Offshore software development

This blog talks about offshore software development, its benefits, and key points to remember while opting for it

Globalization has rewritten the rules of the game in every area of ​​life. Now that we can easily travel to every corner of the world and have internet access for our businesses, we can work more efficiently and cost-effectively with companies and branches on the other side of the globe, and through external partners It is now possible to create products.

Offshore development, on the other hand, means delivering a software project to a foreign company, while the client company tracks and manages the project from start to finish.

The difference between outsourcing and offshore software development

There is a lot of confusion about terminology when it comes to offshore software development. Although many people use the terms offshore and outsourcing interchangeably, the two are very different concepts.

Outsourcing is the outsourcing of certain activities or functions to a third party, and offshore development is the delivery of software projects to foreign companies. The main difference is that in offshore development the client company retains control of the project and manages it from start to finish.

Offshoring is the partial or complete handling of a project by a foreign branch or an external business her partner. For example, if your company is located in the US and your customer is Poland, then you are talking about offshoring. Offshoring can also mean that the company and contractor are in the same location, but working in different time zones.

Thanks to Culture Games.

Central Europe is  one of the most popular near-shoring destinations in the European Union countries. The legal system and the economic system are almost the same. Since there is no time difference, there is no problem even if communication is delayed. The flight time to the partner’s headquarters is around 2-3 hours, and the ground transfer is usually smooth.
Most EU member states share similar work ethics and cultural patterns, so the benefits of cultural compatibility outweigh the risks of business failure.

What are the benefits of Offshore Software Development?

Building a product from scratch is a daunting task, but offshore software development makes it much easier. By outsourcing the development process to a team of experts, you can leverage their skills and knowledge to develop your product quickly and efficiently. Plus, offshore development is often cheaper than hiring an in-house developer, so you save money.

Don’t worry if your company doesn’t have the personnel to staff software development projects. Many offshore/nearshore software development companies have the resources and expertise to help get your project off the ground. They not only have the necessary staff, but also the necessary equipment and working conditions. So don’t hesitate to contact us about staffing your next software development project.

The costing of Offshore Software Development

There are many advantages to consider when it comes to offshore software development. 

Perhaps the most obvious benefit is cost savings. There is no need to hire or train new staff and the administrative costs are covered by the third party company. This saves time and allows US programmers to earn $50 to $200 an hour, while UK programmers can earn $50 to $100 an hour.

However, at CEE, a programmer he can earn from $25 to $70 an hour and an Asian programmer he can earn up to $50 an hour. This is because Western companies are willing to pay less for these services than local market sources.

At the beginning of a development project it can be difficult to define the specific requirements of the project
In some cases, four encoders don’t screw in faster than one.

 Demand for a particular specialist’s services may change completely during development. The offshore software development model is flexible and easy to scale up and down. This way, the company can avoid overpaying employees who aren’t needed for the project, downtime, and rushing to find the right person for the job.

 This is similar to a project where a company can largely self-develop, but lack skills in a particular area or technology. Even offshore companies and freelancers can provide the professional support you need and solve your problems. Offshore software development also reduces risk. Working with an external company allows us to share responsibility for quality and adherence to schedule. So you can be confident that your project will be completed on time and with the required quality.

Disadvantages of Offshore Software Development

This also comes with some disadvantages. The biggest drawback is the distance and the time difference that comes with it. This can cause communication delays. Another drawback is that the parties may be working on different schedules, which can lead to confusion. There may also be misleading cultural differences.

Poland has a working culture similar to that of the West, they understand punctuality, quality and diligence. But when working with Asian countries, there are more differences. State influences and sensitivities must always be taken into account. However, in most cases, friendly attitudes and personal culture can reduce differences.

Offshore software development is often viewed as a cost-saving opportunity, but some doubt that outsourcing the work is more profitable. There are several reasons for this. Companies may be concerned about protecting sensitive data, and external partners are typically entrusted with much of the information critical to project success.

The section below discusses how companies can prepare to avoid downside risks.

Offshore Offshore Projects – How Can I Participate in an Offshore Project Without Taking Too Many Risks?

