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Tag: Offshore Development

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Why Hire Offshore Software Development Company and Outsource App Development?

The software development industry has seen a lot of changes in the last decade. It is predicted to continue changing at an exponential rate, with technologies like AI and IoT becoming more prevalent. As software becomes more complex, the need for highly skilled developers will grow exponentially. Even though there are many skilled developers out there today, it’s still difficult to find qualified candidates that have all the skills needed to fill these positions.

Software development in 2021

The markets for IoT, data, telecom services and system integration grow to $520 billion in 2021, almost double the spent in 2017. The IT sector is recovering in the post-pandemic period and will return to the growth trend line soon with an estimated 5% CAGR. The employment of software developers is expected to improve 21% between 2018 and 2028.

(Information Technology (IT) services spending forecast worldwide from 2008 to 2022. Source: Statista)

Software development continues to be a critical component of any company’s ability to compete on a global scale, as new technologies continue to transform the way we work and live. The advancement and innovation of technologies such as cloud computing, mobile applications, and artificial intelligence have contributed greatly to the growth of these industries over time.

Software development outsourcing trends

Software outsourcing services help organizations to get software developers they can afford and depend on for high-quality results. It also helps them to be more competitive in the marketplace by leveraging expertise from other parts of the world where labor costs are cheaper than they would be at home.

(Recent IT outsourcing trends. Source: Statista)

Almost 60% of companies believe software outsourcing services allow them to completely focus on their core business programs. Outsource app development is the popular IT function in 2021. One among two technology companies is doing application development outsourcing because of its immense benefits.

What are outsourcing and offshore software development company?

Outsourcing and offshore software development are terms that have been popular in the business world for years. An offshore software development company provides outsourced services to businesses. Outsourcing is when a company hires outside talent or programmers located overseas (typically in countries like India and China) to complete their projects or tasks rather than hiring employees internally. This may not only save money on salaries but it also provides access to specialists that might not otherwise be available locally or even regionally.

Software outsourcing services and offshore software development companies are excellent choices when you need help developing an app or website that is too complex for your current staff or budget. You can also use them if you’re running short on time and need a project done quickly without compromising quality.

Benefits of hiring an offshore software development company

Small businesses are always looking for ways to save money without sacrificing quality, and hiring offshore software developers is an effective way to do just that. Outsource app development can help companies cut costs in excess of 50% when compared with on-premise development teams.

The best part about it is there’s no need for your company to relocate overseas or send employees abroad – you’ll have the same access to the team as if they were an in-house group! Software outsourcing services provide a number of benefits including cost savings, high productivity rates, 24/7 customer service availability, reduced risk due to geographical distance from key business operations, increased innovation potential due to cultural diversity within the project team.

Cost savings

In the modern business world, companies are looking for ways to cut expenses and increase productivity. In fact, a recent survey states that 62% of CFOs plan to outsource IT services in order to save on costs. An outsource mobile app development company is a cost-effective way to hire the best talent without breaking the bank.

Hiring offshore software development companies can help you save up to 50% or more on labor costs, as compared with hiring in-house teams. As the offshore software development industry continues to grow, it will become more important for companies to cultivate their offshore relationships as they look for ways to reduce IT costs, improve quality of service, and increase agility in decision-making.

High productivity

The offshore organizations hire expert developers who are great at work. They have experience working on small to large-scale projects, so they are able to provide their best work; no matter the size of the project you assign to them. Outsource mobile app development companies improve productivity by utilizing the latest technologies to create software applications that are innovative and user-friendly.

Round-the-clock business operation

With the current state of business and society, it’s important to have a 24/7 support system with people who can cover your needs at any time. Since there are more developers from different geographical areas, the business will remain operational all the time. This enables the timely completion of the app development process.

Stay focused on core business function

Offshore software development is a form of software outsourcing service that enables companies to stay focused on their core business functions. It allows businesses to free up their resources so they can focus on innovating or expanding their current product offerings instead of being stuck by maintenance tasks.

