What Is Offshore Software Development? Why Is It Important?

Restricting your search to onshore developers limits your reach and your options. Companies headquartered in places like the United States, Western Europe, and Asia will be forced to pay a premium if they want to work with developers in their home countries. These firms simply can’t compete on price due to higher living costs in those places. When choosing an outsource partner within the same country, state, or province, you’re far more likely to deal with someone subject to the same labor, taxation, and intellectual property laws. Working with an outsource partner within the same time zone can offer more opportunities for real-time collaboration since the time difference is never that big. He used the metaphor of a “flat world” to describe the global economy and its widening playing field for businesses and knowledge workers.

What is Offshore Software Development

Another factor that makes it to the cost element list is the geographical region the company belongs to. Here are the average hourly rates of offshore software development companies across the globe. And, finally, your third option is to find a development company in a country based on another continent. Usually, product owners opt for Eastern European countries, India, or China. The main reason for choosing this option and looking for developers in such far-away lands is the price tag of their offshore software services.

Hence, it is critical to review the intellectual property policy of the potential offshoring supplier. Belitsoft provides legacy system upgrade services to increase the efficiency of your existing software. Belitsoft offers a wide range of migration services such as technology re-platforming, data migration, process redefinition, or enterprise application integration.

How To Hire An Offshore Development Team

A. You can ask the development team to work on a collaboration platform whose access you share. Next, you can schedule meetings to get constant updates on how the project is moving. However, it can be difficult to find the right partners who understand your vision, work in your timezone, and are aligned with your team’s culture. We hope that this guide helps you find the right team to offshore your software project to. From ideation to launch, we follow a holistic approach to full-cycle product development. If you know your way around development technologies and how your product should be developed, ask the company representatives whether their employees can use the technology stack of your choice.

What is Offshore Software Development

Data privacy and security is a top concern for CIOs and all organizations working with sensitive data. At BairesDev, we are able to provide best offshore development services that only outsources to the top 1% of Tech Talent. On top of that, seek out a company with an established software development process, uses time-tested practices, and employs innovative approaches. With the availability of numerous outsourcing companies worldwide, choosing the right one can be a complete game-changer for your business. Before going to headhunt potential companies, outline your software development goals, success criteria, and growth targets.

When To Hire An Offshore Software Development Team?

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. Offshoring is able to yield significant profits to your company when you outsource to the countries where the companies work with more advanced technologies. Regardless of what type of outsourcing you choose to go along with eventually, it is important to ensure that you have thoroughly planned out your development process. Offshore software development means transferring a project from a client to a third-party software development vendor. But keep in mind that such a model is only appropriate if a budget size is not an issue.

Thus, you will avoid a long-term drop in productivity and as a result a drop in profits. We always take advantage of the numerous collaboration tools like Jira and Slack to facilitate communication and keep team management on point. The average hourly rate of a software engineer in Ukraine makes up from $5 to $27 per hour. What is Offshore Software Development At the same time, Polish-based software personnel get $9-$29 per hour to get the same work done. The price tag for offshore programming in Asia is evidently low to medium. Thus, Indian coders charge from $2 to $18 per hour based on their experience, whereas Philipino specialists request around $3-$11 for the same work.

As for the tasks for the team working using the offshore development model, they can be diverse – from creating the user interface design to building an app from scratch. In the latter case, the product owner turns to a development company having just an idea. So, what’s the best country to turn to when you need an outsourced software development company? Given the global demand for IT expertise, many countries across the world are vying for a spot in the preferred outsourcing destination list. By 2021, global IT outsourcing is expected to be worth a staggering $413.7 billion in market revenue.

What is Offshore Software Development

Also, consider performing competitor research to gain valuable insights about the tech stack and best value propositions. After that, we recommend creating a detailed specification of the project requirements and research the outsourcing models available based on your requirements. When farming out your business operations to other locations, mind that security standards may vary by country.

Points To Consider While Offshoring

Just to give you an example, it may be an LA-based company farming out software development tasks to an outsourcing service provider in Ukraine. Let alone the fact that your company may be based in a well-paid location where experienced software engineers come at a heavy price. But other regions offer different advantages so make sure to do your research.South America and Eastern Europe are up-and-coming regions for offshore software development.

Well, you’re right, and the Startup Playbook may confirm your assumption. It’s unlikely to come up with a unique idea that no one from the startup world has already tried. That’s why today’s business world is such a competitive and fast-moving area. ELEKS has been servicing companies since 1991 and has managed to deliver over 650 end-to-end projects. The company is listed as being the thirteenth fastest growing company in its field by the Inc. 500. However, we suggest our clients to get in touch with us and get the initial analysis of the project and its estimation absolutely for free.

Can become our partner, and only vetted developers get to our talent pool. An offshore project is a project that is located outside of the United States. The term is generally used in business and IT projects, but it can also apply to any work or endeavor . Before hiring a company for your project, make sure they have worked with companies similar to yours in size and scale. This way, you’ll be able to get a better idea of how they will handle your project and if they will be able to meet your needs.

What Is An Offshore Software Development Company?

There are also several regions with lower competition like Italy or Bulgaria. They also have service providers starting from SEO companies and marketing agencies to full-cycle software development companies. Nowadays, every single business is tied to the use of technology in one way or another. Regardless of the case, most companies do not have the necessary talent pool to make the software they need.

