Offshore Software Develapment2. Introduction
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As organizations are increasingly moving towards digital
transformation, the need for software development is also rising.
There is a requirement to transform various processes in an
organization, that can be achieved through software development.
Rapidly changing technology, a competitive market and budget
constraints are some of the key reasons why companies rely on
offshore software development partners to support their digital
transformation journey. Choosing an offshore development vendor
is a complex process and needs a deeper understanding of the
subject. In this blog, we will closely look at the benefits, challenges
and other aspects of offshore software development.
3. What is Offshore Software Development?
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Offshore software development is when services are provided
by the vendor from a location other than the client’s home
country. This is usually done through offshore software
development centres that provide end-to-end development
services with skilled resources and competitive prices
compared to the client’s home country. Owing to its large pool
of technical talent and infrastructure availability, India is a
popular choice for offshore software development.
4. Benefits of Offshore Software Development
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Reduced Development Costs
According to Deloitte Global Outsourcing Survey 2020, around 70% of
companies are driven by cost savings to choose offshoring. Due to the lower
cost of living in countries like India, high-quality talent can be obtained at
significantly lower costs compared to the western market. Offshore Software
Development partners have competitive SLAs and pricing models that can
cost less by as much as 3 times.
Faster Time-to-market
In a typical software development lifecycle, the company will need to start
by hiring resources for the job before actually undertaking development. In
the case of offshoring, the time and effort spent on recruiting resources are
completely eliminated. The software development partners already have
established teams and a network of competent resources who can start
work at short notice or even immediately. This results in faster time-to-
market and enables companies to maintain their competitive edge.
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Access to Larger Talent Pool
Software Development partners have access to a wide pool of talent. This provides clients
an opportunity to utilize resources having expertise in a variety of technical domains. It
becomes easier to quickly access talent without the need for an internal hiring process for
every development expertise the client might need.
Improved Scalability
The needs of an organization can change depending on market dynamics, customers, new
technologies, strategies, etc. Offshoring enables you to scale up or scale down easily and
only hire the resources you need. This not only reduces the time and effort required for
hiring but also makes development cost-efficient, as you only pay for the resources you
utilize. Scalability takes care of your current and future software development needs.
Focus on Core Business Areas
Technology is always evolving and in-house software development can be difficult if you
need to learn new IT skills for different developmental activities. Offshore software
development takes away the hassle of programming and enables internal resources to
focus on core business activities. The cost, time and efforts can now be dedicated to
marketing, creating superior customer experiences and developing strategies for new
products or services.
6. Challenges of Offshore Software Development
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Offshoring comes with a set of challenges that should be navigated carefully
to make the most of your offshore development investments.
Difference in Time Zone
As development partners are located in a different countries, there is usually
a large time gap between the in-house and development teams. This can
result in a delay in development or communication if not addressed
promptly. Many organizations have overlapping working hours and dedicated
meetings and communication channels to overcome this issue.
Cultural Differences
Communication challenges can arise due to cultural differences between
different countries. This can result in a gap in understanding and a significant
loss of time and resources. It is essential to choose a development partner
that understands the cultural nuances and has a team that has good
communication skills.
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Security
Data is an asset for any company and needs to be guarded.
The absence of proper security mechanisms and agreements
between the client and the vendor can make sensitive
company information vulnerable to security threats and data
leaks. Companies should ensure that their offshore software
development partners comply with privacy policies, security
regulations and encryption, etc. as per the standards of the
client and the client’s home country.
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Choosing the right Offshore Software
Development Partner
Offshore development service providers are mushrooming in countries like India,
which is why it becomes critical to evaluate and choose the right partner for your
requirements.
Companies should always verify that the vendor is genuine and has relevant
experience and promised resources. Information on previous projects, references
and testimonials, and rankings from specialist websites are a good source of
ensuring the credibility of a vendor.
It is essential to lay out a clear roadmap of activities, communication plans,
channels and expectations when contracts are being finalized. This removes any
ambiguity and ensures a smooth development process.
The software development partner should have the required capabilities to
ensure the security of your data. They must have strong governance and
compliances in place.
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OpenTeQ provides Offshore Software Development
services for various client requirements. From mobile
and web app development to UI/UX design and QA
services, our pool of high-quality and experienced
resources caters to clients’ developmental needs. Our
well-defined SLAs and competitive pricing models
ensure that you make the most of your investment.