Top 7 Benefits of Offshore Development Services You Need To Know
Alisha Rukhsar
September 13 2024 6:50 PM
Offshore development services have been trending in recent years. This is because most startups and businesses have realized the benefits of marketing their products at the lowest possible cost. Time and money are always invaluable for businesses, especially in the tech industry. Small companies and startups with low budgets and fewer team members can primarily not develop and market their products at the right time. A successful and profitable option to fill this gap is to hire an offshore development team.
This blog post will briefly discuss the benefits of offshore software development services and how they help businesses develop high-quality software products quickly and with a minimal budget.
Benefits of Offshore Development Services
Let’s have a look at 7 significant benefits of offshore development services:
1. Cost-Effective:
Cost savings is one of the primary potentials of offshore software development services. Most offshore development companies operate in countries with lower labor costs, resulting in minimal stipends compared to developing countries. For example, countries like India, China, Ukraine, etc., have low labor costs for a company working in the United States, United Kingdom, or Australia.
Based on a report conducted by Deloitte, 70% of companies prefer offshore development services due to cost efficiency. Hiring an offshore team is an excellent idea for startups with a low budget, as you don’t have to compromise on quality standards because of your minimal budget.
2. A Doorway To Global Talent Pool
Offshore development services allow your company access to the global talent pool. According to a Clutch report, 18% of businesses approach offshore companies to get a favor from IT experts worldwide. It enables your company to take advantage of expertise worldwide, which may be outside your country. Countries like India, China, Malaysia, and Singapore have a strong IT record, meaning hiring software teams from these countries will result in innovative and efficient products.
3. Time Savings
Recruiting an offshore software development company enables your company to speed up your ongoing project and release your product at the right time in the market. It is more profitable for small businesses and startups as they need more resources in terms of finance, employment, infrastructure, etc, which makes them unable to start a project from scratch. Working with an offshore team gives them a competitive edge in the market.
4. Focus on Core Business Activities
When a company outsources its software development project to an external team, its internal resources and expertise can better focus on core competencies of business, i.e., sales, marketing, and customer service.
In the end, hiring an offshore team for improved business performance in terms of increased efficiency and productivity is an excellent strategy.
5. Shared Responsibility
Working with an offshore team is a win-win relationship. All your project-related responsibilities will be divided equally between your in-house and an offshore team. It will lead to high-quality end products.
In today’s globalized world, thousands of offshore software companies are working and aiming to deliver high-quality software projects to clients. So, your company is one of many to worry about regarding deadlines and market competency. Besides, your offshore team will try its best to deliver high-quality results.
6. Flexibility and Adaptability
Increased flexibility and adaptability are being noticed in offshore development teams. The offshore team will actively work on your project when the in-house team is unavailable. This 24/7 working on your project enables your company to complete it quickly.
It is also beneficial in terms of short-term contracts because your contract is terminated as soon as the project is complete. So your company can modify the number of employees per your requirements.
7. Cutting Down Hiring and On-boarding
Offshore software development teams often have several highly skilled developers ready to start their tasks immediately. Hiring an offshore team reduces the time to hire and on-board new qualified employees. Additionally, suppose your in-house or offshore team cannot meet their deadline for some reason. In that case, your offshore team will already have skilled developers pre-screened, minimizing the time and budget needed to hire and onboard new employees.
The Bottom Line
Offshore development services provide many advantages to businesses and startups, i.e., cost savings, time savings, flexibility, divided responsibility, and many more. However, the benefits mentioned above come with challenges, too. For effective project management and a high-quality end product, the company’s higher management should be very clear about the vision and scope of the project. Proper framework and strategies should be designed and followed when choosing the right software development partner.
