Offshore Software Development: Everything You Need To Know About
Offshore software development is getting highly popular among businesses looking to benefit from the cost savings associated with hiring remote software developers.
This type of development involves working with a team of software experts located outside the country, usually in countries that are known to offer cheaper talent costs.
Like any other type of development project, offshore software development requires careful planning and execution, but the potential cost savings can make it well worth the effort.
In this article, we take a look at some of the key elements you need to consider when planning an offshore software development project.
What exactly are offshore development services?
Offshore software development services are those that involve a company extending its software development needs to an outside provider.
This usually involves hiring remote developers from countries where hiring costs and taxes are lower than in the home country, thereby providing cost savings for the project.
These services can include everything from coding and programming to quality assurance testing, system integration, and technical support.
The goal of offshore software development is to produce high-quality products at a fraction of the cost compared to onshore solutions.
Offshore hiring, when done correctly, can provide a number of benefits to businesses. These include access to highly skilled professionals, cost savings on labor costs, faster project completion times, and more efficient development processes.
How is it different from outsourcing?
Outsourcing is ideal for short-term projects where a company needs specific expertise for a one-off job. In contrast, offshore software development is best suited for ongoing projects that require specialized skills and resources.
Outsourcing is also typically limited to a specific task, while offshore software development can encompass the entire life cycle of a project.
Another difference between outsourcing and offshore software development is that the latter usually involves having remote developers working from a different country than the one in which the project is based.
This means that the cost savings associated with offshore development are much greater than those from outsourcing.
Enterprises looking to hire remote developers for their software projects should also consider the risks involved.
Dealing with an unfamiliar culture, language, and time zone can increase the complexity of the project and decrease its success rate.
However, offshoring brings in various other benefits in the form of cost savings, access to skilled professionals, and faster project completion times.
Who should go for offshore development packages?
There are many scenarios where offshore software development can be a great fit. Smaller businesses and startups, in particular, can benefit from the cost savings associated with offshoring without sacrificing quality or service.
Let’s dive into multiple scenarios where business can outshine with offshore support:
When businesses need direct access to experienced talent:
Businesses that need a dedicated software development team can benefit from offshore software development.
As the hiring costs are lower in certain countries, businesses can get access to highly skilled software professionals from those countries.
This can save businesses contract fees, taxes, and other costs associated with onshore hiring, while still providing access to experienced professionals.
In complex projects like enterprise software development, access to experienced talent can be critical for successful project completion.
Moreover, enterprises can also opt for offshore developers for ongoing support activities, like maintenance, bug fixes, and feature upgrades.
For optimizing the development cost:
Offshoring does not necessarily mean hiring a cheaper alternative. Rather, it’s a great way to optimize the cost of software development.
By using offshore services, businesses can save a good chunk of money on labor costs and taxes, without sacrificing the quality or speed of their projects.
This can be particularly beneficial for businesses looking to reduce development costs without compromising on the quality of their products.
For project areas like web development, mobile app development, and game development, offshoring can bring a lot of cost savings.
Furthermore, businesses looking to develop complex enterprise software can also benefit from offshore services, as they can get access to highly skilled professionals at a fraction of the cost.
For faster development cycles:
Offshore services can significantly speed up the development process, allowing businesses to get their projects completed faster than with traditional onshore services.
By hiring remote developers from different countries and time zones, businesses can ensure that their software projects are completed quickly and efficiently. This can be a great advantage, especially for projects with tight deadlines.
Compared to outsourcing, offshore software development can bring in more cost savings and faster project completion times.
Therefore, it’s a great option for businesses looking to reduce development costs and complete their software projects as quickly as possible.
When enterprises need higher scalability and agility:
Scalability and agility are key factors for the success of any software project. As remote developers are located in different countries, businesses can easily access personnel with diverse skill sets to help them scale their projects as needed.
Additionally, they can also benefit from faster time-to-market speeds due to shorter development cycles.
Moreover, businesses can also access higher levels of scalability and agility with offshore services. As remote developers are often better equipped to manage larger projects, businesses can get access to a larger pool of skilled personnel, who can help them scale their projects as needed.
For lowering the development risks:
Offshoring can also help businesses lower the risks associated with software development. By hiring experienced remote professionals, businesses can reduce the chances of costly mistakes and errors that can arise from less experienced personnel.
Furthermore, they can also benefit from a higher level of security and privacy with offshore services as remote developers are located in different countries and time zones.
Risks like late deliveries, poor quality work, and hidden costs can be avoided with offshore software development.
As offshoring simplifies the hiring process and allows businesses to access experienced talent at lower costs, it can help enterprises reduce their development risks significantly.
