Do you require your business to progress faster, require expert help to sort out technical issues or are you planning on expanding your team?

This guide to offshore software development is for you. It describes the major opportunities as well as possible considerations while delivering your company’s developmental capacities across the world.  

Offshore software development has slowly become an option for any software-developing organization no matter how big or small it is. The main reasons for such actions include attempts at reducing costs, increasing productive efficiency, and providing competition.

By tapping into global talent, companies gain access to a wide range of skills and expertise that might be hard to find locally.

Strong data back this trend– most IT managers and corporate officers consider outsourcing to be a sound practice. The market for software development has been projected to expand on the international level, in fact, the global market is expected to be worth USD 283,457. 5 million by 2030. 

Why is it that offshore development is turning out to be so popular? It is due to this that they encounter usual barriers such as shortage of staff, skill deprivations, as well as dynamic technology. In most developing firms including start-ups, cost control without compromising the quality is essential. 

This guide explores the key aspects of offshore outsourcing, including the benefits, challenges, and strategies for success.

Whether you’re a CTO or a business owner, you’ll find valuable insights here to help you make informed decisions and effectively leverage offshore resources.

What is Offshore Software Development?

Offshore software development means that you hire a group of engineers in a different country to develop your organizational software. This approach enables business organizations to obtain a wider pool of human resources and skills, which can be cheaper when compared to local sourcing. 

Offshore development, therefore, is not synonymous with working with employees located in other regions; it usually incorporates the setup of an office in the selected country, an offshore development center (ODC). 

Such centers are a set of organizational offices that are equipped for specific work, with teams on which the company’s tasks are performed.

Many large high-tech companies such as Google, Microsoft, and Apple have adopted this model to put up Research and Development (R&D) subsidiaries in areas such as Bangalore in India. 

The key advantages of offshore software development include the availability of competent staff, the possibility of fast expansion of activities, and the lowest possible costs.

This setup assists companies to uplift their productivity and technical skill levels without the drawbacks and costs affiliated to a domestic recruitment process.

Benefits of Offshore Software Development (Why Choose?)

Offshore software development can offer several important advantages that help businesses optimize their operations and stay competitive.

#1 Cost Savings Offshore development can save you a lot of money—up to 60% in some cases. This is especially helpful for startups and small businesses that need to keep costs down.

Working with an offshore development center means that all sorts of expenses involved in hiring and training personnel and establishing of workplace will not be incurred.

For example, a start-up business based in the USA was able to cut its development costs by 48% after outsourcing the team in India and, therefore, pouring its resources into marketing instead.

#2 Access to Skilled Talent When you outsource, you qualify for a talented workforce from around the world. This implies that the skilled professionals required in a certain project can easily be hired without being physically present due to the availability of online experts at relatively cheaper rates.

For instance, artificial intelligence was developed in a firm based in the United Kingdom by solicitous programmers from Eastern Europe.

#3 Faster Development  Projects developed offshore have a higher probability of delivering your projects quicker than is arguably possible locally. Recruiting and staff development can be time-consuming in the case of the new IT staff acquisition.

The offshore teams can easily scale up and begin delivering the work, this is useful if you need to launch new products or new features.

For example, a company in Canada reduced its product development time by 30% by using an offshore team in Asia, thanks to continuous work across different time zones.

#4 Scalability and Flexibility The use of Offshore software development is highly scalable. One can also easily hire more people or let go of contractors depending on the workflow because you can easily fill in gaps as you work on your project.

This is useful for having the capacity to deal with fluctuations in consumer demand for your products or services.

For example, to manage working with the offshore team, a tech company decided to change the number of employees depending on the project’s phases.

#5 Focus on Core Business By outsourcing software development, you can focus more on your core business activities. This is particularly beneficial for startups and early-stage companies that may struggle to balance technology and business tasks.

For example, a healthcare startup in the US outsourced its app development to India, allowing it to concentrate on expanding its medical services and partnerships.

Onshore, Nearshore, and Offshore Development: What Sets Them Apart?

