Ultimate Guide to Offshore Software Development

Ultimate Guide to Offshore Software Development
Pixabay

Have you ever wondered how some IT companies complete very challenging software projects successfully, with a scarcity of local talent? One of the biggest obstacles in the process of recruiting experienced developers is also the high salaries that come with it.

But none of this has to affect your search for the right software development team. You can use Offshore Software Development companies!

Never considered this option before? Let's take a quick look at the applications and benefits of this strategy.

What is Offshore Software Development?

Offshore software development is the process by which an organization or individual outsources their software development to an external company that specializes in it.

Offshore software development often takes place in countries with lower labor costs and less strict intellectual property regulations. This allows Offshore Software Development companies to hire programmers at a lower cost while still producing quality results. When a company decides to offshore, it typically first looks for a dedicated software development team.

For example, Google, Microsoft and Apple all have their R&D centers in Bangalore. This tech hub in India is therefore often referred to as the 'Silicon Valley of Asia.'

With lower operating costs, access to a massive talent pool and the ability to scale quickly, they can increase their output and improve their technical expertise without undue stress, hassle or expense.

When is Offshore Software Development the Right Choice?

The decision to work offshore has everything to do with the cost reductions achievable by building the product in a country where labor costs are lower.

Controlling costs and expenses is essential for any business as costs can easily spiral out of control. A software engineer salary is one of the highest out there and can be hard to cover for any company. However, Software Development Outsourcing services can help you save money while increasing your margins and accessing teams of talented individuals.

Rejecting lucrative clients or projects hurts. But if you don't have the capacity to accommodate them, that can happen too often. However, with the right team, you can fix that.

Offshore software development is a cost-effective way for startups to build digital products. It can be cheaper to work with offshore developers who are more tech-savvy, offer better customer service and are open to working on new technology.

Software development Offshore is right for you if:

  1. You want to access skills that are currently unavailable due to the shortage in your local talent market - local recruitment takes too long and can be very risky.
  2. You want to add new developers to your team to meet project deadlines. But the amount of professionals is rare in your country.
  3. You need to be able to scale quickly in response to customer/user demand, but also want to save costs.
  4. You want your internal team to focus on more meaningful or core activities.

Offshore Software Development vs Other Methods

Let's also briefly discuss other methods for expanding your team. All of these models can be used to help scale your business. Which option you choose depends entirely on your needs.

In-House Team – a private and locally hired team that is on the local payroll. They are permanent employees who are subject to tax in this country. This means full supervision and a full salary.

Expanded teams – flexible recruiting strategy that allows you to expand your internal IT teams per person.

Outsourced teams - these remote teams take over parts or even all of the business functions. Usually found abroad.

Entire department Near/Offshoring – outsourcing to departments in near or far locations.

The advantages of Software Development Outsourcing services over some of the other methods mentioned are:

  • Cost-efficient strategy
  • Get access to a global talent pool
  • Save time
  • Ability to scale up or down quickly and easily
  • Teams can work on your product around the clock.

The next step

The advantages of offshore software development are clear. But it can certainly be a challenging step to consider. Of course, it helps to have a good partner with the right experience to advise you on this.

Similar Articles

The Impact of IoT on Inventory Management

For modern businesses to thrive, ensuring the effective management of inventory stands has become vitally important. Inventory management stands as a cornerstone of success. And the emergence of the Internet of Things (IoT) has introduced a new era of connectivity and efficiency across diverse industries.

The Best Java E-commerce Frameworks and CMS

Do you know what the following e-commerce companies have in common: Amazon, Walmart, eBay, and more? All of these e-commerce companies' apps make use of Java. Java is decidedly among the leading choices of programming language for e-commerce applications because it offers a world of benefits; for example, since Java code can be run on any platform with a Java Virtual Machine (JVM), users of e-commerce apps made with Java can access the said apps on a variety of devices.

How to Choose the Right Healthcare App for Your Wellness Needs

Nikola Tesla in 1926, once described what is now called a mobile phone as a telephone that can fit into one's “vest pocket.” As otherworldly as that idea was then, nearly a century later, the reality is even more astounding.

Azure Synapse Analytics versus Microsoft Fabric: A Side by Side Comparison

Given the staggeringly high amounts of data being generated worldwide every single day, it ought to come as no surprise that organizations often struggle to pick the right tools to help them effectively harness the potential of all their data.

Selecting the Right Property Management Software - Tips and Features

Managing properties can be a difficult task with the right tools. Property owners must find and use the best property management software. It can be a long and tedious process as there are many options in the property management software market. 
 

Overcoming Financial Services Challenges through Legacy Application Modernization

In the ever-evolving financial services landscape, industry challenges are numerous and complex. From stringent regulations to rapidly advancing technology and changing consumer expectations, financial institutions face many obstacles.

Machine Learning

The human learning capability is a great resource for helping technology evolve and grow, breaking boundaries, and creating new ones. Emulating the ability of humans to learn at a gradual but retentive pace, Machine Learning is the latest power monster that is redefining human-machine interaction.

Various Site Templates You Can Use for Power Pages

In the ever-evolving landscape of low-code development, Microsoft's Power Platform stands out as a powerful tool for building custom applications. In today's dynamic digital landscape, creating and managing web pages is no longer the exclusive realm of professional web developers

Know the Advantages of Data Warehouses and Data Marts

In the data-driven business world, where information is of utmost priority, organizations are increasingly turning to data warehousing and data marts to harness the power of their data. These data management solutions are pivotal in transforming raw data into actionable insights.