A dedicated outsource app development team is a great way to scale your business as per the requirements. Since these professionals come with experience from different industries such as IT or engineering they know all about making sure their clients’ needs continue being met no matter where they may be located across the globe.

Improved security

Outsource app development and software development improves security by allowing the software development team to work remotely. This allows for a more secure environment, as company secrets and data are not shared with the offshore business partner. Additionally, offshore teams typically have fewer employees than on-site teams which decreases the risk of sabotage.

Access to the newest technologies

The offshore software development companies specialize in creating high-quality, cutting-edge programs that address your needs. They use their time wisely by learning new skills and improving existing ones to create something perfect for you as soon as possible! The small business owner can now finally afford all these technologies at an affordable cost.

Offshore software development service providers of dedicated specialists can help you get better results. A software outsourcing service provider brings new insights to the work, improving your overall product development lifecycle with their knowledge in a range from engineering through design and production.

Reducing liabilities and improving opportunities

Offshore software development services are a reliable way to reduce business liabilities and take on more important projects. The offshore development team has a dedicated team that works on one particular project instead of working with multiple projects. This means they can ensure high-quality service and fewer errors, which is something you want from your business partner!

Cost comparison of hiring offshore development services

Offshore employees are always less expensive than onshore ones if you’re a business based in any of the developed countries. Businesses located in Europe or North America find it lucrative to hire virtual workers for outsource app development projects paying like $30 per hour but those who choose to do their work through an experienced local developer may end up spending upwards of $100K annually!

In 2021, the virtual work ecosystem will be a reality for businesses. It’s important to consider that this decision should not be taken lightly as it can have consequences on your budget and timeline in hiring an offshore employee or onshore recruit – so make sure you’re ready before diving right into these types of recruitment methods!

The best countries to outsource software development

Software development outsourcing is now a major global industry, with countries such as India and China becoming centers for outsourcing app development. Many companies outsource to save money but there are other advantages as well. The best countries to outsource software development will depend on the needs of the company and the budget.

You should also consider whether or not the country is a good fit for your business and if it will be easy to work with their team remotely.

India

India offers affordable talent with a high level of education and English proficiency, making it easy to find employees who are both qualified and capable of communicating effectively with clients from all over the world. India has lower rates than others, ranging from $15 to 30 per hour. This is an attractive option for many businesses who want to outsource their work but are not able or willing enough themselves with the project management aspect of things possible in India which includes quality assurance as well!

China

The number of app development jobs outsourced in China alone has increased by over 50% since 2017. Other reasons include lower rates for labor and better-qualified employees with a stronger work ethic.

Russia

With its abundance of skilled labor and low production costs, Russia is an ideal country for outsourcing software development services.

Ukraine

Ukraine is home to many skilled programmers who enjoy lower living expenses than their Western counterparts and can work more hours per day due to fewer time constraints on weekends and holidays.

Choosing an outsourcing partner for web and mobile app development

Finding the right software outsourcing service partners to outsource app development can be a daunting and often costly process. These tips will help you find the perfect fit for your business.

Do online research

Take your time to evaluate offshore software development companies carefully by checking out their website, reviews, testimonials, and portfolios. Look at their website and see if they have a page dedicated solely to describing this aspect of doing business with them. It is important to make sure they work in a field that matches your industry or the scope of your project.

B2B directories and listings

B2B directories provide an excellent way to find the perfect vendor for your company’s needs. These directories are a valuable resource for finding offshore software development companies that can offer the services you need at an affordable price. They offer detailed information about each vendor, including testimonials and reviews from other companies that have hired them before. You can search by industry or by location, which is great if you need someone close by.

Check out the portfolio

Look at projects that are similar to yours and see if they have experience working with other companies like yours. If their work looks good then it’s worth asking them for more information about what they can offer you.

