These are just a few of the many strategies that you can implement when working with remote teams. We’ve written an entire blog post dedicated to the topic — a resource that can prove to be extremely helpful for your business. Because of the minimal time difference, offshoring to Latin American most common among North American companies.

offshore software development benefits

Almost 50% of these businesses are tightly-packed into Western Europe and American cities. Competition is at an all-time high, operational costs are always climbing, and talent is getting scarcer by the day. Latin America is experiencing significant growth in the software development industry today with offshore development regions such as Argentina, Mexico, and Brazil. The hourly rate for programmers here can start from $30 to $50 per hour, depending on the engineer’s experience and skills.

This diminishes any linguistic barriers and results in a clear understanding and communication of directions, allowing project objectives to be recognized and achieved by the team. This greater level of accessibility can be fueled by either communication technologies or by taking a short flight for a face-to-face meeting. The most lucrative perk about this region is the time difference, with similar time ranges, communication can be much easier to execute. Because it is so close to North America, this could be considered a nearshoring solution. Offshoring can aid you in saving a considerable amount of money by enlarging your margins without diminishing your output.

Access to a Wide Pool Of Great Talent

To compensate for the lack of live communication, you can use video calls to understand your team better. It does not mean that the developers are any less talented, just that their location is different. Keep in mind that the payroll makes up only a small part of the overall cost. The rest includes things like workspace, equipment, daily amenities, and other extra employee benefits that really add up in the end. All of these together make forming a full in-house team very expensive.

A good offshore software developer will have a strong portfolio of previous projects. However, if you’re looking at Eastern Europe, consider countries like Ukraine, Belarus, Poland, and Romania — some of the best offshoring locations with low development costs. The cost of living in many offshore countries is much lower than in western countries like Australia and the USA, letting you save on wages and administrative costs. You can use that time and resources to improve core business processes such as strategy, expansion, acquiring new clients, etc.

It’ll help you stay updated on the progress of your software development project. Since the offshore development center will be in another timezone, offshore software development benefits they’ll be working similarly to a remote team. That’s why offshore software development is the ideal choice for building custom software solutions.

Offshore vs Onshore: Popular Processes, Pros, Cons

With a lower cost, offshoring involves smaller risks in terms of investment. While other risks like non-compliance still exist, you can mitigate them by partnering with a trusted offshore software development company. Offshore software development companies have a huge pool of available tech talent. So when you need a larger team, the partner company can quickly meet this need by supplying developers. Cleveroad is a professional offshore software outsourcing company from Estonia.

With offshoring, the developers are chosen by you, and work only for your business. There’s no doubt that the software industry has become incredibly saturated. With tech start-ups mushrooming like never before, it’s been suggested that there will be over a million software companies in the world within the next 10 years.

  • Pool of Tech ExpertsOffshore software development company provides a plethora of IT experts needed to set off the project.
  • For example, everyone knows that Ukrainian web engineers know Java, JavaScript, and Python well.
  • A large number of software providers in the offshore market can both benefit and confuse you.
  • Of course, offshore software development or outsourcing software projects is not a new term as businesses did acknowledge it before but today they have no other alternative left.
  • If hiring a developer from another location is less expensive and time saving, you may also face challenges at the same time.

Instead, you will be channeling funds into the most crucial area, namely the creation of the MVP. What’s more important, due to the lower cost of living, the rates outsourcing developers are usually much lower than their American and Western European counterparts. To sum it up, lots of time, effort, and capital go into coming up with innovative and creative software solutions for companies that want to stand out from their competitors. Companies unable to hire the most talented recruits are left with less-qualified developers that may not be able to complete their tasks as effectively. For example, many companies like Google, CISCO, or IBM employ these offshore software development companies or a team overseas. The underlying difference is that they are located overseas or physically elsewhere.

Another essential issue worth paying attention to is the countries in which the best offshore talent is located. Working with an outsourcing company from another country can have both advantages and disadvantages. However, it can still help you in choosing the best country for the remote team. There are different developers, including web engineers, mobile developers, front-end or back-end teams, Full-Stack developers, and more. Considering the rate at which the digital industry is expanding, there are many reasons why companies of all sizes hire offshore developers.

