9 Advantages of Offshore Software Development

If you’ve been following IT industry trends, you’ve probably heard the buzz about the benefits of offshore software development, and hiring development companies based in far-off destinations like Central Europe Europe or Asia. 

But is it the right decision for you? What are the advantages of offshore software development, and how can you make them work for your next project? ProCoders will walk you through what you need to know.

What Is Offshore Software Development and How Does It Work?

“Fast, Cheap and Good. You can only pick two.” Yet, when CIOs take their development outside their market, for example, try Mexico software outsourcing, they generally find they can get all three. They can find world-class talent, usually with the rare skills they need, for far less than they would spend otherwise. And for the lower price, they can afford to hire more developers than they might have at home.

Simply put, offshore software development is the practice of hiring software engineers from outside your country’s borders.

As more CIOs have started to compare onshore vs offshore software development more and more of them realized the benefits of working with offshore software development, this practice has spread any IT development project that will take more staff resources than a company has under its own roof.

According to a report from Researchandmarkets.com, as of 2021, the global market for IT offshoring was valued at approximately $370 billion (USD) and was projected to grow to $454 billion by 2026 — a continuous yearly growth rate of around 4.2 percent. With all the benefits of offshoring software development, it’s a trend that won’t be slowing down soon.

There aren’t many true “win-win” scenarios in modern life, but offshoring may truly be one of them. Companies that use IT consulting services are able to get the resources they need to continue growing and making profits. Outsourced developers get flexible, consistent work, the ability to choose their clients, and the opportunity to work on high-end projects around the world. IT consulting companies do well by connecting companies to the resources they need, and democratizing access to any and all companies, regardless of their location. Everyone wins.

What are the key benefits of offshoring?

The advantages of offshore software development are numerous and will vary from the organization. But here is a list of some of the key reasons why companies choose to hire IT consultants outside their borders:

1. Access to a Larger Talent Pool

One of the most significant advantages of offshoring software development is the ability to tap into an extensive pool of global talent. Traditional in-house hiring often limits your options to local candidates, whereas offshoring opens the door to a world of skilled professionals with diverse expertise and experience.

In addition, the broader talent pool provided by offshoring helps to overcome the scarcity of specific technical skills that may exist in your local area. This means that you can effortlessly build a team of specialized experts tailored to your project’s unique requirements, ensuring higher quality output and overall success.

2. Flexibility in Scaling  

Every organization experiences varying needs for software developers at different stages of a project. For instance, designers might be predominantly needed in the beginning, while other specialists may be required later on.

Offshoring offers the flexibility to easily adapt to these changing needs without the extra costs and time-consuming processes associated with traditional hiring. By partnering with a reliable development company, you can effortlessly plug in new experts as your project evolves and unplug them once their contributions are no longer necessary.

This dynamic approach to team building enables you to maintain an optimal balance of resources throughout the entire project lifecycle. 

3. Focus on Core Business

Another pros of offshore software development is it’s positive impact on the internal staff’s morale, particularly in businesses not directly related to IT, such as restaurants. By using offshore outsourcing in the creation of, for example, a delivery app, business owners can avoid delving into the IT world themselves. Instead, they can rely on an experienced development team to handle the app creation while they remain focused on their primary business needs and day-to-day operations. This approach allows for a more efficient use of resources and ensures that non-IT businesses can still benefit from cutting-edge technology without detracting from their core competencies.

4. Targeted Staff Skills 

Hire offshore developers on a contract basis provides a unique advantage. Instead of worrying about an employee’s long-term career path or future responsibilities, you can focus on the present. Offshore developers enable you to assemble a specialized team with the exact skills required for your current projects. This approach streamlines recruitment and ensures the most efficient use of your staffing budget, as you hire only what you need right now.

5. Cost Reduction

One of the major offshore software development benefits is the substantial cost savings it offers. App development cost per hour can vary significantly based on the location of your offshoring partner. By partnering with countries in Central Europe, such as Estonia, Croatia, Albania, or Portugal, you can save 50% or more on development costs.

These regions typically have lower costs of living, translating to more competitive hourly rates compared to those in North American and countries in Western Europe . For example, a CIO in the US who is used to paying $250 an hour for top IT talent may find a similarly skilled senior software engineer in Central Europe for only $50 an hour. These cost savings can be reallocated to other essential areas of your business. You can find more information about offshore software development rates in our blog.

