Debunking Top 5 Myths of Offshore Development Center (ODC)

Debunking Top 5 Myths of Offshore Development Center (ODC)

Quick Summary:
Offshore development centers are a popular option for software development outsourcing, but myths and misconceptions can hinder adoption. This article debunks common myths of offshore development center and provides insights to help businesses make informed decisions.

The offshore software development sector has grown at a breakneck pace in recent years. As a result, companies seek ways to scale up their businesses sustainably, and investing in offshore development teams has become a popular option. As a result, companies that partner with offshore software development companies gain access to a large talent pool, more cost-effective pricing, and huge growth potential.

Despite this, many people have started acquiring faith in the myths of offshore development center.

Building a virtual team in another country may sound daunting, but it doesn't have to be so in today's hyper-connected world. While some people have had a horrible first-hand experience (typically with outsourcing rather than offshoring), others have heard exaggerated second-hand and third-hand horror stories about security breaches, failed projects, and poor communication.

It has resulted in many negative headlines and myths about offshoring, causing some organizations to miss out on enormous performance and growth potential. So let us debunk a few prevalent myths of offshore development center right now as professionals in developing effective offshore teams.

Key Takeaways
  • Offshore development centers can provide a cost-effective way for businesses to access skilled software development talent and stay competitive in a rapidly-evolving market.
  • Common myths and misconceptions surrounding offshore development centers can create unnecessary fears and uncertainty for businesses looking to outsource their software development needs.
  • By separating fact from fiction and understanding the reality of offshore development centers, businesses can make informed decisions and take advantage of the many benefits that outsourcing can offer.
  • Some key considerations for businesses when selecting an offshore development center include factors such as language proficiency, cultural fit, technical expertise, and project management capabilities.

The 5 Top Misconceptions & Myths of Offshore Development Centers

1. The terms "outsourcing" and "offshoring" are synonymous.

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When reading publications concerning offshore software development, the terms "offshoring" and "outsourcing" are interchanged frequently. However, outsourcing and offshore are, in fact, two completely different notions.

Outsourcing involves hiring outside contractors to provide capacity that you can't meet on your own. For example, if a corporation takes on too much work, it can outsource the project to a third-party provider for the duration. It has a few advantages, most noticeable being flexibility, and low cost, but it also exposes the company to significant dangers.

Outsourcing can result in a loss of ownership, hidden costs, and a lack of customer focus, to name a few issues. The simple truth is that you usually get what you pay for if you go with the cheapest option, you will not receive the most satisfactory outcomes.

Offshoring is not the same as outsourcing. Companies create a remote software development team (which they fully own) to supplement their existing staff with experienced specialists. Offshoring to younger economies like India allows corporations to obtain high-class experts at a lesser cost than their home country.

2. The goal of offshore software development is to cut expenses.

A common myth or misconception about offshore development centers is that the primary goal of forming a remote team is to be as economical as possible.

Offshoring to nations like India and Ukraine is unquestionably cost-effective: living costs are substantially lower in these countries than in the West. That is the key factor in setting the developer's wage. However, we have found that cost isn't the most important benefit of outsourcing.

Consider India, which produces almost 1.5 million engineers each year. As a result, Bangalore, along with San Francisco and Singapore, is one of the world's most sought-after R&D locations. It is even nicknamed " India's Silicon Valley " for its enormous engineering and scientific innovation achievement.

Offshoring software development to India gives you access to some of the world's most brilliant and well-trained technical experts. In addition, the fact that salaries are often lower compared to Euros and Pounds is a plus!

3. Offshoring does not result in the production of high-quality work.

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This is related to the previous two points: you will not obtain a high-quality result if you always go for the cheapest option and hire unqualified contractors. In order to build your organization and scale it up substantially, quality offshore software development means using top-tier talent.

Because of the more reasonable cost and plenty of skills available, you can scale up more sustainably than at home without losing your output, whether for internal or external clients. Underestimating the importance of an offshore staff is one of the most common mistakes businesses make.

Check out the Pitfalls of Offshore development Center and its solutions here.

Whatever business you're in, the key to successful offshore is devoting enough time to recruiting and assembling a truly top-notch staff. There's no reason to believe your team will offer sub-par work if you put out that effort.

