Common Myths About Offshore Software Development

Growing at an extraordinary pace in the business world seems to have become the need of the hour. Preparing strategic business moves has become a must-do, and developing software overseas definitely tops the list. Yes, the concept of offshore software development has gained quite a momentum, and why not, since it makes things much easier and smoother. What kind of software development tasks, from coding to custom software development projects, seamless support, and maintenance, can all be handled? By hiring reliable offshore development companies, professionals can free themselves from challenges of hiring professionals, or setting a kick ass IT infrastructure, despite not doing all this you can be guaranteed with an outstanding software in no time.

Now I have come across many of you who are considering hiring an offshore software development company, but often get disappointed in case they happen to pick the wrong tech partner. So there is a constant worry about the hidden risks of offshore outsourcing. And there is nothing wrong with worrying about the risks associated with offshore software development projects, because somewhere down the line, these concerns have been proven true. However, the key lies in choosing a reputable and reliable offshore software development company, which we will discuss further in the following post.

After the massive COVID-19 pandemic, the concept of offshore software development has been gaining quite a momentum across the globe. Not to mention, it has also been proven that those companies that conduct offshore services have faced a win-win situation according to both parties, the provider and the businesses themselves. Moreover, outsourcing has offered a favorable overall influence.

Understanding the Offshore Software Development Realm

Offshore software development usually refers to the process of hiring a reliable tech team overseas to design, develop, and maintain software for the long run. These tech partners aim to support your business in the long run and ensure that to offer absolute growth and streamline all the ongoing operations.

Also, when you choose offshore development, it means you are bound to match the pre-given deadlines, staff management, tech peculiarities of the project, and all this is possible at a low price, yet innovative approach. No wonder the outsourcing market is supposed to hit $425.19 billion in revenue from 2021 to 2026. Now you know why offshore is highly considered for tech task completion.

Now you can either transfer software development projects fully or partially, depending on your needs and requirements. So basically, what services can be outsourced?

• Custom software development services

• Dedicated development teams

• UI/UX design

• QA services

• Support and maintenance

• Cloud infrastructure management

• DeVOps services

Outsourcing Model Types

Outsourcing services mainly comprise three different models: nearshore, offshore, and onshore.

1. Onshore

The first one is onshore. This model of outsourcing refers to choosing a tech partner or team located in the same country or region. For example, US-based businesses outsourcing software development projects from Silicon Valley to San Francisco, and Sydney-based businesses can outsource from Melbourne or Perth.

Benefits:-

• Working with the same team at the same time can be easy.

• Also, you no longer have to face any language barriers or cultural barriers.

• Conducting face-to-face meetings and closer oversight is possible.

• Familiarity with local data privacy laws and regulations, the chances of compliance issues automatically reduces.

The only issue here is that onshore development projects are quite expensive, especially due to high labor costs, and the talent pool is pretty limited as well.

2. Nearshore software development

As the name implies, this one includes hiring software development teams located in the neighboring country or region, which is why it is highly considered as a middle ground between onshore and offshore. How is nearshore software development beneficial?

• Favorable time zone overlap, which means time zones do overlap, but not to a drastic extent. The difference can be managed, and communication and collaboration can be pretty easy going as well.

• Also, the labor rates here are pretty low in comparison to onshore rates, so cost savings are possible.

• Cultural differences could be a bit much, but this can lead to open doors for new working scenarios and expanding your horizons.

The concern here is that you have to be geographically limited, which brings us to the next mode, i.e., offshore software development.

3. Offshore software development

Last but certainly not least is offshore software development, as the name implies, this is the core practice for outsourcing software development projects, especially to teams located in a different country. Industries gaining most from offshore software development include: technology and SaaS, eCommerce, healthcare and telemedicine, finance and fintech, education and e-learning, logistics and transportation, and the list goes on.

Reason can be anything from scaling operations to accessing top-tier talent, staying ahead of competition, and all this in a cost-effective manner, is what offshore development is all about. Here are a few benefits offered by offshore software development:

1. Cost savings - One of the most significant advantages of offshore software development is to reduction in price. Software development can be extremely pricey if not given a deep thought, so this is why it is advisable to hire professionals with lower labor costs, allowing businesses to achieve high-quality development at a cost in comparison to hiring in-house teams, especially in high-cost regions.

2. Access global talent - Offshore development eliminates all geographical limitations, allowing businesses to tap into a diverse talent pool featuring experienced software developers, UI/UX designers, and project managers. Not to mention, here you are bound to experience great expertise on various technologies, frameworks, and industry-specific solutions, so you are bound to receive the best skills for the job.

3. Faster time-to-market - Since offshore teams are working across different time zones, development can continue 24/7. This ensures faster product iterations, quicker bug fixes, and reduced project turnaround times, enabling businesses to gain a competitive edge in no time.

4. Focus on core business functions - Of course, one of the best benefits offered by offshore software development companies is that it enables you to focus on your core competencies since they are working on delivering the best possible solutions and assisting you in accelerating digital transformation.

Now, down below, I would like to debunk some of the most popular myths regarding the offshore software development concept.

