To stay competitive and improve processes, many companies leverage software. While some can get away with commercial off-the-shelf solutions, those in niche industries may need to develop proprietary software to address specific needs. However, independent software development can be labor- and resource-intensive.
If you’re looking for a viable alternative, we have you covered. In this blog post, we’ll explore what offshore software development is and the reasons why more companies are utilizing this strategy.
Why Businesses are Offshoring Their Software Development Projects
For several compelling reasons, businesses turn to offshore outsourcing for their software development projects.
Per reports, completing a software development project in-house is roughly 60% more expensive than outsourcing to an offshore team. This cost-saving factor is one of the strongest motivators for businesses seeking to maximize their project budgets and allocate resources more efficiently.
Apart from that, the offshore software development market has been experiencing substantial growth, indicating increased demand for its services which could translate into higher sales and potential profits.
In 2021 alone, the offshore software development industry’s value reached $122,257.5 million. Experts predict it will trump this number, eventually valuing it to $283,457.5 million by 2030 with a CAGR of 10.13%. Most want to capitalize on this trend immediately to reap the full benefits of the niche.
Another noteworthy trend is the consistent demand for outsourcing software application development. Statistics show that 60% of US-based businesses plan to outsource at least part of their development, maintaining the proportion from the prior year.
This demand highlights the enduring appeal and relevance of offshore outsourcing for organizations seeking specialized expertise. Hence, it is vital that you get in on the action now before the landscape gets too competitive.
How Businesses Stand to Benefit from Offshore Software Development
Offshore software development has become a viable alternative for organizations that require proprietary programs in the shortest time possible. Let’s discuss the other benefits of offshore software development.
1. Increases earning potential at an affordable cost
One of the most significant benefits of enlisting the help of offshore software developers is its affordability. Depending on the location of your offshoring partner, you can gain access to skilled developers in countries with low living costs; thus, labor costs tend to be lower as well.
With the amount you’ve saved, you can allocate your budget more strategically, helping you maximize your earnings and boost profitability.
2. Exposes your company to global talent
Offshore software development opens you to a vast pool of skilled professionals worldwide. You can acquire talent with specialized skills, technological knowledge, and innovative ideas that may not be readily available locally.
This exposure to global talent brings fresh perspectives, creative problem-solving skills, and a broad range of experiences, enhancing the overall quality of the software development process.
3. Provides scalable and flexible software development solutions
The business world is constantly subject to changing needs and trends, and if you don’t react fast enough, you may lose valuable opportunities.
For those running a startup or a relatively small to medium-sized business, an offshore service provider enables you to hire new employees quickly, minus the traditional hiring processes that take significantly longer. You’ll have an entire workforce without hiring them as regular employees, which reduces your overhead costs.
So, allocating funds for expenses such as benefits and other related costs to conventional employment won’t be necessary.
4. Cuts time-to-market by a significant margin
According to studies, software development can take three to nine months, depending on the complexity. Unfortunately, not many companies have that time, especially if you operate on a smaller scale.
Offshore software development can expedite the development process significantly and shore up your team without spending more resources for a quicker turnaround time.
5. Lets you focus on core business functions
With an entirely independent team heading your software development efforts, you can allocate resources, time, and energy toward areas that directly contribute to your competitive advantage and revenue generation.
You can prioritize activities like sales, marketing, and relationship management, crucial aspects that attract and retain customers, drive growth, and maintain strong relationships with stakeholders.
6. Unloads the tedious parts of IT recruitment to experts
Recruitment of an in-house software development team can be time-consuming and resource-intensive, especially if your organization does not have a built-up structure and process around it.
Fortunately, offshore software development eliminates the need for standard hiring processes like training new employees since the offshore company will provide you with someone with experience working on a similar project.
Moreover, your offshore provider will oversee the entire recruitment and staffing process, ensuring you’ll have quick access to a qualified and experienced team without the hassle of extensive recruitment efforts.
7. Gives you access to 24/7 support
Since offshore developers typically work in different time zones from their clients, you can set up an arrangement wherein support staff will be available during off-hours to ensure that critical software can remain up in a 24/7 cycle.
Getting Onboard with Offshore Software Development
Offshore software development is an inexpensive and effective strategy that helps small companies scale up their operations in the most economical and fastest way possible. Use this blog post as your guide to making informed decisions about hiring an offshore software development team.
Need an offshore staff solutions partner with a proven track record in the industry? Look no further than Manila Recruitment. We offer great value for your money by providing a skilled and specialized talent pool that is proficient in English, culturally compatible, and adapts their schedule to your working hours regardless of timezone.