Offshore Software Development – When, Why, and When Not?

Technology is the number one force that is changing the face of business today. Continuous evolution is transforming the way companies are functioning.

Businesses that are competing are in the race to adopt emerging technologies. With every company striving to stay updated, they are looking for smart approaches that help impress their user-base. 

However, marinating, retaining, and training your in-house IT team has become a time-consuming task. Also, it doesn’t make sense to hire new employees when the project is short-term. This is where outsourcing comes into play.

According to Gartner, more than 80% of companies plan to expand their outsourcing budget by 5% this year. And 37% of small businesses are already outsourcing business processes. 

Offshore Software development is a smart decision that companies should consider to maximize their productivity in a cost-effective manner.

This proven approach has led to many successful projects as it allows a business to focus on its core competencies.

This helps companies to get a competitive advantage in a technologically driven marketplace. 

Before you start looking for an outsourcing firm, it is always good to know why, when, and when not to outsource.

Why Should You Outsource?

Accessing the talented pool and integrating them with the in-house development team helps to increase the credibility and get a leap up in their abilities.

You get accessibility from across the globe, have a base for advanced implementation of ideas along with in-house inputs to make the venture successful.

Here are the reasons to outsource your development project:

a) Budget-friendliness

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You can save up to 25% of the total development cost while working with an outsourcing company. This is because of the inexpensive labor cost of different countries.

Savings are not only related to the development cost, but there is a lot more to it.

Hiring in-house employees is much costlier than it actually seems.

It involves the monthly salary and other expenses related to the whole recruitment process or hardware required to perform the tasks. This is the major reason why offshore company collaboration is the best option.

b) Time Rules

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Think about the weekly hours that are spent on managing the in-house team. There is no need to perform the tedious task of hiring one employee after the other onboard and then make sure you are able to retain them.

You don’t have to waste time on accustoming new developers and make them adjust so that they understand the project and then start working on it.

With the number of day-offs, national holidays, and different in-house team no-work days, the offshore software development team gives you an edge.

They are likely to be inclined to working full time even in your company’s off days. This eventually helps in boosting the development speed while maintaining the workflow without even working overtime. 

Time is money, and everyone is aware of the fact. The fruits of working with an outsourcing company are visible as soon as you start working with them.

The experienced professionals are aware of the market scenario, so they help save your time, money and efforts. 

If you think your in-house team is not efficient enough to handle the project, it is best to hire offshore developers that will help save your valuable time.

This saved time can be proficiently utilized by developing something amazing and overtake the vertical. 

c) To Manage the Peak Demand Level

Sometimes the demands are on the peak and all the in-house members are employed to meet those deadlines.

So, that is the time when there is an urge to hire an offshore team to meet the surging demand with increased efficiency levels. 

An experienced team having experienced professionals will help you curate better products with security patches. 

d) Competitive Growth

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It becomes challenging for the in-house team to focus on their work and stay universally updated and competitive at the same time.

When it comes to staying ahead in the race, they should be aware of the market trends. 

The offshore programmers of a good company stays at the edge of modern technologies and trends all the time as he is working for global companies. Needless to say, the higher the skillset, the better the delivery. 

e) Experts on the Board

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There is a long list of offshore development companies across the globe having specialization in different technologies, and this number keeps growing.

Therefore, outsourcing helps in giving access to a huge pool of talent who know how to kick off the project successfully. 

You can narrow down your search and find an outsourcing company having relevant skills and years of experience in their particular field.

Well, every IT company has a setup approach having established workflow, pre-defined procedures, and well-trained professionals.

What is more important is a qualified team of experts that can handle the project development process and face all possible challenges. 

f) Different Engagement Models for Different Companies

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The best thing about offshore software development is, it works for any business at any stage.

If you have a start-up that is focussing on developing a Minimum Viable Product (MVP), it makes sense that you hire dedicated offshore developers because of the budget constraint that you have. 

For the mid-sized firms, you get a versatile team of designers, developers, quality analysts that work under a project manager. The key feature is the team adjustability depending on the business scalability. 

The best engagement model out of the three (time & material, fixed-price & dedicated team) is a dedicated team model as the offshore team becomes a department of your business offering exclusive development services.

g) Exceptional Support

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Completion of your development is not the end of the process; you always need maintenance and after-sale services to ensure bug-free performance.

When you take the help of an offshore development company, you get quality support and regular maintenance services.

Keeping the time zones in mind, they have the caliber to provide round the clock services to ensure you are competing well in the market. 

h) Comprehensive Services

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There is a lot beyond coding that contributes to a product or service. Project supervision, UX design, profound testing, and deploying the right experts is all that takes to make the project successful.

