Software development

Benefits of Offshore Software Development 2022: A Complete Guide

By March 9, 2022 No Comments

It enables businesses to optimise resources, focus on core activities, and accelerate software product delivery. Adopting offshore software development allows companies to unlock unique talents and leverage their expertise. It promotes efficient resource allocation and facilitates development processes. This approach allows businesses to leverage the expertise, skills, and cost advantages available in other parts of the world while focusing on their core business activities.

benefits of offshore software development

However, it is important to carefully consider the specific needs and requirements of your business before embarking offshore software development. In conclusion, the benefits of offshore software development are numerous and can significantly enhance a company’s ability to thrive in today’s competitive business landscape. Offshore software development can offer a number of benefits for businesses, including cost savings, access to a wider pool of talent, improved time to market, and flexibility. However, it is important to choose the right offshore software development partner and manage your project effectively. In this blog post, we will take a comprehensive look at the benefits of offshore software development.

Offshore vs onshore: Popular processes, pros, cons

Manage costs as your business grows – With our software development outsourcing service, you have to pay zero recruitment costs. Offshore software development implies that headquarter of a company you cooperate with is placed somewhere far away from your native country. As offshoring is typically used to take advantage of lower labour costs in other countries, the costs for offshoring software development may be less expensive. It’s feasible to outsource but not offshore work; for instance, engaging an outside technology company to upgrade software rather than maintaining an internal team of developers. It’s also possible to offshore a project but not outsource it, such as setting up a Dell customer service centre in India to specifically serve customers in America. Offshore development businesses often need to follow the requirements and orders from the main office.

While this approach can offer many benefits, it also comes with some challenges, such as communication barriers and cultural differences which we will discuss later in the blog. Let’s begin by defining what offshore software development is, when should you outsource, and when should you not. According to the International Maritime Organization, world shipping contributed $2.9 trillion to the global GDP in 2012. Thus, there is no guarantee with the results you’ll get, making offshore development inherently risky. Even if you’re protected legally with a contract, you can’t recover the lost time trying to fix a botched software job from an independent developer.

Offshore Software Development Steps

Moreover, they have the ability to outsource their software development needs to more affordable international locations. At the same time, US employers are becoming more open to outsourcing software development to countries with skilled labor. In summary, offshore software development is a strategic approach that offers several advantages, including cost savings, access to global talent, scalability, and risk management. When implemented effectively, it can lead to successful software projects that meet business objectives and maintain high-quality standards. Developing software is a rather pricey endeavor in its own right, and if you consider the price of developing software, you would surely want to save up some of that budget. When you decide to delegate a project to a software development company, your main goal is to get a top-notch product, but you should also think about the financial viability of this approach.

benefits of offshore software development

In this article, I’ll highlight some of the key aspects that will help inform your decision about hiring an offshore development partner. You can manage time zone differences advantages of offshore software development with an offshore company by choosing a location that has some time zone overlaps. Besides, being on the same page in terms of communication tools also helps.

Qualified talents

Finding a common time for daily video meetings can help align everyone on day-to-day tasks. You can also limit communication barriers by sticking to countries that share your language. Collaboration software like Asana or Basecamp can be an excellent way to track tasks and progress as well. It’s not just time that’s the problem – cultural differences can also get in the way. Work ethics, expectations, even traditions between companies and foreign developers can clash. If your software or app has cultural nuances, it can be challenging to explain this as well.

  • You can use tools like Zoom or Microsoft Teams to connect with your IT outsourcing company easily.
  • Keeping consistent quality control across offshore software development projects can be challenging.
  • Even if you’re protected legally with a contract, you can’t recover the lost time trying to fix a botched software job from an independent developer.
  • Since 1999, ISHIR has been at the forefront of the ever-changing technology landscape through continuous innovation.
  • As said earlier, developers from developing countries charge less than your local developers in the US.

Involving a wider talent pool is great for expanding your innovative potential. People from diverse environments can bring forth their unique mindsets and ideas to benefit your business. We stick to industry best practices and implement robust security protocols to ensure the confidentiality, integrity, and availability of your data throughout the development process. HackerRank indicates that Vietnamese engineers with the required skills and experience can provide the workforce for the most labour-intensive projects out there with quality compromised.

Choose The Right Offshore Development Model

These include cost-effectiveness, as it often proves more affordable to hire offshore developers over maintaining an in-house team. Access to global talent is another factor, as businesses can leverage the skills and expertise of professionals worldwide. Additionally, offshore development provides flexibility and scalability to businesses, allowing them to adapt as per project requirements and market dynamics. One of the benefits of hiring an offshore software development company is that it leaves tons of time for you to focus on other essential aspects of your business.

benefits of offshore software development

Because the most popular offshoring countries have lower cost of developers per hour and a vendor takes care of all operational, recruiting, and administrative processes, they will fit into a limited budget. Moreover, the vendor takes care of those tasks, allowing you to focus on other pressing matters. The client can monitor the work to make timely corrections, but a remote project manager controls the day-to-day processes that affect deadlines, product quality, and overall results. So, you have limited control over the offshore project and must be confident in the vendor’s capabilities.

What is an offshore development center?

Another example of software developed by Cleveroad is a full-fledged management transportation platform built for an enterprise that offers warehousing and logistics (generally dropshipping) services. The app is intended to cut costs, save time for route planning, optimize fleet running prices, etc. Our portfolio includes a bunch of offshore software development projects in different domains.

Our rigorous QA processes ensure every product we deliver is of the highest quality. As data breaches are a grave concern, verify the offshore company’s data security measures. The cost savings achieved can be reinvested into business expansion and product enhancement, further driving growth.

Data security risks

However, other emerging destinations have proven effective and may suit your unique preferences. For instance, Vietnam and several countries in Eastern Europe, including the Czech Republic, Romania, Belarus, Ukraine and Moldova, also seem to have a desirable reputation. Find out why so many companies choose offshoring over other cooperation models and see whether you can benefit from it.