Complete guide on Offshore Software Development

It is no secret that employing offshore developers is a standard way of gaining key objectives of software development cost-effectively. The software development process is generally complex and even costly. In maximum situations, the projects are not completed on time and hence the development budget has to be increased.

Hence, more businesses are now selecting offshore software development services to provide a quick way of development and save valuable resources like developers, capital, and much more.

The offshore software development process is a process that helps companies looking to expand their software development team for launching new projects. To provide you with a better idea of this process, we have made this comprehensive guide on offshore development. You will learn more about how this process functions, its pros and cons, and much more. Let’s begin with the article then!

Overview of Offshore Software Development

The globalization of the software industry has led to a new trend in offshore development. Most organizations are employing software developers to fulfill their project development requirements.

Significantly, offshore software development is useful for small or startup businesses. The main reason for using this process is that it is more cost-effective than other project development options. It provides flexibility in managing project schedules that you do not get while using other development methods.

If implemented correctly, offshore software development processes can give you high-quality code that is developed efficiently and quickly. However, with advantages, there are potential risks of this approach.

In the further article, we will discuss what are the primary reasons businesses are choosing this approach; and what are the potential factors to keep in mind before choosing offshore software development.

Onshore vs Offshore Software Development- What’s the difference?

The point of difference between offshore and onshore development is simple:

• Offshore Software Development is an approach that refers to a process of hiring developers from different companies from different parts of the world. This approach helps you get software development services at a lower cost.
• Onshore Software Development is a procedure of getting software development companies from a similar country or location. This approach results in almost similar hiring costs, data policies, and firm practices.

From this point, one can say that while selecting an offshore approach, one can have control over the development cost and can make the development process more cost-effective.

Pros and Cons of Offshore Software Development

Along with the advantages, there are many prominent cons that employers have to keep a track of while hiring offshore software development teams. Let’s discuss benefits first followed by challenges.

Benefits of Offshore Software Development

Here are some proven advantages of offshore software development:

Access an affordable and global talent

The western hemisphere has a severe shortage of technical talent and due to the economic downturn, there’s not enough budget for hiring local techies.

Offshore software development across the globe offers dedicated professionals from various countries. These professionals may be cost-effective to hire. Hence, one can afford to hire technical experts through different educational programs going on globally.

Cost-Effective solution

Outsourcing software development services using the offshore approach can stimulate reducing hiring costs. Most offshore development companies are located in countries where favorable currency exchange and the cost of living are lower. These factors help the employer to save money.

Moreover, by using offshore services, employing companies do not pay for recruiting, holiday time, and employee benefits. Hence, offshore development is a relatively cost-effective approach as compared to other approaches.

It is easier to grow or cut down the development team

With the ability to scale up or scale down the development team, the offshore approach has an impressive attraction amongst the companies. The ability to grow the team or cut down the team as per customers’ requirements is an essential factor of success in the technology industry. In traditional approaches, this can be difficult to perform.

However, working with an offshore software development company, organizations can quickly gather professionals who are experienced in working in a team and enable them to begin with the project right away. Additionally, when any project ends, the team can be disassembled easily.

You can focus on your core business

If you prefer outsourcing a function or project using an offshore approach, you can deeply focus on your project’s core requirements and functions, and give more effort in their development. This approach saves you time from developing a roadmap, instead of getting into the operational details.

Challenges of Offshore Software Development

Here are some core challenges that companies have to know before selecting an offshore software development approach:

Cultural influences

Different countries have different communication and working styles, which one has to adjust to, depending on where you select the outsourcing of your software development.

Time Zone differences

When we are working with offshore teams located in other time zones, you need to trust in allochronic communication, which takes some time to adjust. However, if a good syn is established, the process will feel smooth.

Less control over hiring

Some offshore development companies may increase their profit by hiring low-paid developers, which drastically affects their work quality. So, before hiring an offshore company, one has to make sure that the service provider is trustworthy.

How to hire Offshore software development professionals?

Here are some common stages involved in offshore software development:

• Know your requirements:

Before hiring an offshore company, be clear about your project requirements and why you want to hire offshore support. Have a clear idea of the type of experienced team you require, how many team members will be required for your project, and other details.

• Monitor recommendations of that company:

When you are selecting a specific offshore development company, you have to seek recommendations that previous clients have given to that company. Ask them personally regarding their experience with the specific company.

• Search for trusted publications:

You can check different online platforms and sites for reviews of the company before hiring reliable software developers in your interest area.

• Pick the preferred time zone and region:

Ideally, people want to work with the development team with whom there is quite an overlap in the working hours. This feature makes it easy for your team to be available in case they have any queries, or want to make direct contact in case of providing feedback or suggestions.

• Shortlist the appropriate candidates:

Shortlist the best companies as per your project requirements and conduct their interview.

• Conduct interviews:

Conducting interviews will give you a chance to ask questions to the companies. Based on their answers, you can decide whether they are capable of providing in-depth solutions or not. At the end of the interview round, you will get your perfect match for an offshore software development company. After selecting one company, sign the contract with them and begin the software development work.

Offshore Software development- When to choose?

There are certain situations or projects when businesses prefer to choose offshore software development. It completely depends on the business requirements and needs, whether they pick offshore or onshore development.

However, here are some situations when an offshore software development approach can be beneficial:

• When your business project needs unique expertise that you do not have in your office, then consider hiring offshore talents.
• A startup business requires quick scaling of the technical capabilities.
• Adding new functions and features to your software is required too without disrupting the ongoing tasks of the in-house development team.
• When you have limited expenses to spend, but still want software that can compete with the growing market needs that too by hiring teams from India, Nepal, etc., you can get top-notch techies at a lower cost.

Approximate Cost of Offshore Software Development

If you are hiring offshore developers, the approximate cost can be somewhere between $25-$200 / hour. These rates can vary depending on different factors like:

• The technical expertise of the development team
• Location of the offshore service provider company
• Type of services the company is providing
• Type of risk associated with your project development

Despite the above-mentioned facts, companies who are thinking of employing offshore developers should compare rates and reviews of the offshore company and also compare what they offer which is different from other similar companies.

Concluding Words

In the end, offshore software development can be a good alternative for businesses or organizations looking to streamline and manage their processes and increase efficiency. However, it’s important to approach it with thoughtful planning and consideration to make sure it gives a successful outcome.

By following the steps mentioned in this guide, you can find the right offshore partner, make effective communication channels, and maintain the project effectively. Remember to have transparency, and accountability, and ask for regular progress updates to keep the software development on track and minimize any potential risks or challenges.

With the right team, offshore software development assists businesses to save costs, get top talent, and increase their growth in the global market. As technology continues to change, offshore software development is likely to become even more important for businesses looking to stay ahead of the common things. Therefore, it’s important to stay informed and accept changing market trends to remain competitive. Whether you’re a startup or an established enterprise, offshore software development can help you achieve your business goals and reach new heights of success.