7 Quality Traits of an Offshore Software Development Company

In the former case, the experts will be managed by your outsourcing partner. Both the engagement models are used by both outsourcing companies and offshore software development companies. Offshore software development is an effective way to access skilled developers in another country, allowing businesses to take advantage of lower costs and diverse skill sets. It involves outsourcing software development from a remote location and utilizing the services of a team located in a different country to create applications for use in the home country. This can offer a variety of advantages, from cost savings to access to a wider range of skill sets. Throughout the years, we’ve thrived in a vibrant IT outsourcing industry and have worked with companies on Fortune 500, Inc. 5000 lists and helped to scale-up teams fast for technology startups.

Since the 1960s and the early days of the Silicon Valley, technology pioneers developed offshoring centers in the state of Jalisco, Mexico. In 1996, General Electric offshored its IT for the first time when it opened its own center in India. Given the rapid growth of this sector, several companies have started to use offshore development in China, India and other countries with a lower cost per developer model. In the early 2000s, the leading countries in offshore custom software development were Russia, India, Ukraine and China. The time difference when working with India and China for the Western world allowed work to be done round the clock adding a competitive advantage.

Disadvantages of offshore IT staffing

These environments may be physical servers located in the businesses data centre, or more increasingly, a cloud-hosted platform. TestIn the testing phase, test analysts will conduct a number of validation checks on the software such as performance testing, load testing and exploratory manual testing. DesignOnce the requirements for the new software have been sufficiently documented and signed off, the design work can begin. At this point, organisations should decide if their effort is best spent on building a new bespoke system or purchasing something off the shelf.

These efforts can represent significant lost opportunity cost in terms of other work the employee was slated to do. 90% of Indian offshore software development providers are asking for a higher rate. There are 24 standard time zones globally, each separated by 1 hour, though if take into account daylight saving time zones and several zones with 30/45 minutes offsets, the total number is 37. UTC, “coordinated universal time”, is the global common time standard in relation to which time zones are denoted, e.g.

Offshore Software Development Statistics

Say, you work from the office in New York, USA and your remote team is in Poland, so you’re 6 hours behind. Considering the common 9-to-5 working schedule, you get 2 overlap hours in that window. The best way to use it is to conduct daily briefs to discuss the progress, possible issues, clarify things, send feedback, etc. In addition to taking into account the implementation of flexible access and varying permissions for your external teams, it is also important to determine the dependencies inside your organization. When you identify all the dependencies, you will be able to rule out the possibility of your departments’ activities blocking your external team. Design Workshops to clarify your business idea and build a much better product faster.

Finding the right offshore software development company to meet your business needs is critical for achieving successful outcomes and long-term profitability. In this comprehensive guide, we’ll take a look at how offshore software development companies can help your business succeed. As projects unfold, organizations should expect a ramp-up period which incurs significant costs.

The Different Ways to Outsource Offshore

While offshore software development generally results in cost-saving, the resources used differ depending on the type of project. As such, it’s impossible to place an exact figure on building a particular software. However, experience tells us that building a software application with an offshore team from Eastern Europe will cost between $50,000 – $250,000. Offshore software development, or ‘offshoring’ is the process of engaging an external vendor in a different country to take on the responsibility of building software or apps. The term ‘offshore’ describes the fact that there is a substantial distance, and hence, time-zone difference between the client and the location of the offshore developers.

• To make the most out of your partnership, consider some of the following recommendations in your collaboration with an offshore team.
• Before getting down to software creation, you and the offshore software developer should discuss the key performance metrics, development milestones, priority tasks, etc.
• This model is the most suitable for those cases when the direction, budget, and scope of the project might change during the development process.
• Besides the direct cost implicated in building the software, there are other factors that may determine how much you’ll be paying for offshore software development services.
• Founded in 2001, the company builds innovative products for multiple industries of any size.

Given the global demand for IT expertise, many countries across the world are vying for a spot in the preferred outsourcing destination list. The offshore IT development sphere offers businesses a range of opportunities, according to which they are able to save their efforts, time, and money. If you https://globalcloudteam.com/ also want to save your resources and achieve good results, you can also apply to offshore IT professionals in order to obtain a completely new product, flexible and thriving on the market. Contact us to get a consultation on all questions related to offshore software development you may have.

Establish transparency in communication

Deloitte also reported that 68% of the respondents highlighted that outsourcing helps in enabling cloud technologies in their organizations. His main goal is to help clients find reliable and cost-effective solutions to their business problems. Before getting down to software creation, you and the offshore software developer should discuss the key performance metrics, development milestones, priority tasks, etc. Structuring the duties will speed up the work and make it more efficient.

The bottom line is that offshore software development allows your organization to be more productive. It allows you to deliver more high-quality products benefits of offshore software development that the citizens of your country will use. While often considered unfavorable or risky, a time zone difference can prove to be a beneficial factor.

What are offshoring software development examples

Companies that have evaluated or used offshore software development have discovered four important hidden costs that can negate the anticipated gains of paying lower hourly development rates. Clearly, you don’t want to be calculating and memorizing the time zones you are working with in order not to waste precious time. You need some tools and apps and implement certain practices to work with remote teams. You might be working in an office in the USA and managing an offshore team in Australia, while your end-client is somewhere in Europe. There are numerous other variations to the equation as business operations tend to permeate. Needless to say, working in 2 or 3 different time zones often causes downtime, delays and work planning issues.