What is Offshore Software Development: Essence and Types
Transferring a project (wholly or partially) from a client to a third-party software development vendor is known as offshore development. But bear in mind that if you want to outsource the entire building process, you should engage with a software development company rather than a freelancer. The truth is, a freelancer may be an expert in one or several related fields (e.g., mobile or web development, etc.). A mobile app, for example, requires at least one professional designer, QA engineer, and software developer. You can find an IT vendor for collaboration based on one of three typical methods of outsourcing service delivery: onshore, nearshore, or offshore. Right now, we’ll tell you more about each of them.
Common Types of IT Sourcing
The Onshore Outsourcing
The term “onshore” (or “domestic”) outsourcing refers to a vendor who is based in the same country as you. This proximity is an important aspect in onshore outsourcing because it eliminates linguistic and cultural barriers, as well as time zone differences (which contrasts sharply with development offshore software). Easy-to-organize live meetings can help to address difficulties more quickly and efficiently. You may also monitor the development workflow of your partner with less effort and time. However, keep in mind that this technique is only appropriate if money isn’t an issue. Onshore outsourcing is often more expensive due to higher tax rates and worker pay. You may potentially encounter talent scarcity in the field of technology.
The Nearshore Outsourcing
Your contractor will be located in a neighboring country if you use this outsourcing approach. It also provides benefits that are practically identical to those of the previous outsourcing type: because of the small-time difference (or even the absence of one), you can simply monitor your vendor’s operations and address any issues that arise. There may also be no substantial cultural or language barriers, allowing you and your contractor to focus entirely on the project and complete it in the shortest period possible. However, you should be aware that nearshoring is a high-cost option that should not be chosen if you are on a limited budget.
The Offshore Outsourcing
When it comes to outsourcing software development, you can expect the company’s headquarters to be located far away from your location, such as in Eastern Europe or Asia. With flexible and competitive price sets and labor resources, they are the most preferred outsourcing locations. When outsourcing a project to an offshore development team, keep the following in mind. A considerable time zone difference can impair the development workflow due to the geographic distance between you and your offshore software development vendor. You may also encounter significant cultural and linguistic hurdles, but all of these issues are easily resolved if properly managed, as we’ll detail later. In this sense, the outsourcing model is mostly determined by your location and the location of the company with whom you partner. If you’re from the United States and outsource to Ukraine, for example, you’ll need to apply for offshore software development services because the time zones are different.
When to Apply to an Offshore Development Vendor?
To stay competitive in a fluid market, the companies have to implement the latest IT technologies in their workflows and products. But, if you’ve got no experience in the tech sphere, an offshore outsourcing software development company can help you. What are other situations when you’re able to outsource product creation?
When you’re on a budget
Engaging in-house software developers is high-priced for SMBs or startups with limited funds. Recruiting skilled staff usually costs a lot of money; thus, the financial problem is critical when deciding whether to outsource software creation or not. The offshore dev process is an economically rational option that allows you to work on your project with experienced software developers while remaining within your budget.
When your business requires flexibility
Working with offshore IT staff, you have a right to wait for fulfilling contractual obligations that can be changed by agreement of both parties. Compared to recruiting a full-time software development engineer for a short-term project, this makes much more sense. When working with an offshore development software team, your responsibility to them terminates after the project is over.
When you need to improve the quality of your services
The fundamental values of a business should be quality and innovation. They provide customers good value for their money, but the company is ahead of the competition and helps it win the market. If you see that the quality of your goods and services is decreasing, now is the greatest time to explore hiring offshore software engineers.
We named only the most common reasons to use offshore software engineering, but there are more than three ones. You may add something to this list when you start working with an offshore outsourcing team and see how convenient it is. Now we’ll keep discussing offshore software outsourcing advantages and challenges.
