The term outsourcing in translation from English means “external source”. Any third-party development is actually outsourcing. So a product of literally any kind of activity can be outsourced. It’s consulting, software development, web design, etc. Any large company uses outsourcing services in one way or another. Outsourcing allows not to hire expensive specialists. But to outsource them for the duration of the project or any part of it, while reducing costs.
Why do companies opt for Offshore Development?
Outsourcing in the field of software development and implementation is a young phenomenon.
As for offshore programming, this is a type of telework specifically for information technology specialists (IT specialists). The meaning of which is to attract performers from regions with cheaper labour to the programming process. This can reduce the development cost. The term “offshore” emphasizes the significant geographic distance of the performers and gives a connotation of freer handling of employment and tax laws. Offshore programming is usually used to develop complex and time-consuming projects and the contractor is a specialized firm. The contact is made through an intermediary firm that acts as a guarantor of the integrity of the relationship between the parties.
Advantages of an Offshore software development team and key reasons why you should hire one for your business:
1. Reduces Costs
The first and foremost reason is cheapness. In the US, programmers – even newcomers – have to pay a lot more. In the provinces, such services are cheaper, but the situation with qualified personnel is more difficult there. There is also a noticeable advantage over the export of people abroad. Not everyone will agree to this for a variety of reasons.
2. Gives Time to Focus On Other Essential Tasks
According to experts, in the light of the fall of the NASDAQ index, many companies are reducing their costs, in particular. And the cost of software development, thus, more and more attention is paid to offshore custom software development. Also, companies often outsource routine work and focus on fundamental areas.
3. Access Exceptional Talent
The type of activity of a software outsourcer can also be different. It includes some or all of such stages as pre-project consulting, business analysis, architecture design, code and user interface development, quality control, prototyping, implementation and deployment. There are companies that deal with general-purpose products. And there are those who make a product focused on a specific vertical market or even an individual customer.
4. Simplifies Scaling Your Business
In offshore programming, two schemes of work are common. They differ both in the cost of work for the customer, and in the degree of risks that both parties bear – the customer and the contractor, and often in the quality of the product. In this case, the customer receives the final product and the necessary accompanying documentation. In the course of work the performers maintain close interaction with him, they have well-organized project management in it project consultancy services.
5. Access To Latest Technologies
The work of start-up software companies or simply groups of developers, permanent, periodically working in the same composition, or temporary, assembled for a specific project, is built in a different way. Such groups and companies, as a rule, are outsourced to writing not the entire system, but individual modules, often these are one-time orders, upon the execution of which all relations between the group and the customer are interrupted.
The most reliable way to order orders for a temporary group of programmers, as well as for a software company, is through personal contacts with foreign partners. Offshore ordering is beneficial in many ways.