Let Your Business Benefit From The Offshore Development Center

Instead of communicating with developers on the other side of the world, the hybrid model brings daily communication closer to home by managing projects from the States. This means you still get the most competitive offshore rates, without stressing about things getting lost in translation or falling off the radar between time zones. In the past few years, the technology sector has experienced high economic growth in Southeast Asia. Although China continues to be the dominant economic force in the region, countries like Indonesia, Singapore, Malaysia, Vietnam, and Thailand have seen a prodigious rise in startups and young entrepreneurs.

offshore software development meaning

In this outsourcing model, the company sets aside a dedicated team of expert developers who oversee one project at a time. The outsourcing company is responsible for taking care of each and every need that the client company requires. An IT outsourcing model that enables you to expand staff and achieve business objectives is termed an offshore development service. It offers services of a very high standard and ensures functional product delivery. Additionally, this model provides employees from among dedicated experts to sort out the whole work on the project.

Osdc = Offshore Software Development Center

Disruption is bound to happen in the design, development, and deployment of software products when the two most popular trends of the industry are brought together. Agile offshore software development enables businesses to continuously deliver value to clients and respond immediately if any changes are observed. Contrasting professional What is Offshore Software Development etiquettes, conflicting working styles, misinterpretations, communication problems, and many more can happen if there is a difference in culture and language between the onsite team and distributed team. Appreciating cultural differences and promoting cultural exchange is one of the ways to resolve conflicting work styles.

offshore software development meaning

Teamwork is crucial in business but when it comes to agile development, its importance increases by many folds. Make sure that every person you hire in your team is proficient in specific technical skills. Agile development demands a positive attitude from every individual on the team to add value to the business. When you are hiring, apart from looking over the job qualifications and technical skills, you must also assess the potential candidate for their capability to work in a team.

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The hybrid model capitalizes on global offshore development talent, sourcing specialized devs depending on project requirements and having local tech experts vet each to ensure the highest level of quality. Although China offers affordable average hourly offshore software development rates at $25-$40, there’s one big catch – China’s weak intellectual property protection. Despite tall claims by the Chinese government, a cloud of suspicion has always loomed large over cyber hacks and IP infringement.

Now that we understand the different types of software outsourcing, let’s dive into the different software outsourcing models available. The ability to transfer technological needs to 3rd parties is very appealing to companies who want to stay in the race of delivering high-quality software with the help of talented developers around the world. This rise in software goes hand in hand with the increase in demand for technology resources and talented personnel to meet demand. Companies require top-notch talent but the pool of expertise and skills is not always available within a specific geographic region, which is why it is common to search elsewhere for solutions. The price variation also depends on the project scope; however, offshore would always be cheaper than onshore software development.

These teams achieve project deliverables within the given time frame with the specified offshore development model that is chosen for them. This is the global alternative to the dedicated development teams of resources model. In this model, enterprises don’t usually have an internal IT department and use dedicated development centers to outsource the entire IT processes on the client’s premises. With this model, clients are billed based on a cost per resource fee or a management fee. Every country has a bucketful of offshore software development teams to offer.

Tech9 hit this one out of the park — the work their team put in reflected in the final product. There are some drawbacks, including a certain loss of control, clear communication and security issues, and perhaps a Non Disclosure Agreement necessary. Provide support to review progress and revisit strategy and plan for the future as the client moves forward and conditions change. Testing the software continuously and incrementally to improve it as requirements change. Short collaboration engagement with a warranty period to fix defects and bugs in the deliverables .

Offshore Development Company

In the project outsourcing model, the vendor charges a fixed fee for the project plus additional cost in case you decide to change some functionality midway into the software development project. The fixed price includes fees for the services rendered by project managers, business analysts, and solution architects. Despite the potential impacts of the global Coronavirus pandemic and Omicron variant, 2022 is the year of digital https://globalcloudteam.com/ prosperity. Businesses worldwide are getting more inclined towards technology investments, embracing new emerging technologies, and closing staff skills gaps via offshore software development. According to the Gartner latest forecast on Information Technology services spending, a significant growth of 5.1% from 2021 has been witnessed, with a forecast of a whopping $4.5 trillion in 2022 on the global IT investments.

This varies from company to company and depends on the specific project requirements of the company as well as the time that needs to be utilized. It is cost-effective, requires minimum investment, and helps you achieve productive results as well as making your company more flexible to growing changes and developments in the market. Software consulting at Svitla Systems is geared for companies that look for specialized expertise, temporary help during a one-time project, external advice and recommendations, and trusted partners for all technological needs. Delivering frequent updates about the project status, while introducing and phasing out resources as the project moves forward.

However, offshore software development can cost a bit high at around $3-$7 per hour in Nigeria and South Africa. The main reason that draws companies towards outsourcing software development to China is the lower cost and an enormous workforce of IT professionals. Good experiences in India are driving cost-conscious CIOs to go far offshore, as prices of offshore software development rise in India and other Asian countries. The Communist regime of China supports the tech sector by offering economic incentives. The Chinese government has also been instrumental in establishing over 50 science and technology industry parks that are incubators for software developers. Offshore software development means a company hires a dedicated software development team and opens a new office in another country.

