Offshoring Software Development: Benefits And Drawbacks

When we search for a development team to create a software product, making a choice can be tricky, especially if you don’t have any geographical limitations. Moreover, most product owners opt for software development services in India since this approach is cost-effective.

What Is Offshore Software Development?

It’s the process of developing software solutions where the product owner assigns all or a part of development tasks to a third-party company. The main reason behind such an approach is the lack of specialists with high qualification levels or less human resources required for software development.

However, establishing a partnership with an offshore development service can lead to numerous advantages and disadvantages. 

A Sneak Peek at the Benefits

There are many benefits of offshoring, have a read at the points below for a better guide.

●      It Won’t Hurt Your Pocket

In terms of development cost, offshoring is cost-effective; it won’t hurt your pocket. Furthermore, successful start-ups like Skype, Slack, and Basecamp used this approach to launch their businesses on a limited budget. Countries like India, Vietnam, or Ukraine have an abundant number of technicians to provide a better guide in this technical field.

Most companies include offshoring in their strategy to hire resources at low rates in countries with cheap labor costs rather than adding expensive localists in their teams. By relying on an offshore software development company in India, you can get the same work done at a much lower price.

●      They Possess the Knowledge of Best Trends

Offshore development firms have good experience in outsourcing and have collaborated with many other clients before. They are familiar with suitable technologies for the project, know the best trends, changes, and most recent information regarding technical fields. Due to their long history of cooperation, it is easy to find their awards, recognitions and featured appearances online.

They boast in seeking long-term partnerships and building trust with clients. Therefore, other firms can quickly put their faith in them.

●      Expand Your Search for Specialized Skills

One of the top benefits is you can expand your search for specialized skills. You get to search for skills in Asia, Eastern Europe, and beyond that are hard to fetch at a reasonable rate. For instance, Ukraine has a strong STEM background with a pool of skilled software engineers, making the country an ideal place for constructing a virtual software development team.

If seen from this point of view, you can control your business functions and complex projects in-house while outsourcing smaller portions of those projects offshore that later produces the final product. Such an approach will safeguard your IP and reduce dependency on the vendor.

●      Quickly Responds to Your Emerging Needs

In many cases, projects are behind the scheduled time. The main reasons are: slow development progress and trying to fix a defect while polishing software. Hence, every tech company wants to avoid such mishaps. Outsourcing helps to quickly meet deadlines, while your internal team can focus on the core business operations.

It offers the flexibility to scale up and down as and when required. Offshore software development in India finds the necessary specialists in less time without hampering your business process. However, if you wish to reduce the team, you can do it on a short period of notice.

A Quick glance at the Drawbacks

As we are done with the benefits, let’s have a quick glance at the drawbacks of offshoring below.

●      Absence of Physical Presence

One of the main drawbacks of offshoring is the absence of physical presence that leads to improper communication. This can cause a serious hassle since communication plays a vital role in understanding the development growth of a firm. You can easily communicate with an onshore developer who will work in the same office as you.

In contrast, an offshore developer will not be present physically to respond to your problems immediately. Thus, physical absence can cause major problems at times. It is sometimes tough to trust an offshore developer.

●      Different Timezones and Cultural Variance

Every country has its own set of work ethics and standards. The difference in time zones causes both parties to have trouble scheduling meetings or managing projects. For example, if you are a US-based company and the offshoring company is in the Philippines, the huge time difference can cause several communication issues. The working hours in the two countries are entirely different from each other.

Keeping this in mind, many companies choose to rely on an onshore developer to avoid such hassles.

●      The Fear of Data Breach

There can be an IP theft. You must first develop a plan to protect your IP. This includes any type of sensitive data. Keep in mind that a signed, trustworthy contract does not ensure the safety of confidential data. Check for what kind of protections you have in store to help safeguard your solutions. You must always be aware of any leaks or development accuses that may arise while working together.

Moreover, you can apply for preventative actions against this by requesting: A Non-Disclosure Agreement (NDA), A Service Level Agreement (SLA), and security protocols.

●      The Management Process is Gruelling

The offshore team will fully commit to achieving your goals, but you must be entirely involved in the process. You cannot just be absent and entrust the whole work upon them without any supervision.

The client should always be responsible for enhancing the communication process, harmonizing the offshore development process, and the outcome.

●      Difficulty in Handling Agile Projects

It is easy to handle simple projects than agile ones since it is easily manageable. However, it is technically possible to outsource agile projects offshore, yet it is hard to pull it off in the long run. Moreover, teams who are self-organizing, self-managing, and come with good experience can handle an agile project more efficiently.

An agile project needs proper detailing, planning, and appropriate distribution of both in-house and outsourced talent.

Things to Consider Before Offshoring

As we finish with the benefits and drawbacks, let’s have a look at the things you must consider before offshoring.

●A Background Check Of The Vendor: Check on the company size, reputation, and past projects. Research on how their team works and what type of communication tools do they use?

● They Should Make Their Own Decisions: A vendor must be able to make proper decisions regarding your project without taking any help from your in-house team.

●Establish An Efficient Communication Process: Both parties should decide on the tools they will use to communicate. Discuss the availability, response times, and the best way to contact each other.

●Define Your Expected Financial Outcome: You must have all the necessary specifications and processes in handy in advance. Before engaging, make sure to define your expected financial outcome. This will help to measure success or failure in the long run. 

Work with a Reliable Offshore Developer

To conclude, companies should analyze the benefits and drawbacks mentioned above to find the right partner for themselves. The right developer will strategically control the development progress with proper guidelines.

However, if you are searching for a reliable software development company in Kolkata, why don’t you try relying on Wordsys Information Technology- one of India’s top leading IT and digital marketing companies? Their efficient team of IT professionals will provide greater software solutions for a better experience. The company’s software development strategies are customer-centric and industry-specific that will entirely match your expectations. Moreover, if you choose this company for offshoring, their team will create the best software, understanding your budget, requisites, etc.

Summary

This blog sheds light on the advantages and disadvantages of offshore software development. For more details, read this blog.