Why Should You Choose Offshore Software Development?

From Google and Microsoft to Slack and Alibaba, successful companies around the world have turned to offshore software development outsourcing to get their businesses off the ground and keep them thriving. In fact, outsourcing of all types has gained traction in recent years across a wide variety of industries. Providers like Savvycom build technological projects for many organizations in all types of sectors while also providing consulting services.

1. Onshore, Nearshore, and Offshore Development: What Do the Terms Each Mean?

Generally speaking, outsourcing falls into three categories: onshore, nearshore, and offshore. Here’s a breakdown of what each of these software development services entails.

1.1. Onshore Development

Onshore development is a form of outsourcing where both partners are working in the same country. A business based in Chicago, for example, might outsource their software development needs to a provider based in San Francisco. Through this model, partners can communicate in real-time and even meet in person should the project demand it.

1.2. Nearshore Development

Nearshore development means that a business outsources software development to a nearby country or one with a similar time zone. For instance, a company in the United States might use a provider in Latin American countries like Argentina or Mexico, while a company in Germany could turn to a provider in Ukraine. One benefit is that nearshore partners tend to be culturally compatible. They’re also typically cheaper than onshore providers.

1.3. Offshore Development

In the case of offshore development, partners are geographically distant — in some cases across the world from one another. For instance, a business in the United States might work with a team in India or China. In general, this is typically the least costly outsourcing model, and it’s probably the most well-known outsourcing.

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2. Best Practices for Offshore Development

2.1. Establish Goals

Businesses must outline their objectives for the partnership, identifying what they hope to achieve from the arrangement. These might include the requirements for a specific project, a deadline for completion, special features the software should have, and measures of quality.

2.2. Check References

Review your partners’ portfolios and reviews on platforms like Clutch, Glassdoor, and social media. You may also request referrals from previous clients. Organizations should pay attention to expertise in their industry and niche and level of experience.

2.3. Establish Collaboration

Use communication tools like Slack, WhatsApp, and Skype. It’s best practice to define the frequency of check-ins and times that they’ll take place upfront. Organizations may also use project management tools such as Jira and Monday to track progress.

2.4. Take Security Measures

To prevent security and data breaches, organizations must take strides to protect their information. These steps might include giving third-party vendors access to only the data they absolutely need, as well as having the partner sign a non-disclosure agreement.

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3. Why Businesses Choose Offshore Software Outsourcing

3.1. Specialization and Expertise

If a business is in need of a developer with a particular skill set, it can be difficult to find a nearby provider. Using an offshore model gives the business access to talent all over the world, including providers located in distant countries. Some foreign countries have emerged as high-quality providers, including India, Argentina, Mexico, China, the Philippines, Ukraine and especially Vietnam with unbeatable cost.

Many offshore outsourcing companies take special measures to ensure the quality of their software development.

3.2. Cost-Effectiveness

Offshore software development is typically the cheapest outsourcing model when a business is based on North America or Western Europe. Onshore is generally the most expensive option in this case, and nearshore often falls somewhere in between the two. This is because offshore providers are typically in countries with developing economies.

3.3. Faster Time to Market

A dedicated team will generally bring a project to completion in a shorter period of time than an in-house team might because they will not be working with additional tasks and business priorities. Advantages to this include staying ahead of the competition and ensuring that software is timely.

3.4. Risk Mitigation

In an offshore partnership, both the customer and the provider assume the burden of any risks associated with the project. Both parties have a vested interest in the performance of the end result, the money it earns, and its overall quality. This often means faster completion times and higher-quality products.

Interested in working with an offshore software development partner? Providers like Savvycom offer a number of benefits, including team integration, lower prices, faster turnaround, and extensive specialization and expertise — all while alleviating your burden and allowing you to focus on core business functions.

4. How to Choose an Offshore Software Outsourcing Company?

4.1. Quality Experience

Always check your potential IT partner’s references, previous client lists, and completed projects. This information will give you some insight into the performance, workflow style, and quality of the IT company’s software products.

4.2. Great communication skills and fluent English

Language difference is one of the obstacles when offshore so smooth communication and workflow is the most important step. Your Outsourcing Partner must be fully fluent in English or the language of your choice. In addition, their workflow should match your workflow throughout the development cycle.

4.3. Standardized Security Protocols

As technology advances, cybersecurity is more important than ever. Make sure that the IT company you choose has up-to-date security protocols to keep all data and software products safe.

4.4. Top Talent Software Engineers

Outsourcing development abroad gives you access to world-class IT talent. The mission of an outsourcing company is to bring together the best software developers from the region and use their talents to build the best possible product for you.

4.5. Full Range of Services

The best outsourcing companies that specialize in many areas will be able to handle your project from a holistic and highly experienced approach.

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Looking To Find A Trusted Tech Partner?

Tech Consulting, End-to-End Product Development, Cloud & DevOps Service! Since 2009, Savvycom has been harnessing digital technologies for the benefit of businesses, mid and large enterprises, and startups across the variety of industries. We can help you to build high-quality software solutions and products as well as deliver a wide range of related professional services.

Savvycom is right where you need. Contact us now for further consultation:

  • Phone: +84 24 3202 9222
  • Hotline: +1 408 663 8600 (US); +612 8006 1349 (AUS); +84 32 675 2886 (VN)
  • Email: [email protected]

Seeking software development company: In-house or Offshoring?

