Offshore software outsourcing comes with many benefits, many of which you probably wouldn't want to miss.
Developing your own custom software solution brings many benefits, but also many challenges and responsibilities. From hiring the best developers to sustaining project scalability, doing the right thing at the right time can be the difference between a successful project and one filled with missed opportunities.
Offshore software outsourcing makes this entire process simple, economical and much faster. Simply put, handing over project control to IT experts who know the ins and outs of the industry leaves your team free to focus on high-value tasks that drive your core business. Your final product will thank you for it.
In this guide, we'll walk you through what offshore software outsourcing means and whether it can work for you. The more you know about this, the smoother the process will be for you. So let's start.
What is offshore software outsourcing?
Offshore software outsourcing is a service offered by software development companies in which a company delegates control of a technology project to access a wide range of benefits. This partnership typically involves two or more organizations located in different regions or time zones. For example, a company in Europe may outsource the development of a web platform to a partner in Latin America.
Outsourcing services can also change names depending on the location of the supplier and the customer. The vast majority of cases can be grouped into three types of software outsourcing:
- Onshore software outsourcing when companies from the same country or region enter into a partnership.
- Nearshore software outsourcing when a client partners with a software company with a similar time zone.
- Offshore software outsourcing when a client delegates control of the project to a supplier located in a distant country or continent.
What are the benefits of outsourcing for an offshore company?
If you asked yourself “Why should I outsource software development to an offshore company?”, here is the answer.
Access to the best technology talent
The best software outsourcing companies are constantly working to attract, retain, and train the best technology talent in their regions. Right from the start of your partnership, you'll have immediate access to the best software developers around, quickly adding critical value to your project. This will put you on the right path to developing a successful software product.
Optimized workloads
Developing software internally is very different from developing software with a specialized partner. Most companies are shocked to discover how much their overall workload increases when they take on a new technology project. Furthermore, it is very common to lack the necessary technological talent in the team, leading to constant slowdowns and missed opportunities. Offshoring solves all of these problems, taking the weight of software development off your shoulders and allowing you to focus on goals that impact your core business.
Industry experience
Every industry has important facets that are invisible to those who haven't taken the time to learn the trade. There is simply no substitute for the years of experience and know-how that a specialized offshore software outsourcing partner can bring to the table. And it's not just about the organization. Developers also have world-class experience built through developing innovative products for companies around the world.
Reduced risks
Any project or business venture always carries a certain amount of risk and it is your job as a business leader to minimize it as much as possible. By working with specialized teams of software engineers, you can quickly minimize most of the risks associated with custom software development. A great offshoring company will bring together custom teams that meet your project's exact needs and provide flexibility, workflow efficiency, and expertise to take it to the next level.
Faster launch times
When it comes to software, the timing of your project always plays an important role. The industry is constantly and rapidly evolving, which means it's best to have a team capable of delivering the best solution at the best time. Otherwise, you could end up rushing development and compromising product quality. An outsourced team should present you with a detailed roadmap of goals and objectives to be achieved for a successful market launch.
Greater scalability
Successful software development projects tend to grow and evolve faster than expected. As a result, developing software in-house often leads to unmanageable amounts of overhead that prevent the project from scaling effectively over time. Working with an offshore software outsourcing company will give you access to all the resources you need to avoid this and ensure your project can grow as quickly and steadily as possible.
High-quality software products
Together, all of these above benefits make offshore software outsourcing a solid strategy for developing high-quality technology solutions. There's no reason anyone wouldn't want the best engineers and most experienced developers on their side. Development outsourcing has become a standard for companies of all sizes, from startups to some of the largest companies in the world.
How does offshore outsourcing work?
Vendor-provided work can also take several forms. While the fundamental characteristics of most software offshoring services ultimately depend on the project and its requirements, we can place almost all of them into three categories: delivery teams, staff augmentation, and project-based outsourcing.
Dedicated delivery teams
Delivery teams are groups of software developers who work autonomously and in sync with their internal team. In most cases, a Delivery Team will consist of a Scrum Master, a Project Manager, Quality Assurance engineers and all necessary developers with the knowledge required for each specific project.
Dedicated software development teams are typically formed within a week or two, and many outsourcing providers offer the ability to handpick talent for each project. All selected engineers will apply agile methodologies, divide the project into sprints, define the backlog and start delivering value from day one.
If you want to develop high-quality software but don't have the right IT infrastructure or human talent readily available, then working with a delivery team could be just what you need to turn your project into a reality. All you need is a Product Owner who stays on top of all progress, feedback and updates.
Staff increase
As you can imagine, Staff Augmentation refers to the process of adding new software engineers to your team. This service is the preferred choice for companies that already have their own IT department. The team provided by the offshore software outsourcing company works side by side with the local team, reporting to the same managers and attending the same meetings as everyone else.
What makes staff augmentation services so unique is their on-demand structure. This means that as a customer, you can quickly scale up or down your extended team to meet the exact needs of your business at any given time. No more hassle when you need to migrate to a new technology stack or when you need to find a niche expert for the next step in your roadmap.
Staff augmentation services allow you to have a smart, right-sized team that has everything it needs at all times to ensure scalability. Quickly adding exceptional software engineers to your team has never been easier.
Software development outsourcing
Software development outsourcing is a full-cycle service in which your IT partner handles the entire project from start to finish. This is what most people are referring to when they talk about software outsourcing: a completely holistic approach that takes all the weight and responsibility of software development out of your hands.
Outsourcing entire projects is often seen as the most cost-effective way to develop software, as it allows you to avoid the costs associated with attracting, hiring and retaining technology talent at any time. Additionally, it allows you to access a global pool of technology experts that would not be accessible otherwise.
Most companies prefer project-based outsourcing when the project involves complex execution of new technologies or when there is no time to take on a new internal challenge. If you think this is the service for you, keep in mind that you will need a very clear definition of the scope of your project for your request to truly be what you had in mind.
Is offshore software outsourcing right for you?
Offshore software outsourcing comes with many benefits, many of which you probably wouldn't want to miss. So, if you want to develop your own custom software solutions quickly and cost-effectively and without compromising on scalability at any point, I would say offshoring is the right decision for you.