Get references

References are a great way to get an idea about the organization and culture within any given company. They can provide insights on what services you will be working with, how communication is handled between partners or clients of those companies and all sorts of really valuable points that might otherwise take some time to find. Ask about recent clients who have had similar needs as you so that you can get feedback from people who have actually used this service before.

Review contracts

Never sign anything without reviewing it thoroughly first with an attorney or other trusted advisor. Be wary of any contract that has terms that are not clear or states something you do not agree with. This could lead to problems down the road when things go wrong between the parties involved in the project.

Explore the case studies

Case studies show how the selected outsourcing partners have handled various challenges they met when developing customer products and solutions. They mention which technologies were used, tools that helped them test out their applications for smooth running in order to create outstanding user experiences.

Things to consider when hiring outsourcing software development companies

There are a lot of options when it comes to hiring offshore software development companies. It can be overwhelming and difficult to figure out who is the best fit for your needs. There are some factors that you should consider before making a decision on which company to hire. It includes the type of services they offer, their pricing structure, experience level, and how quickly they can complete the job.

Another thing you need to look at before hiring an outsourcing software development company is their history as well as their customer reviews. These two factors can make or break your decision in terms of how good they might be for your business. Hiring an offshore software development company can make the business process easier.

Final note

Hiring an offshore software development company will save you time and money. Whether your business needs a mobile app or website, it can be costly to hire local developers with the best skills for all of these different tasks. An offshore team is capable of developing any type of application that suits your budget and timeline.

Choosing to work with an offshore company for your app development needs may be the best decision you ever made. With so many benefits, it’s hard to find a downside. You can get more done in less time and at a lower cost than if you did everything yourself or hired someone locally.

Are you looking for an offshore development company for your next project? Contact us now!

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Offshore Development Teams and Cultural Conflicts: Insights and Remedies

Earlier it was difficult for people to communicate with their family members and friends when they were working in a foreign country. The family members have to wait for days to receive a letter and vice-versa. Now, the situation has drastically changed. The advancement in communication technology has resulted in more communication modes such as video calls, chats, and emails. And, it has made communication easier and efficient.  

The advancements in communication have also transformed how businesses function. Every business tries to adapt and change according to the need of the hour. Startups or established businesses- both try to grow in a short span of time. In order to attain maximum growth, they need to adopt quality and efficiency and the “team” becomes a crucial component to achieve that.

Building the team

Interviews, training, onboarding-everything of the hiring process consumes time and money.

But it is now possible to hire a team who is fully equipped with the required skill set and knowledge. Also advancements in communications and technology have helped businesses to hire an exceptional team from any part of the globe. This type of hiring, known as ‘offshoring’, is considered the best way to develop a quality product at a low cost.

According to Forbes, offshoring “ does not only relate to the production of physical goods, but also services. The Indian IT industry, for instance, has been powered by waves of offshoring by technological companies in the West.”

The following graph shows the total contract value of the information technology outsourcing (ITO) market worldwide from 2000 to 2019. 

Source: Statista.com

From the above graph, we can see that, even though there was a dip in the contract value in the year 2016, it has bounced back in the year 2017 and remained almost consistent in recent years. With a value of around 60 billion US dollar, the outsourcing industry is one of the key industries in the world. It has helped in boosting the employment generation and income level in the east while the west was able to cut down their operating cost. 

The reason for hiring offshore developers may vary according to the businesses goal. It can be done to gain greater global scalability, for cutting the development cost or to develop a quality product.

Source: Outsourcing-outlook.com

What is an offshore development team?

As mentioned earlier, hiring offshore developers is a type of outsourcing where a business hires a development team from another country. Companies hire offshore development teams with different aims such as web development, mobile app development etc. 

Hiring offshore developers can be broadly classified into two. You can 

  • Hire offshore development agencies: You outsource a whole project to an agency abroad. They will take care of every aspect of the project and hand you over the final product.
  • Hire dedicated offshore developers: You hire an individual player to an existing team under your wing. They fill specific roles that are crucial for the implementation and completion of a project like design, coding, testing etc.

