It’s likely that you have heard the phrase “offshore software development” used in business contexts. What does that actually mean, though?
Imagine that at three in the morning, a group of talented developers on the opposite side of the globe are working diligently to realise your software vision while you are sound asleep.
No, this is the reality of offshore software development; it’s not a dream.
In the current competitive environment, there is a much greater need for top-tier technical due diligence services expertise than there is supply. Businesses are increasingly searching for software solutions outside of their country.
To stay ahead in the competitive software development market, companies of all sizes, from Fortune 500 behemoths to Silicon Valley startups, are reaching out to a global pool of professionals.
Offshore Software Development: What Is It?
A corporate practice known as “offshore software development” involves assigning all or part of its development projects to a service provider located in a different country, frequently with a large time zone difference.
This strategy enables businesses to access highly qualified talent around the globe, sometimes at a cheaper cost than local hiring.
For instance, tech firms with offshore IT operations outside of their nation of residence include Microsoft, Google, Cisco, and IBM. With the exception of their physical location, their offshore staff is identical to their in-house staff.
Using an offshore approach, you can save operating expenses by hiring a third-party business, typically from a low-cost nation. A full project or just a couple of its functions can be outsourced by your business.
You can also hire a team of developers, a single developer, or the full software development company.
The duties and responsibilities of an offshore developer
Among the many responsibilities that offshore developers are capable of handling are:
- Writing and keeping up with code
- creating and putting into use software solutions
- Application testing and debugging
- Working together with team members onshore
- Taking part in quality assurance procedures and code reviews
- supplying paperwork and technical assistance
These experts add a variety of skills to your projects because they are frequently quite proficient in different programming languages and development processes.
Seven Circumstances in Which Hiring Offshore Developers Is a Good Idea
For every business, choosing to engage in offshore software development is a big decision. The following five situations could suggest that it’s time to think about offshore development:
1- Seven Circumstances in Which Hiring Offshore Developers Is a Good Idea
For every business, choosing to engage in offshore software development is a big decision. The following five situations could suggest that it’s time to think about offshore development:
For instance, if your Silicon Valley finance business needs developers with experience in both the financial sector and blockchain, you may discover that local talent is either hard to come by or excessively expensive.
By extending your search to international marketplaces, you may be able to find qualified developers with the precise set of abilities you require.
2- Your development expenses are getting out of control.
Particularly in tech hotspots like San Francisco, New York, or London, software development is costly.
Offshore development might be a lifesaver for startups or small businesses whose development expenses are taking up a significant amount of their cash.
Imagine that your expanding e-commerce business needs to update its platform. Because local developers may charge $150 to $200 per hour, the project would be prohibitively expensive.
Similar-skilled offshore coders may bill between $30 and $50 per hour, which would make the project suddenly feasible. You might be able to develop and maintain your competitiveness in your market because of this cost difference.
3- For a big project, you must rapidly scale your staff.
Opportunities that call for quick scaling occasionally present themselves. Perhaps you’ve secured a significant customer, or you’re vying with a rival to launch a new feature first.
Whatever the reason, if you need to expand your development team significantly in a short time frame, offshore development can be a game-changer.
Imagine you’re a mid-sized software company that just won a contract to develop a comprehensive ERP system for a large corporation. You must add 20 developers to your team in the next month—a daunting task in most local markets.
In a fraction of the time it would take to acquire local developers, an offshore development partner could be able to provide you with a ready-made team of skilled developers.
4- You wish to use round-the-clock development cycles.
Time to market can be quite important in the fast-paced world of software development.
Offshore development can facilitate “follow the sun” workflows, in which development is done continuously, if you want to speed up your development process.
For example, your offshore developers may be working when your local staff is sleeping if your company is situated in the US and has an offshore team in the Philippines. In the morning, your local team might evaluate the offshore team’s work, offer suggestions, and then carry on with development throughout the day.
This strategy can help you keep ahead of the competition and greatly accelerate development cycles.
5- You require localised skills in order to reach new markets.
If your business wants to grow internationally, offshore development might offer insightful knowledge about new markets.
For successful localisation, developers from your target market can provide language proficiency, cultural background, and insight into local user preferences.
For instance, having an offshore development team in nations like the Philippines or Vietnam might offer priceless local experience if your European business is aiming to expand into Southeast Asia.
They can assist in making sure your product is well-liked by local consumers, conforms with regional laws, and works with widely used regional platforms or payment methods.
6- Specialized knowledge is required for a brief project.
For a specific project, you may occasionally require highly specialised abilities, but hiring full-time staff for a temporary necessity is not cost leadership.
On a project-by-project basis, offshore development can offer access to this specialised knowledge. Suppose you are working on a mobile application and require an AR (augmented reality) specialist for a certain function.
