May 21, 2020
According to the Statista, the IT outsourcing industry is valued at more $ 400 billion in the year 2018 and the worldwide IT spending is projected to around $3.79 trillion USD in the year 2019. No doubt, IT outsourcing services are spreading its wings at a greater pace. Nowadays, more and more firms across the world are looking to outsource their web or mobile app development projects to other countries.
Surprisingly, low-cost development is not the only factor that fascinates mobile app development company to outsource their IT projects. Skilled professionals, large talent pool, latest technology development, quality-oriented solutions are some other aspects that force these companies to outsource software development to other countries like India.
Have a look at some stats showing the popularity of hiring offshore development teams:
- The annual revenue from IT outsourcing is estimated between 60 and 70 billion U.S. dollars. Source
- The total percentage of the IT budget being spent on IT outsourcing rose from 10.6% in the year 2016 to 11.9% in the year 2017. Source
- In the year 2019, the enterprise software development service market is forecast to reach about $427 billion USD, which is up by 7.1% from $ 399 billion in the year 2018. The increase is due to the shift of enterprise software spending from traditional offerings to the cloud-based alternatives. Source
- The total value of the contract of the IT outsourcing market will grow to more than $409 billion USD by the year 2022. Source
- 70% of the businesses and outsourcing providers worldwide are at present implementing or are discussing the use of, Cognitive or Robotic Process Automation in order to improve outsourcing results. Source
What Is an Offshore Software Development Company?
An offshore software development company is one located in a country with a great pool of tech talent. The firm offers a wide array of IT and software development services at rates lower than in the native country of residence.
In terms of custom software development, many companies provide, for example, comprehensive ERP, CRM, Web, Mobile and other enterprise-wide solutions for various industries, including financial technology, insurance, healthcare and construction. Based on their vast experience in these fields, they can provide the most suitable technology group for your industry.
Each Android or iPhone App Development Company has its own interactive models and SDLC operations. Outsourcing companies usually offer a simple multi-step process. However, in order to ensure success, consider the overseas developers who provide comprehensive services, from business analysis to maintenance.
Today, outsourcing lives up to its popularity. The main reason for this is buyers wanting to save the development costs. No wonder, as there is a big gap between the average annual salary of a software engineer in the United States (about $ 70,000) and India ($ 20,000) for example.
However, despite the attractive prospects for cost savings, most buyers are unwilling to ask whether overseas transport is worth it. Are there flaws, risks, and difficulties associated with using external developer services? Let’s look at all the “pros” and “challenges”.
6 Key Benefits of Hiring Offshore Developers
We combine the main benefits of remote software developers’ recruitment. These can influence your decision on outsourcing. These are the main advantages of outsourcing, as reported by US companies that have experienced this type of employment.
1. Cost savings
Many American companies state that the most benefit of outsourcing is the costs of developing software in other countries. Because labour costs are low in other countries, they can hire less demanding employees than developers in the United States.
2. Talent acquisition
Buyers acknowledge that they can hire programmers outside of their country at lower prices. Besides, American and European companies are facing difficulties in finding qualified employees. There are many skilled and qualified specialists in app development company in India, for example. This country is famous for being one of the most attractive technology centres in the world for those looking for technology experts.
3. Tax savings
Companies can also take the benefit of tax incentives offered by other countries. The program includes system administration, software, websites, operating systems, online services, etc.
4. Time-saving opportunities
Some buyers say that using the software development services of offshore software development companies helps them focus on various key business initiatives rather than having to deal with non-critical project management issues.
When it comes to the quality of programs developed by offshore software development company, this topic is always a bit of a mystery. There is one thing to remember about quality: the success of the project and the quality of the product depends not on the country in which it was launched. But on the people who developed it; About their passion for what they do.
6. Improve time to market
In most cases, the time zones for buyers & sellers differ in software development. Teams ensure continuous development and improve market time. The offshore development team can also provide a full range of managed services, which can typically include media, marketing, managed supply chain services, energy, company integration, and information services. By outsourcing software development services, companies can free up their time and resources for essential activities.
4 Challenges of Cooperating with an Offshore Development Team
Below are the most common challenges reported by organizations that have used outsourcing and have tried at least once to hire specialized developers abroad.
1. Language difference
The difference in language can lead to misunderstandings and interpretations of words. Poor communication causes some problems because good communication between the client and the developer is the key to extracting the requirements of the programs that will be developed accurately.
