Business | 12 min read
Offshore Software Development Services: Everything You Need To Know About And Why It Is Beneficial
It is always better to do your business locally when you can control it permanently. However, in some cases, the outsourcing of your business processes may be an advantageous and preferable option.
In this article:
Today we speak about software development processes. There are many disputes concerning the hiring process of remote developers, but these services have more pros than cons. That is why entrepreneurs from one country are looking for opportunities to hire offshore software company.
What is the difference between offshore and outsource? How to start offshore development, and what benefits it has? Read this article to the end to see all useful information to save on development costs.
What Are Offshore Software Development Services?
What is offshore development? As a rule, offshoring means that companies move their business to another country to save costs and control all processes. However, in the case of software development, offshoring is the process of tasks outsourcing to another country where local teams are in charge of it. But clients can control the process and keep an eye on things.
So, outsourcing is not too different from offshoring. But outsourcing doesn’t always imply the development of software abroad. Outsourcing can be implemented within the country — you hand over task implementation to the contractor. And offshoring still means the delegation of development processes to another country. Besides, offshoring is a process when you hire a third-party contractor somewhere out of your timezone.
What About Onshore And Nearshore Software Development?
Probably, you have heard about onshore and nearshore terms along with offshore product development solutions. Let’s clear things out to provide you with a full picture.
Onshore development. It is a process of hiring software developers in your country. That is, you hire developers that are located in your city or nearby. It is an excellent option to keep everything under control, but not a good idea if you want to save your money. Everything depends on the region you live in.
Nearshore development. It is similar to offshore development since you hire developers abroad. But in neighboring countries with the same time zone. It makes it possible for you to communicate with developers easier, but this option is not always profitable.
Cooperation Models Of Offshoring Development
Before you sign a contract with an offshore web development company (or mobile development team), you should choose a type of contract. There are four primary models, so scroll down to read more about them.
Due to the abundance of cooperation models, it can be difficult to make the right choice. A reliable development company like Cadabra Studio will give you a hint — contact us right now.
Fixed price. As its name suggests, you pay a fixed cost for offshore software development services after a detailed estimate. Then, the work is initiated. If you want to add new functionality to your app later, the company will need to make a new detailed estimate and you will pay additionally for a new contract. This model is suitable for not complicated projects that have predictable and well-studied functionality.
Time and material. This model implies that clients pay for the amount of time spent on development. Unlike the fixed price model, you can add new features and any other changes, but the exact final price is unknown until the development is completed.
Dedicated team. The client hires a team that will create a project for them, and they will work only on that project. Offshore development firm assigns developers, UI/UX designers, and QA engineers on its own, so the client is not involved in the recruitment process. Communication with a team is performed between the project manager and the client.
Outstaffing. Sometimes clients don’t need a full-fledged development team, they have in-house developers, but the project requires finding a couple of additional professionals (for example, Ruby developer, senior UI/UX designer, etc.). And clients hire offshore developers on a remote basis.
Pros And Cons Of Offshore Software Development
Why do you need to hire an offshore web design company? You will do it only if you determine that you will get more benefits than drawbacks. Therefore, we need to list all pros and cons of offshore development. Also, you can read our detailed guide on how to hire the best app developers — it will help you make the right choice.
Let’s start with the pros.
Quality. It doesn’t mean that local companies will do a lousy job. At the same time, offshoring cannot guarantee that any project will be implemented on a high-quality level. However, if you find a reliable company, it will always adhere to quality standards to build a top-notch product.
Development cost. That is the main advantage of offshoring — clients get excellent software for lower prices because hourly rates are lower in those countries.
Delegation of all processes. Clients don’t need to spend time on the recruitment of specialists, software, and hardware purchase, etc. They find the software development team, and then their project can be implemented on a turnkey basis.
Time. A good company wants to provide dependable offshore development services, so it always strives to adhere to deadlines strictly. Offshore development companies want their clients to be satisfied and impressed with their services.
Focus on more critical tasks. Finally, clients may delegate software development to an offshore company and focus on more crucial tasks related to future software promotion and other marketing strategies.
Nonetheless, some cons are also hiding there…
Timezone and cultural difference. If a company is located on another continent, it can be rather tricky for a client to communicate with them since time difference may be significant. But it shouldn’t be a big problem — trustworthy development companies will always find the right time to communicate with a client. Moreover, the software is being developed while clients are sleeping — not bad, huh?