Top Offshore Software Development Myths, Busted

1. Time gap can lead to lower productivity.

One of the disadvantages offered by the offshore software development model is the time zone difference, but who says you cannot use this to your advantage? What I mean is that to survive in the current cut-throat competitive world, you need to come up with quick solutions. Now, many of you have this misconception that a time zone difference can lead to low productivity. However, this worry is understandable; make sure to consider countries where the work day overlaps. By doing so, what happens is that, chances of substantial collaboration can increase, leading to improved transparency. It is about making the most of the opportunity, which is gaining around-the-clock support.

2. Communication is next to impossible.

Another myth about offshore software development services includes difficulty in communicating. Of course, when you choose offshore development, it isn’t obvious that you focus on improved quality; however, language barriers can successfully throw communication off course.

Speaking of today’s digital scenario, we have a plethora of technologies available, so finding a professional team fluent in a specific language, let's say English, is also easy. Moreover, you can narrow down the search by hiring professionals who use a specific dialect and tend to communicate via a particular channel. It’s all about working in harmony and using technological advancements such as email, video conferencing, instant messaging, and more.

3. “Outsourcing” and “offshoring” are interchangeable

Another major myth to consider is the usage of outsourcing and offshoring. Now this one is pretty common, I am sure if you read 10 articles on offshoring and outsourcing, you will realize that these concepts are frequently interchanged. However, it is very important to burst your bubble; both concepts share different notions.

Outsourcing entails hiring outside contractors, especially for tasks and aspects that cannot be met on your own. So, outsourcing offers high flexibility and low cost, whereas at the same time, it can result in the loss of ownership, hidden costs, and a lack of customer focus. You usually get what you mainly pay for: so if you choose the cheapest option, it doesn’t mean you will receive the finest outcomes.

Offshoring, on the other hand, is a concept where you end up developing a remote software development team to supplement the current staff, especially by hiring well-experienced specialists. Countries like the Philippines, India, and Vietnam enable excellent software development skills. Moreover, the ultimate objective of offshoring is not just to cut unwanted expenses. You see, countries such as India and Ukraine are cost-effective, not to mention the cost of living is relatively low, especially in comparison to Euros and Pounds.

4. Offshoring can never offer high-quality work.

Another myth regarding offshore software development projects is that it never offers high-quality work or outcomes. The only condition is that you don’t have to consider the cheapest option or look for underqualified professionals. Instead, if you want to receive high-end results, you need to aim high as well. Try choosing top-tier talent that can assist well in upgrading more without even sacrificing the output. It doesn’t matter what business you are currently in, just make sure you devote ample time to hiring as well as assembling the top talent so that nothing can stop you from gaining sub-par work. Be safe from panic-buying companies, and you will be fine.

5. Offshore teams lack quality and expertise.

The next myth, which needs to be busted at all costs, is that offshore teams often lack quality and expertise. Well, have you ever seen CVs coming from Eastern Europe or Asia? Here you will find developers who are extremely skilled and high-class graduates, fluent in numerous programming languages and veterans in high-pressure industries such as finance, healthcare, and AI.

When it comes to offshore, successful partnerships are always guaranteed if you happen to make the right choice.

6. Data security risks are too high.

Data is pretty much important in today’s time; losing money is fine in comparison to losing data, imagine that. Cybersecurity breaches are happening now and then, which is why organizations across the globe believe that data is more secure if stored locally within private data centers. So when you happen to outsource, there are high chances for lots and lots of companies’ sensitive data being disclosed, especially if you are unable to handle data safely and securely. This risks intellectual property rights.

On the contrary, the ground reality says something different; outsourcing providers end up spending lots and lots of money on creating a highly secure environment. The core element is to protect data from any unauthorized access as well as natural disasters. Though companies with extremely sensitive data can sign an Intellectual Property agreement, which means everything is totally under control.

7. Offshore is recommended for businesses with tons of capital.

Though there was a time when offshore development or outsourcing was considered by businesses that had tons of capital and money. However, currently, this is no longer the case; it is possible to outsource without sufficient capital assets or committed finance. However, one should understand that outsourcing or offshore software development is an instant win plan and can offer you a significant edge above competitors in no time. So any company can consider outsourcing to create high-quality work at a minimal price. Not to mention, here you can earn a better profit margin.

Conclusion

Conducting any software development project is not an easy task, especially offshore ones where your tech partner is not even in physical proximity, however, it is a doable job. All you have to do is make sure to choose a reliable professional who is well knowledgeable and highly experienced in the field.

Also, one shouldn’t forget offshore software development offers an array of benefits in comparison of other outsourcing models, such as cost cost-effective approach, fast delivery, qualified talents across the globe, high scalability, risk mitigation, use of modern technologies, quicker specialist acquisition, lower building risks, and above all you get to focus on your core competencies, no wonder this has become one of the most strategic advantage in the business realm.

I hope that after reading the following post, you are free from all the superstitions plaguing the offshore software development industry. It’s time to make your offshore team. So good luck with your development project, I am pretty sure things will be smooth and enduring, just make sure to make the right choice.