In an increasingly competitive marketplace, companies are continually seeking ways to innovate faster, improve collaboration, and deliver more value to their customers. DevOps has emerged as a pivotal methodology to achieve these goals, offering benefits like shorter development cycles, better team collaboration, and more efficient use of resources.

But another layer to the story is the compelling financial and operational advantages of outsourcing and nearshoring DevOps roles. Imagine being able to onboard a senior DevOps Engineer from Mexico City with over 5 years of experience and an impressive skill set that includes Kubernetes, Docker, Jenkins, Terraform, and AWS or Azure cloud platforms.

Such a package would cost you around $5,000 per month. In contrast, a similar skill set would set you back approximately $15,000 per month in the U.S. Moreover, nearshoring offers additional benefits such as time zone compatibility and cultural alignment, facilitating real-time collaboration and swift troubleshooting sessions.

The Double-Edged Sword: Risks of Outsourcing and Nearshoring

Outsourcing and nearshoring can be game-changers for your DevOps strategy, offering both cost savings and access to a vast talent pool. However, these advantages can quickly turn into liabilities without adequate preparation. Common pitfalls include a lack of transparency in compensation models, which can lead to talent attrition and increased churn.

Similarly, focusing solely on technical skills during candidate screening can result in a lack of cultural fit or commitment to your specific initiatives. But perhaps the most glaring risk is the "Dependency on Supplier" issue. When companies hand over too much control to outsourcing agencies, they become vulnerable to price hikes, misaligned priorities, and potential security risks. In such cases, the balance of power shifts, leaving the client company at the mercy of the supplier's terms.

What This Article Will Cover

Internal data at Teilur Talent indicates that many companies make similar, avoidable mistakes when outsourcing DevOps roles. In this article, we'll break down these pitfalls, offering actionable insights to help you sidestep them and fully capitalize on the benefits of DevOps outsourcing and nearshoring.

Mistake #1: Lack of Compensation Transparency

The Talent is There, But So Is The Risk

The world has become a smaller place when it comes to sourcing top-tier DevOps talent. Regions like Latin America have caught up considerably, producing highly skilled professionals well-versed in sought-after technologies such as Azure, AWS, containers, Kubernetes, and CI/CD pipelines. These are the same skills you'd look for in a U.S.-based DevOps engineer, often coming at a fraction of the cost.

The Compensation Gap: A Breeding Ground for Distrust

However, this cost advantage can be a double-edged sword. The outsourcing industry for far too long has exploited the cost differential between regions to pocket significant margins, sometimes without adequately compensating the talent doing the actual work.

We’ve noticed from our recruited talent network that many of them come in discontent because a lack of transparency from other agencies leads to resentment among the outsourced staff while fomenting an environment of mistrust. Over time mistrust erodes the team's commitment and results in higher churn rates. Talent often opts to move on independently, severing ties with the outsourcing agency that placed them.

The Transparency Factor: Building Trust for the Long Haul

This is where compensation transparency comes into play. It’s not just about fair pay; it's about fostering a culture of openness and trust between all parties involved. The best way to achieve this is by selecting an agency that is transparent about its compensation model.

For example, at Teilur Talent, we've seen a significant improvement in engineering retention rates by being upfront about our margins. By explicitly mentioning we never charge a client more than 20% of the engineer's salary, we’ve seen significant loyalty and trust among talent. When a client is billed $5,000, they can be assured that at least $4,000 is going directly to the talent who is performing the work. This benefits all parties involved. 

Why Transparency is Crucial for Overseas Talent

Being transparent about compensation isn't just ethical; it's practical. Talent that trusts their agency and understands how their compensation is structured is more likely to stay for the long term. This not only reduces churn but also eliminates the indirect costs associated with frequent rehiring and retraining. It's a win-win for both the client and the talent: the client retains a committed, effective team member, and the talent gains a stable, rewarding employment situation.

When outsourcing DevOps roles, especially to regions where talent is abundant but the cost of living is lower, it’s crucial to partner with an agency that values compensation transparency. This one factor can make or break the long-term success of your outsourced DevOps initiative. So before making your choice, ensure that your agency is committed to transparently disclosing how much of your payment goes to the talent doing the work.

Mistake #3: Outsourcing Entire Projects Instead of Talent

The Risky Bet: Project-Based Outsourcing

Many companies fall into the trap of outsourcing entire projects, effectively relinquishing control of crucial technical aspects to external agencies. On the surface, this might seem like a time-saving approach; you hand off the project requirements and wait for the finished product. However, this method is fraught with risks. For one, it creates a power imbalance in favor of the outsourcing agency, especially if they realize that they possess critical expertise you lack. This dynamic can lead to price gouging, contract manipulation, and even a jeopardized project delivery.

Scenario 1: Outsourcing the Project

You contract an outsourcing agency to develop a new cloud infrastructure for your business. Over time, they become the gatekeepers of your project, holding both the technical expertise and the actual codebase. They then leverage this position to renegotiate contracts, increase prices, or push back deadlines, knowing well that you are too invested to easily switch providers.

