How to Succeed With Offshore Software Development
Being aware of the markets with affordable and highly skilled talent, business owners, startups and venture capitalists decide to use offshore software development services. This type of staff recruitment has gained its followers worldwide due to a number of advantages it has over other recruitment methods. Modern software development market is engaged into two key trends that allow businesses to find even more beneficial and serviceable solutions for their businesses in the continuously developing global IT market.
To increase the competitiveness of business, most executives seek ways to introduce agile software development into existing processes or create new ones. Software it outsourcing is valued for a few key reasons. First of all, offshore rates for software development are lower than local or direct hiring of staff in the city where the company is located. Second, local recruitment limits the company’s perspectives by a quite narrow talent pool available in the specific geographic location.Meanwhile, offshore outsourcing software development can be handled any time anywhere, that is your remote team of dedicated offshore developers can be working overseas or consists of the team members, each working from a different location. Despite this diversity of physical locations, such methods of work has proven to be the most effective granted an excellent team management and coordination. Some companies that offer outsourcing services can boast disciplined offshore software developers with outstanding soft skills that, in fact, have the same importance as professional skills for offshore software product development.
Of course, it has its pros and cons with regard to the specifics of the industry and each case. However, the method has proved to be cost and quality effective despite of the few challenges that might come into their way.
Main Challenges with Offshore Software Development
The world of the offshore development outsourcing is full of various horror stories and prejudice that you’ve definitely come over. The most popular of them might be different time zones, cultural differences, poor language or management skills, lack of skills and knowledge, low reliability or even scam. What happens in real life, is the overblowing of these rumors. Still, like in any business, there are a few challenges offshore development can face:
- Poor communication
- Unrealistic expectations client-service
- Distance and time zones
- Lack of attention provided to the project
Offshore software development projects are radically different from in-house projects. If the executive has poor communication skills, is not able to manage the tasks in various time zones, lacks sufficient knowledge in English language as a key language for communication, isn’t able to meet the deadline, or is inattentive, the project and/or product will suffer. However, all of this, except for time zones, takes place regularly in the offices. All the challenges can be avoided and minimized by making the right choice of the offshore software development company. Make sure that the agency you hire has sufficient experience and is on the market for at least 5 years. Feedback from previous clients would be additional option, however, keep in mind that not all companies might have them because of the confidentiality issues (some clients prefer to stay in the shadow). You can check the level of English language of the staff of offshore software outsourcing company and discuss all the smallest details with the managers to further include them into the contract you will sign. In such a way, you will safeguard your business from all tiniest misunderstandings between you and the executive agency.
Benefits of Offshore Software Outsourcing
You’ve all heard that offshore software programming is cheaper, faster, better than custom software development. However, let’s analyze this in more detail:
Most software development services in the Western countries onsite cost a fortune. Service providers do not hesitate to charge significant money for their services, which can be expensive for businesses. What if the company cannot afford such expenses but still needs a skilled expert? Offshore agencies come to help here, as their services are set at the affordable prices with the same excellent quality.
The governments of countries where there are major IT outsourcing firms located try to provide all possible support to the industry and foster loyal taxation laws. For example, IT market in Ukraine is granted support from the local government in terms of taxed and initiatives funding.
Product support services
Most offshore companies provide their clients not only with the fulfillment of current development tasks, but also offer post production service support (fixing bugs, upgrade, etc) after the project is finished.
High quality of services and end-product
Reputable companies that provide outsourcing software development services take care of their reputation and thus hire only the highly expert staff who have perfect technical and soft skills. Consequently, the quality of the projects they work on is equivalent to the international standards. What is more, such companies keep their tools and technologies in accordance with the global trends.
Outsourcing companies are aware how important it is to stay connected with their customers, so you will never feel that they do not provide enough support. They will be in constant communication with you via agreed means of communication: email, phone, messengers etc. You will be informed about the progress of the project and other details.
Offshore software development companies are very strict regarding deadlines. They carry out a detailed plan of their project before even starting it and will deliver it on time.
Longer operational hours due to time difference
When you’re hiring a reliable outsourcing firm, you are sure that they will adjust their operational hours to your time zone to provide constant communication and support in case needed. Moreover, offshore developers usually will continue working on your project when you’ll be going to sleep due to the time difference.
Offshore companies ensure 100% security and confidentiality of your data. All of this is granted by the services agreement you sign before starting cooperation.
Offshore Software Development Rates
How much can you save with offshore software development, is the key question that should be answered before going offshore.
First of all, you will forget about rent and other office related expenses which usually make 20% of the whole project expenses per month. Second, you do not pay out medical and dental insurance as you must do with your local workers. When you outsource your project to the third party, you avoid such common for direct recruitment notions as absence of any worker because of sick leaves, turnover etc, so you save on the expenses connected with this.
Of course, rates of remote freelancers are even lower than of the outsourcing companies. On the other hand, hiring a freelancer doesn’t provide you with various additional bonuses, dedication to your project and guarantees of deadlines, security and safety, 24/7 business operation and quality of work.
Offshore software development rates by country (monthly) according to a PayScale research:
What Companies Benefit from Offshore Software Development
There’s no clear differentiation of companies types that use outsourcing services. It can be either middle size firms or huge world corporations, just large local companies and small businesses. Basically any business can choose outstaffing as the best option for it to deal with software programming.
Modern markets allow businesses to quite easy outsource most of their current tasks or even early stages of startups. In such a way, companies receive access to better-skilled services and ensures cost effectiveness.
Startups often find offshore development of software as their prior method to finish they initial software prototypes and models within shortest terms. Simultaneously, they need a product to be of the best quality and reasonable price, as startups are limited in financial possibilities.
Most of the firms prefer to outsource either a single part of their daily operations and processes, or they decide to make outsourcing an inevitable part of their business and establish a strategy.
Where Can You Hire Developers for Offshore Software Development
As offshore software development trends continue to grow globally, more and more companies are considering the idea of alternative to traditional hiring method. Although there are still many prejudice and unclear understanding of what offshore software development is, those firms that have already tried to hire developers from overseas, have achieved sufficient results by getting the best technical staff for less money. Of course, with the variety of outsourcing companies in every country, it is possible to get stuck with poor quality agencies and end up with either or waste of money and time. However, finding the right offshore company is not a problem if a prior research is properly conducted to find the best option that will meet all your requirements and boost the success of your business.