Customers don’t just want generic points; they want rewards and interactions that feel part of that specific brand’s atmosphere. Customizable Rewards & Campaign Flexibility This is perhaps the most important reason why brands want to have a private system. This gives brands the ability to customize how points are earned and redeemed in line with their marketing strategy. They can run x2 or x3 point multipliers during exclusive campaigns, convert points into vouchers for specific products, or target promotions to selected customer segments. This kind of precision is nearly impossible with third-party networks, where point accrual and redemption rules are standardized. For luxury brands, that flexibility is key, which allows them to design campaigns that not only drive sales but also strengthen their brand story and exclusivity. Financial Comparison: Networks (Coalition) vs. Custom (Own) Loyalty Programs TopicGiant Loyalty NetworksCustom Loyalty AppExpired PointsWhen points expire, the value usually stays with the coalition operator, not the brand.The brand keeps all the value from expired points as pure profit.Market ScaleCoalitions dominate because of large networks (e.g. T-Point, Rakuten). Brands may feel forced to join for reach.Own programs are smaller but allow full value capture and closer customer ties.Customer Data OwnershipLimited: coalition networks keep most customer data, and brands only see summary reports.Full: brand knows exactly who buys, what, when, and where, enabling stronger personalization.Profit ImpactSome profits are lost to fees and expired points that go to the coalition.All upside stays with the brand, improving long-term profit. Challenges of Building Custom Loyalty App Of course, building a custom loyalty program is not without trade-offs. Unlike joining a nationwide network, brands must shoulder the responsibility themselves. That means investing in the right technology, maintaining a seamless user experience across online and offline channels, ensuring data security, managing the costs of rewards, and keeping members engaged through ongoing campaigns. This is where the right technology partner makes all the difference. At SupremeTech, we’ve worked with Japanese retailers and service providers to design loyalty ecosystems that are both scalable and brand-authentic. From integrating mobile wallets and e-commerce platforms to building real-time data pipelines that unify customer behavior, our teams help brands modernize without losing their unique identity. A good example is where we developed a custom Shopify app to streamline our client loyalty data pipeline across offline POS, e-commerce, and mobile. By connecting these touchpoints, the client could finally unlock a “single source of truth” about customer engagement enabling smarter campaigns, cleaner data, and ultimately stronger loyalty outcomes. (You can read the full case study here: Shopify Custom App to Streamline Loyalty Data Pipeline) The lesson is clear: technology should amplify tradition, not replace it. With the right architecture and an experienced partner, brands can turn the century-old Japanese habit of point collecting into a modern, data-driven loyalty engine that is ready for the future. What Businesses Can Learn from Japan’s Loyalty Culture The first lesson is to make the process effortless. In surveys, over 87% of Japanese point collectors said their ideal is to earn loyalty points rewards without realizing it. The best programs don’t force customers to jump through hoops. Instead, they tie points automatically to common actions like mobile payments, train rides, or even buying lunch at a convenience store. The second lesson is to build ecosystems, not stand-alone programs. Rakuten, Docomo, and PayPay succeed because they integrate points across multiple industries shopping, banking, telecom, travel. Each service feeds into the same pool of rewards, creating a closed loop where leaving the ecosystem means losing value. This is what keeps customers engaged long-term. For businesses abroad, the takeaway is clear: don’t treat loyalty points as just another promotion. Treat them as part of your customer’s lifestyle. When loyalty points rewards are seamless, practical, and connected, they stop being an incentive and start becoming a habit. Conclusion: More than Just Points The story of Japan’s point based loyalty programs shows that loyalty is built transaction by transaction, habit by habit, until it becomes part of daily life. For businesses, it’s a reminder that the strongest rewards programs are not those that simply give discounts, but those that create ecosystems, engage emotions, and embed themselves into routines. At SupremeTech, we help businesses take on that challenge building custom apps, integrating e-commerce and designing real-time data pipelines that make loyalty seamless and scalable. Just as Japan has shown, loyalty done right is more than just a promotion. It’s a tradition transformed into a digital advantage. 📩 Read more articles about us here: https://www.supremetech.vn/blog/  ☎️Contact us to see how we can support your loyalty app strategy.

            03/10/2025

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              Inside Japan’s Point-Based Loyalty Culture: The Power of Point Networks and the Rise of Custom Programs

              03/10/2025

              271

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