It isn't surprising that many tech startups turn to offshore software development services to build their apps. Offshoring has proven to be a cost-effective method to meet tight production deadlines. This article will share what offshore software development is all about and how to choose the best offshore software development company to work with.
What are Offshore Software Development Services?
Offshore software development refer to outsourcing activities performed by an app development company based in a foreign country. The term 'offshore' means that the destination country is far away from your location. Typically, offshoring involves two countries with a time difference of 8 hours and above.
For the past decades, offshore development companies have grown in numbers. As a result, there is a growing demand where tech startups seek to augment their IT capacity by engaging the services of offshore development teams.
The Benefits of Offshoring Development Services
It isn't hard to imagine why offshore app development has become a popular trend amongst startups. Several factors make offshoring appealing and grow to be today's global trend.It isn't hard to imagine why offshore software development companies have become a popular trend amongst startups. Several factors make offshoring appealing and grow to be today's global trend.
Lower Cost
One of the main reasons startups opt to work with an offshore software development service company is the lower professional fees. Offshore outsourcing countries usually have a lower cost of living. Software developers in countries like Ukraine, China, and India earn a fraction of their counterparts in the US and UK.
For example, you'll need to pay an average of $97,793 per year for a software developer in the US. Meanwhile, a Ukrainian developer earns a $3,000 monthly salary on average. Therefore, it is a sound business judgment to opt for more affordable services that provide similar or better deliverables.
Access To Diverse Talent
US and Canadian startups are well-known for their innovative ideas. However, they are in the midst of a persistent tech talent shortage. By choosing to offshore your app development needs, you'll have access to a large pool of software developers.
Not only you wouldn't face competition from tech giants, but you can also be assured that offshore development service teams are armed with skill sets that may be rare amongst local candidates.
Proven Experience
It takes more than putting a team of developers to build a functional app. As a co-founder, you may not have the technical ability or time to lead a team of IT experts.
Rather than shifting your focus from the business, working with experienced offshore software developers is better. Offshore developers might have taken similar projects like yours, and the experience helps avoid rookie mistakes.
Scalability
Startups need to maintain an agile structure, and an in-house development team may create an unnecessary financial burden. By engaging offshore software development services, you can choose to collaborate in a model that you're comfortable with. For example, you can pay the vendor for the time and material involved instead of committing to a fixed cost during the early stage.
Disadvantages of Offshoring Development Services
With all the benefits that offshore software development services bring, there are a few disadvantages to be aware of. Here are the main ones to keep in mind:
Communicational Gap
Despite the new normal of remote work worldwide, the communication gap can still be a problem. The language barrier and differences in time zones are the elements that contribute to this gap. Yet, this barrier can also be tackled with the right team and transparent communication processes.
For example, for Uptech team members, an excellent command of English is a must-have for any candidate for the job in the company. We always make sure that Uptech members can communicate directly with the client.
Also, transparency is one of our fundamental values as a company. We stand for transparent communication with our clients, involving them in all the ongoing processes of the project: from the beginning to the end.
Cultural Differences
Another issue that may come up is cultural differences.
It takes years to build strong corporate cultures. Of course, you must expect your offshore software development team to be something other than an integral part of your corporate culture. However, you can find an offshore software developer, with its unique corporate culture and values, that would appeal to you the most.
For example, Uptech has a solid product-oriented culture that stands on values.
Besides the transparency mentioned above, product mindset is also important to us. At Uptech, it is not about the code (though quality code is the basis). Instead, we always choose approaches and make decisions that will benefit the product (or business) in the first place.
For example, we always offer our clients solutions that fit their budgets without compromising the product’s quality.
We also validate our decisions so we do not blindly implement ideas. Instead, we make hypotheses, run tests, talk to users, and research the market to ensure this solution will contribute to product development.
When to Hire Offshore Developers
The advantages of offshore software development services are indeed appealing, but how do you know if you're in the right position to outsource? If you relate to any of the following conditions, you'll want to consider collaborating with an offshore software development company.
You're working on a tight budget
A positive cash flow is crucial to sustaining your startup, particularly when you're tight on fundings. Hiring local developers can rack up hefty monthly expenses and may disrupt other parts of your business.
