Which are the Top Locations to Set Up an Offshore Development Center?

The trend of moving the business towards offshore operations is gaining momentum.

Hunting down the new opportunities to extend services, cut-down operational costs and gaining exposure is a significant part of a business. And offshore development has the potential to fulfill this purpose.

Why Offshore Development is Best?

  1. It’s a Budget-Friendly Option: When you choose to develop your product offshore, you can bring down your development cost up to 60%. You can save this capital in terms of overhead salaries, employee benefits, and infrastructure.
  2. Provides Access to a Diverse Talent Pool: Getting access to a large talent pool of developers is one of the most important reasons why companies choose offshore development. Basically, it gives you the freedom to hire world-class developers having years of experience working in your industry.
  3. Innovation & Quality: Offshore teams are focused on developing innovative solutions by taking on new challenges. Moreover, the expertise in working with similar industries around the globe helps your offshore developers to add more value to your idea. Isn’t that great?

Offshore development is undoubtedly a great business strategy. However, to make your outsourcing experience blissful, it’s essential to choose the best team of programmers/developers. Therefore, we have come up with the list of top 4 locations that are best for IT offshore outsourcing.

Top Outsourcing Countries:

Top Outsourcing Countries to Set up an Offshore Development Center

India

India holds a strong impression as one of the most preferred offshoring destinations in the world. Let’s find out why should you hire offshore developers from India:

  • Growth in Technology Industry: India has seen a drastic growth of the business & technology service industry from $4 billion to $58 billion over the past decade.
  • A Huge Talent Pool of Professionals: India has a population of 1.35 billion and 3.1 million graduates, which remains unmatched.
  • Cost-Savings: NASSCOM states that companies outsourcing in India save up to 60% of their cost.
  • Government Policies: The Information and Technology Act, 2000 emphasizes that if there is a breach of the law, it will result in financial penalties and imprisonment.
  • Great Exposure: National Outsourcing Association in the Annual Offshore Outsourcing Conference reflected how International companies got online presence when they chose Indian development teams.

Recommended Read: Why Should You Elect India for Mobile App Technology?

China

Having the highest population in the world, China is one of the best offshore development countries. In today’s business world, outsourcing has gone mainstream in China. Additionally, the market is growing 30% every single year and there are plenty of opportunities for innovations. 

Key Strengths of China:

  • In 2016, service outsourcing created 1.21 million new jobs in China, with a total of 8.6 million people working in the industry.
  • Accounting to 33 percent of the global market, China is the second-largest outsourcing provider in the world.
  • Also, China has 9 of the world’s 20 biggest tech companies. Alibaba, Tencent, Baidu & Xiaomi are few of the top tech companies.
Kleiner Perkins Caufield & Byers Annual Report
Source – Google Images
  • To support the IT outsourcing, the Chinese Government has designated 20 cities, including Beijing, Shanghai, Dalian, Shenzhen, Tianjin, Hangzhou, etc. These cities are home to the top IT outsourcing companies.
  • According to A.T Kearney Global Services Location Index, China is the second-best outsourcing location based on financial attractiveness, people skills, and availability, and business environment scores.

Poland

Poland is one of the top outsourcing countries & home to the third most skilled programmers in this world. The developers are the best when it comes to Java assessments and listed in the top-five for the mainstream programming languages like Python, Shell, and Ruby.

Warsaw and Krakow are two of the largest cities of Python which are ranked in the top 50 cities on the Tholons Globalization Index.

Benefits to Outsource to Poland:

  • Stable and Healthy Economy: In the 2012 edition of Ernst and Young, Poland was 7th across the globe in terms of investment and attractiveness. During 1990 and 2015, Poland has the biggest GDP growth per capita among the European countries which increased over 7 times.
  • Skilled Workforce: Poland developers are among the best in the world. As per HackerRank, They rank 3rd in success terms at a programming content.
  • Dynamically Growing IT Market: The IT market in Poland grows at a rate of 5-0% a year. There have also been a few major changes with companies like CD Project.
  • The Popularity of Agile Approach & Methodologies: If you want an experienced and talented team that has knowledge and expertise, the Polish outsourcing team is the best. The country is also home to some of the most important Agile events.
  • Best Value for Money: Outsourcing is not choosing the lowest alternative but the one that can provide value for money.
  • Work Smartly & Effectively: Most outsourcing teams are familiar with the best project management practices. They understand the importance of scrum so they coordinate with the clients to deliver bets productivity during the complete process. 

Having a wide overview of projects, they focus on quality, performance, design and user experience. The team of developers strives hard to develop the best product development practices contributing to the most efficient delivery.

Product Launch Process

Having a wide overview of projects, they focus on quality, performance, design and user experience. The team of developers strives hard to develop the best product development practices contributing to the most efficient delivery.

Philippines

Filipino youth is expected to contribute 72% of the global workforce by 2025. The IT industry is on the rise and the country’s tech firms are capable of competing with many global IT firms. In fact, the Philippines is the 5th largest country in terms of English speaking population.

Why Should You Consider Offshore Development?

  • The Philippines is an outsourcing empire that is estimated at $23 billion last year.
  • The literacy rate of the Philippines is 96.5%.
  • In 2016, Manila took second place as the largest outsourcing city globally.
  • According to EF – EPI Stats, the Philippines ranks 3rd in Asia for English proficiency.
  • The Philippines has a deep connection with western culture. Being proficient in English and having cultural compatibility, the Philippines is undoubtedly a good location for IT outsourcing.
  • The country’s IT-related spending is estimated to cross over $7 billion approximately in 2022.

