As organizations are increasingly moving towards digital transformation, the need for software development is also rising. There is a requirement to transform various processes in an organization, that can be achieved through software development. Rapidly changing technology, a competitive market and budget constraints are some of the key reasons why companies rely on offshore software development partners to support their digital transformation journey. Choosing an offshore development vendor is a complex process and needs a deeper understanding of the subject. In this blog, we will closely look at the benefits, challenges and other aspects of offshore software development.
Offshore software development is when services are provided by the vendor from a location other than the client’s home country. This is usually done through offshore software development centers that provide end-to-end development services with skilled resources and competitive prices compared to the client’s home country. Owing to its large pool of technical talent and infrastructure availability, India is a popular choice for offshore software development.
Reduced Development Costs
According to Deloitte Global Outsourcing Survey 2020, around 70% of companies are driven by cost savings to choose offshoring. Due to the lower cost of living in countries like India, high-quality talent can be obtained at significantly lower costs compared to the western market. Offshore Software Development partners have competitive SLAs and pricing models that can cost less by as much as 3 times.
Faster Time-to-market
In a typical software development lifecycle, the company will need to start by hiring resources for the job before actually undertaking development. In the case of offshoring, the time and effort spent on recruiting resources are completely eliminated. The software development partners already have established teams and a network of competent resources who can start work at short notice or even immediately. This results in faster time-to-market and enables companies to maintain their competitive edge.
Access to Larger Talent Pool
Software Development partners have access to a wide pool of talent. This provides clients an opportunity to utilize resources having expertise in a variety of technical domains. It becomes easier to quickly access talent without the need for an internal hiring process for every development expertise the client might need.
Improved Scalability
The needs of an organization can change depending on market dynamics, customers, new technologies, strategies, etc. Offshoring enables you to scale up or scale down easily and only hire the resources you need. This not only reduces the time and effort required for hiring but also makes development cost-efficient, as you only pay for the resources you utilize. Scalability takes care of your current and future software development needs.
Focus on Core Business Areas
Technology is always evolving and in-house software development can be difficult if you need to learn new IT skills for different developmental activities. Offshore software development takes away the hassle of programming and enables internal resources to focus on core business activities. The cost, time and efforts can now be dedicated to marketing, creating superior customer experiences and developing strategies for new products or services.
Offshoring comes with a set of challenges that should be navigated carefully to make the most of your offshore development investments.
Difference in Time Zone
As development partners are located in a different countries, there is usually a large time gap between the in-house and development teams. This can result in a delay in development or communication if not addressed promptly. Many organizations have overlapping working hours and dedicated meetings and communication channels to overcome this issue.
Cultural Differences
Communication challenges can arise due to cultural differences between different countries. This can result in a gap in understanding and a significant loss of time and resources. It is essential to choose a development partner that understands the cultural nuances and has a team that has good communication skills.
Security
Data is an asset for any company and needs to be guarded. The absence of proper security mechanisms and agreements between the client and the vendor can make sensitive company information vulnerable to security threats and data leaks. Companies should ensure that their offshore software development partners comply with privacy policies, security regulations and encryption, etc. as per the standards of the client and the client’s home country.
Choosing the right Offshore Software Development Partner
Offshore development service providers are mushrooming in countries like India, which is why it becomes critical to evaluate and choose the right partner for your requirements.
OpenTeQ provides Offshore Software Development services for various client requirements. From mobile and web app development to UI/UX design and QA services, our pool of high-quality and experienced resources caters to clients’ developmental needs. Our well-defined SLAs and competitive pricing models ensure that you make the most of your investment.
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