  • The entire team is seamlessly coordinated and they are experts in their respective UX/development fields.
  • You can achieve success in agile development by setting the standards for communication tools along with the software development methods.
  • The concept of software outsourcing is accelerating now more than ever, as more and more companies choose this road to travel towards efficient, cost-effective, swift, and successful software development projects.
  • I hope you have enjoyed reading this article, the agile offshore software development is achievable if you follow the tips provided in this blog.

With the help of offshore developers, you have a team of skilled experts who can cater to any kind of complex challenge that may show up during the duration of your projects. Not only is this cost-effective, but would yield productive results in the long run. On top of that, additional time is required to train them and equip them with all of the skills needed to start working on the projects.

How To Outsource Software Development Effectively?

It is an ecosystem for agile software development that includes the collaboration of both parties, communication between the team members, the infrastructure, delivery options, technology tools, and other equipment. Hiring offshore developers enables the company to have a more flexible team. It can be scaled and modified according to the needs of the company. It enables companies to meet the ever-growing demands of the market and then adapt accordingly.

Onshore and offshore companies do offer, but working with offshore software developers becomes quite difficult because of the time difference. While developing a product, you need someone with whom you can talk instantly. Since onshore software development companies are located close to you, you can afford to visit their premises or vice versa as and when required. Face-to-face communication is far more appreciated than virtual discussion. Hiring an external software development company for the first time can be nerve-racking, which is why outsourcing can provide the ideal solution.

The key here is to keep sharing all the project and business-related information with the offshore development teams. The more information your team has to work on, the more productive they become. Gather all the information you can including the data flow, development strategies, process documentation, roadmaps, test results, etc, and then make all of it easily available and accessible. In this way, every team member can self-serve themselves with valuable information and resources.

offshore software development meaning

This is also very essential to manage agile development teams. This way, you can hire an offshore development team instead of exploiting in-house resources. It is a constituent part of your business to work in a cost-effective country. The company (e.g., Hire Ukrainian Developers) provides IT staff members and will complete the project under your constant supervision. Additionally, the company will assume responsibility for engaging new tech experts, office space, instruments for the remote work, and will finally run your team.


It enables you to deliver maximum results with minimum input in budget and other resources. Offshore software development is the option you choose when you want to hire a third-party organization to build software for you. And agile development is a practice by which you can develop your software project in systematic iterations. Here every iteration consists of some improvements to the previous one along with a few latest features.

A System Requirements Specification Document is used to describe specifications, functionalities, costs, development timeline, milestones, and deliverables. An onshore company is one that is located in the same home country as yours & in your geographical proximity. Here, both of you might share the same culture and operate in the same time zone.

You also need to resolve the challenges related to language as early as possible because the company has to set up a robust workflow for code and document translation before the software development process starts. Svitla Systems is fully committed and dedicated to providing the best-in-class software outsourcing services for all types of client needs. Our goal is to provide the best and highest value to our clients through our service outsourcing portfolio of offerings.

Therefore, you should not be concerned with the development processes, as the dedicated staff members successfully sort this out while you can concentrate on your major business operations. Given the robust functionality of software development, we highly recommend opting for the team augmentation model over ODC services that will aid you in accomplishing your objective. In Morocco, Egypt, and Kenya, hourly outsourcing rates average around $20.

For a business located in the U.S., this would mean choosing a dedicated software development team in the U.S. Know that all the members of the offshore software development team have to actively participate in these demo sessions, so a continuous level of collaboration happens between all the parties. There is high importance of demo sessions for distributed teams. Determining the volume of all the tasks that must be completed within predetermined deadlines given to your dedicated team is necessary before starting the project. Taking this action would help in understanding the scope of work, in creating a comprehensive work strategy, and at last, provide a full picture of the development projects to your offshore teams. Delivery timelines, milestones, reports, and many more such expectations from the team are included in the Scope of Work.

Agile Offshore Software Development: How To Make It Work?

Each country of Southeast Asia offers its own unique advantages and disadvantages when it comes to software outsourcing. Bear in mind that the region-wise price ranges provided in this software development pricing guide are indicative only and don’t take into account the variations arising out of choosing different cooperation models. To find out the real outsourcing rates, you must contact the vendors directly. In a report, the Bureau of Labor Statistics estimated that by 2026, the entire IT workforce requirement will exceed 1.2 million.

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Having an onshore development team working with you means they are fully aware of the country’s rules and regulations. You do not need to explain it to them, and they can take care of things by themselves. Working with an onshore development company has this brilliant benefit, that you do not have to explain your culture to them. You become highly compatible with them, and this leads to an amicable relationship.

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In this regard, dedicated developers are the ideal solution. Offshore software developers though work on the other side of the world, but they can never compromise over quality. These developers work with you together like your extended development team, and it is highly suggestible to hire offshore developers.

Apart from the cost, what drives businesses towards Eastern Europe for outsourcing software development is the proximity to Western Europe and close cultural affinity with the West. With the average software developer hourly rate India ranging from $19-$40, hiring offshore developers from India is indeed a cost-effective option. Apart from being an affordable offshore development country, India is also a politically stable and mature market in terms of business delivery.

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