Building a tech startup is a journey full of challenges, especially with escalating costs, and the number of developers on board. Therefore bringing a new tech start-up to market might take a few months to several years. However, increasing the number of developers from different geographical locations can help startups with a quicker time to market. This is where offshore development comes into play, allowing software agencies to reap the benefits of their software products sooner.
According to Grand View Research, the worldwide IT outsourcing industry is anticipated to be worth USD 261.9 billion in 2023. This rising growth can be attributed to more and more businesses seeking to partner with a trusted software development company to build software applications, as seeking professional assistance helps mitigate costs.
By reading this, if you are also thinking of setting up an offshore development team but don’t know where to start, this post has got you covered. So, let’s find out when offshore outsourcing makes sense.
What is Offshore Development?
Offshore software development, often known as ‘offshoring,’ is the practice of partnering with an external vendor in another country to build software or apps. Startups profit from offshore software outsourcing in several ways, including cost savings and a reduced time to market. Offshore development services aren’t just for creating apps from scratch but you can avail different services like back-end development, UI/UX design, or web and mobile app development.
Now that you know what Offshore Development is, let’s look at the bright side of it and how it may benefit startups.
Benefits of Hiring an Offshore Development Company
1. Bridge Skill Gaps
Offshore developers can offer your tech startup a game-changing edge by tapping into a global talent pool without incurring excessive fees. Diversifying your talent pool can be especially beneficial for specialized or in-demand skills, such as AI / ML, data engineering, and programming languages like Java.
2. Minimize overhead costs
Offshore developer prices are determined by several factors, including geolocation, market demand for the competence, and previous work experience. As a result, hiring offshore developers can help you save money on overhead costs like bonuses, office space, and supplies. Additionally, it strengthens the team and accelerates growth, which might be beneficial in a difficult financial situation.
3. Ensure Quick Turnarounds
The work of an experienced offshore development company never halts or postpones, since they have availability of and accessibility to a large pool of software developers. Hiring offshore teams can work immediately as they have already been vetted, hired, and trained, avoiding the need for a lengthy recruitment and onboarding procedure. This can help companies to minimize the time to market by accelerating development momentum and getting software products to end customers faster.
4. Ability to Adapt to Market Quickly
Hiring offshore developers enable the organization to have a more flexible team that can be extended quickly and tweaked as needed. This enables startups and enterprises to easily respond to shifting market demands. What’s more beneficial is that the offshore developers allow them to keep up the pace of their build, without incurring the additional expenditures associated with recruiting permanent workers.
5. Combat Developer Burnout
The key to retaining software developers is to reduce burnout. Burnout can arise when developers are overburdened with work and have a poor work-life balance, resulting in low productivity and time to market (TTM). By sharing workloads and collaborating on software projects, offshore outsourcing companies can alleviate the stress on core employees. This can assist software businesses cut attrition rates while also maintaining mindshare and topic knowledge.
The Final Verdict
There you have come to an end and by reading the post we may infer that offshore software development is a profitable approach. A tech startup can reap numerous benefits by outsourcing software development tasks to an offshore team. They can locate high-quality work at lower prices, gain access to top talent, and identify the specific talents required for a project.