Following the development of the Internet and Information Technology, the demand for software projects have been increased rapidly over the past several years all over the world. In order to face up with this problem, entrepreneurs can resolve it either by having in-house developers or hiring out an offshored company. Each option has its own advantage and disadvantage that the managers have to consider carefully based on the company’s vision and realistic resource.

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In this article, Savvycom would love to give you a comprehensive view of creating a software product, as well as guide how to have an effective problem-solving for your business.

There is no clear proof that the more money you invest in software products, the more equivalent outcomes you will get, but it is sure that if you invest in a right way, an appropriate amount of money also help you to have an unexpected result. But the question here is: How to estimate that money and what is investing in the right place?

In the followings, we would love to show you the pros and cons of In-House and Offshoring in detail.

in house pros cons

1. Benefit and downside of In-house department

1.1 Benefit

  • Deep understanding of the company

Obviously, the most advantage of this kind is, you have a relevant and dedicated team on your side. These developers will put all their energy and passion for the company’s projects. Your software project will be more likely to have the company’s nuance, then express better company’s spirit.

  • Availability at the company

The full-time development team is always available and you can discuss directly with them if there are some changes in need. For example, when your website suddenly crashes, there is less opportunity that it is fixed immediately.

1.2 Downside

  • High cost

As mentioned before, you have to manage a huge additional cost besides the developers’ salaries. It is even more not cost-effective if you only have a few software projects then, all your investment will no longer be used, which leads to money-wasting. More importantly, when you build an IT in-house, for example, for your six-month project, you have to deal with a tons of hidden cost for labours other than their original salary such as health insurance, paid time off, travelling, vacations and sick leaves, pension contributions; hiring and training, etc. just to name a few. Supposed that all other conditions being equal, prepare to pay 3.5 times more if you choose in-house development. These initial cost can quickly and become overwhelming for those who first lead a business.

  • Hard to recruit

Finding the right developer for the business is also a harder work than you thought. The procedure for hiring new developers takes time when not only the HR Department but also the IT department has to involve in this process.

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2. Cons and pros of offshoring

2.1 Cons

If you haven’t try to setup offshore development centre OR build your own team of offshore developers, you should consider these disadvantages before hiring an outsource agency oversea:

  • Code collaboration

Culture problems seem to be the biggest barrier when collaborating in different countries. In most case, the offshore software development company does not understand the product requirements and expectations thoroughly and comprehensively. Hence, the development team must have a long process to modify the product to satisfy their partner.

  • Working time

Being in a different timezone is also a challenge for the two parties when they have an online conference call. In this case, one party maybe may work with low efficiency, which leads to the two parties do not understand each other clearly.

  • Only available when needed

The development team may do not have time to track your software product continuously but to periodically. Once a flaw appears, your company will need more time to solve it than having an in-house team.

2.2 Pros

Offshoring has become popular for years by its cutting edge features for business. The paragraphs below will explain why it is preferable

  • Cost savings

Information Technology Outsourcing (ITO) to foreign vendors has become the trend for companies who want to save money significantly. The money you pay for the vendors depends on the amount of time you work with them and the level of the developers. The hourly rate also varies differently in different countries. While the hourly rate for the expert level in the developing countries, like Vietnam, is 18-35$ US, hiring a developer in the US can vary from $US 90 to $US395, depending on their skills and languages. The fluctuation cost is 4 times less, leading to a flood of the offshoring to Asian companies.

Time is money, that is true. Once you hire an outsource team developers, you just have to take the time to think about the best strategy for your company as well as focus on operating the overall business but not for caring all the other stuff like hiring IT department or manage their workflow, etc.

  • Access to professional experts

The offshoring will come with specialised expertise that helps to immediately solve the company’s problems. Your company will have a software product tailored personally for you by top experts without requiring a long-term commitment. At Savvycom, about 80% of our engineers have more than 3 years experience; project managers, Technical Leads and QA Leads have more than 10 years experience.

  • Fast-result

It’s hard for your company to finish a short-term project within pressing deadlines. It is even more seriously if your new software project required a high level of expertise or a big sum of money to buy facilities. Therefore, an outside agency with professional knowledge and skills would be best for an emergency.

3. Why choose Savvycom for offshoring?

Savvycom is a leading software offshoring company which has nearly 10 years of existing. At Savvycom, you are absolutely set your mind at rest, as our service has overcome all the above obstacles when using oversea vendors. Our team not only has software expertise but also be able to speak English proficiently. This enables Savvycom to better understand our clients, and collaborate effectively with them. Whether it’s the mobile application, web application development, enterprise management solutions or Cloud & DevOps services, we can create powerful products to help you optimise investment costs and enhance your business.

By and large, it is confused to decide whether you should choose an outsourcing project or hiring in-house developers for a project. Hopefully, through this article, you have enough resource to evaluate the pros and cons of offshoring and in-house development, then choose Savvycom as your most suitable partner for your company.

For further information about Offshoring software development solutions, feel free to contact Savvycom to book a meeting

We’re happy to discuss with you to find out outsourcing software development project solution or lend you our professional and experts.

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