Are you also confused between hiring in-house developers or setting an (ODC) offshore development center? This article will help you clear the dilemma.
The main aim of a company is to implement the processes in an efficient manner to achieve business objectives. If done right, this results in satisfactory and happy clients.
Regardless of a lot of efforts being put by an organization to reach its goals, the disruptive transformation of today’s IT industry makes maintaining competitiveness a challenge. This is where the offshore development center plays a major role.
Offshore software development offers an opportunity to entrepreneurs, looking for software development solutions from a different geographical location. There are some reasons that offer specialized development and diverse talent at a budget-friendly rate. And this is just one benefit of working with an offshore team.
Hiring in-house Developers or Offshoring: The Difference
Here are the different factors to consider that will help you make the right decision:
Cost is a decisive factor for every organization. Companies take into account what they require and how much they can accord. Based on that, the cost factor is broken down into subcategories.
1. Hiring Cost
Hiring a full-time software developer may make a hole in your pocket. In addition, it requires a lot of time, resources and mind space. Your company will first look for Job portals to post a job description (JD).
After going through hundreds of CVs, some of them are shortlisted. Then interviews take place. This clearly means that there is a lot that goes into hiring and finalizing an in-house developer. Other additional costs like a yearly bonus, allowance, medical facilities and overhead cost also creep in when hiring developers in your company.
On the other side, selecting an offshore development company is the only process that takes time. It is easier to review the proposals in response to the scope of work and finalize it. You can quickly assess the outsourcing company and then hire accordingly. The hiring cost is comparatively less and benefits are more.
2. Management Cost
In-house developer hiring requires all the benefits that you provide to a full-time employee. Your company has to pay for the medical, office space, taxes, traveling and other allowances.
Outsourcing needs less management costs. This is because there is a project manager assigned to the team who takes care of the overall coordination. It also eliminates the need for laptop/desktop, office space, and other allowances.
3. Training Cost
Settling down of an in-house employee takes from one to 3 months. They need to understand the work environment and adapt it accordingly. Your team has to schedule seminars and knowledge transfer sessions to make them understand the project. Only then will they start implementing and working on it.
Although knowledge transfer is also necessary in the case of offshore developers they start working within 2-3 days or a week after thoroughly understanding the project, objectives, and concepts. There is no training cost involved with offshore developers.
4. Development Cost
While hiring developers in your company it is important to provide office space, workstation, desktop/laptop, etc. And this leads to additional expenses.
The offshore development companies already possess the equipment required for the development process. The remote developers have their own laptops and work in their own space as per their convenience. You save a lot by outsourcing your tasks.
5. Skills and Experience
Developers who are niche experts are hired at a high salary. Well, you hire in-house developers for full-time irrespective of the degree of work requirement.
But when you outsource, you get similar services at a low cost. Also, you can hire developers for a specific duration to test the waters. Offshoring gives you the flexibility to manage your resources while giving you the opportunity to achieve your requirements as per your investment.
6. Service cost
The average cost of hiring a mobile app developer in the US is $107,000 annually.
When you hire iOS developers from the US, the development cost is $100-$150/hour. And $120-$170 an hour for Android developers. These are huge amounts specifically for getting expert development services.
On the other hand, you can choose from the flexible engagement model when you collaborate with an outsourcing development agency as the experienced developers know how to bring quality services. For example, the average hourly cost of an Indian iOS developer is $18-$40and $20- $35 for Android app developers. It is evident that this is very less compared to the US.
7. Efficiency & Performance
Hiring developers in-house means that you have to pay a fixed salary on a monthly basis. Regardless of the performance monthly salary has to be incremented in the employee’s account.
But when you hire an offshore IT company, you only pay for high-quality services. If there is a non-satisfaction of work, you can ask the company to make the changes. Also, outsourcing doesn’t have overhead expenses of maintaining the in-house resource.
Some developers are highly educated from top universities while others have a unique passion for coding. A few have years of experience while some are efficient in tackling algorithms.
This is the reason why a company wants to pre-plan their requirements and set a budget before they hire. After this, they are in a good position to make a decision.
Here are the factors to consider:
In-house developers that you hire give you a limited choice. Obviously, it doesn’t make sense to hire a full-time professional for all the requirements and technologies (as there may be a possibility that the project is short-term). An individual has only a specific set of skills and he has to keep himself updated whenever a new technology creeps in. Only a few experts possess this talent and it is challenging to predict which one does.
