Offshoring is an outsourcing method where organizations hire third-party consulting firms and companies from far-off locations for cost-effective services. Outsourcing is an efficient way to complete software projects within the schedule without using internal resources or spending too much money.
Offshore software development companies specialize in offering various managed IT staff services for affordable prices. Countries like India and China are popular for offshoring. Though many enterprises frequently work with offshore companies, some businesses are still hesitant to do so. Quality is one concern, while the distance between the two parties is another.
Here, we’ll look at the benefits of hiring offshore development teams and understand how to choose the right software development partner for your business.
What is Offshore Software Development?
In simple terms, offshore software development is the same as outsourcing. The difference lies in the location of the consulting company. The third-party company belongs to a far-off country in offshoring and specializes in the given niche.
When an organization from the US or Canada uses the services of a company from India to complete a software project, it is considered offshore software development. Offshore outsourcing is common in the IT industry. Many leading IT companies work with software development teams in India to build high-quality software products/ apps for cost-effective investments.
How to Find a Software Development Partner?
In another article, we have discussed the factors to consider when finding a software development partner. Here, we’ll focus on the ‘offshoring’ aspect when finding a software development company for the project.
- Asia
The Asian continent has several countries that offer offshore services in different domains. India is a go-to choice for IT and software development services. Countries like Indonesia and Malaysia also offer IT-based services and are still a growing market.
India, however, has numerous established companies that have partnered with industry leaders. India has the largest talent pool in the IT industry, with more beginners going on the list each passing year. Another advantage of hiring an Indian offshore company is the low cost. You will find that Indian companies offer the cheapest rates.
- Latin America
Latin American countries like Mexico, Brazil, and Argentina have shown exponential growth over the years. The software developers charge more than their Indian counterparts, and the rates increase based on experience and qualifications.
- Eastern Europe
Eastern Europe has different countries like Poland, Ukraine, Belarus, etc., offering offshore software development services at affordable prices. The software programmers are skilled and experienced, though they charge slightly higher than Indian developers.
Irrespective of which location or country you decide upon, there are certain challenges you need to overcome to make the offshore software development partnership successful.
- Too Many Choices
We’ve broadly classified offshoring companies by grouping them according to the continents. With so many countries promising great offshore services and each country having countless companies with several software development teams, it gets confusing to find the right partner for your requirements. Take your time to thoroughly research the shortlisted companies so that you can choose the best.
- Time Zone Differences
Offshore companies belong to different time zones, making it hard to collaborate and interact with the software development teams to discuss the project details. Not having proper communication with the teams can affect the overall quality of the software project. It’s important to fix schedules in advance to streamline communication.
- No Face-to-Face Communication
The most you can do is have video conferences with offshore software development. Traveling to the country and going to and forth is expensive and defeats the purpose of hiring offshore companies. Luckily, technology has made it possible to interact in real-time using different tools.
- Cultural Differences
Languages, dialects, working methods, etc., are different from one culture to another. It takes time to understand the differences and work with the offshore team. What is a norm in one country could be considered rude in another.
Benefits of Offshore Software Development Team
Many enterprises hire offshore software development teams because they can easily overcome the challenges, and the benefits of IT offshoring outweigh the challenges by a wide margin.
- Large Talent Pool
Offshore companies already have software developers, programmers, etc., with different skill sets and expertise. You can directly access the talent pool without spending your resources.
- Scalability and Flexibility
You can hire a dedicated team of software developers based on your requirements. The team can be scaled to suit the project.
An offshore software development company offers affordable pricing to stay active in the competitive markets. The rates depend on the cost of living in the respective countries.
Hiring offshore developers reduce company expenditures and guarantees that costs are predictable, ensuring that there are no budget surprises. It enables the accounting department to have more visibility and grow the company’ production. As a result, even if the cost of development changes in the midst of the project, it will have little impact on the company’s budget unless the variation is significant.
- Save Internal Resources
The offshore company doesn’t use your resources to work on the project. Your internal resources will be spent on your core competencies to strengthen your business.
- Better Productivity
Since your in-house team is not directly involved in the software project, they can focus their energies on the crucial tasks that need to be completed in the enterprise. The internal and dedicated teams will be productive and work in parallel.
- Access to Advanced Technology
Offshore companies need to stay up to date to compete with other consulting companies. They have access to the latest technology to finish software projects within the timeline. Thus, giving you the leverage to not invest in the technology separately.
- No Need to Hire More Employees
You don’t have to hire more software developers and keep them on the payroll. You can build a dedicated team in a quick time without hiring anyone.
Another advantage of hiring an offshore development team is that it relieves in-house personnel of some of their responsibilities. Having skilled engineers on board with a diverse set of talents simplifies the process and boosts efficiency.
The development team is tasked with a specific goal, and their combined expertise results in the most innovative solutions conceivable. You have the option of assigning the project to a different offshore development firm and selecting the finest work that meets your needs.
- Can Take up More Projects
When you outsource the software projects to offshore companies, you’ll have more time and resources to take up additional projects.
Conclusion VLink is an offshore software development firm with more than sixteen years of experience in the industry. Our software developers in India offer offshore services to the top IT organizations globally. We have an affordable and transparent pricing policy and believe in maintaining clear communication with our clients. Check our development team solutions here.
