Offshore Software Development: Everything you need to know

The IT industry has experienced some major changes over time. The need for developing software and applications has never been so high. It seems like the world is craving better and better apps. So conducting a software development project is a must.

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Outsourcing, offshore, and overseas are some of the top researched terms over a few years, mostly after the COVID-19 attack. The concept of outsourcing was there but after the massive hit, the need for outsourcing increased all across the globe and businesses irrespective of their sizes and industry verticals are found considering such a concept. And why not since offshore development offers a wide range of advantages such as a cost-effective approach, allowing you to launch the product on time, easing staff management, tech peculiarities for the project, and a lot more. 

However, there was a time when scaling was considered quite a daunting and overwhelming task. The more staff was added, the trickier things turned out to be especially in regards to managing and administering operations. Fortunately, the meaning of scaling up has evolved and all thanks to offshore software development.  

Once you outsource the project, you no longer have to worry about that and simply focus on your core competencies. This is not it, there is so much more to it, the following post focuses on what is offshore software development, how is the concept beneficial in the long run, and when to choose offshore software development. It’s a sure-shot guide to consider offshore software development for your upcoming project. 

Before proceeding further, here I would like to mention some offshore development stats

• The global software market is valued at $122 billion in 2024 and is expected to reach $283 billion by 2031.  
• Each year, 300,000 jobs in the US are outsourced
• 90% of businesses are found taking the most advantage of outsourcing opportunities. 
• India is one of the most favorite and preferred countries for software development outsourcing. 
• 95% of all retail purchases will be made online by 2040. 

Define Offshore Development

So what is offshore development, well as the name suggests the concept is all about conducting a software development project overseas. In other words, businesses no longer need to hire employees at their doorstep or in-house just to get quick access to a wide range of services. 

Finding a reliable offshore software development company is not an issue anymore since with the rising concept of outsourcing, it is possible to get instant access to software professionals all across the globe. This is said when you are willing to work with experts who aren’t located in the same region and in different time zones than yours. Let’s say if you are working in the US then you can think of outsourcing or conducting an offshore development project from India, the Philippines, Vietnam, or any other popular outsourcing destinations. 

Types of Outsourcing Models

Now offshore software development altogether is a pretty huge term; it can be seamlessly grouped with different models and types such as nearshore, offshore, and onshore. So let us understand what they are. 

• Onshore outsourcing – Onshore outsourcing mainly refers to the process of sourcing team members from the company’s home country. In other words, you are hiring an external team within your region or locality. The need for onshore development is to establish proper communication channels and avoid facing unnecessary issues such as time zones language cultural differences and so on. Onshore outsourcing can be a bit expensive in comparison to the other available options since your tech partner is located in the same region so they will charge you accordingly. In addition, you might not be able to find a large number of qualified talent pools due to geological boundaries. 

• Nearshore outsourcing – The next interesting model is nearshore outsourcing. This model refers to sourcing a wide range of team members from nearby countries that are still located under the same time zone. If you want to save in regards to cost and want seamless communication then nearshore is the perfect choice to consider. In case if you have to conduct an onsite visit then, it becomes much easier with nearshore outsourcing. 

• Offshore outsourcing – Last but certainly not least comes offshore outsourcing. This is said when you need to source team members from overseas, especially with prominent time zone differences. Some of the common yet popular outsourcing destinations include India and China. Offshore outsourcing turns out to be one of the most affordable options to consider, also here you are able to find a large talent pool of experts, etc. 

Whichever outsourcing model you choose, all three enable you to successfully remove the responsibility of creating software and successfully help in managing the team as well. Just make sure that before making a choice, you review their client’s testimonials, and case studies, check on their past experiences, and see whether they are capable of meeting your needs or not. 

What services can be outsourced?

1. Custom software development
2. Dedicated development teams
3. UI/UX design
4. QA services
5. Maintenance and support
6. Cloud infrastructure management 

When to Hire Offshore Developers

Here I would like to mention certain kinds of situations where offshore development becomes a viable option. 

1. 1. Lack of tech talent – One of the obvious reasons here is the lack of tech talent. You will surely realize this fact when you start hunting for top developers, how scarce the scenario is. Here things might not work even if you have to engage with a full-time developer with the requisite talent in nearby locations. 

• Specialized roles – There are times when businesses are required to hire professionals with super-specialized roles or fill up temporary positions. You don’t need to find the right match within your region, you may have to look a little further, maybe overseas. 

1. Complicated projects – Another reason is complicated projects, you see tackling complicated projects requires lots and lots of know-how and technical expertise and not having a specialized expert onboard means you are bound to run into unnecessary speed bumps and accumulate severe downtime. So offshore companies featuring large teams are a sure thing for such a situation. 
2. Tighter deadlines – Achieving the best possible outcomes in a short span can be extremely difficult but with a well-experienced external team on board, scaling up is no big deal. Offshore software development reduces time and increases efficiency. 
3. Cost-efficiency – You see overall offshore development projects are pretty cost-effective in comparison to onshore or in-house ones. Here you are bound to receive the best possible outcomes at low prices. 

How is Offshore Software Development Beneficial for Your Business?

Down below I would like to mention certain crucial benefits of offshore software development to take into account. Just to show what you will achieve in case you decide to opt for offshore development services. 

1. Reasonable development costs

One of the obvious yet crucial advantages to consider here is reasonable development costs. Offshore development makes it possible to create a product at low hourly rates. Why less, you must be wondering? Well, several reasons: full government support, favorable tax conditions, and whatnot! India, the Philippines, and Vietnam are some of the top outsourcing destinations where you are bound to receive competitive pricing and top-quality services. 

Now low in price doesn’t mean it will affect the overall quality of the product. Here you are bound to receive the best in price and quality, the best of both worlds.  

1. Large access to Talent pool

Another amazing benefit to consider is the large access to the talent pool. When you have such a development requirement for your business, you don’t have to hire or recruit professionals every single time and go through the same procedures again and again. Offshore development means you can hire professionals from anywhere across the globe. Here you get instant access to pre-assembled talent pools featuring a diverse range of skill sets. With outsourcing, product implementation becomes way faster and better. 

1. High scalability and flexibility

Another core benefit of considering offshore software development projects is amazing scalability and flexibility. Developing a software product can be way more tricky and insanely daunting but with some external help, things can get way better. Now if you are developing for the first time you might have yet to learn about how many professionals are needed at that time. So with offshoring, you can scale the team up and down as much as you want at the beginning and in the middle.   

1. Different Time Zones

Another aspect to take into consideration is the scope of different time zones. As mentioned earlier, offshore development teams are usually located in various places, regions, or even countries which means you can have full advantage of round-the-clock services. 

For example, if a company A is located in the US and has recently collaborated with an offshore team in India then they can successfully leverage time-zone differences. The 24/7 support can result in continuous progress on their projects. Also, this accelerates project timelines and enhances their overall productivity.  

1. Focus on Core Competencies 

And last but certainly not least we need to consider focusing on the core components. When you hire offshore development teams, you can be relaxed since your tech partner will take care of your tech issues and you can focus on core competencies. I have come across several companies, especially non-techies, who get themselves messed up by dabbling with programming and other technical aspects. When you hire some reliable and reputable firm offshore, you can focus on other aspects such as marketing, PR, and the ultimate showdown which is the product launch.    

Conclusion

And we are done for now! This is what offshore software development is all about. Well, it’s more like a gist the more you delve deeper the more you are likely to find the best possible outcomes. Offshore software development is not just a fad, the concept will be staying for the long haul. I hope you find the following post worth reading. Feel free to reach out if you have any doubts or queries regarding offshore and outsourcing. Good luck! 

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