  • While it would be great if everyone could spend their time focused on their core business, this isn’t possible in today’s fast-paced world.
  • If your project requires the involvement of a specialist with a specific skill set, the odds that an offshore software development provider has them within its team are very high.
  • Furthermore, many offshore software development service providers strive to give their clients the best possible circumstances, offering them additional pleasantries .
  • Offshore software development describes the process of software development taking place outside of the client’s country of residence.

In the world of offshore software development, there are many challenges to overcome. The most important thing is to know what to look for when choosing an outsourced development partner. Offshore software development is an approach to software engineering. The technology landscape is developing quite rapidly with technologies such as artificial intelligence, blockchain, natural language processing and many more changing how industries operate. For developers, multiple resources also exist in offshore development, which enhances the developing experience and their ability to create powerful software that leverages disruptive technologies. Partnering with an offshore development company completely eliminate the costs of hiring in-house staff while providing the same or better benefits.

Offshore Software Development Challenges

Modernize your software by hiring proactive specialists with real high-level skills that offer ideas and alternative solutions. ManpowerGroup estimates that in 2019, 69% of US organisations would have difficulty finding and recruiting qualified employees, with IT specialists ranking as one of the most difficult to locate. 67% of UK tech executives believe that a lack of tech skills is disturbing momentum. In today’s job environment, years of experience are making a difference in compensation. Naturally, senior developers price their services significantly higher than fresheners, because of their hold on related technology and soft skills.

How To Manage An Offshore Software Development Team?

However, not all developers in these countries show a low level of qualification. The offshore software outsourcing IT sphere offers businesses a range of opportunities, according to which they are able to save their efforts, time and money. If you also want to save your resources and achieve good results, you can also apply to offshore IT professionals in order to obtain a completely new product, flexible and thriving on the market. Furthermore, many offshore software development service providers strive to give their clients the best possible circumstances, offering them additional pleasantries . At Cleveroad, for instance, we don’t charge for company analysis and counseling, and we also give out free marketing bonuses.

Offshoring is when processes are outsourced among businesses in different countries/regions with separate time zones. Ultimately, the best approach to take depends upon the way that your company is set up and whether you have the budgets available to play it safe or whether you need to keep costs to a minimum. We have been working for over 10 years and they have become our long-term technology partner. Any software development, programming, or design needs we have had, Belitsoft company has always been able to handle this for us. We have worked with Belitsoft team over the past few years on projects involving much customized programming work.

It’s natural that when you and your software development provider are located in different countries or even different continents, communication takes a bit longer. However, with proper management and in advance scheduling, challenges can be easily surpassed. Offshore describes the situation when a company and the development team are located on different continents. This type of software development is often synonymous with outsourcing. However, there are some differences between them, which we’ll describe in a moment. Onshore software development refers to a situation when a company and the development team are located in the same country.

In onshore software development, you’re responsible for every aspect of your project from start to finish — from initial planning through implementation and maintenance. With an offshore team, however, you can delegate some responsibilities to them so that you only have partial responsibility for certain aspects of your project. Outsourcing your software development means you have access to a much wider talent pool than you would if you were only hiring locally. This is especially true in emerging markets like India, with abundant talented developers at affordable prices. You must provide an exhaustive list of features you want your product or service to have.

Development partners with proven track records can often increase your time-to-market by either supplementing your workforce or taking over a project in its entirety. After all, experienced development firms are used to working on tight timelines, and the good ones have systems in place to address the hiccups and meet their deadlines. https://globalcloudteam.com/ In fact, at the time of this blog post’s publication, a recent study predicted that software development outsourcing would likely grow by 70% in the next year. Additionally, it allows foraster implementation because when the offshore team gives you the product, they would have tested it for bugs and errors multiple times already.

The software development process consists of many steps besides the coding itself. Usually, it includes business analysis, roadmap creation, prototyping, testing, third-party integration, and can include much more, depending on your project. All of these factors are important and influence the cost of development.

Offshore Software Development services is a process that involves outsourcing digital services to companies overseas. These reasons and more make offshore software development companies attractive to companies around the globe. As an offshore development company,we provide resources for individuals looking to seamlessly integrated IT personnel with their existing in-house team. Or build a dedicated team from scratch who will provide offshore development from India.

You now have all the information you need to make an informed decision on whether offshore software development is best for your business. Increase revenue, decrease development cost, and scale faster by partnering with skilled developers ready to work alongside your main development team or independently. They always stick to your budget and deadline, starting with mapping out your idea to tell you exactly how much time they need and how they will complete a task. Once you have found the right technical partner, make sure to establish contact with all offshore team members. Especially if you’re delegating a big part of your software development. This trick will help you stay in the loop and be aware of the current project progress or any obstacles occurring.

This way, the outsourcing model depends largely on the location of you and the company you partner with. If you’re from the US and you outsource, for instance, to Estonia — you apply for offshore software development services because the hour zone may differ. The most popular use is improving the quality of code, as well as testing. Offshore software developers will be able to build better software faster using AI technologies, such as advanced machine learning, natural language processing, and business rules. As a well-respected technology company, we provide the very best in offshore web development including offshore PHP development.

Nearshoring, offshoring to a very nearby country, has gained increasing popularity among the CIO and CTO community. The USA is increasing its IT shopping in Latin American countries, and Europe in Poland and other small Eastern European countries such as Lithuania. North Korea appeared on the map of IT offshoring destinations, having great engineering resources and an excellent price/quality ratio. India’s reputation as the top outsourcing country in Asia is strengthened by its 5,000,000+ software developers. The country is well-known for its low hourly rate but is hampered by concerns like cultural differences and questionable quality.