Less control. It is not always easy to control a project remotely. Clients cannot control each detail, and if something goes wrong — it may take more time to fix everything. But reliable companies are always in touch with clients to provide them with any updates.
Essential Tips To Hire Offshore Software Development Company And Avoid Mistakes
How to manage an offshore software development company wisely? This is not the most vital question since your primary goal is to find and hire developers. And you need to follow some crucial steps to avoid failures.
Research Is A New Knowledge
Hiring software developers is a very responsible stage. It depends on the development team what your project will be. That is why you need to interview potential candidates, read reviews about them from former clients, check their portfolio.
Also, spend some time researching the information about offshore programming services, how it is implemented, and get more information about the process of communication. And don’t be afraid to ask questions.
Don’t Focus On Low Cost Only
Although offshoring software development implies low costs, you don’t need to look for cheap services only. Some companies may provide higher rates, but they have more skills and experience to enhance your project. Besides, the human factor cannot be ignored — look for a company that is communicative and can build good relationships with a client.
Draw Up All Requirements Clearly
You need to indicate all requirements in detail. The more information you provide developers with, the higher the chances that you will get exactly what you want. To avoid mistakes, see how to write a request for development and use a ready-made template. Although this article is dedicated to web development, you can use a template for mobile app development requests as well.
Hire Developers Who Keep Up With Trends
Make sure your partners are technologically advanced, and they always follow new existing trends. It has a direct impact on the quality of software being developed and makes a future product competitive. Besides, developers must be communicative, so all challenges on the development way will become a trigger for them, not a barrier.
Do you have more questions to ask? If your project is complicated get in touch with a troubleshooting expert like Cadabra Studio.
Where To Hire Offshore Development Company (Rates by Location)
Offshore web development services and offshore mobile application development may have different costs in different regions, as you remember. You should check hourly rates divided by areas, and find the region you consider more appropriate.
North America. Let’s start with the USA. The motherland of Silicon Valley is famous for its software development services. And that is why hourly rates here are rarely lower than $150. Moreover, an average hourly rate of experienced developers may exceed $175. And Canada doesn’t fall behind — average hourly rates here are the same as in the US.
Asia. Asian development rates are more diversified. For example, Central Asia doesn’t provide a high level of skills and experience of local developers, so rates vary between $15 and $40. Whereas East and South Asia can offer you much higher rates — in China, some experienced developers get $75-200 per hour. As you can see, there is a big difference. However, rates in Indonesia and Vietnam don’t exceed $30-40 per hour on average.
Western And North Europe. Companies from Western European regions like the UK, France, Belgium suggest rates between $75 and $125 per hour. While Norwegian, Danish, and Sweden companies may set hourly rates between $130 - 300.
Eastern Europe. An average hourly rate in Eastern European countries varies between $20-50. The region is one of the most popular for offshore application development since the experience level of local developers is very high, so is the quality of developed software.
For example, Ukraine is one of the East European countries where a large number of outsourcing companies are located (like Cadabra Studio). The country has a convenient time zone; its tech specialists speak English well (the problem of communication comes to naught), the Ukrainian software engineers have cutting-edge skills.
Platforms To Hire Cadabra Studio For Software Development Services
In case you have an intention (or will have) to hire Cadabra Studio as an offshore software development company, you can contact us directly via the website, or use other platforms to read reviews about us and then make your decision.
Clutch. A well-known and proven analytical organization that is engaged in collecting reviews about IT companies from real customers. Depending on the number of positive feedbacks, the service builds a rating of companies.
Upwork. One of the largest platforms for hiring freelance developers and software development companies for remote work. Upwork is often used for outstaffing when entrepreneurs hire our specialists for their projects.
GoodFirms. GoodFirms is similar to Clutch, as this platform also analyzes B2B software development companies, lets clients write feedback, and builds a rating system for companies.
Make It In Ukraine. Here you can find the list of Ukrainian software development and design companies, and hire a company you consider appropriate for your project.
99firms. A company that focuses on gathering marketing statistics and helps you find online agencies to pick the right one for your business.
DesignRush. And one more platform to find the app development agency of your choice. Moreover, you can post your project here and receive proposals from qualified developers.
Offshore application development has many more advantages than drawbacks. You save time and money, and you can invest more mental energy in higher-priority tasks. Just find a company with vast experience and favorable reviews to entrust your project to them.
Use services mentioned below to learn more about Cadabra Studio and get offshore web design services upon request. We will find a solution to your problem!