Offshore Software Development Company- Benefits, Cost and When to Hire

Want to Hire an Offshore Development Company? You Need to Know This First

It is true that the decision of hiring an offshore software development team is a big one for any company. However, there are times when this is needed for high-priority and large-scale projects.

Many companies might hesitate to do this but it has been noted that many corporations use offshore development companies to scale up and achieve rapid growth.

Benefits of Hiring an Offshore Software Development Company

By hiring the best offshore development company based on your need, you can get access to high-quality resources along with a specialized team with a very specific set of skills. All this has no long-term commitment either.

Hiring an offshore development company for a project can help you:

–          Speed up the development of new software on high priority

–          Upscale and grow your business

–          Expand your technical portfolio and establish yourself in new segments

–          Allow your internal team to work on their specialization and reduce their burden

–          Reduce costs of software development

–          Focus on the growth of your company without being burdened by multiple projects

These benefits are pretty amazing, right?

This is why so many companies continue to hire offshore software development companies.

But how do you start the process?

How do you know when the right time to approach an offshore software development firm is?

Here, you are going to find the answer to these questions and everything related to offshore software development.

In this blog we dive deep into these questions and why many businesses choose to take this path in the first place.

Benefits of Hiring an Offshore Software Development Company – the Why

It is known that several large corporations hire offshore software development teams from all around the world.

Offshore software development companies in India are in huge demand due to the high level of technical skills available in India. This journey starts with a need to fulfill one or many requirements.

To Simply Get Things Done Quickly and on Time

When it comes to software development, there are times when a client has deadlines that just cannot be missed.

When companies take on such projects, they don’t have the time to go through recruitment based on specific skills because that is a time-consuming process.

In such cases, the best approach is to hire an offshore development team with the specific skill set required for the task.

It is common for companies to be in a situation where they cannot waste time. In such situations, their willingness to hire an offshore software development firm often creates trustworthy and productive business relationships.

To Cut Down on Expenditure and Reduce Long-Term Expenses

If a company decides to expand the existing internal team, the process takes up a lot of time and resources.

It is well known that recruitment, interviewing and hiring is something which is time and resource-consuming. Your senior staff has to give their time and therefore it gets pretty costly to do this.

If you take a look at the costs of expanding an internal team, there are direct and indirect expenses involved.

Also Read: A Guide on Hiring An Offshore Development Company

Here Are the Direct and Indirect Costs of Expansion of an Internal Team

Direct Costs

You need to have the basics in place so this includes the cost of space, desks, computers and everything basic that is needed to run the business.

The company has to incur the onboarding cost which is necessary to help a newly hired team member to transition into their newly appointed role in the company. Add Administrative costs to this and you realize that all of this is pretty costly.

Indirect Costs

Indirect costs are the expenses that are required to run a business. These generally include the annual salary of employees, their insurance, paid leaves, training expenses, recruitment expenses, bonuses and other benefits.

Since direct and indirect costs can not be avoided, the expenses add up quickly. The expenses grow out of proportion especially when several new team members have to be hired for a particular project.  

Some companies take the approach of hiring freelancers who work independently. However, if you keep adding the day rates of independent workers, the cost of work rises pretty quickly.

Managing different freelance developers is a task in itself because you have to keep a track of work and deadlines.

To Overcome Staff Shortage

Many times, businesses need to pursue certain opportunities which may help them reach new heights and gain trust in the market.

However, constant hirings are really resource-consuming so you will generally find the internal teams working at their full potential on tight deadlines.

This inhibits further growth which is possible by taking on new development projects. So, to fulfill the goal of upscaling and expanding, companies often hire offshore software development companies.

This ensures that the internal team is handling in-house work and the work is spread between onshore and offshore departments.

To Procure New Skills

Web development is a space where skill gaps are quite common. Many times, it happens that a rare skill set is required for the completion of a particular software development project.

There are specific roles that are in high demand and such hires are difficult on an urgent basis.

This is where offshore software development companies come into the picture. You instantly get the most skilled experts and the necessary resources to get the job done.

Is This the Right Time for You to Hire an Offshore Software Development Team?

You need to take some time to assess your situation and to think about the whole thing in advance.

You need to start looking well in advance before you start off the project. An ideal time window would be one to three months in advance.

This will ensure that no decisions are made in a hurry. You will get the time to connect with the right people and do your due diligence.

Should You Outsource?

It is only obvious that you need to ensure that offshore software development is required in the first place or not.

Before you decide to give your time and energy to finding the right offshore company, you need to know if the project really requires outsourcing.

If the project in hand has been planned meticulously and you have a clear brief on what the client wants, then this project is fit for offshore development.

However, if the project details are not clear and are bound to evolve or change, it may need the personal attention of your reliable and experienced internal team.

In order for the successful culmination of a software development project, both parties need to have perfect communication.

This is one of the most important factors when considering offshore software development.

The quality of the project result depends on the skill and experience of the team who works on it.

Most software developers take on projects related to things they have worked on before. You need to find a team that truly understands what kind of results you need.

If you are able to find a team that shares your work values and can deliver the type of end results you need, your offshore development will be successful.

You need to ask – why do we need to hire an offshore software development team for this project?

You have to ask yourself why you are considering hiring an external team. Is it due to a shortage of staff or due to budget constraints?

Are you outsourcing because you want to expand and find new avenues?

Will you be able to deliver better results for this specific project with a skilled external team?

If the answer is yes, hiring an offshore software development team might be the right thing to do for you.