In recent years, the IT industry has witnessed massive transformation in its operations and one such major change is Offshore software development. Many companies and enterprises now prefer offshore software development as it makes the development of software from scratch easier and without any hassle of tight deadlines, staff management, tech nitty gritty, etc. With offshore development, you are not required to emphasis a lot of your attention on the project development, instead, you can focus on other important things when you outsource your duties to specialists.
The recent statistics of offshore software development show that this approach is gaining high popularity these days. As per a report of Report Linker, the worldwide IT outsourcing market will make a revenue of about $425.19 billion within the period of 2021-26. On the other side, Statista indicates that the IT consultation and implementation market will reach a valuation of $92.95 billion in 2029. All these statistics are a reflection of the popularity of offshore software development.
In this article, we will go through multiple aspects of offshore software development and understand how this model can benefit your business. We will also learn how to select the right offshore services provider, and much more. But first, let’s understand the basics.
What is Offshore Software Development?
In the offshore software development model, you transfer the responsibilities of your software development to a third-party software development company located in any other country, generally too far from your location, and at a much lower cost of development. The offshore software development method gives businesses access to a wider pool of talent situated anywhere on earth and at much lower costs.
The businesses are no longer required to hire in-house resources, maintain an IT infrastructure, lease an office building to develop software and other IT projects with offshore software development. The businesses also don’t need to worry about the training of employees, insurance, leaves, and other benefits. They just need to share their requirements with a software development company and they will take care of the rest.
If you are a US-based business, you may find the cost of development in the US way too high. However, you can get the same quality of software development at much lower costs in Asian countries like India, Singapore, and Malaysia. Thus, offshore software development has become a preferred choice even for large enterprises.
What IT Services can be outsourced?
There are numerous services which are being outsourced in the IT world. It is not just limited to traditional software development but businesses are now outsourcing the development of almost every touchpoint by which users can interact with their brands. Here are the main services that you can outsource to an IT outsourcing company:
· Mobile App Development:
Offshore mobile app development is trending these days as companies now don’t want to hire an in-house mobile app development team for a limited period of time. Instead, they prefer to outsource the requirements to a reputed mobile app development company in India, or any other country.
· Web Development Services:
The websites are still the first channel that user checks after interacting with your brand. Thus, it is essential to develop flawless websites with captivating UI and UX. By outsourcing to the right web development company, you can get website development at reasonable costs but with high quality.
· UI and UX design:
The UI and UX decide the success of any application. Users always prefer easy-to-use applications with a simple UI. By outsourcing to the specialists of UI and UX, you don’t need to brainstorm about the flow of your application. Moreover, you will be able to focus on other business issues.
· QA Services:
No software or application gets completed by a developer but instead it requires thorough testing to ensure there aren’t any bugs or errors. Even the best programmer can make mistakes, that’s why the QA phase is essential in any software development project. You can get the best QA services from the same company that develops your application or software.
· Cloud Infrastructure Management:
You can also maintain your cloud infrastructure like AWS, Microsoft Azure, or Google Cloud Platform through offshore IT vendors. The cloud infrastructure is always complicated, that’s why it is best to hire specialists to manage the cloud.
· Maintenance Services:
Whether it is software, mobile applications, web applications, or anything else, maintenance services are always required. It is always recommended to hire an IT company that can maintain your IT projects in terms of performance, scalability, and security.
When to hire an Offshore Development Company?
There will be a plethora of situations in which it would be best to go for offshore development instead of hiring an in-house team. Here are some of the cases related to our existing clients that chose us as an offshore development company:
The reliable IT talent of every domain is not present everywhere. That’s why a lot of our clients prefer to go for offshore development services instead of wasting time finding the resources in their own location. They got access to a highly talented team that is being managed by the 3rd party company which they chose for the development. This approach doesn’t just give them the required results but also they found the development quite affordable.
· Specialized Roles:
It is not possible to hire resource of each tech as an in-house developer. There are certain specialized roles which are required for a limited period of time and offshore development seems to be the wise approach.
· Complex Projects:
There are many US and UK-based IT companies who prefer to outsource their complex IT projects to Indian developers as they trust the quality of the Indian IT companies’ services plus the cost is significantly less. Offshore development gives high flexibility to these companies as they don’t need to put a lot of effort into complex projects.
· Tight Deadlines:
In the IT world, deadlines are always sacrosanct. It can be a matter of success or failure if the right things aren’t executed at the right time. The offshore development companies build their team of professional developers who leave no stone unturned to meet the client deadlines. The project coordinators or project managers also provide regular updates to the clients about the projects’ progress so that everyone is on the same page.
· Support and Consulting:
Sometimes the requirement isn’t for direct IT development of a software project, but the client wants consultation regarding a requirement. As a top-notch IT development company, we also provide consultation services to our clients regarding their requirements.