You might hire an offshore developer or team with AR experience specifically for that part of the project rather than educating an existing team member or hiring a full-time AR specialist.
7- You wish to offer improved upkeep and support.
Having an offshore workforce can help you give better round-the-clock support and maintenance if your software product serves a global clientele.
Critical systems that need to be monitored around-the-clock and respond quickly may find this to be especially helpful.
For example, having an offshore development and support team could enable you to provide true 24/7 technical assistance without requiring your local team to work night shifts if you’re a SaaS company with global clients.
It could be time to give offshore software development some serious thought if you can relate to one or more of these situations.
But it’s crucial to keep in mind that offshore development isn’t a panacea; in order to succeed, it calls for thorough preparation, open communication, and a solid working relationship with your offshore crew.
Offshore Software Development Advantages
- Savings: Compared to their onshore counterparts, offshore developers frequently have lower costs.
- Access to a worldwide talent pool: Make use of knowledge from other countries.
- Faster time-to-market: Projects can move more swiftly, and your software can be released onto the market sooner if development is done around the clock.
- Scalability: Easily adjust the size of your crew to meet the demands of the project.
- Concentrate on your main business: To concentrate on key goals, delegate development duties.
- Diverse viewpoints: Learn from developers with various technical and cultural backgrounds.
- Enhanced productivity: Take use of time zone differences to support ongoing cycles of development.
Five Things to Consider Before Dealing with an Offshore Development Firm
Establishing the foundation for success is essential before beginning offshore software development. The following five actions are crucial:
Clearly define the objectives and specifications of your project
Give a thorough explanation of your goals, parameters, and intended results. This entails specifying particular functionalities, features, and technological specifications or limitations. Potential offshore partners will be better able to comprehend your needs and deliver precise estimates if you have a thorough project brief. Throughout the development process, it will also act as a roadmap, keeping everyone on the same page and on course.
Evaluate your communication tools and internal procedures
Make sure that your current development procedures, communication technologies, and project management techniques support remote collaboration. Think about introducing or updating solutions like Slack, Jira, or Trello that enable smooth communication and project tracking across time zones. You can better integrate your offshore team with your internal operations by establishing explicit procedures for code reviews, quality assurance, and project updates.
Set a spending limit and a deadline
Establish a reasonable budget for your offshore development project that accounts for potential expenditures for project management, communication tools, and any required travel in addition to the direct price of employing developers. Establish precise goals and due dates, bearing in mind that although offshore development sometimes speeds up schedules, there can be a ramp-up period at first as your teams become used to cooperating. Be ready to strike a compromise between project urgency and cost savings when selecting your offshore partner.
Get your internal staff ready to work with developers from other countries
Openly discuss the choice to work with offshore developers with your current team, allaying any worries they may have. If required, offer training on successful cross-cultural communication and time zone collaboration. To prevent confusion or duplication of effort, clearly define roles and duties for both in-house and offshore team members. Project success depends on cultivating a cooperative culture that recognises the contributions of both local and offshore team members.
Challenges and Best Practices for Outsourcing Software Development
Do extensive research on possible offshore software development partners
Spend some time carefully vetting possible offshore development firms. Seek partners who have demonstrated success in your sector or technology stack, and don’t be afraid to request case studies or customer testimonials. Think about their data security procedures, employment and training procedures, and quality assurance methods.
Locating qualified developers and fostering a cooperative, cross-cultural environment are essential to the success of offshore development.
Offshore development can be a potent tool for expediting software projects and accomplishing your business objectives if you are prepared and have the proper partner.
Selecting an Offshore Software Development Service Provider: A Guide
Think about the following while choosing an offshore development partner:
- Their portfolio and technological proficiency
- Proficiency in English and communication abilities
- Compatibility between cultures
- Overlap of time zones
- Measures to protect data
- Customer endorsements and reviews
- Terms of the contract and pricing structure
Five Typical Offshore Software Development Risks
Even if offshore development has numerous advantages, there are certain possible concerns to be mindful of:
- Communication difficulties brought on by linguistic or cultural disparities
- Disparities in time zones impacting real-time cooperation
- problems with quality control if adequate supervision is not provided
- Data security issues while exchanging private data
- Possible unanticipated or hidden costs
Conclusion
Through the outsourcing of development work to teams in other countries, offshore software development gives enterprises a strategic approach to access global talent, cut costs, and expedite project schedules. This strategy can be quite successful in enabling round-the-clock development, acquiring specialised skills, and rapidly increasing teams. Companies must, however, properly plan, convey project objectives, and select partners who share their communication, security, and cultural requirements if they want to succeed. Offshore development can increase output and save costs, but it also comes with hazards, such as time zone variances, quality control issues, and data security issues, which must be carefully considered.