First it is important to have a clear goal. 

What do you want to achieve with this project?

Which markets and consumer needs do you want to address?

 What solutions are popular today and what technologies do you need to make your project successful?

 Get creative! If you don’t have enthusiasm, you can’t attract customers. Once you know what you need, move on to market  research. Make sure the product does not violate the laws of the country where it is sold. GDPR (General Data Protection Regulation) is  currently causing a lot of problems in the EU. The same applies to electronic payments. Create detailed technical documentation  that describes exactly what functionality you expect. 

Then select a business partner. Request portfolios and references. Check online reviews. The Internet is full of resources to help you choose the right partner.  When looking for a technology partner, it’s important to check all possible sources of information, from blogs to social media  profiles. This will give you a better understanding of whether you are looking for a long-term relationship or a one time deal. 

When planning long-term collaborations

 it is important to choose a partner with a wide range of technologies to support all future activities. And don’t forget to talk. Building good relationships is important. Sign nondisclosure agreements in advance and familiarize yourself with other companies’ security measures. Nothing is 100% certain, but it feels good to be 90% certain. Unfortunately, if you think your idea is just waiting to be monetized, you are wrong. Please check the project. Establish quality goals and phases. It helps if he has at least one person (such as the CTO) who can read the code and check the technical quality. make a plan
Schedule a conference call. Dialogue helps ensure that you are not disappointed with the effect. Like you, outside companies don’t want to fail.

Who are the Offshore Software Program Improvement Partners?

We also recommend that you prepare your miles in advance and choose the right business partner, as expectations may vary greatly from company to company. Once you have outlined your preferences in terms of specific expertise and technology, it becomes easier to find a partner to enhance your offshore software program. 

Websites, mobile apps, or automated development technologies are unique and may require programmers, animators, or designers. If the task requires only part of the task along with UX design, you can hire a company with a quality portfolio or perhaps a freelancer. You should look for a company that covers all the basic technology for implementation. 

Check to see if your employer offers other offers in addition to technical support. If one of the contractors seems convincing about a particular item, but not all the work can be delegated to that contractor, you can decide to assign the task to several contractors. increase. And remember that choosing the cheapest solution is not worth it in the long run. Get help from a professional who can show you the work done and references. Only then is there a risk that the product meets the criteria for investment.

Best Country for Offshore Software Development

Kearney, an American company specializing in strategic consulting, named Poland the most attractive European country for offshore software development and nearshore outsourcing.

why is Poland considered the most attractive?

Poland cannot compete with the rates of Indian and Chinese companies for economic reasons, but it has advantages not found in the Far East. Above all, the educational standard is high. With a legacy of educational priorities from the communist era, Poland has an excellent mathematical and technical background and is now moving into her IT market.

Thanks to the geographical position and the various flight combinations, it’s no problem to arrive within a few hours. Poland is part of the European Union, so legal and economic regulations are the same as in Western countries. In addition, the Polish government has introduced tax incentives to attract investors. The country has been economically and politically stable for her 20 years.

Companies on the market with good network infrastructure decided long ago to move to a cloud environment. This will greatly facilitate cooperation with foreign partners and provide an up-to-date overview of ongoing work. There are essentially no cultural differences between Poland and the West, and no time zones as far as Europe is concerned. Most of the local experts speak English so there are no communication problems. Average hourly wages for specialists range from $25 to $50. Poland offers not only an attractive financial situation but also excellent employees and a transparent business environment.

The Future of Offshore Software Development

Despite all the advantages of outsourcing and growing market share, offshore development is expected to become less important in the coming years. Ironically, this may be due to increased automation of processes and advances in machine learning in certain areas. which has often been introduced to many Western companies by third-party companies themselves.

Businesses are trying to reduce their dependence on the human factor. The same reasons that contributed to the success of offshore development may be the reason for the gradual slowdown in its growth. However, third-party firms are not disappearing from the market, and the capital developed in emerging markets may in the future represent independent IT solutions that the whole world will want to follow. And it will worth being there when it happens.

To read more about offshore software development visit https://en.wikipedia.org/wiki/Offshore_custom_software_development