Offshore development (“offshoring”) is when a company hires software developers or a software development team from a different country to work on projects remotely. At DashTechs we have spoken with many companies that are reluctant to engage an offshore development team for various reasons including:
- Startup horror stories they have heard
- Concerns about spoken language skills
- Time zone issues
While offshore development comes with its own set of solvable challenges, there are also many efficiencies to be gained from offshoring. Prior to founding DashTechs, we have years of first hand experience working with offshore developers and teams and have experience both amazing and not so good experiences. We used these past experiences to create a working model that enhances the benefits of offshore development while reducing friction points, language concerns and time-zone issues. Our developers work in a team-based environment in our offices which enhances collaboration, knowledge sharing and the ability to flex the size of your team as needed. We also ensure that developers have adequate language skills and are willing to adjust working times so that there is sufficient overlap during the workday.
One of the primary benefits of offshore software development is cost savings. Hiring developers from countries where the cost of living is lower than in the United States can significantly reduce labor costs. For example, developers in India, the Philippines, and other countries in Asia typically charge less than developers in the United States. This can help companies save money on labor costs while still receiving high-quality work.
Offshore development also provides companies with access to specialized talent that may not be available locally. For example, if a company needs a developer with expertise in a specific technology or programming language, it may be difficult to find a local developer with that skillset. By working with offshore developers, companies can access a much larger pool of talent, increasing the likelihood of finding developers with the right skills and experience.
Offshore development also provides companies with greater flexibility in terms of project management. Because developers are working in different timezones, development can happen around the clock, allowing for faster project completion times. Additionally, companies can easily scale their development team up or down as needed, without the need for hiring or firing employees locally. This allows companies to respond quickly to changing business needs and market conditions.
Offshore developers can also increase productivity by allowing companies to focus on their core competencies while outsourcing non-core activities. For example, if a company’s core competency is developing a mobile app, they can outsource the development of a backend system to offshore developers, allowing them to focus on what they do best. This can lead to faster development times and higher quality work, as developers are able to focus on what they do best.
Offshore development can also provide companies with greater diversification in terms of the geographic location of their workforce. This can help reduce risk in the event of natural disasters, political instability, or other events that could disrupt business operations. By having a diversified workforce, companies can ensure that they are able to continue operating even if one part of their workforce is impacted by an unforeseen event.
While offshore development can offer significant advantages, such as cost savings, access to specialized talent, flexibility, increased productivity, and diversification, it’s important to carefully select the right offshore development partner and manage the project effectively. This can include establishing clear communication channels, defining project goals and expectations, and ensuring that both parties have a mutual understanding of project requirements. By taking these steps, companies can successfully leverage offshore development to achieve their business objectives while minimizing potential challenges.