Benefits of offshore outsourcing

As software development becomes an integral process of many businesses, organizations are increasingly outsourcing these operations to offshore development companies. 

Offshore software outsourcing is often essential for organizations because many are unable to devote the resources and personnel necessary for developing these critical products and services in-house. When you employ offshore developers, you’re entrusting this aspect of your business to talented and highly skilled workers who will be fully dedicated to the development process, leaving you time and energy to focus on other aspects of your organization.

This is just one reason why businesses are increasingly turning to offshore developers in countries such as India, Argentina, China, the Phillippines, and others. It’s not just small startups who are participating in offshore outsourcing, either — although many former startups, including Whatsapp and Skype, have. Huge tech empires, such as Microsoft and Intel, are also outsourcing some of their services, too. 

5 benefits of offshore software development outsourcing 

1. Cost reduction

One of the main reasons why businesses outsource their projects to offshore development companies is because of cost savings. Overseas labor is often substantially cheaper than onshore labor. 

Moreover, it is far less expensive to employ offshore developers on a project basis than it is to hire and onboard full-time, in-house developers, so you’ll be saving overhead costs as well. External companies govern their own operations, meaning any training or other personnel costs, as well as equipment related to the software development process will be coming out of their budget, not yours. 

2. Expertise

If you’re having trouble finding developers with the right skills and expertise to handle your project, outsourcing allows you to access a global pool of talent and choose among many qualified services and developers to find the best fit.

Offshore development companies are dedicated to handling complex software development projects. They employ experienced workers with highly specialized knowledge that in-house employees may not have. And given the expanded pool of options, you can research individual businesses and developers, read reviews, and ask for client references to evaluate your options and choose the company that makes the most sense given the scope of your project, your budget, and other factors.

3. Efficiency and productivity 

Offshore software outsourcing means that you and your in-house team can focus on other core responsibilities and activities, while a separate team handles the development process. You’ll be spending less time multitasking — which generally decreases productivity — and more time on key business concerns.

Offshore developers will be solely dedicated to the development process, meaning they’re not multitasking, either. This increases efficiency and turnaround time for your product, ultimately reducing its time to market. 

4. Risk reduction

Developing new technologies carries a fair amount of risk, such as concerns that you may not be producing the highest-quality products or are developing ones that could quickly become outdated. 

Fortunately, when you employ offshore developers, you’re mitigating that risk by relying on highly skilled workers who are knowledgeable about market trends and well-versed in established, new, and emerging technologies. That means they will help you keep your products up-to-date and ensure that they are of high quality.

5. Time

When you’re working with offshore developers, you’re not limited by time constraints. In-house employees generally stick to a set schedule, but outsourcing your labor often means that the development team will complete critical tasks at any point, regardless of whether the demand occurs within typical business hours. 

If you’re in a different time zone from the offshore developers, they can work on important issues overnight, enabling your in-house team to review the work during business hours the next day. This means that tasks are being accomplished at all hours of the day, increasing expediency.

Should you outsource to offshore development companies?

While there are certainly some risks to outsourcing, such as the loss of control over some aspects of your project, hidden costs, and concerns about confidentiality, doing so can also be highly beneficial. Ultimately, you’re likely to save on costs and time, increase efficiency and your product’s time to market, and develop a superior product or service.

To mitigate some of the risks involved in offshoring software development outsourcing, it is important to thoroughly research any developers you’re considering hiring before establishing a contract. This means vetting them by asking for previous client testimonials, reading online reviews and ratings, and comparing them to competitors. You should also hammer out any important details, including deadlines and potential cost increases.

Once you do sign a contract, you should establish expectations up front and stay in constant communication with the company to ensure that you’re both on the same page and that you remain apprised of the project’s status, as well as any complications. This will reduce frustration on both sides and lead to a better arrangement and project overall.