Benefits & Disadvantages of Offshore Software Development

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Benefits and Disadvantages of Offshore Software Development

Benefits & Disadvantages of Offshore Software Development

February 11, 2022 0 Comments

Many individuals are unaware of software development offshoring processes and how these services affect their company. While there are many advantages and disadvantages of offshoring, our Offshore Software Development and Software Development Services are sure to have more perks than downfalls. To give you an idea of what offshore software development means:

  • Acquiring a dedicated team that assists with software development that is usually located in an office overseas. Hiring in-house development teams, or even just one in your region, can be extremely expensive. That is the reason many organizations lean towards this approach.
  • Many large corporations utilize the benefits of offshore outsourcing. Including, but not limited to, Microsoft, Google, Apple, and Amazon. Other companies, like Skype, have used this technique as a way to start their company on a low budget. The cost and staffing flexibilities remain to be the largest appeal of this concept.

It is time to consider offshoring when:

  • The cost of operation is more than it’s worth. Offshoring can aid you in saving a considerable amount of money by enlarging your margins without diminishing your output.
  • Your scalability is not where it needs to be. By implementing a proper overseas tech team into your projects, you’ll have the tools you need to have the internal capacity for large business clients and expansions.

Benefits & Disadvantages of Offshore Software Development.

While the benefits of offshoring are tremendous, we’d be lying if we stated there weren’t any cons of offshoring. For the sake of versatility, here are the main offshoring pros and cons:

  1. Perks. There is a wide range of benefits for this solution, here are our top 4:
    • Reduced project funding. One of the top expenses for business owners today is labor costs. In today’s climate, it has become very difficult to attain and maintain experienced, diverse, and goal-oriented help. Luckily, this process can help you startup and excel in your business even on a tight budget. But this cost-effective solution doesn’t come for free or without hard work. Best practices and compliance protocols must be practiced by all of your employees, including the ones overseas. In layman’s terms, you’ll need an executable plan to get the most out of this low-cost solution.
    • Access to a myriad of experienced professionals. As mentioned before, finding the right help can be a tedious and unfulfilling task. Especially if you’re limited to your general area. However, offshoring allows you to broaden your employee search to other countries and even other continents. This aspect could be considered as an advantage and disadvantage of offshoring. For example, you’ll have access to a wide range of experienced specialists but you’ll also have to maintain compliance and best practices within those experts.
    • Flexibility for short-term solutions. 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. When it comes time to hire more people for certain projects, we’ll handle HR for you. Temporary roles are becoming more and more common these days and sometimes that’s just what your company needs. Don’t be fooled though there will have to be compliance training and guidelines set for all employees, temporary and permanent alike. Don’t worry, we can help you with this process tremendously.
    • Possibility of breaking through to foreign markets. Language barriers can be a difficult obstacle to overcome in the implementation of this service. However, an offshore partner that understands your overall mission, short-term goals, regulations, and the culture of your overseas location will help you achieve goals you never thought possible. Including breaking into a new market in an essentially disparate community.
  2. Downfalls. No technological or IT services are perfect. However, at Klik Solutions, we always do our absolute best to help you reach your goals. Here are the top three cons of offshoring:
    • Organizational and communication errors. As mentioned above, having a large pool of employees in a dissimilar continent can have its drawbacks. Even when dealing with employees of the same culture as you, many distinctions could cause errors. If a person doesn’t have the expertise or knowledge to meet your company’s goals, it will affect your business. That’s why it is extremely important to form a plan that enlightens all of your employees about the proper code of conduct, security policies, and compliance protocols used by your company.
    • Internet Protocol (IP) hazards. IP theft is one of the most prevalent risks of this form of software development. Before considering any form of outsourced service, you must devise a plan to protect your internet protocol ID from malice. This can be done by creating a document that clearly underlines sharable and highly classified information, system vulnerabilities, and security breach arrangements. By making sure your infrastructure is secure, you’ll be saving yourself lots of time and money.
    • Unsupportive of Agile software development. Agile software depends on a well-structured and balanced work environment between in-house and outsourced employees. Because of the sequential methods of this service, everyone must have an organized and concise understanding of their responsibilities as well as their counterparts.

Top Offshoring Locations to Consider.

There are many great places to find offshore assistance, it’s just about finding the right community for your needs. While it’s possible to start a team anywhere you’d like, here’s a list of diverse and successful placements:

Eastern Europe.

For businesses that operate in Western Europe, this is probably the best fit. You’ll be able to reap the benefits of offshoring while receiving the perks of nearshoring. Because one of the biggest cons of offshoring is strenuous collaboration and communication, nearshoring can help cut out this aspect almost completely. Countries located on this continent often have great software developers.

Known as the offshore capital of the world, India has a plethora of IT developers stocked and ready to work. For the most part, these highly trained individuals are easy to communicate with because they are fluent in English. India isn’t the most expensive place to live either, so you can set up shop for a fraction of the price it would take to set up a developing firm in your area.
Latin America.

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. Meaning it has all the perks of an adjacent location.

To learn more about our offshoring services and how they can help your business and pockets thrive, call us today at 888-959-1196 or Klik here to schedule a meeting with a live representative. We look forward to helping your business excel in any way we can.

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