As the technology industry becomes more competitive, more businesses are focusing on improving their workflow through outsourcing software development services which becomes the process of hiring offshore software development companies to deliver specific services, manage critical processes, and launch innovative solutions in order to improve business performance.
According to Statista, the total value of the IT outsourcing market is predicted to reach $413.72 billion by the end of 2021. The market revenue for IT outsourcing services has climbed by 11,57 percent in the last five years, and this trend will continue in the following decade. AI, robotic automation, IoT, and AR/VR solutions are among the leading ICT fields, according to the State of CEE IT Outsourcing and Offshoring report for 2021.
First, let’s understand the core insights to make you learn the essence of IT software outsourcing offshoring services, its main problems, and prospects, and how to prepare your organizations for the successful adoption and usage of all IT changes will be revealed in this article by ManekTech best experts.
Let's get started!
The Fundamental Principles Of Offshore Software Development Services
You’re probably aware of what outsourcing entails. However, before we get into critical stages, it’s vital to grasp the gist of the strategy, and how you can secure its success.
According to a recent study, the cost-effectiveness of outsourcing offshore web development services is still the primary motivator for 59% of small and medium-sized businesses. Companies are beginning to delegate software development in order to enhance processes and reduce delivery time. This strategy allows companies to hire the top tech personnel on attractive terms regardless of where they are allocated. However, depending on your organization’s aims, hiring an offshore development team necessitates employing not only the best software developers but also:
- Experts in Quality Control (QAs)
- Designers of user interfaces and user experiences (UI/UX)
- Designers of graphics
- Manager of the project (PM)
- Consultants in software development and more
Furthermore, there are no hard and fast rules about whether IT services can be outsourced. This means you can delegate tasks like design and development, management, user employee training, hardware setup and installation, and 24.7 end-user support, among other things.
It’s vital to design a powerful offshoring strategy that your team can always focus on ensuring the successful deployment and use of software development outsourcing services. Hiring prominent software programmers with advanced talents and a lot of practical expertise within the scope you’re interested in makes this a lot easier. Furthermore, their guidance can lead to the development of a winning process delegation plan as well as the resolution of your company’s significant difficulties.
Although offshoring has many advantages, it also has drawbacks. As a result, it's critical to weigh both the benefits and drawbacks before deciding whether outsourcing is the best option for you.
Though outsourcing has many advantages, it also has its drawbacks. As a result, it’s critical to weigh both the benefits and drawbacks together before deciding whether an IT offshoring service is the best option for you.
The Problems Solved by Software Development Offshoring
After you've learned the fundamentals of IT software development and offshoring services and how it works, it's time to figure out what problems product owners and CEOs can tackle using this method.
To begin with, one of the most common reasons for using software outsourcing is a company's budget constraints, which limit investments in recruitment and infrastructure growth. The outsourcing method allows you to get the best developers with superior IT skills at a reasonable cost. For example, depending on experience and technology, development rates in CEE nations like Ukraine range from $30 to $60 per hour, whereas services in the United States cost between $65 and $130. As a result, hiring software engineers from CEE counties might save your organization anywhere from 40% to 70% of overall costs.
Time Is Value
If you are on a tight project deadline then offshoring might be a good option for your organization. If you don’t want to develop your own in-house team just for a single project then you can consider the option of recruiting IT offshoring services. In this scenario, it’s far better to find a remote software development team that can jump right into the project and provide the solution in the least amount of time.
In order to address the skill shortage, offshoring your software development team can help you overcome this. Around 87 percent of firms, according to McKinsey, are suffering gaps today or predict them in the next few years. Companies may quickly find tech talent that exactly meets the company’s goals and project needs via the offshoring technique, regardless of their work and location. Additionally, this helps reduce the time and costs associated with employee onboarding without sacrificing quality.
A Scarcity Of Specialized Knowledge
Software outsourcing services can help product owners and CEOs deal with professionals that have unique experience or technical talents that are difficult to locate domestically. For example, the corporation wishes to execute several projects, but the in-house team lacks significant expertise and experience in the creation of specific technologies. This problem, on the other hand, can be effectively solved by locating talented and experienced software development teams outside of the organization.
Recommendation: Growth of offshore software development teams
Offshoring Software Development Team: A Strategic Approach
Offshoring success necessitates organizations adhering to a certain implementation strategy that keeps them focused on taking appropriate steps and making the best judgments. This presents a precise yet comprehensive discussion of the importance of using a strategic transformational approach in every firm, regardless of industry. To make the most of this process, let’s look at the key success elements you should think about while designing your company’s outsourcing strategy.
Define Your Objectives
When it comes to building an efficient strategy, you should not focus simply on the usual cost-centric approach and overlook other factors such as increased flexibility or faster process turnaround. In reality, it may miss a variety of opportunities, allowing your company to gain a competitive advantage.
Once offshoring services are established, you can define a clear objective across the organization which will evaluate progress, success, and it will enable you to create appropriate KPIs. this can ensure that the company’s offshored activities are less expensive, they have a shorter turnaround time, and are more flexible.
Define Delegation Tasks
Delegating work allows businesses to concentrate on the tasks that will help them improve their business performance, better their planning, and establish an effective strategy for long-term success. You can improve productivity on other vital tasks that require full focus by entrusting joint, time-consuming, and industry-specific work to distant software engineers.
Of course, not all activities can be transferred to the offshoring software development teams, which is why it’s critical to do regular audits that will help you identify specific assignments that are either beyond the scope of your in-house team’s knowledge or do not necessitate your degree of experience.
It’s a good idea to start distributing the less important work first while implementing the procedure. You can also begin by reviewing the developer's work once it has been completed and provide comments on the parts they should focus on. You’ll be able to ensure that all duties are correctly distributed and that your company’s quality and efficiency standards are met.
