A good example of offshoring is hiring a team of developers in Poland to build a mobile application while your business takes care of the web app. Offshoring refers to delegating IT development processes to a partner located in another country, often far away (literally on another continent), in a different time zone than the company’s headquarters. The tricky part with offshoring your software development is the hidden cost. Yes, the labor rates from other countries may look tempting on the surface. However, the country is experiencing a tech talent shortage affecting the overall quality of engineers in the Asia-Pacific region.

What is meant by offshore software development

Thus far, we’ve covered the basics and the advantages offshore software development offers to companies like yours. That’s why, today, top talent availability is the main reason companies are looking to build offshore teams in countries like Poland or India. You can hire software development outsourcing at any stage of the development process.

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Since the main offshore-related challenge is communication, make sure you have a clear picture of your business needs and can formulate them clearly. This way, your offshore developers will quickly understand your goals and requirements. It should be noted that many other software-related services, like IT consulting and product post-release maintenance, can also be outsourced. Offshore software outsourcing benefits both customers and IT service vendors and even drives economies in many countries. Alternatively, you may have two testing teams working simultaneously to cover more platforms and use scenarios of a future software product. This method requires more coordination and is commonly used, for example, to speed up cross-platform or hybrid mobile development.

What is meant by offshore software development

For example, this is usually the case when a client and an offshore software development outsourcing company are in neighboring states. Due to the short distance and minimal time difference, there are almost no obstacles to cooperation between these two business parties. However, the costs of services are not as advantageous as those offered by offshore outsourcing software development companies.

What is offshore software development

It helps businesses to partner with an software development company having the relevant technical skills to build the product. Professional offshore outsourcing software development companies are ready to provide you with an experienced Project Manager (PM) who will set tasks and monitor their fulfillment. You can be sure of the project’s high quality by delegating administration to a specialist. offshore software development benefits At the same time, you won’t spend your time studying the development details and making management decisions. Furthermore, many offshore software development service providers strive to give their clients the best possible circumstances, offering them additional pleasantries (like some free services). Offshoring offers a global talent pool — you can choose to hire from any of dozens of countries.

Dedicated offshore outsourcing companies can help you access such talent globally, so you don’t have to worry about the many challenges and incredibly high costs of hiring top IT experts. Also, another tangible cost you might have to deal with is the travel cost. While remote communication via tools such as Zoom may be convenient for everyone, you may need to visit your offshore teams at some point in time.

Offshore Development Challenges

Offshore software development is a popular practice nowadays and numbers speak for that. The global IT offshore market is estimated to reach $425.19 billion by 2026. In 2021, the profit of worldwide IT outsourcing services is predicted to reach $413.72 billion by the end of the year. Despite the variety of things that make offshore software development so attractive to businesses, there are certain aspects to consider.

  • We’ve listed the top countries you can offshore operations to and how much it would cost you to hire a software developer there.
  • Working with an offshore development company means you will need to deal with remote working, which may seem difficult in terms of management.
  • However, when we face reality, it turns out there are still dreadful email threads, and sketching on a whiteboard doesn’t always result in groundbreaking ideas.
  • Onshore – In onshore development, your outsourcing partner company is situated within your country.
  • Part of successful outsourcing relies on effective communication between your team and the outsourced vendor.
  • One of the advantages of this method is cultural and work ethic similarity.

Generally, it demands top-notch skillsets, knowledge, and experience to deliver projects on time and within the budget. Most organisations view their offshore team as a mere execution partner for their development processes. Now that you know the benefits and best locations to go offshoring, it’s time to choose an offshore partner.

Reasonable development costs

By offshoring your software development, you can significantly reduce your overall production costs by taking advantage of the host country’s usually welcoming tax policies and breaks. Offshoring development, especially software development, has taken the world by storm. It’s a highly cost-effective way for companies to receive custom software products in record time. Hiring a third-party expert for your software development needs makes sense. As long as you do your due diligence and understand the challenges involved, offshore development is an accelerator for businesses.

What is meant by offshore software development

So if you’re looking to offshore your software development, don’t discount these up-and-coming destinations – they may just be the perfect fit for your needs. For years, Asia has been the go-to choice for offshore software development. India, in particular, has been a popular outsourcing destination due to its large pool of qualified engineers and relatively low costs.

When Not to Outsource Your Software Development To An Offshore Firm?

They may also not be familiar with your company’s specific industry or business practices, which can lead to quality issues and even security risks down the line. Offshore software development can be a great way to save money on development costs. However, if the cost implications exceed your budget limits, you should explore other affordable options.

I attribute the rise in preference I’ve seen for offshore development to the ability to leverage top talent, speed up development and utilize the latest technologies while minimizing development costs. So, the key differences between onshore and offshore companies include the physical location of the company’s staff and pricing rates. While the latter enjoy lower tax rates and better privacy, the former has no privileges when it comes to tax laws. This particular difference influences the higher rates of onshore software development in comparison with those of offshore.

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Uptech’s consistency in delivering top-quality app development services doesn’t go unnoticed. We’re featured on Clutch as one of the Top Development & IT companies for 2022 and top B2B companies. Our team has also bagged the DesignRush Award from a highly-authoritative industrial publication. As it takes more time for startups to raise a new investment round, founders try to mitigate costs and think of the profit first – offshore software development comes to the rescue. In that case, you can avail the services of a Central or Eastern European company without worrying about the time difference between you and your offshoring partner.