WHAT IS OFFSHORE DEVELOPMENT?

Offshore software development takes place when businesses outsource work to a partner in a region far away from the company’s headquarters. An example of this would be a European company hiring offshore development services from a partner in Latin America.

Offshore software outsourcing can be beneficial because it offers access to a vast software engineering talent pool that wouldn’t be approachable otherwise. Businesses can thus take advantage of a broad set of specialists that go beyond their in-house teams. 

Offshore development is a good idea for projects that need specific expertise that is hard to find elsewhere.

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DIFFERENCE BETWEEN OFFSHORE, NEARSHORE AND ONSHORE SOFTWARE OUTSOURCING

We can compare this model with two others, onshore and nearshore software development.

Onshore software development occurs when a company outsources work to another business in the same country. For example, a Los Angeles based company may work with developers based in Louisiana. 

This works well with projects that depend on location-specific knowledge, quick delivery times and frequent face-to-face interaction.

Meanwhile, nearshore software development happens when partnering with a company in a neighboring country to your own. For example, a business in the US working with one based in Colombia.

With this model, there is an extra advantage: these companies often share similar language or cultural background generating a more seamless working relationship.

OFFSHORE SOFTWARE OUTSOURCING TRENDS

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Significant use of collaborative tools

These tools are highly useful to maintain an organized and cohesive workflow. With an increase in collaboration with offshore development teams also comes an improvement in tools. Tools such as Jira and Trello can really help with task assignments and project delivery compliance. 
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Demand for innovative skills

Tech change is unstoppable, with new applications and methodologies rising every day. Expert and highly-specialized software engineers in technologies such as blockchain, artificial intelligence or the internet of things will be needed now more than ever.
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Increased use of cloud devices

Gartner affirms that the change towards cloud technologies will imply $1 trillion in IT spending by 2020. With an increasing demand for cloud outsourcing, companies will work with and will need cloud platforms from public sources for data storage purpose.
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Improved Data Security

Data privacy and security is a top concern for CIO’s and all organizations working with sensitive data. For this reason, offshore development companies are putting in place strict and through protocols, and adhering to comprehensive regulations that will guarantee the safe management of this information.

OFFSHORE DEVELOPMENT: IS IT ADVISABLE?

Offshore software development outsourcing is advisable, but it’s always necessary to have a complete overview of the project at hand before deciding on this option. Take into consideration delivery dates and how the software outsourcing company will boost efficiency in this process.

Also, analyze your current resources paying special attention to any skills gaps and capacity limitations that may exist in your in-house team. 

To choose the right offshore software outsourcing consider:

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    Selecting the best outsourcing model for your needs

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    Setting clear expectations

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    Maintaining clear and open communication lines

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    Developing a detailed post-development strategy

Contact us and let us know about your company, your outsourcing needs, or your planned projects.