Offshore Software Development Outsourcing

Isabella Curiel

Offshore Software Development Outsourcing – The dynamism of the product development process is a result of the increasing role of AI, IoT and robotics for organizations seeking competitive advantage. Software development is critical to aligning company goals with performance, scalability and resource allocation. Software development outsourcing is an advantage for organizations that provides quick access to the latest technologies and increased productivity, growth and profitability. The following article will give you a comparative understanding of the concepts of software development outsourcing and outsourcing enablement.

Almost 20 years ago, Pulitzer Prize-winning author and New York Times columnist Thomas Friedman wrote his dream book.

Offshore Software Development Outsourcing

Friedman was definitely no “flat clay.” He used a “flat world” metaphor to describe the global economy and the expanded playing field for business and knowledge workers. The world he envisioned is now a reality, with low barriers to entry and increased opportunities through trends like outsourcing and offshoring.

Offshore Dedicated Team

Since Friedman’s book became a bestseller, outsourcing in general (and software development outsourcing in particular) has exploded, and its growth shows no signs of slowing.

In fact, at the time of this blog post, a recent study predicted that software development outsourcing would increase by 70% in the next year.

Global events over the past two years have led to incredible growth in outsourced software development – and this shows signs of staying beyond 2022. The main reason for this trend was cost efficiency.

Are you considering outsourcing certain aspects of your software development? This blog post will help you decide between outsourcing and offshoring, highlighting the pros and cons of each approach.

Offshore Software Development Services: Complete Guide

A software development outsourcing model involves hiring an external team to handle a company’s software development or a portion of the company’s software development. A company can hire offshore or onshore software development teams to perform various tasks such as software design, user experience optimization (UX), coding, project management, and quality assurance (QA).

Any human resources professional will tell you that there are some hidden costs involved in hiring in-house staff. Depending on the state, full-time employers may cover health insurance, payroll taxes, family leave, sick leave, some Social Security, and other benefits.

When you outsource to an outsourcing partner, these costs are covered by your partner and factored into their price, including developer equipment, office costs, etc. you don’t have to pay a penny for it.

According to the US Small Business Administration, all of these costs mean you’ll be paying 25 to 40 percent more than your employees’ base salary when you rent an office.

Offshore Software Development Company 2023 Customer Insights

Companies that outsource all or part of a development project find it easier to increase or decrease outsourced support depending on circumstances. Those who hire only internally struggle when faced with changing market conditions, shifting priorities or immediate demand for new opportunities.

Proven development partners can increase your time to market by supplementing your workforce or taking over a project in its entirety. After all, experienced development companies are used to working on tight schedules, and the best have systems in place to deal with hiccups and meet their schedules.

Once you’ve decided to outsource any part of your software development, you’ll need to choose a development partner either overseas (outsourcing) or in your own country (local outsourcing).

Every year, Google searches are filled with people wanting to know which outsourcing country is better than outsourcing. Indeed, both models have advantages and disadvantages. A great offshore partner offers great value, but only if your partner speaks good English, understands your culture, and is willing to adjust to your time zone (if that’s important to you).

Most Important Success Factor Of Offshore Software Development

These issues don’t need to be addressed with an onshore development partner, but onshore outsourcing comes with its own set of challenges, from high costs to drawing from a small talent pool.

Working with an outsourcing partner in the same time zone can offer more opportunities for real-time collaboration because the time difference is never so great. You may even have the opportunity for live sessions from time to time.

Some offshore outsourcing partners are willing to accommodate their clients’ business hours – we at Net Solutions do when our clients need us. However, not all offshore development teams are willing to do this, so if this is important to you, ask potential offshore development partners about this option.

When you choose an outsourcing partner in the same country, state or province, chances are you’ll be working with someone subject to the same labor, tax and intellectual property laws. This can make some processes smoother.

Traditional Outsourcing Vs Offshore Development Center: Which Is Better?