Scenario 2: Outsourcing the Talent

Instead of outsourcing the project, you hire individual DevOps engineers through a nearshoring agency. You interview and onboard these engineers, ensuring their skills and goals align with your project requirements. They integrate into your team, work under your supervision, and contribute to your cloud infrastructure development. You maintain control, they enjoy a fulfilling role, and the agency merely facilitates this symbiosis by handling payroll and compliance.

The Win-Win-Win Model: Outsourcing Talent, Not Projects

By focusing on talent rather than projects, you retain complete control over your strategy and execution. This allows for a much healthier relationship between you, the outsourced talent, and the outsourcing agency. For example, at Teilur Talent, we've found immense success with this approach. The outsourced talent operates as an integral part of your team, not as a separate entity managed by us. You benefit from their expertise and lower cost, they gain from roles that align with their career goals, and we simply provide administrative support like payroll and contract compliance.

Project-based outsourcing may seem convenient initially but can lead to unfavorable power dynamics, reduced control, and potentially higher costs. On the other hand, talent-based outsourcing puts you in the driver's seat, allowing you to build a team tailored to your specific needs and objectives. It's a more transparent, empowering, and risk-mitigated approach that aligns all parties involved.

When outsourcing or nearshoring DevOps make sure you evaluate if the agency you will be hiring enables you to interview the candidates. Make sure candidates are not “assigned” to you, but make sure you can decide who you want to work with by having them follow your interview process. 

Mistake #4: Ignoring Time-Zone Differences

Outsourcing in DevOps in different time zones

This is where we emphasize the benefit is stronger with Nearshoring than with outsourcing. In the digital age, it might seem like geography is irrelevant. After all, remote work is more prevalent than ever, and companies are becoming increasingly global. However, when it comes to DevOps—which often requires real-time collaboration, quick decision-making, and instant problem-solving—the importance of time zones cannot be overstated.

Imagine an emergency where your application is down, and you need immediate assistance from your DevOps engineer. If your engineer is operating in a vastly different time zone, you may find yourself sending urgent emails in the middle of the night, only to receive responses when you're off the clock. This delay can lead to extended downtime, unhappy clients, and potentially lost revenue.

Time-Zone Alignment: A Key to Efficient Collaboration

Having team members in similar or overlapping time zones facilitates immediate communication. Whether it's a quick Zoom call to troubleshoot an issue, or an instantaneous Slack conversation to deploy a new feature, real-time communication is often the linchpin of successful DevOps operations.

Let's consider a concrete example to drive home the importance of time-zone alignment in a DevOps environment. Imagine your e-commerce platform experiences a sudden surge in traffic due to a flash sale. You start to notice latency issues and customer complaints start rolling in about slow load times and transaction errors.

Scenario 1: Disparate Time Zones

Your DevOps engineer, who is responsible for managing the auto-scaling of your cloud resources, is based 9 hours ahead of your time zone. By the time your day starts, they're wrapping up theirs. You send an urgent message about the situation, but it's midnight where they are. By the time they see the message, analyze the situation, and implement a solution, you've lost critical hours. Your platform's reputation takes a hit, and the impact is immediately felt in sales and customer trust.

Scenario 2: Overlapping Time Zones

Now, let's say you've outsourced your DevOps to a nearshoring agency in Latin America, with a time zone that overlaps significantly with yours. The moment you detect the latency issue, you ping your DevOps engineer via Slack. They immediately acknowledge the problem and jump into action.

Within minutes, they assessed the situation, auto-scaled your resources, and implemented performance optimizations. The downtime is minimized, the flash sale is salvaged, and customer trust is maintained.

The difference between the two scenarios is night and day—quite literally. When your DevOps team is in the same or a similar time zone, the communication loop is drastically shortened, allowing for immediate action and problem-solving. In the fast-paced, always-on world of DevOps, where every minute counts, time-zone alignment isn't just a convenience; it's a necessity.

By not accounting for the impact of time zones in your outsourcing or nearshoring strategy, you risk not only delayed responses but also real financial and reputational losses. Choose an agency that understands the criticality of time-zone compatibility to ensure your DevOps operations are as efficient and effective as possible.

Go after Nearshoring instead of outsourcing

At Teilur Talent, we've recognized the critical role that time zones play in successful outsourcing. Most of our clients are based in the U.S. and Canada, which is why we exclusively recruit talent from Latin America. This strategic alignment ensures that there's significant time overlap, allowing for more synchronized, efficient workflows. The result? Issues are addressed promptly, deployments are coordinated smoothly, and the DevOps cycle hums along like a well-oiled machine.

If you're a company based in the U.S. or Canada, the time-zone compatibility offered by Latin American DevOps talent is unbeatable. Not only do you benefit from highly skilled engineers, but you also gain the advantage of near-instantaneous communication. This synergy creates a more cohesive, efficient, and productive DevOps team.

Ignoring time-zone differences when outsourcing DevOps roles can lead to inefficient workflows, delayed responses, and ultimately, a less effective DevOps strategy. Make sure you carefully select a nearshoring agency that prioritizes time-zone alignment, a company that sets the stage for more effective communication and a more successful DevOps operation.