The benefits and challenges of offshore software development

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8 min read

Businesses have been in survival mode since the pandemic of Covid-19 hit. Markets have become demanding and competition more fierce. Amidst such situations, businesses are looking for ways to gain an edge. One strategic move businesses can make to achieve it is offshore software development.

In this age of IT, businesses are going digital and the recent pandemic just gave a boost to that trend. But developing software products is quite challenging and businesses can't afford to start from scratch.

A smart and strategic move would be to delegate the task to the experts. For that, you need to find a top-rated offshore software development company. Well, you can find a local company for the job, but that option is not very beneficial.

Many benefits of offshore software development can help boost your business growth. But in the path lies some serious challenges as well. We will discuss both of them in this blog.

Benefits of Offshore Software Development

Lower Costs

Cost-benefit is the top priority in any business project. And offshore software development can provide you with maximum benefits at minimum prices. Most of the companies in the US and the EU outsource their software projects to countries like India, and Ukraine. Why?

Because based on geographical and other factors, the charges of the offshore companies remain less in comparison to the ones in your country. Hence, you can get skilled labor and the latest technological resources to use at a low cost in these developing countries.

Shared responsibility

Collaboration with an offshore software development company should be mutually beneficial. In an In-house development approach, it is entirely your responsibility to ensure that the finished product is of high quality.

However, in the case of working with an offshore company, you are a client to your collaborator. So, it's in their best interest to deliver a quality product. The results of the project affect them as much as you.

Therefore, they prioritize eliminating all the risks in the project. In such a way, the offshore development company shares the responsibility of the project with you. This also provides your business an opportunity to grow and transform.

Experience

Top-rated offshore development companies have a great portfolio. They have worked with clients from various industries in the past and delivered satisfactory results. This also proves that they have experience working at multiple levels.

Therefore, their experts are not just masters of technical know-how but also bring valuable field experience to the table.

Such an experience helps them understand your problems and requirements, find out what technologies might be suitable for your project, and determine the best approach to get better outcomes.

The expert offshore developers are flexible and adaptable to new trends as well. So, their skill set is extremely beneficial to the project.

Scaling the team

Amidst changing markets, your business requirements change as well. So you have to adjust your resources accordingly to meet those changing needs. One of those adjustments is scaling your team and resources.

Even in a simple project, you need a variety of expertise at a certain level and a few on another. Scaling teams might cost you dearly. Additionally, managing a team is not a piece of cake either.

But when you outsource your project, you also outsource some of your responsibilities to your technological partner. Delegating all these responsibilities would save a lot of your time and resources.

The outsourcing company will be the one managing your team so they have to handle the scaling of your team as well. As we already discussed, they are experts, so they know what level of project would need what kind of expertise. They act accordingly.

Reliability

We saw that offshore software companies house great talents and technologies. This says that offshore development, if done right, is a reliable solution. Most companies, while collaborating, form a legal partnership using contracts like NDAs. such contracts provide a legal guarantee that your proprietary information will be safe and that your project will be delivered on time.

Access to global talent and the latest technologies

Technology evolves continuously. Expert software developers would need advanced technologies to fulfill your requirements. However, not every developer and development company has access to top-tier talent and technologies.

However, offshore development companies are completely capable of delivering solutions that meet your expectations. And to do that, they face no difficulties finding top talent and trending technologies.

The very reason why you don't have to hire and manage teams or set up an infrastructure is because these companies already house them. They allocate experts and technical resources to your project according to requirements.

The offshore companies offer knowledge-based services, which means you can get expert input or insight on your development project whenever you face a problem. We already discussed what kind of experience they bring in.

In addition to that, it might happen that in your locality, it would be hard to find a specialist in a certain technological arena. But when you widen your scope and decide to outsource, you can tap into the global pool of talent to get a specialized set of skills on board.

Reduced time-to-market

No one wants their project to lag in the timeline. It can cause heavy loss. The market is very competitive. The longer your product takes to develop, the more you will lose in the market. In addition to that, the longer the development process lasts, the higher the costs go.

If you try to build the product on your own then also it will take a very long time. You have to hire professionals, buy tools and technologies, set up an infrastructure, and after that, develop and deploy. If you face any setback, the times stretch out even more.

An offshore development company can quickly put together a team suitable for fulfilling your requirements and since they already have infrastructure installed, they can get started right away. Experts know what they have to do to deliver up to your expectations. So, the development process won't take much longer and your project will be delivered on schedule.

Offshore developers implement agile development best practices so they have a good introspection on the development process. This ensures that along with continuous improvements upon feedback to several iterations with flexible responses, your project will be delivered on time.

Challenges of offshore software development

There are many advantages of offshore software development. But along the path lies some serious challenges as well. Businesses must prepare themselves to face and overcome them. So, they don't lose precious time and resources and get the maximum out of this approach. Some of the top challenges to offshore development are:

Time-zone differences

Working with an offshore company means working in different time zones. Because of the difference in the geographical locations, establishing communication is tricky. This may lead to delayed product launch.

Some say that having different time zones is a blessing in disguise if some of their working hours overlap with yours. This way, they will be working for you around the clock. If you have any problem with your project just relay the information to them. They check it out and start working on it immediately. And when you come to the office the next morning, you will get an update on the product.

However, the problem here lies in establishing that first communication when you realize there is a problem or want to change something. For that, you must schedule some calls at regular intervals to discuss product updates, project reports, and other important matters. On top of that, you can establish a communication channel for real-time contact and emergencies.

Security issues

If you hire a software development company without vetting it thoroughly, or you enter into a partnership without a solid contract that ensures the protection of your intellectual property and sensitive business information then you might have a serious security challenge on your hands.

Without a legal contract like an NDA binding them to protect your IP, nothing can stop them from selling your product idea to the highest bidder or worse, your competitor. Also, after the product is finished, in the handover stage, you must gain complete control over the IP rights of the newly developed product along with its source code.

Quality assurance

One of the main concerns of businesses is how can they control or ensure the quality of the product in development when all work is done on the other side of the shore. Indeed, you can't ensure that the quality of the developing product is up to expectations if you are not in the loop.

It's not like once you delegate your project to an offshore company and you will hear from them when the product is ready, it doesn't work like that. And you have to make sure that it doesn't. Get involved or be a part of the workflow of your development partner. Then you will be able to get regular updates and reports on product development. You can also share your inputs, feedback, or concerns to make appropriate changes.

Offshore companies usually adopt an interactive approach to development so there is always room for improvement. This way you can control the quality of the product to your expectations.

Final words

To outsmart your competition and gain an edge in the market, businesses have to make a strategic move of outsourcing their software project to an offshore development company.

Both in-house and offshore development have their pros and cons. Depending upon the situation and the requirements of a business, an option becomes beneficial or detrimental. On average, offshore development has a more positive influence on business because of the large array of long-term benefits it offers.

Not only will you be able to access trending technologies to make your idea a reality, but you will also get experts working on your project. This gives you time to focus on your core business. But remember, none of it matters if you can't find a reliable offshore software development partner.