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Offshore development services have been trending in recent years. This is because most startups and businesses have realized the benefits of marketing their products at the lowest possible cost. Time and money are always invaluable for businesses, especially in the tech industry. Small companies and startups with low budgets and fewer team members can primarily not develop and market their products at the right time. A successful and profitable option to fill this gap is to hire an offshore development team.

This blog post will briefly discuss the benefits of offshore software development services and how they help businesses develop high-quality software products quickly and with a minimal budget.

Benefits of Offshore Development Services

Let’s have a look at 7 significant benefits of offshore development services:

1. Cost-Effective:

Cost savings is one of the primary potentials of offshore software development services. Most offshore development companies operate in countries with lower labor costs, resulting in minimal stipends compared to developing countries. For example, countries like India, China, Ukraine, etc., have low labor costs for a company working in the United States, United Kingdom, or Australia.

Based on a report conducted by Deloitte, 70% of companies prefer offshore development services due to cost efficiency. Hiring an offshore team is an excellent idea for startups with a low budget, as you don’t have to compromise on quality standards because of your minimal budget.

2. A Doorway To Global Talent Pool

Offshore development services allow your company access to the global talent pool. According to a Clutch report, 18% of businesses approach offshore companies to get a favor from IT experts worldwide. It enables your company to take advantage of expertise worldwide, which may be outside your country. Countries like India, China, Malaysia, and Singapore have a strong IT record, meaning hiring software teams from these countries will result in innovative and efficient products.

3. Time Savings

Recruiting an offshore software development company enables your company to speed up your ongoing project and release your product at the right time in the market. It is more profitable for small businesses and startups as they need more resources in terms of finance, employment, infrastructure, etc, which makes them unable to start a project from scratch. Working with an offshore team gives them a competitive edge in the market.

4. Focus on Core Business Activities

When a company outsources its software development project to an external team, its internal resources and expertise can better focus on core competencies of business, i.e., sales, marketing, and customer service.

In the end, hiring an offshore team for improved business performance in terms of increased efficiency and productivity is an excellent strategy.

5. Shared Responsibility

Working with an offshore team is a win-win relationship. All your project-related responsibilities will be divided equally between your in-house and an offshore team. It will lead to high-quality end products.

In today’s globalized world, thousands of offshore software companies are working and aiming to deliver high-quality software projects to clients. So, your company is one of many to worry about regarding deadlines and market competency. Besides, your offshore team will try its best to deliver high-quality results.

6. Flexibility and Adaptability

Increased flexibility and adaptability are being noticed in offshore development teams. The offshore team will actively work on your project when the in-house team is unavailable. This 24/7 working on your project enables your company to complete it quickly.

It is also beneficial in terms of short-term contracts because your contract is terminated as soon as the project is complete. So your company can modify the number of employees per your requirements.

7. Cutting Down Hiring and On-boarding

Offshore software development teams often have several highly skilled developers ready to start their tasks immediately. Hiring an offshore team reduces the time to hire and on-board new qualified employees. Additionally, suppose your in-house or offshore team cannot meet their deadline for some reason. In that case, your offshore team will already have skilled developers pre-screened, minimizing the time and budget needed to hire and onboard new employees.

The Bottom Line

Offshore development services provide many advantages to businesses and startups, i.e., cost savings, time savings,  flexibility, divided responsibility, and many more. However, the benefits mentioned above come with challenges, too. For effective project management and a high-quality end product, the company’s higher management should be very clear about the vision and scope of the project. Proper framework and strategies should be designed and followed when choosing the right software development partner.

Recruiting and working with an offshore software development team is a challenging journey. However, companies in today’s globalized world tend to work with them. It is because these teams come with numerous benefits for the company, i.e., reduced cost, focus on core business, access to a global talent pool, etc.

In contrast with all the opportunities an offshore team brings, some unique challenges are experienced worldwide. This article will discuss some common challenges faced when working with an offshore development team, which is crucial to understanding your company’s success. This article will also discuss the solutions to all those challenges so your offshore team can work effectively.

Challenge 1: Lack of Communication

Poor communication is one of the significant challenges in recruiting an offshore development team. When your company manages an offshore team, i.e., geographically separated, there is a high risk of misinterpretation and misconception. Lack of communication leads to additional delays and errors, so there are no more cost savings. Clear communication is the backbone of a successful software development team.

What is the best possible way of transparent communication with your offshore team?

Solution:

This problem can be wiped out by hiring an offshore team with good English writing and speaking skills. Your company should have a clear benchmark about how and when to communicate with your team. Moreover, your company should encourage open communication in meetings, i.e., where team members are comfortable enough to ask questions and share their thoughts.

