Offshore Software Development Services: Pros & Cons

There are a number of factors to consider, and the things at stake if you make a bad decision are too high. Offshoring has its benefits and flaws, that is for sure, and you must consider all of those pros and cons to see whether it is the best option for you.

Building a startup is a tedious juggling act and offshoring accords the co-founders to spend more time on core-functionalities. Instead of dabbling with programming or picking up new IT skills, the founding team can dedicate their effort on marketing, PR, and make ample preparation for the product launch. With an eye on business demands on having clean code, the idea of Technical Debt has emerged.

Time Difference as a Challenge

You get cost reduction and a major convenience of not having to deal with the project on your own, but on the other hand, you get yourself a team that is almost entirely beyond your reach and control. Well, there’s a grain of truth to every stereotype, and controlling the quality of the code delivered by the offshore team is notoriously difficult. Even if the language barrier and time gaps do not concern you, there’s a problem of cultural mismatch. People in different countries have different attitudes towards their work and authority, which may cause some unpleasant interactions between you and your developers. You can add national holidays here as well – most countries have up to 20 official holidays, and these holidays rarely coincide from one country to another. So, working with a foreign team, you’d sometimes find all of them offline just because there’s some traditional holiday in their country. These peculiar features might be exciting to explore as a tourist, but when it comes to business, these cultural differences might cause major inconveniences and even conflicts.

  • To be honest, handling a software development project as a whole is challenging, and moving a part of your project to a group of outside experts is also risky.
  • Developers need sensitive information, including customer data, code, and workflows so that they can understand the entire system and tackle projects.
  • You may also come up with serious cultural and language barriers, but all these problems are not hard to resolve while adequately handled, and we’ll discuss them a bit later.
  • Whenever a new technology or device comes out, it’s necessary to stay up-to-date with all the latest trends and developments to stay ahead of the pack.
  • Time zone converters or clocks with different time zones need to be equipped at the offices to narrow the time gap.

The offshore software development companies are primarily dealing with offering offshore software development services with cutting-edge technology. They spend the majority of their time improving technologies and learning new software skills in order to provide a valuable service.

benefits of working with an offshore software development center

Miscommunication is an issue many companies face when outsourcing their projects, and this issue can be made worse by cultural and time zone differences. Offshore software development is a powerful tool for companies to leverage the benefits of outsourcing.

benefits of offshore software development

Offshore engineering uses offshore structures to create a platform for businesses, jobs, and economic growth. Last but not least, you’ll have to establish a full plan to run projects without being interfered too much into the inner workings of your company. Working with an overseas team isn’t easy, but if you’ve built the right groundwork, it’s doable. It’s a mental health app called Nedley Lifestyle Scorecard designed for customers struggling with depression. For this purpose, you can contact a vendor to find out whether they sign a non-disclosure agreement or not. It’s essential if you have a unique app idea and want to know it won’t leak anywhere. For example, you can use a SMART system, according to which your goals should be Specific, Measurable, Achievable, Relevant, and Timely.

What is offshore development?

Our team has experience in developing web & mobile applications, e-commerce portals, custom software development, blockchain development, and other software solutions for different business domains. Additionally, outsourcing your development can give you an edge over the competition if you’re trying to grow your business in a new market. You might not have the resources to hire someone locally who knows the language and culture of your target market. But, if you find an offshoring company, they can build something that fits into the local community better than anything produced internally. The most important thing about offshore software development is that it’s not a one-time project. You’re working with a company in another country, and you need to understand what they’re doing every step. Next, the budget is about how much money it will cost for you to develop this software application or website.

benefits of offshore software development

The report mentioned 70% of respondents cited cost reduction as the key driver for outsourcing. Deloitte also reported that 68% of the respondents highlighted that outsourcing helps in enabling cloud technologies in their organizations. For a small or medium business, this is a huge saving that can be ploughed back into the business. Software development companies in India could offer such rates because the cost of living in developing countries is much lower compared to OECD countries. Expanding your professional horizons is very useful for both the company and the team. People get to know their foreign colleagues, encounter new cultures and worldviews. This experience helps the organization build friendships with many foreign companies.

The 3 Benefits of Offshore Software Development

The right offshore company can handle recruitment and assessing of the team who would be ebay for your project, on your behalf. In the end, offshoring is about finding the talents you cannot in your own geographical region. What this leads to is that you are able to get developers from locations which have them in abundance.

  • But with offshore developers, it is all in the contract and the partnership will finish when the project ends.
  • However, experience tells us that building a software application in Ukraine will cost between $50,000 – $250,000.
  • Nowadays, as the demand for IT resources continues to increase exponentially, offshore software development may be the only acceptable course of action.
  • There are a number of reasons you might be hesitant to outsource software development projects.
  • Companies with an established reputation always try to do their best to satisfy customers and tailor calls and other types of electronic communication to the time that suits the customer.
  • This is the very first thing to acknowledge when you want to offshore some parts of your business to another country.
  • The idea of this paper is to understand why you need DevOps and to learn how you can get started.

The problem is a software product can only handle so much Technical Debt before it begins to crumble under the weight of its own inefficiency. Although this term refers mostly to scaling in hardware infrastructure, it is also an important factor introduced by offshore development. Our People–Human Resources ApproachHigh-performance teams impact on the final product´s quality. This allows you to continue doing the heavy lifting, but delegate the more mundane work. You need to be able to speak freely with your team and know you’ll get an answer right away if you have questions or concerns. That’s why choosing a company with offices in the U.S. is important, so they can respond quickly when you need them to and understand what you want from the project.

Usually, offshore development teams are on the opposite side of the globe compared with the holding company. Despite the fact that offshore software development is often less expensive. As a result, it is hard to estimate the cost of developing a certain piece of software. The cost of developing a software application in Ukraine ranges from $50,000 to $250,000, according to our experience.

What does offshore mean in IT industry?

Offshore outsourcing or offshoring is an industry practice of having a third-party company deliver its internal operation outside of the investor's country. In offshoring, the investing company maintains the ownership of the project, but the offshore team usually maneuvers the campaign.

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. There’s no need for you to be closely involved in the project; you can just hire an entire team of offshore developers who will get your product from the ideation stage and up to the market release. If your in-house development team is underequipped and lacks people to do the job, you can augment your team with offshore developers who will aid your in-house developers. Alternatively, you can assign essential tasks to your in-house team and leave non-essential tasks to your offshore team. Considering that you won’t be talking to them too often, it is best to offshore tasks that do not impact your business in a critical way. In the meantime, you’d have enough time to organize the functioning of your business and focus on other essential tasks.

Access to a vast talent pool

The offshore software development model is attractive for a lot of companies due to its set of undeniable advantages. But it also has a bunch of hidden hazards, and you should know them in order to easily obtain a product that will satisfy your company’s business needs. We’ll name the most common of such challenges to help you understand how to offshore software development with fewer problems.

  • An offshore development company takes both responsibility and is accountable for the work they have done.
  • As we mentioned above, this may be the main concern to take into account when deciding to contract a service instead of building and working with one of your own.
  • Working with an overseas team isn’t easy, but if you’ve built the right groundwork, it’s doable.
  • Software development teams usually have far more available funds and technical talent than local teams.

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