Outsourcing the project to the top outsourcing company means getting access to the best of skills whether technical or non-technical. You require a Flutter Developer of senior level, they will have it. Java developer? Immediately available. No matter what IT service you require and what developer you look forward to, the agency will provide you with the best of talent having top-notch skills. Junior developers will take care of tasks that require less experience while senior developers will tackle complex issues.
2. Access to Talent
Software development companies offer outsourcing services hiring the best developers. They imbibe every kind of talent and skill. Whenever you need specialized service whether it is for flutter development, java app development, etc., outsourcing is the key.
All the skills are at your disposal while hiring developers. This is not the case with in-house developers. Plus, it becomes very difficult to hire an in-house professional every now and then whenever a new project comes.
In-house developers you hire are confined to a certain skill set and have knowledge about certain platforms. When your business doesn’t move ahead with the industry’s pace, the competition gets ahead. No one wants that to happen.
Offshore development company’s developers, on the other hand, have more knowledge. This is because they have worked with different companies across the globe and on various verticals. The developers keep up with technology so that they can help clients fulfill their expectations.
When you plan to grow your team, you have to follow all the hiring and recruitment processes. Even for a single hire, the complete process is repeated. This is very time-consuming. There are situations when you have to start the project as soon as possible because the committed deadline is short. And in this case, having an offshore development center is the best option.
Offshoring and scalability go hand in hand. Implementing an offshore business model clearly means that companies can build the required team from a scalable professional pool. This helps in supporting their clients whenever they need it. You can scale up (increase the team) or scale down (reduce the number of developers) when partnering with outsourcing companies as per your requirement.
Outsourcing remote team either has the right person or knows where to get one. You can hire as many resources as you want that too hassle-free.
1. Workload sharing
You know every member of the in-house team. You are aware of the skillset, strengths, and weaknesses. This makes it easy for you to allocate them tasks in the right way. Workload sharing is an issue because the office timings are confined. Whenever a developer does overtime and works till late at night, you have to pay extra. And this leads to a high development cost.
When you have an offshore development team, it is the job of the project manager to manage all the tasks and make sure everything is falling in place. Even if the team works overtime, they are doing it from the comfort of their place. No matter how short the deadline is, when the remote team has committed the delivery, they will strive hard to complete the project on time.
Do you think you have more quality control when the team is in-house? Well, that is true but you have equal control over your project even when you are outsourcing. For this, it is important that you follow quality standards. Also, transparent communication matters which is easier in the case of hired developers.
When you hire an offshore development team, taking the help of the right collaboration tools is very important. Basecamp, Trello, JIRA, Slack, and Skype are a few tools that make sure that the complete process is transparent and you remain in sync with your virtual team.
3. Experienced Quality Assurance
There is a probability that your in-house team gets stuck in a problem and they are unable to resolve the issue. The reason behind this is maybe they are inexperienced quality analysts.
Having a better industry exposure, the offshore development company knows how to tackle issues. It is important to take the help of experienced QA so that you overcome all the challenges and reap benefits.
When ODC Proves to be the Best Solution?
The whole world has already adopted an agile methodology. The blueprint of the product or service is created at the client’s brief, research and development phase, and final beta testing. This clearly means that the development cost becomes very high and this may be unfeasible for certain companies especially startups.
ODC is a win-win situation for businesses. Startups, medium-scale and established companies can take the privilege of hiring a dedicated development team for their product/service development, testing, delivery, and maintenance.
Offshore development centers are specific in the runtime environment. This is the reason why it is easy for them to tackle challenges where various skills are demanded.
Offshore development center has a multidisciplinary team that brings to you additional cost savings while offering a diverse range of services to be delivered in a centralized manner.
Giants like Dell, Samsung, Microsoft, and Amazon have already launched Offshore Development Centers in India. This is because Indian developers specialize in the IT niche. When are you making one?
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A reliable offshore development company like Your Team In India is a one-stop-shop solution provider. This means you get comprehensive services at a single place.
Imagine that you have to hire a competent mobile app developer, QA and web designer. How much time will it take to publish a job posting for all the vacancies, shortlist CVs, conduct interviews and then hire the perfect individual? Neither is the process time-saving nor cost-friendly. There is a reason why offshore development companies are a blessing to the IT industry and it has a bright future in the coming years.