Choose your technological profile.
Because software development outsourcing is typically done remotely, it's critical to ensure that the vendor meets all of your technology goals and standards before beginning work. As a result, Idea Motives professional outsourcing specialists recommend developing a list of the resources your project requires, as well as your company's outsourcing goals and other pertinent information.
This way, you'll be able to tell potential vendors about the projects you wish to work on and provide additional information about the expected outcomes.
Create a Positive Work Environment
Finally, to ensure the most productive yet efficient workflow between your in-house developers and outsourcing team, you should unify their interactions by providing detailed information and the most up-to-date updates on outsourcing goals, eliminating cultural gaps, and ensuring both teams have accurate project information and the most effective tools for their assignments.
Maintain Consistent Communication
Using similar communication platforms like Microsoft Teams, Slack, or Outlook for interaction between the in-house team and outsourcing engineers is also a good option. This can substantially facilitate the sharing of information/documents while also improving security and data protection.
As a CxO or Product Owner, how can software development outsourcing assist you?
To make sure that IT software outsourcing can truly assist you in taking your business to the next level, consider the advantages you'll receive as a CEO or product owner when hiring software engineers.
Let's take a quick look at some of the primary benefits of implementing an outsourcing strategy in any industry.
Deep Experience and Knowledge
One of the most noticeable advantages of software outsourcing is that it allows a firm to engage tech professionals with a diverse set of experiences and skills that can help it grow. Certainly, this expands the number of alternative processes that your software engineers can construct, as well as allowing for effective skill development of your in-house team. As a result, your business will be able to quickly integrate cutting-edge technical solutions while also saving time and money on employee training.
Access to the Best Tech Talents on the Planet
The location of your remote employees is not as important for the software onboarding process as it is for the in-house team. This implies that you can hire offshore developers with qualified and experienced from almost anywhere in the world to complete various tasks.
Needless to say, post-Covid onboarding saves time, money, and effort when it comes to hiring and onboarding remote software development teams. This onboarding process offers flexible working hours and is always prepared to work at the office or from home, regardless of the pandemic scenario, which is critical for meeting deadlines.
Assemble Qualified Team For Your Project
Outsourcing allows you to engage the world’s best developers in your project because there are no geographical restrictions and you get the highest quality team and software solutions. This factor can have a significant impact on the project’s success and help to improve its features and general performance, resulting in a larger return on investment.
Micromanagement Isn't Required
You may make your business more independent by handling time-consuming and industry-specific work to offshore software development teams. How? You’ll let the team do what they’re paid to do, promote their submissions of ideas, and, of course, limit your involvement in their tasks. This will result in the company’s benefits which will be less reliant on you, and you’ll have more time to devote to other critical operations and duties.
The Agile Methodology in Action
Overall, the agile technique allows development projects to be streamlined and scaled indefinitely. As a result, the more software engineers with unique abilities you get on board, the more different ideas and methods you’ll be able to include in the projects. Furthermore, open communication with offshoring and nearshoring teams allows for the development of a solid basis for tackling many jobs that can considerably increase product development and deployment quality.
How Do You Choose a Software Development Outsourcing Firm for Your Project?
When searching for cost savings from offshoring software development service providers, it’s all too simple to sacrifice quality. Knowing the average developer's rates in different nations, however, it’s much easier to reach a happy medium by recruiting a cost-effective, flexible, and powerful team of programmers.
Treat Them As Your Own
The offshore software development company’s crew is your own team. As a result, you should consider them to be a part of your own organization. Don’t get caught up in the “we versus them” mentality. Schedule regular meetings, video chats, and meetings to promote communication and participation. Introduce them to the rest of your teams. Make sure they are up to date on any big news from your company. Allow them to operate independently without being micromanaged.
Look for a Proven Track Record in the Outsourced Development Team.
Use online resources such as Clutch to get rankings for different developers, shops, and teams. You can seek a Linkedin profile for individuals. Find out who the developer has worked with in the past and, if possible, contact them. Request suggestions for a specific team or developer.
If you’re in charge of hiring and aren’t a techie, make sure you have a tech advisor on hand to help with the process. Hire an It consultant if everything else fails. Finally, before signing a contract, be sure that security is a top priority for the individual or the team.
Don't choose the cheapest option.
The best rate isn't usually the one with the lowest interest rate. What you pay for is what you get.
The best rate isn’t usually the one with the lowest interest rate. What you pay is what you get. Instead, concentrate on the most cost-effective rates. If you hire the cheapest team, you’ll almost certainly end up spending all of your savings on rewriting badly written codes. To evaluate code quality, always look at the developer's StackOverflow or Github profile. Make a cautious, well-considered decision based on your budget and the amount of quality you can afford.
To summarise, software outsourcing companies assist businesses in improving their workforces, increasing the flexibility and quality of their products, and expanding the range of software solutions they offer on the market. When your organization is ready to apply this model, it's critical to examine the basic concept of software development outsourcing and establish a solid step-by-step strategy that will allow your team to focus on the approach's major goals, implementation, and maintenance.
To conclude, software offshoring development company’s
If you want to learn more about IT outsourcing, check out Ideamotive's most recent online webinar! Our staff, as one of the leading outsourcing professionals in the IT industry, is always willing to discuss creative solutions that your company can begin applying.
Are you seeking specialists in outsourcing/offshoring to help your company's workforce? Please contact us. Our finest specialists have extensive experience managing dozens of various software projects and are ready to assist you at any level of your company's growth, from concept to strategy to actual software design, implementation, and maintenance. We'll put together the most capable team of devoted engineers to match your technology, industry, company culture, and team dynamics properly.