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Offshore Software Development: Everything You Need to know

Ever wondered what it is like to outsource software development to an offshore company? Here's everything you need to know to start your outsourcing journey—the right way.
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What are Offshore Software Development Services?

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

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.

For most companies, offshore software development outsourcing is a great solution for projects that require specific expertise and high-quality deliverables that are hard to find on a local scale.

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What is the Difference Between Onshore, Nearshore, and Offshore Software Development?

These three service models differ according to the geographical standpoint of the client and its software development services partner.

Onshore

Onshore outsourcing occurs when a client decides to hire software developers in their own country or region.

Nearshore

Nearshore IT outsourcing happens between countries with similar time zones, like USA and Latin America.

Offshore

Offshore software development unites clients and providers in distant countries or continents.
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The Benefits of Offshoring Development

The benefits of offshoring development go far and wide. With the right offshore software development company by your side, the possibilities are endless.

Access to Top IT Talent

In the IT industry, talent is the most competitive (and scarce) resource. The best software development companies will find the best developers and implement their talent into your project.

Optimized Workloads​

An outsourcing company takes weight off your shoulders while ensuring quality. With development taken care of, you can focus your company’s time and resources on your core business.

Industry Expertise

The best IT companies have years of industry expertise and have formed expert offshore development teams on every technology. This is the level of know-how that changes the entire course of a project.

Minimal Risks​

Having the best offshore developers on your team reduces inherent project risks. Your IT outsourcing company will apply the best practices to increase flexibility and minimize downtime.

Faster Launch Times​

The best IT companies will create custom solutions for your business and assemble the best teams to achieve project goals on time, boosting the capabilities of your in-house talent.

High-Quality Products​

With all the previous benefits combined, it is easy to see how outsourcing IT to the right company produces high-quality software products. Still, always check references and past projects!
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How to Choose an Offshore Software Outsourcing Company

Keep these key points in mind when choosing a top software company.

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    Fluent Communication and Workflow
    Fluent communication and workflow is the most critical step to offshoring. Your Software Outsourcing partner should be perfectly fluent in English or the language of your choice. Also, their work process should match your workflow throughout the development cycle.
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    Standardized Security Protocols
    In an increasingly tech-driven world, cybersecurity is more important than ever. Make sure the IT company of your choice has up-to-date security protocols for keeping all data and software products safe.
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    Top Talent Software Engineers
    Offshore software development outsourcing gives you access to world-class IT talent. It is the job of an offshoring company to gather the best software developers from the region and use their talent to build the best possible product for you.
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    Quality Experience
    Always check references, past clients, and completed projects of your potential IT partner. This information will give you some insight into the IT company’s performance, workflow style, and quality of software products.
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    Full Range of Services
    What you need today might not be what you need tomorrow. The best outsourcing companies that specialize in a wide range of fields will be able to handle your project from a holistic and highly-experienced approach.
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When to Hire Offshore Developers

There are many situations in which offshoring becomes the most viable option.

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    Lack of IT Talent

    Top talented offshore developers are scarce on a global scale. IT Companies work with remote methodologies to overcome this challenge.

  • Offshore Software Development 7

    Specialized Roles

    Many projects require either super specialized technical roles or temporary positions that are not attractive for top talented developers.

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    Complex Projects

    Tackling a complex project requires a lot of know-how and technical expertise. Without those, it is easy to run into speed bumps and accumulate downtime.

  • Offshore Software Development 9

    Tight Deadlines

    Getting the right results at the right time can be the difference between success and failure. Offshore developers scale your capabilities when needed.

  • Offshore Software Development 10

    Support & Consulting

    Software outsourcing companies provide consulting and support solutions for existing or ongoing projects that have fallen off the tracks.

  • Offshore Software Development 11

    Cost-efficiency

    IT development companies completely eliminate the costs of hiring in-house staff while providing the same or better benefits.

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5 Steps to Take Before Working with an Offshore Development Company

Doing your homework before offshoring can help you reduce risks and maximize the results of your software outsourcing project. 

Define your Goals

Offshoring services boost your company’s capabilities to reach its goals. Having a clear idea of what you’re aiming for and the results you expect on a given time frame will make it easier to plan a custom technology solution that matches your needs. 

1

Set Priorities

While offshore development companies will help you build a detailed roadmap of your project, at first it is up to you to state what matters most for your company and your clients. Make a list of what should be the development priorities in the short and long term. 

2

Paint your Vision

You bring the idea and your development partner turns it into real software. The clearer the picture you have of your vision, the faster your project will come out of the wireframing and sketching stage. Remember, you are not building a product —you’re building an experience.

3

List your Needs

Ever project requires a different technology stack and different engineers with expertise in a wide array of fields. Check different service models and technologies to get a feel of how they could fit in your project.

4

Put it All on Paper

Proper documentation speeds up any process and makes everything much more transparent. Based on your needs, your offshore team will help you choose the best solution to achieve your goals on-time and cost-efficiently. 

5
Access the Top 1% IT Talent

Communication is the Key to Success

While working with offshore software outsourcing companies comes with many benefits, the success of any project depends mostly on one major factor: communication.  Setting an efficient workflow with your  development team will determine how fast your project progresses, as well as the quality of the final product.

Your IT partner will always be interested in establishing a productive and professional with you. Use that to your advantage by asking as many questions as you can and giving the most honest feedback possible. Even if your project wasn’t all that defined at the beginning, these directions will build the concrete foundation upon which offshore developers can work and bring valuable results to the table. 

And keep that feedback cycle going throughout the entire development process! Whatever communication channel you and your IT partner use to collaborate (email, phone, video calls, web platforms, etc), go back to it periodically to make the most out of your software development journey. 

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10 Reasons to Outsource Development to Latin America

best region for offshore outsourcing

Offshore Software Outsourcing Trends

The latest trends defining the offshoring market and best practices.

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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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    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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    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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    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.

Is Offshore Software Development the Right Move for your Company?

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 company consider:

  • Selecting the best outsourcing model for your needs
  • Setting clear expectations
  • Maintaining clear and open communication lines
  • Developing a detailed post-development strategy
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