Dec 02, 2022
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The tech industry is developing at a furious pace, but for many companies, the issue of lack of talents and funding remains critical. Very often, the best solution in such situations is the offshoring of development services.
In this article, we will consider the features of this type of cooperation and discuss how to choose the best partner for offshoring.
Experts claim that the size of the global IT services outsourcing market will reach more than 1,065 billion dollars by 2030. At the same time, offshoring remains the most popular type of outsourcing. In 2021, this segment had the highest revenue share of over 52%.
The best offshoring option is to sign a contract with a company that provides a dedicated team. It works within the framework of the corporate culture and the customer’s specific project. In fact, these specialists become part of the business and bring the same value as internal departments.
Offshore software development is an outsourcing type and approach when the vendor is a company located in a foreign country or even on another continent. Usually, the customer and the vendor are in time zones, with a difference of 8 or more hours.
Despite such inconvenience as the difference in time zones, offshore software development is extremely popular all over the world. All thanks to its advantages:
In addition, with proper management, which can be provided by the offshore company itself, all the disadvantages of this partnership format are eliminated.
Offshore app development is a good solution for scaling the project with limited resources, as a dedicated team can strengthen your tech department. However, there are other reasons to choose this outsourcing development service model.
Offshore development is a great option when you need to cut operating expenses. In this case, you don’t have to pay office rent for the team, equipment, hiring costs, etc. In addition, this cooperation model allows you to hire the best specialists at lower rates without exceeding tight budget limits.
Offshore vendors work within specific time frames. Their experience and coordination allow significantly speed up development time.
We at Leobit will be glad to become your offshoring partner.
Hiring highly specialized engineers to solve specific problems on a single project is expensive and unnecessary. Offshore companies give you access to the services of engineers with specific tech skills for a particular period to achieve precise goals. It is many times simpler and cheaper.
You can also hire an offshore team if you need help with project management and more time to focus on business needs.
Offshoring a project requires some preparation, and here are its five main steps.
To begin with, you should define the target audience of your product, the markets you plan to take the lead on, and your software value.
Based on this data, try to research the offshore development services market: which companies have experience with the same products and can share your values? This helps narrow down the list of potential partners.
The offshore development team is formed depending on the project goals, so they must be defined as accurately as possible. This way, it will be easier for you to find specialists with specific expertise and skills.
Any app must meet the regulatory requirements of a specific industry and region. It can be HIPAA for healthcare, PSD2 for fintech, etc. Your offshore partner should be aware of these requirements and provide full compliance with them.
There are three main cooperation models:
Be sure to determine the key requirements for cooperation and choose the optimal model based on them.
Communication is key, so it’s essential to determine how often you want to receive reports, communicate with the offshore team and meet with management. You can also choose communication tools such as Slack.
You can choose from hundreds of different offshore vendors, but your final choice should be attentive and thoughtful.
The first thing you should pay attention to is general information about the company and its services. Browse the portfolio for projects similar to yours. You can also check some reviews on independent platforms, such as Clutch, GoodFirms, industry blogs, etc.
When you’ve chosen a few best options, request a consultation or a demo call so that company managers can tell you more about development services and special offers.
You must protect your interests, as cooperation with an offshore partner implies that the tried-party vendor will have access to critical corporate and confidential information. Therefore, do not forget about a non-disclosure agreement and a strong contract, where the tiniest details of cooperation will be spelled out.
Leobit is a full-cycle development provider, so you get access to all the highest-quality development services. We’ve also been recognized as one of the 50 Smartest Companies of the Year 2022 and named one of the best software developers in Ukraine.
We have seven years of experience in outsourcing development and a solid team of high-level professionals for any project, including the most complex ones. So you can contact us to get more info about our services and expertise. We’ll be pleased to consult you in this regard.
IT services offshoring is a popular and profitable type of cooperation. It helps business owners access new talent with rare skills at lower operating costs.
We at Leobit will be glad to become your offshoring partner. Just contact us in a convenient way, and we will answer any of your questions.
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