Offshore software development lets you hire people as long as you need them for your project. It’s the responsibility of offshore companies to scale up or scale down the team according to the project requirement. Offshore software development is an approach followed by the companies in which they outsource their software development project to offshore companies . Offshoring has its benefits and flaws, that is for sure, and you must consider all of those pros and cons to see whether it is the best option for you. You get cost reduction and a major convenience of not having to deal with the project on your own, but on the other hand, you get yourself a team that is almost entirely beyond your reach and control.

If your in-house development team is underequipped and lacks people to do the job, you can augment your team with offshore developers who will aid your in-house developers. Alternatively, you can assign essential tasks to your in-house team and leave non-essential tasks to your offshore team. Considering that you won’t be talking to them too often, it is best to offshore tasks that do not impact your business in a critical way. In the meantime, you’d have enough time to organize the functioning of your business and focus on other essential tasks.

Handle office administration tasks like printing, document sharing with tools such as DocuSign or Hellosign. Protect Yourself- Team members should sign NDAs and/ or non-compete agreements, always before starting the development work. Intellectual property rights and confidentiality terms are clear to everybody. In addition, set up a private repository for the code (GitHub, BitBucket, GitLab, etc.).

Offshore Vs Onshore Custom Software Development

Vietnam targets to enter the top 10 suppliers of software outsourcing and digital content globallywith around one million workers in information and technology. The average developer salaries in Vietnam are approximately 85% lower than those in the United States, resulting in significant savings on your part. The typical offshore software development cost in Vietnam is $20 to $50. Because the offshore outsourcing software development business is not your in-house team, it’s challenging to keep track of every project detail to ensure that everything is running smoothly.

An offshore software development company provides staff who complete stages of the software development process for another company, without constraints regarding geography, language, culture, or time zone. With the advancement of technology, it’s now easier to manage business across the world from one location. This idea has originated the concept of offshore software development. Apart from software development, the offshore approach can also be adopted by other fields including business process outsourcing , knowledge process outsourcing , data services and more. This may be due to the difference in the cost of living, Ukraine is Europe’s most affordable country . Today, Ukraine is also expanding its offshore software development center to offer an even better outsourcing solution, with top talent at affordable rates for businesses around the world.

offshore software development meaning

The offshore team will clearly understand what is expected of them and what will happen if they bend the rules. Look for a tech partner that fits your price range and the expertise they offer. The project’s budget usually depends on the software functional complexity, required experience and skill set, and team size. The country you choose to deliver your product should offer quality service on your budget.

Synoptek delivers accelerated business results through advisory led transformative systems integration and managed services. We partner with organizations worldwide to help them navigate the ever-changing business and technology landscape, build solid foundations for their business, and achieve their business goals. Offshore software development enables you to focus more on your core business strategy, instead of worrying about managing the complex and time-consuming process of software development. It lets your company focus on core practices without the additional stress of running and managing a software development department. This would help in making excellent software which can simplify the work modules. This Asian country is known for cheaper pricing and numerous centers already established.

If your organization provides project managers, they will take care of this for you. Fixing custom software development, product developments, or other development services errors may cost more than getting the work done right the first time. Unlike with an onshore team, an offshore team can’t just go off a description of your problem and desired software development solution and some UI design requests.

Reasonable Costs

This difference may be a big enough reason to choose nearshore software development. Basically,onshore software development is an outsourcing option that is the closest to your home. Offshore software developers are often able to get a product to the public quicker.

offshore software development meaning

Due to lower cost of living, countries other than those of Northern America and Western Europe charge less in hourly rates. Also, competition dictates that many companies include extra services, e.g. support. The one main disadvantage is the high cost compared to offshore software testing. When WhatsApp was still in its development phase, the owners of the popular mobile application were looking for ways to lower costs. These benefits allow businesses to prosper when it comes to their offshore web and offshore mobile software development. In turn, this can lead to increased revenue and ultimately, business success.

Offshore software development has stolen the spotlight as one of the most popular forms of outsourcing. Here, software engineers are well-versed in different fields of technology like e-commerce, artificial intelligence, gaming, healthcare, cloud services, etc. They are also characterized by good entrepreneurial skills and a deep understanding of work ethic.

Why Outsource Your Software Development

The customer can choose from available collaboration models, including project-based contracts, dedicated teams, and offshore software development centers. One of the benefits of hiring an offshore software development company is that it leaves tons of time for you to focus on other essential aspects of your business. There’s no need for you to be closely involved in the project; you can just hire an entire team of offshore developers who will get your product from the ideation stage and up to the market release.

  • And there’s precedent for caution, of course, as betting on cheaper rates only gets you poor software product and code in the end.
  • Moreover, operational management is included in the offshore development center service by default.
  • For example, many US businesses leverage the substantial talents of developers in Ukraine and other Eastern European countries to build their custom software products.
  • Your quality team can easily review the work completed this way with a feedback mechanism in place.
  • In addition, some governments are less than friendly to Western businesses, and there may be laws and regulations in place that limit your ability to conduct business with local developers.
  • In-house development requires commencing the hiring process for software developers and rigorous research on the best tools for development.
  • We also have consultant offices located in Escazú, Costa Rica and San Pedro Sula, Honduras that give us a strong local presence allowing for top-level recruitment, technical training and low employee turnover.

