5 Reasons to Consider Offshore Development

By Pavithra Dennis / 14 June 2019

Outsourcing software development can help you hire the best talent and save money.

Today, it is a constant struggle for software companies to stay on top of their game. Companies must invest time, effort, and capital to come up with powerful and innovative software solutions that help them stand out from their competitors. 

This, however, is easier said than done, especially with companies competing over the most talented recruits. As a result, many companies are left with either less-skilled or less-motivated developers than they hoped for and face lukewarm software solutions. 

This has inspired more businesses to look into offshoring. 

By going offshore, businesses can build dedicated teams of talented software developers in another country that are still integrated into their business. 

If you are a business owner looking to step up your software development, here are five reasons why you should consider going offshore. 

1. Oversee More Cost-Effective Operations

In the U.S. and Western Europe, hiring local talent can be a costly affair, and hiring the absolute best talent comes at a premium.  

Payroll, however, is only one aspect of the cost of setting up a software development team. There's the end-to-end recruitment process, office space, state-of-the-art equipment, and other employee-centric benefits. This makes the concept of building a fully-functional in-house team very expensive, especially when located in cities with a high cost of living such as Singapore, Paris, Sydney, London, and New York.  

Cost of living is highest in cities such as Singapore, Paris, and Sydney, and it is lowest in places such as India.

Going offshore and building a team in countries such as India and Ukraine can significantly reduce cost. Because the cost of living in these countries is a lot lower, you can hire equivalent labor at a cheaper rate. 

By partnering with the right offshore software development company, not only can you set up a team at a lower price, but you can make sure that your offshore team has the best engineers.  

 2. Focus Your In-House Resources on Your Core Business Functions

Between juggling the core and support functions of the business, you may find it hard to devote time, energy, and undivided attention to what really matters: your core business. 

Trying to handle software development and production on top of your normal day-to-day responsibilities puts you at risk of burn out. 

This is where investing in an offshore development team can help. 

While your offshore team dedicatedly works on on-time delivery of software, the in-house core team can run the business, hassle- and distraction-free. 

3. Access Exceptional Talent

A 2018 survey by The Manpower Group showed that more than 45% of employers found it difficult to fill jobs in IT and engineering. The primary reason they cited was the lack of “skilled applicants.” 

There seems to be an immense pressure in the U.S. and Europe to find engineers with the right skill set and at an affordable price. 

According to the World Economic Forum, in 2016, China and India produce more engineering graduates than the U.S., Russia, Iran, Indonesia, and Japan combined. 

In 2016, China produced 4.7 million engineering graduates and India produced 2.6 million.

If you're interested in offshore services, start by looking at top BPO firms in India or BPO companies in Ukraine.

By accessing the well-balanced tech pools in different countries, you can find a team of proactive engineers who will be just as invested in your business. 

4. Scale Your Business 

Imagine that your business is booming and you're growing like never before. Your company is gaining a lot of interest from potential clients, but because you do not have the capacity that you need to scale, you have to turn down valuable opportunities.

Businesses never want to find themselves in this type of situation and investing in an offshore development team can help them avoid it. 

Through outsourcing, businesses can access a larger pool of qualified and talented engineers who will work dedicatedly on delivering top-quality software, at a fraction of the cost. And because this team is yours and not freelancers, they will be with you every step of the way.

By going offshore, not only are you reducing costs and gaining access to a significantly large talent pool, but you are also scaling your business by creating a permanent value-adding extension for your company. 

5. Expand Your Team Long-Term

Companies facing a shortage of local talent that decide to outsource will can choose from two main options:

  • External vendors 
  • Outsourced development team

Although these two options may seem similar, they present very different opportunities to businesses. 

External vendors are usually hired as contractors. While this might help with short-term goals, they may not be as invested as an outsourced development team because they may be working for multiple companies at one time and may not have the full context of your business. 

However, with an outsourced development team, your engineers are yours. Because they only work for your company, you are guaranteed their undivided attention. 

By choosing an offshore team rather than vendors, you are investing in expanding your in-house team

Choosing Offshore Development Can Help You Accelerate Growth

By going offshore you get an opportunity to build your dream team of passionate developers who understand the vision of your company while saving costs. 

They are an extension of your workforce, driven to deliver cutting-edge and innovative software, so you stay at the very top of your game and can focus on your business’s core functions. 


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