4. Offshore software development is unproductive due to logistical issues.

Another prevalent misconception about offshore development is that the development teams are completely useless due to geographical distance and time zone differences.

However, as per what our experience has taught us, this is not the case. Working with remote teams was once a big problem due to the complexity of long-distance communication. For example, a UK corporation with a crew in India suffers a 5- to 6-hour time gap. With such little overlapping of time between their working days, clear communication is important.

Today, a myriad of online applications — such as video calling, instant messaging, and screen sharing — make communication very simple. Furthermore, your remote crew has already completed an entire morning's job by the time your in-house team arrives at work! There's also plenty of time for stand-up meetings, check-ins, and reviews during the crossover period.

Being based halfway around the world has become an extremely minor issue. It's even more productive for certain businesses than having everyone in the same place!

5. Offshoring is only effective for businesses with a lot of money.

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Small to medium-sized firms typically believe that offshore software development is unfeasible without sufficient funds, assets, or dedicated financing.

The truth is that the cost of forming an offshore team is entirely dependent on your unique needs:

  • The Nation
  • The desired quality of work
  • The size of your team
  • Third-party services (Wifi connection, electricity, and so on)
  • A variety of other criteria

It is unlikely to be productive because a three-person startup is too tiny to profit from an offshore workforce. But, on the other hand, SMEs might greatly benefit from offshore software development if they are looking to expand.

Offshoring isn't a "fast win" approach; it's a long-term, growth-oriented strategy that any company may implement.

Offshoring, when done correctly, is a terrific method to minimize costs while still generating high-quality work. Consider it this way: you're investing in a larger team, but your offshore workforce can also handle heavier workloads and earn a better profit margin.

Conclusion: Getting Good Offshore Results

Offshore software development is now a common occurrence. Its popularity stems mostly from disparities in software product quality and labor costs. However, even though IT companies account for more than 60% of the total outsourcing market, the industry faces significant accusations. Misconceptions about offshore software development have grown due to a history of cheap code, failed projects, and inefficient offshore partners. 

Many firms are still hesitant to adopt offshore software development due to numerous misunderstandings. Knowing these myths and how partners invest and work to deliver high-quality products at a lower cost is essential to enhance the many benefits that offshoring has to offer. With the help of experienced development experts, you may learn how to maximize the impact of your offshore investments.

Get in touch with us now if you intend to work with the best in the industry.

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Frequently Asked Questions (FAQs)

What are some common myths about offshore development centers?
Some common myths about offshore development centers include that they are unreliable, offer poor-quality work, and are difficult to communicate with. In reality, many offshore development centers provide high-quality services and are highly responsive to client needs.
How can businesses separate fact from fiction when it comes to offshore development centers?
Businesses can separate fact from fiction by doing their research, seeking out references and case studies, and working with reputable outsourcing providers. It's also important to have a clear understanding of the specific benefits and challenges of offshore development and to be realistic about what can be achieved through outsourcing.
Is offshore development more expensive than local development?
No, offshore development is typically more cost-effective due to lower labor costs in the offshore country. Moreover, there are other cost-saving factors, such as reduced infrastructure and operational expenses.
Are offshore development centers less reliable than local ones?
Offshore development centers can be just as reliable as local ones. The key is to select a reputable and experienced partner with a proven track record of delivering quality work.
Is communication difficult with offshore development teams?
While language barriers and time zone differences can pose challenges, modern communication tools and effective project management techniques can help bridge these gaps, leading to a seamless collaboration.
Is the quality of work inferior in offshore development centers?
The quality of work depends on the development team, not their location. Many offshore development centers have highly skilled professionals who deliver excellent results, often meeting or exceeding the quality standards of local teams.
Can I only outsource low-level tasks to an offshore development center?
No, offshore development centers offer a wide range of services, from simple tasks to complex projects. They have expertise in various technologies, enabling them to handle a variety of projects, including high-level tasks.

Manik Sharma

Manik Sharma

Dynamic and results-oriented business head at Signity Solutions with a proven track record of driving growth and profitability. Strategic thinker, adept at leading teams, developing new opportunities, and delivering exceptional business outcomes.