What are dedicated offshore developers?

Dedicated offshore developers are a team of professionals from another country who you hire to work for your project. A good team of dedicated offshore developers will work solely on your project and will deliver the project on time.

Hiring dedicated offshore developers will help you greatly in cost-cutting strategies. There is no need to spend on office space and other perks such as health insurance and salary hike. You only need to pay for the service they offer. 

Dedicated offshore developers are the apt choice for a project that does not have a fixed framework. Dedicated offshore developers are equipped with the required skill set. So it is easy for them to adapt to the random changes in the parameters of the project.

Pros of hiring offshore development teams

Low development cost

Developing countries have a lower cost of living than a developed country. It reduces the cost of hiring offshore developers from these countries. India is a popular destination for hiring offshore development teams.

No training needed

An offshore development team does not need any training. They are equipped with every skill which enables them to start the work immediately. Or if put it in another way, you can hire a team based on the required skill and expertise. 

Shared responsibility

When you outsource to an offshore development team, both you and the offshoring team have a shared responsibility. If the project does not end up as planned, some offshoring companies also provide a partial refund.

Working infrastructure and latest technologies

Offshore development teams are already equipped with all working infrastructure facilities. They also work with the latest technologies and have a better understanding of the competition in the field. You can use their expertise and technological advancement to the advantage of your business.

Cost-effective business scalability

When you hire an offshore development team, it can help you to scale your business in a cost effective way. It is a low-risk growth approach to expand your business.

Helps to concentrate on core areas of the business

Offshore development team comes with a better manageable workforce.  So, when you hire an offshore development team, you will get more time to focus on other core areas of the business. A good offshore development team will also make sure that your project will be completed within the budget and timeline which was agreed upon.

Easily increase and decrease the size of the team

You can easily remove and add team members when you hire an established offshore development team. You will also save time on interviews and the process of onboarding.

Cons of hiring offshore development teams and remedies

Communication issues

Time zone differences make it difficult to communicate with the offshore software development teams. Monitoring the activities of an offshore software development team is also a problem. You may not be available or there will be some network issues that can happen when the project manager tries to communicate with you on some serious problems.

Remedies

  • Foster a good rapport with the team.  You should communicate with them regularly through video or voice calls. If time permits you can go and meet your offshore development team at their place.
  • Setting up a dedicated chat room for proper communication between your project manager and offshore software development team is a good strategy. When there is a constant transmission of ideas, the scope of flaws in communication can be reduced to a certain extent. There is no need to regularly spend time interacting with the offshore software development team if there is a dedicated chat facility.

Data security issues

While hiring an offshore development team, data security is the most common problem faced by the clients. If you didn’t have a correct background check on the offshore development team, it might lead to information leak.

Remedies

  • Check if the offshore developers are following strong security policies. As most information leak happens through the internet, allow only necessary internet interactions.
  • A best offshore company encrypts and stores the given data. Before hiring an offshore software development team, you should ensure that they follow proper data encryption protocols.
  • A regular risk assessment carried out from your side will minimise the risk of a data breach. You can also ask your offshore development team to conduct random checks.
  • Regular scanning of the network for vulnerabilities and security issues will help in minimising the risk of a data breach. You can also ask the team members to not bring any data storage devices to work.

Management issues

It is easy to manage an in-house team as every one is available in the same workspace. Some may find it difficult to manage a team of offshore developers.

Remedies

  • You can send one of your trusted employees to oversee the work of your dedicated offshore developers. It might incur extra charges for you but, it is a good option if your project takes only a month or two for completion.
  • You can also seek help from a team member and ask him/her to write a detailed daily work report. You can regularly schedule conference calls with the offshore developers and convey your ideas to them.

