Advice

[ash799]

Hi Guys
Just after some general advice, i am in the process of setting up a Ltd company in the UK, My company will be a IT solutions services, with a focus on creating and upgrading websites, creating and sustaining software development (Mobile phone apps etc).

I live in the UK but the software engineers are based in India - My main question is would it be best to hire the software engineers as freelance and pay them on a project to project basis or to employ the software engineers on a flat rate salary?
I am leaning towards using freelance and paying them on a project to project basis until my business is established where i can afford to have in house software engineers, the pros to this is each project i can hire the freelance on a area expertise basis for eg the project is to build a website, i can hire a website specialist rather than a App specialist.

Also how would the accounting work on salaries to freelance/employed software engineers with them being based in a foreign country?

Thanks guys and if theres anything anyone wants to add please do as im here to learn from everyone.

 

[Scalloway]

If they are based in a foreign country I would get them to invoice you. It would be a nightmare setting up a payroll scheme.

 

[fisicx]

Agree with that. Just get an invoice and do an international transfer.

 

[Newchodge]

Payroll for someone based in a foreign country can be a nightmare. Take them on as freelance on a project by project basis and pay their invoices.

 

[AmazonGeek]

I would use them as freelancers. I have one VA in India and 2 in Pakistan and it works really well.

Set up an account with an FX company like Airwallex and you can buy currency using GBP (your guys in India will probably want paying in USD) and then transfer it straight over to your beneficiary.

The FX co compliance department will need to do a bit of due dilligence on who you want to pay for money laundering, and each payment will need an invoice against it, but once set up it is much cheaper than using the banks.

 

[ash799]

Thank you Guys, I will take your advice and get them to invoice on a paroject to project basis and pay via a FX. Great advice from all of you, much appreciated!

 

[fisicx]

A word of advice about using overseas support staff. Expect to have to hold their hands the whole way. They will want detailed instructions and constant monitoring. And don’t expect the code quality to be very good.

There are some very good developers but many are useless. It took me a year to find the one I currently use.

 

[ash799]

A word of advice about using overseas support staff. Expect to have to hold their hands the whole way. They will want detailed instructions and constant monitoring. And don’t expect the code quality to be very good.

There are some very good developers but many are useless. It took me a year to find the one I currently use.

Oh, thats what i dont want! to be mothering and holding hands. Another choice i have is to outsource to a already established software development company based in India, maybe margins wont be as big but i dont envision holding holds of employees from a established software house, hopefully...

 

[fisicx]

You will. It’s the way they work. They will need every detail explained. You will need to check and test everything.

The guy I work with is very good but I still need to write out all the specifications.

 

[GraemeL]

You will. It’s the way they work. They will need every detail explained. You will need to check and test everything.

The guy I work with is very good but I still need to write out all the specifications.

@fisicx is right. For example I used to send an image that I created in photo editing software to show the exact design or layout I wanted. Using words was not sufficient.

 

[Porky]

@ash799
The advice given is sound, they are right, by project is the ONLY way, I pay on monthly rates and the Quality Control work drives you nuts because many don’t work to high standards and you can end up paying twice for the same job ie doing it once and then them correcting the work.

There are zillions of freelance out there but also a lot of crap you need to sift out. Paying by invoice in the currency is the easy bit, finding good people not so. Good luck.

 

[ash799]

Thank you guys, plenty of food for thought, and not as simple as i thought it was going to be (throw them the project, and expect them to see it through to a high standard).
I am filtering through the freelancers checking their portfolios or previous work and confirming from the website/app owners if the work is actually the freenalancer that is submitting it, and a LOT are trying to pass off work as their own, so not taking anything to face value!

 

[fisicx]

Until you task them you can’t be sure of anything. And you need to validate the code quality of the portfolio sites and run numerous tests to ensure performance and standards.

How good are you at writing technical specifications? Depending on the project these could be multiple pages long. This morning I’ve received a 12 page specification from a client in Norway.

 

[ash799]

Until you task them you can’t be sure of anything. And you need to validate the code quality of the portfolio sites and run numerous tests to ensure performance and standards.

How good are you at writing technical specifications? Depending on the project these could be multiple pages long. This morning I’ve received a 12 page specification from a client in Norway.

Hi Fisicx
Im about as good as a chocolate fireguard at writing tech specs! My older brother on the other hand knows his stuff so im not going in completly blind.
I will 'test' each freelancer i use to ensure they are able bodied, as ive been told a lot of these freelancers accept projects even if they dont know diddly just to get paid.

 

[Mike_eub]

For freelancers, you would typically classify payments as business expenses

 

[fisicx]

I will 'test' each freelancer i use to ensure they are able bodied, as ive been told a lot of these freelancers accept projects even if they dont know diddly just to get paid.

How will you do the testing? Do you know what to look for in the code? Would you know if the site passes all the usual tests?

 

[ash799]

How will you do the testing? Do you know what to look for in the code? Would you know if the site passes all the usual tests?

Hi
No not me ill just be running the 'business' side of things, my bro will be doing all the testing and making sure everything is upto scratch

 

[fisicx]

Hi
No not me ill just be running the 'business' side of things, my bro will be doing all the testing and making sure everything is upto scratch

OK. But be prepared for both of you to do lots and lots of handholding, rework requests and mentoring.

Your proposed business model can work but mostly it doesn't. Mainly because the product you get from your freelancers will be junk.

And has already been mentioned, they will lie. They will say yes to everything and then never deliver.

 

[ash799]

OK. But be prepared for both of you to do lots and lots of handholding, rework requests and mentoring.

Your proposed business model can work but mostly it doesn't. Mainly because the product you get from your freelancers will be junk.

And has already been mentioned, they will lie. They will say yes to everything and then never deliver.

Yes, i have already seen the amount they lie! just to get the contract and then wing it and hope for the best. Thanks for your insights plenty for me to think about

 

[fisicx]

It may be that UK based freelancers will be better for your business. They may cost more but are able to work autonomously. It means all you need to do is get the leads then hand over the project.

 

[ash799]

It may be that UK based freelancers will be better for your business. They may cost more but are able to work autonomously. It means all you need to do is get the leads then hand over the project.

Lool its almost like you read my mind! exactly what i was thinking and discussing with my family earlier on, might cost more but the positives defo outweight the negatives!