Collaborating with offshore developers is a more economical solution. Instead of committing to expensive monthly salaries, you'll benefit from top tech talent without exceeding your budget.
You want to cut short development time
For the inexperienced, app development may take way longer than necessary. Not only you'll need to hire the right developers, but you'll also need to ensure they work as a team.
If you're hard-pressed by deadlines, your best bet is to work with offshore developers. They have worked on numerous projects, and those experiences will propel you to the finish line.
You require specific skills
Perhaps you're building an app that incorporates cutting-edge technologies like artificial intelligence, machine learning, or blockchain. Unfortunately, talents adept with new technologies are hard to find in some regions.
Offshoring connects you to talents at the forefront of technologies. For example, Eastern European developers quickly master new technologies and apply them in their projects.
5 Steps to Take Before Offshoring Software Development Services
It takes some preparations to ensure successful collaboration with offshore software companies. Before starting your search, you'll want to keep the following in mind.
Conduct market research
A successful app offers value and engages the target audience. You need to understand your audience's pain points. By doing so, you'll have a better vision of the app you will build.
List down the important features for the app or potential improvements on an existing one.
Define your goals
While offshore development companies are equipped with various skills, they'll still need clear requirements from you. Therefore, you need to ascertain what you're trying to achieve by engaging their services.
If you plan to build an MVP to gather market feedback, you'll need to convey your intention to the developers. Similarly, the offshore IT team needs to know if you're planning to add new features to an existing app.
Determine compliance requirement
You'll need to comply with existing regulations and laws in certain industries and regions. For example, the HIPAA law applies if you build a healthcare app for the US market. Likewise, startups targeting the European market need to ensure that their apps are GDPR compliant.
Decide on the collaboration model
Most offshore software companies work in a few collaboration models: fixed cost, time and material, or dedicated team. Each of them has its pros and cons. If you're building up a vague idea, you'll want to go with time and material. Meanwhile, the fixed cost model ensures better clarity on potential expenses.
Establish communication platforms
Given that real-time communication is hard with an offshore app development company, you'll need to decide how both parties could streamline information. Leverage tools like Slack and Jira to communicate and track progress. Allocate a specific schedule for reports and feedback to ensure the app development proceeds smoothly.
How to Choose an Offshore Software Development Company
With thousands of offshore software development companies vying for your attention, you need to be wise when making your choice.
Review the offshore software development companies
An excellent marketing pitch from an offshore software development services company isn't enough. You'll need to do your due diligence by inspecting reviews and feedback from their clients. Doing so helps ensure that the companies are trustworthy and entrust them with the project. An excellent way to start is visit Clutch, which reviews and ranks IT outsourcing companies.
Protect your interests
When you hire an offshore development team, you'll be sharing confidential information with an external party. It's best to have the contracted vendor sign a non-disclosure agreement with your startup to protect your business.
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Offshore Software Development Advantages Offered by Uptech
Uptech is an international company providing offshore software development services. Our team has worked with startups in various countries for more than 5 years. During the years, we have helped international startups launch successful apps such as Dollar Shave Club, Aspiration, Nomad, and Crello.
Our effort doesn't go unnoticed as Clutch recognizes us as one of the top 100 app development companies. We've also bagged a design award from a leading publication for a real-estate app. Our reputation grew with consistent, high-quality results, and more clients reached out to us via referrals.
When collaborating with Uptech, you'll benefit from our prior experiences with numerous startups. We're aware of what contributes to the success or failure of an app. Besides technicalities, our team aligns the development process with user needs and your business value.
We believe in simplicity and break down complicated concepts into simple modules. While coding is important, we believe that we can do much more with a synergized multi-discipline team. Our team actively adds value to the app and ensures it stays true to achieving product/market fit.
Summary
Outsourcing to an offshore software development company greatly benefits startups in developed countries. Besides cheaper costs, working with offshore developers gives you access to a vast talent pool. It's also the best bet to launch your app in the shortest time.
We've shown you how and when to hire an offshore software development company. The ball is now in your court.
Talk to our team and turn your ideas into a successful app.