Things to Look For in an Offshore Software Development Company

Most offshore software development companies specialize in certain sectors or operate with technology stacks that are rare for the in-house team qualification. So, you may be able to hire a certified professional with the needed hard skill set from a vendor’s company. This may help you build an advanced product that will be competitive in the market. Offshore software development involves tech companies hiring experienced remote teams and employees that can provide a greater level of insight regarding software development projects. It’s impossible to predict with precision how long something will take to build or how much money will be needed. When you hire an offshore software development company, you can easily hire more engineers and shorten the time required to complete the project.

offshore software development benefits

The benefits of hiring offshore software developers are that you can expand the technology that you’re using without having to invest more capital in it. You’re given the flexibility to access the top talent and its technology for the project’s duration without the cost of a longer commitment term. This lets you trial new technology before you actually apply for your business. And finally, the companies that use IT consulting services, they are able to get the resources they need to continue growing in their country, building their business, and taking their profits home. When it comes to the benefits of hiring an offshore software development company, everyone wins. To begin with, let us see what the main benefits of offshore development are and why so many companies around the world choose this approach.

How To Manage Offshore Software Development Process?

Offshore developers are well versed with the latest technologies and the offshore companies have an abundance of talented developers to serve you. There are multiple companies who hire offshore teams at lower prices but fail to get what they want. They might choose another development company, but not all the companies, especially startups have the privilege to invest again. These instances happen very often but still, the benefits of the offshore development services cannot be ignored.

offshore software development benefits

When dealing with offshore IT development staff, time zone difference is crucial. If you and your vendor are in different time zones, communication may take a little longer. In addition, product development may be delayed from time to time if the organization has a critical question that requires your response and permission. At Cleveroad, we schedule all meetings in advance to improve communication efficiency and reduce possible time lags. We named only the most common reasons to use offshore software engineering, but there are more than three ones. You may add something to this list, when you start working with an offshore outsourcing team, and see how convenient it is.

Access to Top Talent

After narrowing your search to a manageable number of viable options, it’s time to do some research. You can get the best firm to assist you with software development if you look a bit. Instead of expending effort investigating the development process, you can hand off most of the duty to your outsourcing partner and focus on other aspects of your business. You’ll be able to focus more intently on your career aspirations with the time and effort you save.

Challenges Of Offshore Software Development

Our support team will guide you through the entire process – from the first contact until final selection, and if requested, relocation to a new office. The one factor that could easily come as an obstacle is unnecessary delay. To make sure everything is on track within the stipulated timeline, ask the above-mentioned questions and schedule meetings with the project managers to be in the loop.

Offshore development companies specialize in quickly delivering high quality software. If you choose to offshore your app development, it’ll be much faster than using an in-house team. Partnerships with many skilled developers, each of whom brings their unique skills to the table, may shorten the time businesses attempt to speed up the development process in-house. In this way, the project may be delivered to the market considerably more rapidly, at the expense of a little increase in cost. This is where offshore software development companies come into the picture. You instantly get the most skilled experts and the necessary resources to get the job done.

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ExperienceThere is no doubt that the team of experts should have efficient experience to work on the project. No matter how complex the project, the offshore development company will have the best team to deliver quality work within the time limit. There are always customer demands for new features, or product launches in new verticals.

Offshoring your software development tasks offers tons of benefits, like high-quality talent and lower rates. The IT and software development sector has been highly involved with the outsourcing industry, as almost 72% of the global outsourcing contract value is due to IT services. Judging from this, it’s no surprise that out of the $92.5 billion worth of outsourcing contracts in the world, IT services amount to $66.5 billion. IP theft is one of the most prevalent risks of this form of software development.

Most companies need the means to compete with offshore software development organizations’ extensive networks of connections and resources while searching for the perfect candidate for your project. Offshore development companies carry out software development services in different countries or regions, usually areas with low living costs. Offshore software development is cost-effective as remote software development teams in areas such as Europe can prove less costly compared to remote teams in areas close to the US. Business ownership and IT maintenance can cause issues to arise at any given time. These problems could force you to need a more hands-on-deck approach. Thus making the scalability features this service encases, phenomenal.

It’s one of the obvious steps, but unfortunately, many don’t take it seriously. Your list of needs and goals should be as precise as possible, having all the project’s necessary aspects. Many companies regularly take on short projects, and it can become expensive to hire a full-time working team. On the other hand, hiring offshore developers can be done within a tight budget and for a specific time frame.