The offshore team is jam-packed with specialists in various fields. It is very important to establish a solid, vibrant team with a signature style. Years of experience helps in building such a team. 

When to Outsource Development?

Before you choose to outsource make sure you understand your requirements and scope of your project.

Knowing your needs helps in uncovering whether outsourcing will be the best option and which model you will be choosing.

Here are the scenarios when outsourcing development makes the most sense:

When Do You want to Reduce Liabilities?

When you outsource a project to a team, it is important that they are capable of working on a project without maximum supervision.

To maintain sustainable business growth, you should be sure that your team has the ability to drive positive results. 

However, having so many tasks in hand can build liabilities that require a lot of time and money.

By having an outsourcing company by your side, you can minimize risks and work on a budget while acquiring reliable offshore software services.

Outsourcing helps in reducing liabilities while maximizing operational efficiency by hiring tech experts. 

a) Mistakes are Costing too Much

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Distracted too much by routine tasks, companies sometimes tend to neglect some important details that can prove to be fatal.

This happens when your team is either inefficient in taking care of the project or multitasking. Small mistakes can sometimes cost too much. 

That is the right time to consider outsourcing and hire offshore developers that know how to deliver exceptional results. 

b) Budget is Tight

Hiring new in-house employees is always expensive, and this will make you think that your budget is a tightrope.

With high salaries and other benefits like sick leaves, infrastructure, etc., it is always good to find the best offshore development company for collaboration. 

c) You Want a Multitude of Development Resources

For an offshore software development company, the sky’s the limit. This is in terms of the availability of resources and technologies used.

The larger is the network of the offshore team; the bigger is the ground for the technologies you cover.  

d) You Want to Save Time

In today’s competitive world, no business can afford to waste even a minute. If software development is not your USP, outsource it to a professional offshore software development center and save a lot of your valuable time. 

This helps you save a lot of time and boost your concentration in enhancing what matters the most to your business.

Relieve your in-house resources from working on something that is not their forte at all. Instead, it is good if they focus on key business goals. So, when you outsource, you get more time to focus and propel business growth.

e) Superior Quality

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If your in-house team lacks specialized skills, there are chances that the project will not be up to the mark. This drastically affects your business credibility.

Whenever your project is outsourced to a reliable offshore development team of developers, you can be assured of highly-skilled IT experts who commit to deliver high-end software quality and security.

Software offshore development is their forte, so they have the potential to build high-quality, cutting edge solutions. 

f) Flexibility

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Hiring a full-time employee to work for a short-term project isn’t worth it. 

For example, an enterprise app has to be built; hiring full-time developers isn’t good as there won’t be any more projects to keep him busy after this project is completed.

Also, he is hired on a monthly salary basis, and you have to give all the benefits regardless of the work that he keeps doing. 

In this case, outsourcing gives the utmost flexibility. As per the project requirements, you can either choose how much to outsource and for how long. This helps in saving a lot of effort.  

g) Mitigating Risk

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Outsourcing is an effective process of mitigating risks and harnessing the advantages of outsourcing offers.

Instead of overloading your in-house team with heaps of work, diversify your business risks by splitting key operations and components among the company offering the best development services.

When Not to Outsource?

Outsourcing serves as a very useful tool to juggle limited resources but it is not necessary that it will provide a solution to every company.

If you are contemplating outsourcing a few tasks of your business, the following are a few pointers when not to outsource:

When You are Expert in Your Competencies

You know the core business model of your company, right? Knowing the critical business aspects helps you determine the segments you shouldn’t outsource. When you feel your in-house staff has the required skill and expertise, it is advisable not to outsource. 

When Outsourcing is too Expensive

Cost-effectiveness is one of the major advantages of outsourcing. But if the outsourcing company is offering a quote that is too expensive, you should look for other reliable offshore development firms that offer better services at genuine cost. 

When there is Loss of Control

Even when the tasks are outsourced, your company is accountable for the assigned work. The responsibility entails that you monitor the progress of the task on a regular basis. 

Outsourcing isn’t feasible if the offshore software company is unwilling to give access to documents and files related to your project.

As it is your company that has handed over the project, it should have complete information regarding the progress of the project. Outsourcing turns out to be a bad idea if it results in loss of project control. 

Outsourcing: A simple way to grow your business

By hiring an offshore dedicated team, your company can free up valuable resources and make them focus on what matters while making the wheels of a business turn.

Outsourcing is the best choice in the age of technological advancements.

Look for a reliable company having the right skills, tools, and expertise that will understand the culture of your company and deliver the project better than your expectations. 

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