Challenge 2: Cultural Barrier

While hiring an offshore development team, your higher management team should be mentally prepared to face cultural differences. The difference in language, culture, beliefs, and working style leads to miscommunication and misunderstandings that can directly affect the productivity and collaboration of your team.

For example, your offshore development team may consider criticism and public disagreement insulting and impolite. On the other hand, your company practices it to promote better productivity and collaboration.

So, it is crystal clear that if your offshore team’s culture is incompatible with your company’s customs and traditions, it can directly affect your productivity, development time, and quality standards.

Solution:

This problem can be eliminated by doing your homework and assessing the cultural diversity of your offshore development team at the corporate level, process level, and daily interaction level before deciding on recruitment. Your company should behave respectfully towards their culture, traditions, and beliefs. You should give proper training to the hired team, and your company’s goals and objectives should be clear. Constructive feedback procedures should be adopted and encouraged.        

Challenge 3: Management Issues

When recruiting an offshore team, management challenges have a high chance because of the absence of face-to-face interaction, time zone differences, cultural differences, and lack of communication. Effectively managing an offshore development team is a challenging task. Still, it’s not impossible and can be done by adopting some strategies practiced worldwide for better and higher productivity.

Solution:

One way to overcome management challenges is to hire a competent project manager, in addition to his team, who can oversee the overall development of the offshore team. A project manager of an offshore team must have know-how about all the possible issues and problems regarding offshore development projects.

Following  are also some project management tools used worldwide for high team turnover:

• Jira
• Asana
• Trello
• ClickUp

Challenge 4: Data Security Risk

Data privacy and IP protection are companies’ main concerns when hiring an offshore team for their IT projects. In today’s world, when almost all software is cloud-based, hackers can quickly attack cloud data and access your company’s confidential information. Data privacy risk increases when hiring a third party, i.e., an offshore development team, and sharing your company’s personal information.

Solution:

Data security problems can be terminated through a proper course of action. Before hiring an offshore team, you should do thorough research regarding data security and protection, and afterward, your higher company management should take corrective actions, i.e.:

• Signing detailed NDAs to secure your data.
• Signing Non-Compete Agreements to bind team members to work for your competitors.
• Access to just minimal confidential information is required for task completion.
• Using secured and encrypted communication channels.
• Only use software that is updated regularly regarding security concerns.

Challenge 5: Infrastructure Issues

Most companies hire an offshore team, thinking of the benefit of not providing infrastructure to the team, but sometimes, issues regarding infrastructure become a challenge for the company. Electricity, internet connectivity, speed, up-to-date systems, and technologies are crucial when working remotely. Their absence or low quality can affect the productivity and quality standards of the development team.

Solution:

Here is a small check-list for companies before recruiting an offshore team to avoid infrastructural problems:

• 24/7 electricity supply
• High-quality internet
• Availability of systems and technologies to the offshore team
• Suitable environment for international calls

Challenge 6: Time Zone Difference

Time zone difference is a significant challenge when working with an offshore team. Collaboration and communication become very difficult in this scenario where the in-house and offshore teams operate in different time zones because of limited interaction.

Deciding a convenient time for online meetings for both sides becomes very difficult because when one side is operational, the other sleeps, leading to short, overlapping working hours. It also results in delayed decision-making.

Solution:

One of the most straightforward solutions for this problem is to find an offshore software development team near your geographic zone. Moreover, you can eliminate it by deciding on pre-defined meeting slots and rotating shifts for in-house and offshore teams. Also, suppose both your teams are willing to start their work early or extend their working hours at least once a week to communicate and discuss the ongoing project. In that case, it will result in better collaboration and on-time production.

Challenge 7: Constant Delays And Missed Deadlines

Finalizing your end product at the right time and launching it before or at least at the same time as your competitors do decides your success or failure of the product. However, constant delays and missing deadlines for your offshore team have become frequent due to the abovementioned challenges, resulting in a considerable loss.

Solution:

As discussed above, completing and releasing the right product at the right time is like the mortar holding bricks together. It is essential to release your product at the right time in the market before your competitors fulfill the market’s needs. Hence, your development team should be competent enough to meet its deadlines promptly with high-quality products.

To Wrap It All Up

Regardless of all the challenges mentioned above, it cannot be concluded that recruiting an offshore development team will be a disaster. In this article, we have discussed solutions for all the common challenges faced by the company when managing an offshore team, so considering all the abovementioned solutions and doing your homework before hiring a team can easily overcome these challenges.

Once your offshore team develops the right product at the right time and releases it in the market with high-quality standards compared to your competitors, your company’s success will be worth the troubles you face.