6. Accelerated Development and Speedier Market Entry

The benefits of offshore development truly shine when it comes to expediting development and entering the market faster. Offshoring firms provide a highly valuable resource – virtually limitless capacity.

By partnering with the right offshore team, you can significantly reduce your time to market, potentially cutting it in half, and giving you a competitive edge in today’s fast-paced business landscape.

7. Eliminating Costs and Administration 

With internal hires, there’s paperwork. Performance reviews. HR procedures. Often healthcare benefits and parental leaves. And all these things are important for your long-term staffers. But with offshoring, all that administrative work and expense is eliminated entirely. You simply pick your talent, incorporate them into your workflow, and pay one fee every month. Nothing could be easier.

8. Faster Recruiting

Hiring for an internal position can slow down your development by three to six months, once you factor in the time it takes to approve a job description, get budget approval for the hire, post it for the allotted time, sift through resumes, do interviews, onboard and train an employee.

When you’re working with an offshoring firm, you can have your development team assembled in just days. In fact, at ProCoders, we can usually have your new offshored team assembled for you in two days to two weeks.

9. Time Zone Advantage

In some cases, working with IT professionals located far away can be advantageous. As your internal team wraps up their day, your offshore team is just beginning theirs. This arrangement can result in continuous product development, effectively allowing your project to progress around the clock, increasing productivity, and accelerating project completion.

Offshore Software Development for Startups During Economy Downturn: Yes-No Check-list.

During an economic downturn, startups may consider offshore software development as a means to cut costs and maintain growth. This yes-no check-list can help you determine if this is the right strategy for your startup.

Factors	Yes	No
Budget Constraints	Limited funding and need to reduce operational costs	Able to maintain development budget despite the downturn
Access to Talent	Struggling to find skilled developers locally or within budget	Already have a strong in-house team that meets your needs
Scalability	Need to scale development team quickly to meet changing demands	Current team size is sufficient for project needs
Flexibility	Looking for a team that can adapt to changing priorities and project requirements	In-house team is already highly flexible and adaptive
Time to Market	Need to speed up development process to maintain a competitive edge during the downturn	Confident in current development timeline
Communication	Willing to invest in effective communication tools and strategies to overcome barriers	Prefer to work with a local team to ensure seamless communication
Quality Control	Willing to establish processes and allocate resources to ensure quality of offshore work	Prefer to maintain direct control over software development quality
Legal and Regulatory Compliance	Prepared to navigate legal and regulatory requirements of working with an offshore team	Prefer to avoid potential legal complexities with offshore development

If you find that the benefits outweigh the challenges, be sure to select a reputable offshore development partner like ProCoders and invest in proper planning and communication to ensure success.

How to Gain Benefits from Offshore Development with ProCoders?

ProCoders, an IT outstaffing company, specializes in creating tailor-made teams consisting of the best software engineers in Central Europe. Our professionals are fluent in English, highly experienced, and experts in their fields. By partnering with ProCoders, you gain access to a diverse talent pool that can address your development challenges effectively and deliver the best results.

Over the years, we’ve discovered that establishing clear development objectives and maintaining honest communication is crucial to harnessing the full potential of offshore software development. That’s why we recommend conducting a Discovery Phase to understand your unique business goals, determine your budget, and identify the number of developers needed to achieve your objectives.

Consider the skills, programs, and frameworks your outsourced staff should possess. What level of experience do you prefer? Would you like to manage your offshore talent directly, or do you need project managers and senior engineers to handle daily planning and direction? ProCoders will assist you in answering these questions before your development even begins.

We offer dedicated development team services and staff augmentation services to ensure a flexible and customized solution for your project. The first one focuses on building a team of specialists who meet your project’s unique requirements, whereas staff augmentation definition is slightly different. It’s all about enhance your existing team with additional team members. By working with ProCoders, you can optimize your development process and achieve your business goals more efficiently.

Conclusion

Offshore software development provides a multitude of advantages that can transform your project’s trajectory, from cost savings and access to a diverse talent pool, to faster development times and the flexibility to scale your team as needed. Embracing the time zone advantage can further enhance productivity, ensuring round-the-clock progress.

Achieving success with offshore development requires a well-prepared strategy, a clear understanding of your objectives, and the right partner to help you navigate the journey. At ProCoders, we are passionate about showcasing how outsourcing can unlock your company’s full potential. Let us guide you through the process, starting with a complimentary consultation tailored to your unique needs. Connect with us today and discover the benefits that await!