· Cost Efficiency:
This is the biggest reason why many companies now prefer to outsource their requirements to third-party IT companies. Building an in-house development team is always a costly affair. It also requires many overhead costs like hiring, training, onboarding, leaves, insurance, IT infrastructure, etc. With offshore development services, you are only required to pay for the work done.
How to Choose The Right Offshore Development Company?
There are hundreds of offshore development companies in the market and everyone boasts they are the best. In such a case, how to find the right one? Here are the important parameters:
1. Experience:
Check the experience of the company. An experience of 20+ years demonstrates high reliability, professionalism, high-quality services, and much more. A vast experience of the company ensures that the company will not leave a single stone unturned to deliver what it promised else it will put a stigma on its reputation.
2. Previous Projects:
Check the previous projects of the company. Generally, it is present on the portfolio page of the company’s website. Check if the company has previous experience in a project similar to your requirements. It is a good sign if the company has previously worked on similar projects. It indicates that the developers are aware of the potential issues, and understand the required functionalities in a better way and thus it will take comparatively less time for the development.
3. Team Composition:
You must ensure that the chosen development company has a team structure which is required for your project. A generic team composition consists of a designer, frontend developer, backend developer, QA engineer, Project coordinator, or project manager. It can vary as per the technology i.e. in Mean Stack there will be an Angular developer and so on.
4. Communication:
The selected company should be able to provide you the regular updates on the projects. It doesn’t matter if the company is situated in any other time zone because nowadays companies schedule their working hours as per the client’s requirements. The company must be able to communicate on your preferred medium.
5. Protection of your data and idea:
It is essential to safeguard your intellectual property. You must check the company’s approach to data security and confidentiality. The company must sign the Non-Disclosure Agreement and should have a seamless record in terms of data protection and confidentiality.
Benefits of Offshore Software Development:
There are a lot of benefits of offshore software development. When you select the right offshore development partner, you can meet endless possibilities. Here are the major benefits of partnering with an offshore software development company:
1. Access to top talent located anywhere:
In the IT industry, getting the right IT talent isn’t an easy task but the offshore development companies make it easy for you. You can leverage the best quality talent working for you at affordable rates.
2. Optimized Workloads:
You can exonerate your existing team from the complex project requirements and focus on more productive tasks. The chosen 3rd party IT company will take care of the rest.
3. Industry Expertise:
The in-house developers may not have the required experience and even you don’t have technical expertise. In such a case, it is highly difficult to meet the requirements. However, with offshore development companies having vast experience, they ensure that things are done meticulously with no room for error. They have expertise in several industries including yours.
4. Access to latest technologies:
The offshore development companies keep updating themselves with the latest technologies evolving across the world. Thus, you get access to technologies like artificial intelligence, augmented reality, virtual reality, OCR, Web 3.0, etc. by not paying any hefty amount.
5. Faster launch times:
You can ask for any requirement be it mobile development, web app development, or anything else, the chosen company will start working on it right away. They will develop your product in less time and your product will be in the market before your competitors.
6. Low Cost:
In-house development is always a costly affair. With offshore development services, you don’t just get the right talent at reasonable costs but also you pay for the work done and not for the idle time.
How much does it cost to hire an offshore development company?
The cost of hiring an offshore development company depends upon multiple factors such as tech stack, experience, geographical location, and others. Below is the average rate of developers located in different regions:
| Expertise | USA | Latin America | Europe | Asia |
| DevOps | $120-$240/hr | $35-$55/hr | $55-$80/hr | $20-$40/hr |
| Business Analyst | $100-$200/hr | $40-$50/hr | $50-$60/hr | $30-$40/hr |
| Project Manager | $130-$230/hr | $55-$65/hr | $45-$70/hr | $35-$50/hr |
| QA Engineer | $75-$170/hr | $30-$50/hr | $45-$60/hr | $15-$35/hr |
| Software Developer | $105-$170/hr | $35-$60/hr | $55-$70/hr | $18-$42/hr |
| UI/UX designer | $75-$160/hr | $40-$50/hr | $55-$75/hr | $25-$35/hr |
| Solution Architect | $190-$290/hr | $60-$70/hr | $50-$75/hr | $35-$50/hr |
It is clearly observable that in Asia you get the services at a much cheaper cost but without any compromise in the quality. In countries like India, Malaysia, Singapore, and others, there are many promising offshore development companies who can swiftly meet your requirements.
Wrapping Up:
In this article, we have gone through various aspects of offshore software development. There are a lot of benefits of offshore development which is making it a trending choice in the IT landscape. At Ebizneeds, the best software development company in India, we have a vast team of IT experts in UI/UX development, frontend development, backend development, QA, and others. Our team can provide you with the best IT services. Let us know your requirements.
Naveen Khanna is the CEO of eBizneeds, a company renowned for its bespoke web and mobile app development. By delivering high-end modern solutions all over the globe, Naveen takes pleasure in sharing his rich experiences and views on emerging technological trends. He has worked in many domains, from education, entertainment, banking, manufacturing, healthcare, and real estate, sharing rich experience in delivering innovative solutions.
