Offshore Software Development: The Pros and Cons of Offshore

What Is Offshore Software Development?

Many companies have turned to offshore software development to cut costs, however, it is not the only option. Creating an in-house software development team is one of the best ways to improve productivity and keep up with the competition. At this stage, there are a lot of services and software that are outsourced. A lot of these services are free, so that makes it easy to try them out. But for professionals who can’t afford to try out any of these services, outsourcing is a safe bet. Why is Software Development an Option for Offshore Software Development? Software development is a very different field than most people realize. It’s not just programming, but it’s also managing clients, finding out what’s working and what’s not working, and making changes accordingly.

Why Outsource Software Development Overseas?

“Money is the bottom line for most, but for many software development projects, quality is the real focus,” says Dima Khuba, the founder and CEO of SurfTR, an offshore outsourcing agency. “Increasingly, software developers are migrating their workloads from the US to India and other outsourcing locations.” Khuba refers to data from the World Bank, which shows software development services have been rising in popularity over the past 20 years. More people in developing countries are buying and using computers. Moreover, they have the ability to outsource their software development needs to more affordable international locations. At the same time, US employers are becoming more open to outsourcing software development to countries with skilled labor.

The Drawbacks of Offshore Software Development

There are a number of reasons you might be hesitant to outsource software development projects. But the most common complaint revolves around the overall ease with which you can receive work done. This may be true, but it’s important to note that any project can fail if you’re not intimately familiar with the process.

You’re also unlikely to receive many questions about your projects from your colleagues in the States. Of course, that’s not always an issue, but it can sometimes affect your ability to fully concentrate on the project. Software development can be a very detailed process. To understand the full complexity of your project and ensure you fully understand all of its intricacies is extremely difficult for someone who isn’t working directly on the project.

1. Different mindset

One of the first things to consider when outsourcing software development is cultural impacts on the project. Is your software developed in a Pacific Asia, entrepreneurial environment or a more restrictive structure? Both types of teams have pros and cons and figuring out which one fits your business best is key.

A Pacific Asia “hard-working” mindset may drive a developer to follow through with something even if they have a huge disagreement internally. Alternatively, a more bureaucratic approach may push developers to take a more conservative approach, for the sake of the project’s success. While teams often include developers or software architects, you might not want to approach developers who come from the “hard-working” culture.

2. Data Security

Every company needs to protect itself from cyber-attacks. The cyber threats are no less pressing for an offshore software development company than they are for any in-house IT department. Outsourcing software development overseas is one way to ensure your organization is not vulnerable to such attacks.

You want a company that has the knowledge and technology to develop software for you, without compromising your security. If you have a small team that can manage the entire software development project, outsourcing can be a great way to achieve a high level of communication. But this method is usually not the right fit for a small business that employs a staff of programmers. As your software team grows, you’ll want to hire an in-house development team.

FURTHER READING:

1. Web Application Security: The Best Guide and Its Practices

2. What Is App Security and How to Make It Right?

3. 10 Common Web Security Threats Businesses Might Face

4. The 7 Latest Software Security Trends

5. What Is Cloud Security and Cloud Computing Security Defined?

3. Language Barrier

Even though many companies are looking to save money by outsourcing software development projects, it can still be hard to get work done in other countries. You might have to understand a couple of foreign languages before you can communicate with the people who can actually write software for your business.

That’s not necessarily a deal-breaker, but if you’re moving a business overseas, you’ll likely want to know how to communicate with the local employees that are actually going to be building your product or service. According to the International Maritime Organization, world shipping contributed $2.9 trillion to the global GDP in 2012. It’s an industry that just continues to get bigger and bigger.

Recommended reading: Top 20 Best IT Outsourcing Companies

The 3 Benefits of Offshore Software Development

Some of the most obvious advantages of offshore software development include: Reduced Costs Since offshore software developers are located in different countries, they don’t have to worry about dealing with local labor laws or the local labor market. In fact, they might enjoy lower costs than their U.S. counterparts due to lower hourly wages. This is because labor costs tend to be higher in the U.S. than overseas, due to local property, income, and sales taxes.

In addition, many local software development projects include elaborate artwork that is almost exclusively done overseas. And in most cases, software projects in the U.S. are usually outsourced at a minimum because they involve hardware products that are much more costly to purchase and maintain than the software themselves.

1. Lower Costs

Focusing on offshore software development for your small business can be one of the best investments you can make. Software development teams usually have far more available funds and technical talent than local teams. Offshore software development teams can often access newer, more advanced technology than locally available teams.

The reason is that the technology is largely developed and tested by technology companies in the United States and other major cities. By outsourcing software development, you can leverage the latest and greatest technologies to create more effective business solutions. In the U.S. and Canada, it’s not uncommon to see business goals getting pushed aside in favor of quick profits.

Recommended reading: Software Development Costs: A Detailed Guide to Estimate Your Project

2. Time Savings

One of the biggest advantages of outsourcing software development is the ability to save time. In fact, it’s possible to save a bunch of time per year simply by outsourcing certain projects. The most significant advantage of time savings is the ability to shift your development from the United States to other countries.

You’ll save on travel, the time it takes to get to work, and the cost of living in the country where you’re working. Of course, outsourcing software development is an extremely flexible process. It’s up to you to choose the projects you want to work on. In the United States, it’s normal to work long hours and weekends on development. But if you’re working on software projects for other countries, you might have to work on them during normal business hours.

3. Scaling the IT development team

When you have a very small to the medium-sized team, and you’re looking to grow, managing your internal development team and finding qualified new hires can be a challenge. It can be especially challenging if you’re in a small or rural area and find it difficult to attract qualified employees. So, what do you do? Consider outsourcing to companies that specialize in software development.

These companies can scale up or down as needed, depending on your needs. They can hire and manage staff. They can handle special projects for you. This allows you to continue doing the heavy lifting, but delegate the more mundane work.

FURTHER READING:

1. Outsourcing IT Through Managed Services: Benefits and Disadvantages

2. IT Services: What is The Top Reason for Global Outsourcing?

3. How to Choose a Software Outsourcing Company? Best Guidelines

4. 4 Software Development Outsourcing Pitfalls to Avoid

5. Top 3 Best Countries for Software Outsourcing Asia Pacific Region

Conclusion

Outsourcing has become a popular option when companies need software development. It is often cheaper than in-house talent, and it usually offers a quick turnaround time. But outsourcing also comes with its fair share of drawbacks. If you’re considering outsourcing your software development needs, take the pros and cons into account before making any final decisions.
If you’re considering outsourcing your software development, look no further than Designveloper. We have successfully completed many projects for years such as LuminPDF, Swell, Walrus Education, etc. Tell us your ideas and we’ll realize them.