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7 Benefits of Outsourcing Offshore Software Development Services

Shiza Khan

27 October, 2022

20 minutes

What is Offshore Software Development?

Software development has become the demand of almost every business with the digitalization of markets. Offshore software development is hiring a company from a foreign country to carry out the development process. Businesses are inclined towards offshore services due to the numerous benefits that can be achieved from them.

Why is Offshore Software Development Outsourcing Better Than Other Models?

Asia shares the largest portion in offshore outsourcing with its vast talent pool and huge population and therefore stands out for its IT exports every year. The reason is that the cost of living and running businesses is much higher in developed European countries and the US as compared to other developing countries.

Another reason is that the currencies of these developed countries are much stronger and provide a good payout for staff working in other countries.

So, while people from the US and Europe benefit from cost-effective solutions, the other countries benefit from good payouts, and it becomes a win-win situation for both. Hence offshoring cannot be called ‘cheap’ rather it is a cost-efficient solution.

Benefits of Outsourcing Offshore Software Development Services

In this article, we will discuss the 7 benefits of offshore software development services. Once you find a legit offshore company, you will notice that the cost of development goes down, and timelines contracts, and management becomes much easier allowing you to create the software.

1 – Cost-effective

With the global market at your disposal, there are two advantages of hiring offshore software development services:

  • High competition due to a vast global market
  • Lower quoted rates by companies operating in developing countries

The competition has become global and IT companies must quote the best rates to win a project. Moreover, the IT industry in Asian developing countries is booming with their skilled resources and competitive rates.

IT exports have become a major revenue generator for these countries and their governments are backing them with subsidies and other benefits to expand their operations. Only in the period 2021, India’s IT exports were valued at 149.1 billion US Dollars while Pakistan also managed around 3.5 billion US Dollars. (Statista)

2 – Expert Workforce and Innovative development

Global markets allow you to hire the best in the business. You don’t have to rely on your neighborhood company anymore. There are tons of offshore software development companies that can take up your project and start working on it immediately.

The thing is that offshore companies have worked for so many clients that they have developed a highly expert workforce with diverse industry experience. You can check out their project portfolios, client lists, and teams and be at ease that they know what they are doing.

3 – Access to Global Talent Pool

Offshoring allows you to tap into the vast global talent pool which is highly beneficial for finding the right company for your software development project. An international talent pool allows companies to make use of innovative methods and ideas from developers.

Since offshore outsourcing companies get projects from all over the globe from different industries, it gives them a competitive edge to better tackle challenging situations and understand business objectives clearly.

  • Understanding Project Deliverables

A talented resource not only provides you with the perfect product but also saves your time, energy, and resources through quick deployment and efficient project handling. It is of utmost importance that the product is completed in a way that achieves business goals.

For instance, a web portal developed for a company that wants to provide support to its customers may be of no use if it is efficient in storing data but does not have the structure and processes to effectively communicate with the support team about the problems and provide a transparent issue tracking system.

A talented resource is developed through international exposure and challenging situations in tough environments. Hence, offshoring companies are more than capable of providing the perfect resources to you.

They can manage better timelines due to expertise in developing similar projects and might even point out greater opportunities for your product.    

4 – Efficient Time Management

Offshore companies allow you to assemble a team in no time. With a vast range of companies available, you can find the perfect fit that can start working with you from the word “go”. Hiring a development team on your own can be a tricky task and includes many risks as well.

You would want to hire front-end and back-end developers who are familiar with the tools you need to develop your project, other than that you would need a QA team, documentation team, and testing engineers to complete your team. Many other resources must also be made available before you can start working on your project.

  • Rapid Deployment

Isn’t it easy to just find experts and make them join your team anytime and anywhere?

Offshore development teams also have ample resources due to the greater population and degree holders in Asian countries and other developing nations.

They can therefore provide a greater number of resources to do a job and can assemble a team quickly. You can get faster services with saved costs and relieve yourself from assembling a technical team in a short time.

With outsourcing, you can take your saved time to manage the project better. You can define the project deliverables in a concrete manner and focus on your marketing and customers while the development company takes care of developing your product.

5 – Proficient team management

First, outsourcing a team relieves you of recruiting and managing a technical team. The hiring process alone for a development team is very hectic where you must assess the skill and talent for the specific job before hiring.

Secondly, it is a tricky process because there are so many development frameworks in the market, and you need an expert to have control over the tools which you require to build your software. 

And finally, it is costly and challenging to manage a team under your supervision (if you succeed to assemble one in the first place). You would need managers, supervisors, and strong reporting procedures and controls so that your team works efficiently and meets deadlines. Even then, you would be paying many redundant costs like transportation, office space, and benefits for employees to manage a comfortable office environment.

Now, since outsourcing will tackle the situation of reducing management and supervision, it also goes without saying that European countries and the US have very expensive outsourcing models as compared to Asian and other developing countries. Hence, with an offshore outsourcing model, you can get an end-to-end software development team that provides reduced costs and reliability.

6 – Scalability

Suppose you are developing a software product and you decide that currently, you would only need some specific features to kick start your operations. You wish to add the rest of the features and third integrations at a later stage when your product has entered the market.

This is possible by hiring an outsourcing software development company since you won’t have to worry about managing any costs of customizations.

You can achieve scalability in two ways:

  1. Define your project milestones and agree with the development team to develop the software product in phases.
  2. Use scalable frameworks and programming languages and only agree with the development team on what you want in the product and pay for it. Make sure that the development team creates open-ended software that can be easily integrated and is flexible so that you can scale it up or down any time you want and in collaboration with any company.

7 – Consistent operations

Offshore outsourcing companies have different timelines than you but countries that are providing these services have become well-equipped and work shifts for continuous operations. Once the project is assigned you can settle the time zones in which you want to work so that your operations are not disturbed.

Remote working tools have become so strong that you can see and validate everything that is going on. You can arrange online meetings, share screens, take access to your product, and more with strong remote tools. This will enable you to take complete control and carry out consistent operations with minimal costs.

This will also save you the money to host company clients. Team training is also easy since they can work on their own devices with shared access and learn in a more immersive manner rather than looking at a giant screen or whiteboard to learn new things.


Things To Consider While Hiring a Software Development Outsourcing Company

Although outsourcing to an offshore company has many benefits, you can only utilize these benefits if the company is legit and actually does have skilled resources to do your work. Here is a checklist that you must go through before hiring an offshore company to outsource your software development project:

  • Always hire a legitimate and renowned company that has the required skill and expertise for completing big projects.
  • Always vet the company through its client list and go through feedback and reviews before hiring offshore developers.
  • Ensure that the team has effective communication skills and is fluent in the language you would prefer for communication. To understand and deliver the project, communication is highly important.
  • If you are offshore outsourcing, then probably the time zones won’t match so ensure that the company you are working with can work with your time zones for support, training, testing, or any other communication. 

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