Offshore development is a type of outsourcing that offers benefits similar to other types of outsourcing but allows for greater control over the product development phase. Because of this very reason, clients now prefer hiring offshore development teams from around the world.
This could be a golden choice for you if you run a startup or a small business and need a peak in the development phases just to ensure everything is heading in the right direction.
However, enterprises and tech giants can benefit from a capable offshore software development company in usa as well.
Let’s find out how.
Table of Contents
Overview of Offshore Development
Offshore software development is the practice of handing over projects to a subsidiary or an outsourcing company located in an offshore location far away from your country. It could be located in the opposite corner of the planet, where the company takes measures to deliver your product within or ahead of deadlines.
This practice is performed mainly by companies operating in developed countries where the software development costs are way too high for any other sector to afford. However, with offshoring, they can outsource development to a company located in a developing country where development costs are much cheaper.
Generally, the best places to hire an experienced offshore development company are Asia and Eastern Europe, where businesses can find affordable development partners.
Offshore Vs Outsource
The most common misunderstanding among people, including IT professionals, is whether offshore is synonymous with outsourcing. Let’s dive in and find out what differences they have.
Offshore is a part of services where a company relies on its subsidiary or a third-party vendor, located in a different part of the world, whose expertise is geared toward a client’s specific project requirements.
On the other hand, outsourcing is nothing more than joining forces with an unidentified IT company that takes complete control of your product development.
Both methods are widespread and are used by companies for their reliability.
However, the choice between either of these two comes down to the requirements of the client’s project and its scope.
For instance, in offshore product development, the client has the clear advantage of getting control over every phase of product development and can modify solutions based on their own perspective.
Whereas outsourcing doesn’t promise such advantages, the clients have to rely on and trust the third-party company for the entire operation.
Offshore Vs Onshore Vs Nearshore
People often use these terms interchangeably without realizing they are different from each other. Let’s make these terms crystal clear.
Offshore- vendor located far away in an offshore location
Onshore- vendor located in the same region/country as the client company
Nearshore- vendor located in a nearby region/country from the client’s location
Onshore and nearshore development is extremely difficult, which is why offshore is more convenient.
Here Comes The 6 Promising Benefits
The potential you unlock by hiring offshore development teams is greater than you think; let’s shed some light on its benefits to get a hold of it.
COVID altered the dynamics of the IT market, causing companies to lose millions of dollars and skilled employees. Though it’s gone now, its effects still remain. After losing market share and audience, most IT firms are now focusing on low-cost solutions to stay competitive. Especially for startups and small businesses that operate on a tight budget.
Hiring an offshore development team can bring a lot to the table, from quality development to affordable prices. It’s the heavenly option for companies.
It’s all possible because the company that offers such a team resides in a third-world nation with cheaper labor compared to a first-world nation such as the US, UK, or Canada.
And it’s not just the cheaper labor, your in-house team costs much more than you think. For instance, the insurance, extra perks and benefits, and other things make them an expensive deal. Also, let’s not forget they come with offices, computers, other electronic equipment, and electricity bills to get their work done. If we combine all this, the costs are just too high to afford even a medium-sized company.
But hiring an offshore development company doesn’t have to be that expensive; you can just contact the company, and they will take care of everything for you, nice and easy.
Access to Talent Pool
No doubt, your in-house team can handle any type of development that satisfies client needs. But the offshore development teams are capable of producing equivalent, even high-caliber products that retain clients for a longer time.
The issue with your in-house development team is that they are mostly juniors to seniors who handle critical project operations. It makes development a bit tedious since seniors have to check juniors’ work, fix their mistakes, and generate reports. A ton of time is wasted in assessing each developer’s work, leading the project to take longer to finish than estimated.
However, when you consider hiring an offshore development team, you get access to a talent pool from different corners of the world at the cheapest price. These professionals are ready to augment your team to help you build your dream project. And above all, most offshore development teams are composed of experienced professionals who thoroughly understand the chores of your project and its required technologies. So to be clear, they are more efficient, productive, and competent for your product development.
There is not much of a product scalability option when you work with your in-house teams, rather, it creates confusion and misunderstanding on what needs to be scaled from the baseline. And of course, it’s because of differences in experience levels among your team members.
A similar thing can be considered with workforce scalability. If you require additional manpower, it’s hard to really combine different teams in your in-house operations, because some may lack the expertise and knowledge of technology. Not to mention the additional costs and expenses. So it’s really difficult with in-house operations to expect any kind of scalability.
While hiring an offshore development team promises all types of scalability, if you want to scale your product’s capacity, an offshore team with years of experience can create a baseline and assess things that need to be scaled and add on top of your solution to get it live within weeks.
The same goes for workforce scalability. Suppose your estimates were not accurate and your project required few other professionals, then the offshore company can arrange extra talents on-demand from their reach and get them integrated to rapidly develop your project in no time.
Rapid Product Delivery
Technology is evolving by the minute, and so does the client’s needs. They require products the earliest to test and integrate with their ecosystem to gain traction among a huge audience. This leaves you with nothing but readily working on the development process, ensuring everything works well and delivering the product within the given time frame.
Offshoring teams are just meant for rapid delivery, they plan the whole development process and further divide it into phases, checkpoints and start working on it at the earliest. Furthermore, because they adhere to metrics and KPIs, they are able to assess any difficulties in the product or the team earlier and build a solution way ahead when the product is in the early stages of development to avoid making any mistakes and rapidly build and deliver a high-quality product.
If you are not innovating, things then the chances of you as a company getting recognized in the competitive market are zero. Innovation is what helps you and the whole world improve by overcoming real-world complex issues.
When you pair your project with an offshore development company, you bring value to the table because they are able to provide solutions to each problem, ultimately arriving at your solution, thanks to their unique mindset and problem-solving abilities.
Moreover, they can share with you, their views on your product and what can be done to enhance its capabilities, and also they serve a multitude of industries worldwide, they can suggest features based on their experience with multiple clients on how your solution can achieve better agility. As a result, you can get agile products to innovate new possibilities and solve real-world problems.
You hardly get time to focus on your tasks, such as managing the department, marketing, and other things, because you have to look into how your in-house team is keeping up with building your solutions.
If you jeopardize the marketing of your product, even if it’s out, no one will show any interest. For this, you have to make people aware of your product, its features, and how it comforts people’s lives.
And you can’t do it while overseeing internal team tasks.
This troublesome situation can be easily resolved by hiring an offshore software development company. Once you outsource your project to these professional elites, they and the company will be responsible for everything- including managing developers, their payrolls, and their leaves, assessing the performance of the product, and checking its quality.
This allows you to relax and focus on your tasks to improve your product’s marketing and spread awareness of it. And once the product is done and meets the marketed capabilities, you can effectively deliver it to the market and see the results.
If you are disappointed with your in-house operation and looking for some promising methods that guarantee success, then you should definitely consider hiring an offshore development company and its teams. That being said, these are the 6 promising benefits that you can get by hiring an offshore development team.
So if you like these benefits and are considering hiring an offshore software development company, Asia and Eastern Europe are among the best locations with cost-effective prices and quality development promises.