Now more than ever, companies are looking for ways to achieve their software, application, and website development goals without breaking the bank. Business owners are also constantly trying to find better ways to get projects done while boosting productivity levels and lowering overall costs. Fortunately, today’s technology allows companies to work with teams and developers from all over the world. You can take advantage of offshore outsourcing for your business.
Most companies don’t have the time, resources, or budget to build a team of in-house development experts for their software and website needs unless they are already in the IT sector themselves. It is where the power of working with an offshore development company like BairesDev comes in. Collaborating with such a partner can help companies make the process of developing and maintaining software an expedited, less stressful, and overall streamlined experience.
What is Offshore Outsourcing?
General software outsourcing is the practice of hiring third-party companies or individual employees to take care of certain tasks or projects relating to software, website, and application development. When the outsourced development company is in a foreign country, this is called offshore outsourcing, as the country is typically located on another continent as well.
There are two other types of outsourcing as well: nearshore and onshore outsourcing. Both of these types depend on the location of the third-party company. Nearshore outsourcing is very similar to offshoring, but the software development company is normally located in the same timezone as the hiring organization. Sometimes these companies are even located in neighboring countries. Onshore outsourcing is the practice of hiring a company within the same country.
Each type of outsourcing comes with its own benefits and drawbacks. Offshore software development is the best way to help companies reduce costs and get the most out of their budgets while still receiving high-quality work.
The Advantages of Offshore Outsourcing
Hiring an offshore software development company is beneficial for organizations for a number of reasons. From lower costs and reduced time to market to less stress for in-house teams, offshoring is a great way for organizations to accomplish their goals within finite budgets and timeframes.
The advantages of offshore outsourcing or the benefits of hiring an offshore software development company include:
When businesses need a way to complete their development projects and simply don’t have the resources on staff, the virtual team members of an offshoring development company help lower overall costs while providing high-quality services.
When compared to hiring full-time employees in-house, offshoring reduces costs by eliminating the need for additional equipment, constant salaries, and benefits such as health insurance and 401ks. It also means there aren’t additional fees associated with recruiting and training new employees either.
Due to the cost of living in other countries where offshoring typically takes place, companies usually charge a lower hourly rate than an in-house, onshore, or nearshore team would. It provides organizations with access to talent that they need while still reducing costs.
Businesses sometimes experience peaks and lulls in development work. One month, there may not be any development projects going on while another requires a full team of expert developers, testers, and designers to get the job done.
When hiring in-house teams, scalability is difficult as scaling down means laying off employees, and scaling up involves going through the time-consuming and costly process of hiring new employees. With offshore outsourcing, organizations scale their teams up and down as their business calls for it without any problems.
While some companies find the idea of working with a virtual team in another country and time zone to be a bit scary, it’s a very beneficial practice. It’s always a good idea to have at least a few hours of overlapped working time with the outsourced team to align priorities, get status reports, and address issues, but the outsourced team’s time zone is also a big help. While the in-house team rests, the offshored team works, which allows for tasks to get done outside of “normal” onshore business hours and creates (nearly) a 24-hour workflow.
Access to Niche Skillsets
Offshore software development companies hire the most skilled individuals in their fields as well as those with niche or unique skillsets to help accommodate the needs of their customers. These companies provide businesses with access to a wide variety of skills, knowledge of the latest and greatest technologies, and niche techs. To recreate this amount of talent and variety of skills within a single office would take an exorbitant amount of time and money.
Offshore software development companies shorten project timelines, offer a wide variety of skills and knowledge bases, reduce costs, and provide organizations with many other benefits. When compared to nearshore and onshore outsourcing, offshore also helps lower costs even further and creates a nearly 24-hour work cycle for maximum efficiency.
With the continual increase in demand for software development worldwide, many companies choose to partner with an offshore provider to help set their businesses up for success.