When considering software development outsourcing, the geographical location of your development team can greatly influence the success and cost-effectiveness of your project. Here’s a breakdown of onshore, nearshore, and offshore outsourcing, and how they differ:

Onshore Outsourcing

Onshore outsourcing happens when a client hires software developers within their own country or region. For example, a company in Las Vegas outsourcing its project to a team in Toronto is considered onshore outsourcing. In this model, both the client and the development team are usually in the same time zone, making communication easier and more straightforward.

Nearshore Outsourcing

Nearshore outsourcing involves hiring software developers from neighboring countries or regions with similar time zones. For instance, a Western European company outsourcing to a team in Eastern Europe falls under nearshore outsourcing. This model offers a good balance between cost savings and ease of communication, though there may still be minor time zones and cultural differences.

Offshore Outsourcing

Offshore outsourcing refers to hiring software developers from a distant country, often in a different time zone. For example, a US-based company outsourcing to a team in Ukraine or India. This model provides significant cost savings and access to a large, diverse talent pool. However, it can also present challenges like time zone differences and cultural barriers.

Here’s a quick comparison:

Choosing the right outsourcing model depends on your specific project needs, budget, and the complexity of the tasks at hand. Each model offers distinct advantages and potential challenges, making it crucial to carefully evaluate your options.

Steps to Choose an Offshore Partner

With thousands of offshore software development companies vying for attention, selecting the right partner can be challenging. Here are some key steps to guide your decision-making process:

Identify Your Needs

Before diving into the search, clearly define what you need from an offshore development partner. Consider the scope of the project, the technologies required, and your budget. Understanding your specific needs will help you narrow down potential partners who specialize in the areas crucial to your project’s success.

Assess Communication

Effective communication is crucial for successful collaboration, especially when working with an offshore team. During your initial interactions, evaluate their proficiency in English or your preferred language. Good communication skills help ensure that instructions are understood and that there is clarity about project goals and progress. It’s also beneficial to speak with multiple team members who will be working on your project to assess their communication abilities.

Verify Developer Quality

Quality of development is a key consideration. Ask about the qualifications and experience of the developers who will be assigned to your project. Verify their expertise in relevant technologies and methodologies. It’s also helpful to inquire about the company’s hiring process, training programs, and how they ensure consistent quality across projects.

Evaluate Security and Data Protection Measures

Cybersecurity is a critical aspect of choosing an offshore partner. Ensure that the company follows the latest security protocols and guidelines to protect your data and intellectual property. Discuss their approach to risk management, including how they prevent data breaches and protect against cyber threats. It’s essential that your partner has robust data protection measures in place, particularly if your project involves sensitive information.

Do a Background Check

Conducting a thorough background check is essential. This includes checking the company’s legal standing, financial stability, and any past legal issues. You may also want to speak with past clients to get firsthand feedback on their experiences. This due diligence helps ensure that you choose a reliable and trustworthy partner.

By following these steps, you can make a more informed decision and select an offshore development partner that aligns with your project needs and business goals.

The Advantages of Offshore Software Development with Inexture Solutions

Inexture Solutions is a leading Offshore Software Development Company that provides several features for organizations that need to enhance their processes and decrease expenses.

The first imperative is that it brings access to the talents from a global pool into an organization. Thus, with the cooperation with Inexture, the companies can avail a great number of skills and experiences which may not be available in their local area. 

This implies that even when a business entity is faced with voluminous projects, it has the confidence that qualified personnel are available to offer their expertise. 

Furthermore, the overall saving on costs due to outsourcing with Inexture Solutions for offshore development enables the firms to better channel their resources to other aspects, be it marketing or product development. 

Third and far from the least, there is the advantage of versatility and openness to the evolution of cooperation with Inexture Solutions. 

Whether you require hired help when working on a project or require a trim down of your force in the low season, Inexture is flexible enough to solve the problem without the interference of involving permanent employees.

It floors your projects which makes it flexible and ensures costs are also kept in check. In addition, one of the key communication characteristics and quality standards inherent in Inexture is its clients’ ability to rest assured that they will receive a service that will always be consistent in its quality, and therefore, always reliable.