Fix Quality Standards– By doing so for architecture and code standards, you’ll be able to keep the quality in check. In this article, we will explain what is offshore software development, points to consider while offshoring, its pros and cons and whether offshore software development is a good practice to follow or not. Offshore software development literally is another name for ‘outsourcing’ in software engineering.

Hiring Costs

Software development tracking tools like Jira enable you to efficiently plan tasks, distribute them evenly across teams, and prioritize work accordingly. It’s challenging and costly to maintain an in-house IT team that has expertise in the latest technologies. By offshoring your software development, you don’t have to invest in IT infrastructure or spend time recruiting, hiring, and training employees. Offshore development allows What is Offshore Software Development the business owners to engage teams from various parts of the world and get work done without inviting them to their specific country. Offshore development services allow the clients to get offshore consulting teams at lesser costs. Nearshore outsourcing is a process of delegating some tasks, in particular software development, to remote teams in different countries to get better control over operational expenditures.

offshore software development meaning

Through testing, developers can check for flaws and identify changes that need to be made before finalizing the product. Software testing also consists of running the software component to analyze its properties. The goal of QA and testing is to provide the client with the best possible outcome. Similar situation as working with an onshore development company operating out of the Central Time Zone.

All The Offshore Software Development Benefits And Challenges

An ODC does not only help you cut costs, but it can also give you access to a larger workforce which gives your business more flexibility. Needs support for failed or unfinished projects, to get them back on track. Has an extremely large and/or complex project that will take hundreds of hours and require skilled specialists with technical expertise.

The coding skills in this research were rated according to work accuracy and speed. When you visit websites, they may store or retrieve data in your browser. This storage is often necessary for the basic functionality of the website. The storage may be used for marketing, analytics, and personalization of the site, such as storing your preferences.

Traveling Costs Can Add Up

A common challenge a company can face when working with offshore teams is cultural barriers that can lead to miscommunication. So, when compared, there is no correct answer to the question of which engagement model is a better in-house team or offshore team. CommunicationSince the offshore team is located in different nations and works at different timezone; communication can become a challenge. Outsourcing a project means delegating an IT project to another development company located within or outside your country.

Types Of Offshore Development Center Models

An MVP is created with the intent to support a faster time to market and to attract early adopters. With this version of the new product, teams can effectively gather the maximum amount of validated learning about consumers with the least amount of effort. There are many types of project management tools that can aid in software development. Some of the most common include mind maps, calendars, Gantt charts, network diagrams and work breakdown structures. Project requirements are established by the team early on, which can save businesses time. However, discovering issues at a later stage may require the organization to go back to previous stages which can be a timely process.

Trusted Offshore Development Partner For Over A Decade

The first step to fulfill is the clear definition of your final goals. Of course, the remote team will do their best to find a solution for you. The customer should remember that concrete directions and guidance are the necessary components of collaboration.

Offshore software development also gives clients access to a wider pool of talent. In many cases, the onshore software development model seems like a safer and more convenient choice. Choosing to outsource within the country typically means working with individuals who speak the same language, eliminating possible language barriers that may occur when offshore development. Now that remote work has become standardized, onshore & offshore software development services may be the key to success for many businesses. Interactions may be hampered by a lack of face-to-face communication, time zones, and cultural barriers. You may avoid it by working with an offshore outsourcing software development business that is willing to work with your team on a flexible basis.

Both sides need to confirm acceptance procedures, paths and working methods. Then you can always refer to the agreed arrangements at later stages of the project in case one side doesn’t stick to them. Technical skills – without skilled workers, any project might be a failure. Check up on workers’ technical certificates and their involvement in the IT community. Regardless, all CTOs and Project Managers who consider offshoring will need to create a checklist in order to make the right choice of external company. Those elements, when well-analyzed, increase the chances of a successful cooperation with the external team.

Although you hire a trustworthy team of developers, a non-disclosure agreement is signed by default. Companies that produce intellectual property must keep an eye on their legal rights from the very beginning. Consult IT lawyers to prepare a comprehensive agreement to prevent the leakage of your confidential information. To speed up the recruitment process, tech companies resort to hiring several agencies at once.

To effectively communicate and track project progress, you can use such tools as Jira, Slack, and Zoom. You can hire the most suitable IT talents for your project without limiting yourself to a specific location. An ODC allows you to employ highly experienced professionals from anywhere in the world with the specific expertise you require. The brief later advanced into establishing a research & development center in Ukraine so as to hire and retain the best game developers. After the client struggled to get developers from Poland, Newxel quickly accessed the Ukrainian market and hired experts with the skills that matched what the client wanted.

Look for partners who will bring additional value along with their coding skills. In order to save you some clicks next time, we will explain the difference here. Frustration is also common among team members with non-native speaking individuals.

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