Cost components of offshore development services
There are several cost components that businesses should consider when opting for offshore software development services. Let’s discuss all the important cost components of offshore software development:
Training and onboarding:
One of the most important cost components of offshore software development is training and onboarding. This includes costs associated with hiring and training remote personnel, setting up the necessary infrastructure, and ensuring that everyone is properly onboarded.
Development costs:
Apart from training and onboarding, businesses should consider the development packages which include costs associated with the development, testing, and implementation of the software. It’s important to compare different packages and choose one that offers the best value for money.
Project management costs:
Project management costs are also an important cost component of offshore software development. As remote developers often require assistance with tasks such as project coordination, communication, and task tracking, businesses should include the costs associated with managing their projects in their budget.
Quality assurance:
Quality assurance is also an important cost component of offshore software development. This includes costs associated with testing and verifying the quality of the software before it is delivered to the client. It’s important to ensure that the software is bug-free and meets all the requirements before it is released.
Auxiliary costs:
Auxiliary costs are also an important cost component of offshore software development. This includes costs associated with hosting and other related services, such as customer support and maintenance.
Overall, to make the most out of offshore software development services, businesses should consider all the important cost components mentioned above.
Once the cost structure is properly planned, businesses can enjoy the full benefits of offshoring and access experienced personnel at competitive rates.
How to properly manage your offshore development team?
Hiring is one part of the business, but managing remote personnel is the other important part. To ensure that your offshore development team performs to its fullest potential, it’s important to properly manage them.
Here are some tips on how to manage your offshore development team:
Communication is key:
The most important part of managing an offshore development team is communication. It’s important to ensure that everyone is on the same page and understands what needs to be done.
This can be achieved by setting up regular meetings, using collaboration tools like Slack and Zoom, and making sure that everyone is up to date with the progress of the project.
Set clear goals:
It’s also important to set clear goals and expectations for the team. This will help ensure that everyone is on the same page and understands what needs to be done.
Setting up regular deadlines and providing feedback will help keep the team motivated and ensure that the project is completed on time. Moreover, choosing the right tools and technologies is also an important part of managing an offshore development team.
Don’t engage them in excessive meetings:
Offshore software developers are often hired for their expertise and experience. It’s important to keep them away from excessive meetings as this can slow down the development process.
It’s important to ensure that meetings are productive and limited to topics relevant to the project. Have time-boxed meetings to ensure that everyone stays on track.
Manage according to time zone and distance:
It’s also important to consider the time zone and distance when managing an offshore development team. As they are located in different parts of the world, it’s important to ensure that everyone is on the same page.
Make sure to have regular short meetings, use collaboration tools, and provide feedback in a timely manner.
Have a buffer for every task:
Finally, it’s important to plan for any unexpected delays. The best way to do this is to allocate a buffer for each task during the planning phase.
This will help ensure that the project is completed on time, even if there are any unexpected delays. Moreover, it will also help in reducing the overall cost of the project.
By following the tips mentioned above, businesses can ensure that their offshore development team performs to its fullest potential. With proper management and communication, businesses can enjoy the full benefits of offshoring and access experienced personnel at competitive rates.
Common mistakes to avoid while dealing with an offshore development team
While the advantages of offshore software development are vast, there are some mistakes that businesses should avoid when managing an offshore team. Here are some common mistakes:
Not having a proper plan:
It’s important to have a detailed plan before starting the project. This should include tasks, timelines, and other important details.
Without a proper plan, it will be difficult to track progress and manage the project effectively. Moreover, brainstorming ideas and collaborating with the offshore team should also be part of the planning phase.
Not setting expectations:
It’s important to set expectations with the offshore team. This includes deadlines, task management, and communication protocols. Without setting expectations, it can be difficult to know what is expected and when.
Not monitoring progress:
Constant monitoring and feedback are essential for the success of an offshore development project. Regular meetings, collaboration tools, and checking in with the team will help ensure that the project is on the right track.
Not having clear communication:
Clear and effective communication should be a priority when dealing with an offshore development team. Make sure to use the right communication tools and ensure that everyone is updated with the progress and updates.
Wrapping up!
Offshore software development can be a great way to access experienced professionals at competitive rates. However, it’s important to manage the team properly in order to get the best results.
Make sure to plan ahead, set expectations, monitor progress, and have clear communication with the team. With proper management and communication, businesses can enjoy the full benefits of offshoring.
In 2023 and beyond, software development teams will continue to rely on offshore solutions for their projects.
About the Author!
With over 13 years experience as a leader in digital marketing, Mansi Rana is Managing Director of EZ Rankings Web Development Company. Passionate about all things data; providing actionable business intelligence in digital, future tech; and venture bubbles categories for everyone, everywhere.
Credit: Photo by Emile Perron on Unsplash