2. The cost of travel
Sometimes you will need to visit vendors and spend time in your country. It will cost you a little money if you decide to travel to India, for example. However, some vendors located in European countries are easily accessible.
3. Technological gap
Technological differences cause various problems. Also, it is crucial to make sure that the hardware and software platforms used by external equipment are compatible with the intended platforms on which the final software product will run.
4. Soft factors
Differences in methodologies for software development, culture, quality standards, project management, documentation and company ethics are included in this list of the most common failures in outsourcing.
Find Offshore Development Company Seamlessly: 5 Tips for Successful Outsourcing
Tip1 – Focus on Goals
Allow your software development company to implement your own way of working. You can trust that they are the ones who want the best for your business. You should focus on what you like to accomplish, not how you like to achieve it.
Tip 2 – Search for Expertise
It is crucial to look for a software development company with knowledge and expertise who always tries to provide programs created according to industry best practices. Also, searching for subcontractors with extensive experience; who have related goals and will comprehend your business.
Tip 3– Stay Committed
No matter how good your company is and no matter how expert you are, you must maintain to participate, because no one knows your business the way you do. Also, your commitment can have tangible effects on the final product.
Tip 4 – Discuss Contract Details
A clear business deal is important to successful outsourcing. The contracts should reflect what was agreed upon during the negotiations: Defining the scope of the project and focusing on the results of the actions that the parties want to achieve.
Tip 5 – Inform the Vendor of Your Expectations
Clients should express their expectations clearly; This will allow the provider to provide the best service. Be specific about your project goals.
Here is a step-by-step guide to hiring offshore development teams
“Finding a developer and don’t go broke” is a crucial task that faces all IT startups and various other businesses. While recruiting resources, you can drown in enticing resumés of candidates having minimal experience, while experts either start-up themselves or ask for huge money. For information on how to hire offshore web or mobile app developers, where to look for the right experts, what to ask at the interview, and when it is worthwhile to outsource tasks, keep reading our guide.
Have a look at steps to Hire Offshore Development Teams
Step 1 – Place the precise information about the requirement
Finding a qualified software developer is a different task than finding a UI or UX designer or project manager. When hiring sales staff, your experience is clear in the basic communication process, while it is simply impossible to surmise the level of programmers without rigorous testing. In addition, you will need to put information about vacancies on large portals and other industry websites that contain CV databases.
Step 2 – Filter right resumes as per your needs
In terms of global resources, it takes a long time to find the right specialists and CV filter. Social media can help: friends of friends always find the right people. You can post in thematic groups: it works. You can get around 20 CVs with suggestions per week, but in most cases, these inexperienced people or programmers have submitted an application and imagined themselves as teachers.
Step 3 – Check out the portfolio of the shortlisted candidate
Regarding the portfolio, attention should be paid to completed projects. Many times, there are candidates who have a large number of languages and platforms listed in the CV or proposal, but with the low status of completed projects. At the same time period, there could be a lot of developers who are only interested in the tools and technologies they use and not the results of their work. These candidates often change jobs each year, jumping from startups to startups.
Step 4 – Hold an interview
If you like a CV, invite the developer to do an interview. This can be done in several stages: sending an email, communicating online with a group of technical professionals during which they ask the candidate questions about the development process, experience, technical knowledge and then face-to-face meetings.
The questions in the interview depend on what is expected of the candidate in a particular position. It is better to ask basic questions to check the general level of the filter, and the testing task should be difficult to check the quality of the code.
Step 5 – Sort out the right candidates
Each interview gives results and helps to get rid of a large number of candidates. Many professional programmers who get decent pay for the knowledge of a particular language or platform don’t know the simplest things. This is a potential issue that affects application security, performance, and code quality from early development, making application support difficult and costly in the future. Essential questions about capabilities, security, language structures and object-oriented programming patterns are often enough to understand a candidate’s level.
Outsourcing is good for projects with well-organized requirements when you know what you really want to achieve. Before you hire mobile app developer, you should weigh all the pros and cons, review all terms and conditions of cooperation with remote teams, and consider all risks and various ways to avoid them. In our guide, we offer a five-step process to find external developers flawlessly.
Let’s Wrap Up
I hope this blog article has clearly given you an idea about hiring offshore software development teams. No doubt, software outsourcing has several benefits, but you should also keep in mind all the challenges in mind. I am sure if you keep the above points in mind when you hire software developer, you can have a smooth hiring process with a successful project.