Few More Reasons:

  • Excellent Work Ethics: Many consider Filipino offshore development teams because of their excellent work ethics, values, integrity, trustworthiness and service-oriented mindset. The integrity is valued, so is the time invested by companies that rely on Philippines companies. The professionals understand that it is their responsibility to deliver exceptional output as they place high regard on professionalism.
  • Government Support and Favorable Policies: The Philippines government has taken an active role in creating a safe and secure outsourcing environment for foreign countries. Ranging from low-cost alternatives to favorable policies for the new companies, the government is doing every bit to fuel the outsourcing industry at every step.
  • Cross-Sector Experience: The industries in the Philippines continue to diversify. Today, there is a wide range of sectors in which the service offerings are inclusive of banking, legal, creative, financial, industrial, etc.

Ukraine

Over 100 top global telecom, e-commerce, software development, and gaming companies have offices in Ukraine. Some of them are Ericsson, Grammarly, Magento & Crytek. As a matter of fact, Ukraine’s GDP has grown from 0.06% to 3.3% since 2013 and currently stands at 5%. 

  • According to LinkedIn, the highest number of the Ukraine engineer’s specialization in mainstream technologies is C, JavaSCript, .NET, etc.
  • The outsourcing service providers in Ukraine offer competitive pricing. Therefore, you can expect 40% to 60% of expense reduction in the development cost.
  • Ukrainian professionals have deep technical and domain expertise within a broad spectrum of value-added services.
  • In fact, Ukraine has 2 hours time zone difference from the UK, which makes it easy to communicate with your team (in your normal working hours).

Romania

Romania developers are ranked number 20 in the world in the HackerRank programming tests. The country has invested in the infrastructure and this has propelled it to take 18th place on the A.T. Kearney Global Services Index. The rank is given based on the attractiveness, skill level, and availability and environment.

Romania is in continuous competition with Russia, Ukraine, Bulgaria and Poland for grabbing companies and offering cost-effective solutions. It is presently consider4ed as one of the best offshore countries in Europe.

Why Romania is One of the Top Outsourcing Countries?

  • Comprehensive Solutions: Adopting the requirements of the clients, the Romania outsourcing companies have moved a step ahead in the service offer. From hourly managed projects to complete solutions, Romania developers give cost-effective solutions.
  • Multilingual Talent Pool: The inclination of Romanians towards different languages is well-known. English, French, Italian, Spanish and German are the most frequently spoken languages. So, no matter what type of services the client company provides, they strive to deliver the best solutions.
  • The Right Price-quality Ratio: It is not the lowest cost destination but the country has a capable labor force with the technical and soft skill proficiency making the country cost-competitive. Investors have already labeled Romania as the “outsourcing valley” for ITO, BPO, software development, and shared services.
  • A pool of Passionate Developers: Unlike other cultures, Romania has skilled remote developers that follow a career in IT which is doing it from passion and vocation. They have technical expertise, organized procedures, professionals in bigger projects or worked in a well-defined structure in the past. Proposal quality and financial reports. So the return is a perfect balance between the cost and quality.
  • Understanding the Requirements: The major issue that comes while outsourcing is that the virtual outsourcing team is the inability to understand the project requirements. One reason may be poor communication and workload. Also, foreign language proficiency is an issue is the project is handled by an inexperienced team of professionals. This is something you will never find through Romania’s companies.

Egypt

Egypt is one of the global competitors in the outsourcing world. The country is availing the fundamentals from the abundant diverse talent pool, favorable cost, and pivotal geographical location.

Why Outsource to Egypt?

  • A Change in Operations: Change is a good thing and when there are experts who are taking care of the IT tasks, which can be better. Outsourcing to the country is a great option to make the work process easier to handle.
  • Synchronized Timezone: Time is very important when it comes to business and profitability. Outsourcing complete projects or certain tasks is gaining maximum importance among different companies across the globe. The timezone different is the added advantage which makes it a preferable choice for different countries.

Checklist to Choose an Offshore Development Center

If you are looking for quality services, here is a checklist that will help you select the right outsourcing service provider:

  • Skills Development: While you are choosing the offshore development service provider, you should have a clear idea of which country offers the best quality services that too at pocket-friendly prices. 
  • Work History: How will you know you are having a partnership with a good company? When deciding on your ODC, it is advisable that you contact previous clients and have a word with them. Reviews from clients are always invaluable. With this, you get more knowledge about the company, understand their working process and discover quality services. This helps in making an informed decision.
  • Good communication: Look for a company where you won’t have to deal with language barriers. Countries like India, Ukraine, the Philippines, etc. are familiar in English. Plus, have a budget-friendly offshore development model. This will help in less miscommunication to occur between client & vendor.
  • Security: You have to be very sure that the company is reliable because you may have to keep some confidential information with them.

Planning to Set Up an Offshore Development Center?

This is the right time to collaborate with an offshore development center no matter what is the size of your company. India is the best offshore development center so making an informed decision will help you get the best value.

Before you finalize to work with an offshore development company, it is very important to have a relevant business case in order to justify the ODC. It is important to have an administrator who manages all the teams. Indeed, having a team from scratch is the best thing. This way you can mold your team to ensure that they comply with the requirements of the clients and deliver desired skills.

There are Basically Two Ways to Move Ahead:

  • One is to find an offshore development company.
  • And the second is to do it yourself.

Offshore Development Companies are like guides who help provide resources while handling administrative details like taxes, office area, resources, and complying law. They understand your business and then start.

On the other hand, doing it yourself involves defining the objective, creating a plan, hire resources for the team and maintain the collaboration. Furthermore, taking an informed decision will help get you the best value.

If you are looking for a reliable outsourcing service provider in India, look no further. Just drop your requirements at info@yourteaminindia.com and our team will get in touch with you shortly.

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