Ultimate Guide to Offshore Software Development

Ultimate Guide to Offshore Software Development

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.

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