Issues relating to cultural differences

Cultural differences might reflect on the quality of work. The developers from different countries have the same technical skills but different cultural backgrounds.

Remedies

  • Prior to the start of the work, you can have a conference call with the offshoring team and can discuss working standards that both can agree upon.
  • You can make sure that every member of your dedicated development team understands and speaks English or any other common language.
  • You can invite your offshore developers to your office events. This will help to understand them better.

Geopolitical issues

Since your offshoring development team is from another country, geopolitical situations of the country can affect the work. Geopolitical issues include terrorist attacks, wars between nations etc.

Remedies

  • You should always have a contingency plan when you hire offshore development teams so that you can take necessary steps if something goes wrong. A good awareness about the geopolitical situations in the country where your team is located is an absolute must.

Where to look for an offshore development team?

When you are looking for offshore development teams prefer a location that is having similar cultures as your homeland. The best offshore developers are found in Asia and Eastern Europe due to their affordable rates and good communication skills. In Asia, India and in Eastern Europe, Ukraine is a popular destination for hiring the best offshore developers.

You can search popular directories such as Clutch, ITFirms, GoodFirms etc. to find offshore developers who are having the required skill set according to your needs. When you search on these platforms you will get the reviews of the past clients and choose the best offshore developers among them.

You can also seek help from consultants who can connect you with the best offshore developers out there. They can be a mediator and help you in making negotiations on the rates.

How to hire an offshore development team more effectively?

When you are looking for offshore development teams you should check some factors. You should have a good understanding of your project and its expected outcomes. You need to communicate important details like number of members you need, skill level, and expected date of project delivery etc. to the offshore development team.

  • Hire a team of offshore developers who are committed to delivering quality work. If you are choosing dedicated offshore developers, always double-check for reliability and experience.
  • A complex project may take years to complete depending on the workforce. So it is advisable to hire offshore development teams who not only understand your current requirements but also the future needs as well.
  • Shortlisting countries that have the best price/quality ratio is an important part of hiring. You can get a quality product at a reasonable price when you hire the right offshore developers.
  • The communication process is the most important part of hiring an offshore development team. So hiring a team of offshore developers who can interact with you without any flaws is an essential requirement.
  • Always have a deep-check on the data protection norms of the country before hiring an offshore development team. 
  • You should choose an offshore development team who respects and has clear specifications about intellectual property rights.

The following graph shows the leading countries in offshore business services.

Source: Statista.com

Managing offshore development team

Managing offshore development teams is as easy as handling an in-house team if you know how to handle the communication gap between two time zones. Some of the things that should be kept in mind while managing offshore development team are as follows:

  • Always check that the offshore development team is having the same business mindset as yours. Ensure that the cultural differences do not lead to any challenges in product development.
  • At the start of the project itself, make the offshore development team understand the values put forward by your business. Managing offshore development teams becomes easier when the offshore development team understands the values and objective of your business.
  • If you think that cultural differences will pose some issues in the development, you can hire offshore development teams from a country that possess similar cultural standards as yours. Managing offshore development teams are easy when the cultural standards of both sides are similar.
  • Managing offshore development teams becomes difficult when there is less communication or there is a language barrier. You should hold meetings regularly with your offshoring software development team. It helps to avoid misunderstandings and moreover, it gives good control over the team.
  • Always dedicate some time to listen to the offshore developers. They have years of experience and worked for many clients on a global level. They can help you in brainstorming ideas that may help your business to grow beyond boundaries. 

Hiring an offshore development team is not a simple task. But it offers more advantages than having an in-house team. When the concept of offshoring is fully understood and when the offshoring team works in sync with the ideas put forward by you it helps in the smooth development of a quality product.

AlignMinds Technologies is an award-winning mobile app development company with a decade of success stories. We offer digital product engineering services that include strategy and design, web and mobile app development, DevOps and cybersecurity. We can help your businesses to get an edge in the competition through innovative solutions. Contact us now!