If your outsourcing partner is nearby, you can have face-to-face meetings. Of course, in the post-Covid era, we’re all so used to scaling meetings and remote work that in-person meetings seem obsolete. If you don’t participate in face-to-face meetings, this won’t be a factor for you.

If you serve a local audience, working with an outsourcing partner means they understand your market better than someone from another country. Of course, if it’s important to you, you don’t have to give up on the idea of ‚Äč‚Äčoutsourcing your software development to an offshore provider. Just make sure you choose someone who understands your culture and has experience serving your market.

Companies with offices in places like the United States, Western Europe, and Asia must pay a premium if they want to work with developers in their home countries. These companies cannot compete on price due to the high cost of living in those areas.

When you go international, you have access to a world of talent. Limiting your search to land developers limits your availability and options.

Pdf] Evolution Of Offshore Software Development: From Outsourcing To Cosourcing

Choosing an onshore software development partner has great benefits and some potential pitfalls. If you know what to look for when choosing an overseas development partner, you can take advantage and avoid the pitfalls.

Cost should not be your only consideration when hiring an outsourcing partner, but it is definitely a factor. Choosing the right foreign partner can increase value, reduce costs and increase the likelihood of a profitable software product.

Countries like India have a large pool of sharp young software engineers they want to impress. If you stay local, you’ll miss out on tapping into this global talent pool.

A suitable second party to be an outsourcing partner in a remote time zone. When you choose an outsourcing partner, you can use asynchronous work.

Best Country For Software Development Outsourcing In Asia

Kitco hired Net Solutions to handle QA testing for its mobile app. Since we are on the other side of the world, our dedicated QA team is reviewing the code created by Kitco developers throughout the day. After a day’s work, Kitco developers went home, slept well, and woke up the next day with bug reports from the QA team in their inbox. This kept things on a 24-hour cycle, which greatly increased the application’s time to market.

Offshore development companies can provide a faster turnaround due to a large pool of talent, time zone advantages and lower costs.

Software design and development is complex and often requires better communication to achieve your company’s vision. Choosing a team of people who don’t speak your native language can lead to delays, rework and over-budget projects.

What is the solution to the language barrier? Vet your outsourcing partner with detailed live chats. Meet with potential project managers and ensure the conversation flows smoothly.

Offshore Software Development Rates By Country

What is the solution to the big time difference? Check if your outsourcing partner is willing to accommodate certain team members around your working hours. We have done this for many clients at Net Solutions.

How to deal with cultural differences? Take the time to get to know your potential outsourcing provider. Do they have experience working with people from your culture? You will understand it after a few conversations.

What good is a cheap product if you’re not getting a good return on your investment? There are outsourcing providers who promise high quality but don’t deliver.

How do you guarantee high quality? Research your potential overseas supplier on review sites such as and look at their reviews and customer case studies. If they have already delivered to their clients, they can deliver for you.

Offshore Software Development Companies [top 15 Worldwide]

It’s important to look at your situation when choosing between hiring an offshore or onshore software development partner. Take a comprehensive look at your business needs, bearing in mind the following.

There are pros and cons to both onshore and offshore software development, and there is no one-size-fits-all answer to this question. The final choice is based on location, needs, corporate culture and budget.

If your company requires in-person meetings and likes to work with partners under similar rules and regulations, a local development partner makes sense.

On the other hand, if you want to stretch your budget without compromising on quality, an offshore development company can help you with due diligence.

Offshore Software Development Services: Rates, Countries & Everything You Need To Know About

Thinking of outsourcing experienced staff to India? For more than 20 years, we have been a trusted partner for start-ups and global e-commerce organizations, with more than ten years of experience in the design, development and testing of applications for internationally renowned companies.

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Isabella Curiel

Keap is a CRM for small businesses that want to automate their sales and marketing processes. Its features are valuable for colleges that need to manage their enrollment and admission cycles.

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