The Pros and Cons of the Offshore Software Development
Before the rise of cloud computing and easy communication tools (remember those days?!?), software development teams had to rely on a limited number of geographic locations. This exposed them to risk: risk that they couldn’t get the right talent, risk that they couldn’t sale their teams appropriately, and risk that they were missing out on specialized expertise. Plus it was more expensive to boot.
But now that the world has evolved and it’s easy to collaborate from anywhere on software development projects, these risks have been mitigated. Indeed, the emergence of offshoring as a standard best practice for software development teams means that knowing how to do it the right way can yield huge benefits for your company.
To this end, the main benefit of offshoring that is most cited by informed observers is cost savings. Indeed, there are significant differences in the wages paid for equivalent skills between the U.S. and developing countries. But hiring offshore employees can sometimes bring with it a number of challenges. For example, Gartner’s research highlights geopolitical unrest as an example of a factor that may harm the global offshore services market.
So should you bet your time and money on hiring an offshore team? Buckle up for a ride through the ups and downs of hiring offshore developers and make that determination for yourself (we think you’ll say yes!).
Turnkey Builds Expert Offshore Development Teams Every Day for Companies Like Yours. If You’re Ready to Nip Your Hiring Troubles in the Bud
Table of Contents
Pros of Offshore Software Development
Before we get into the benefits of hiring offshore employees, let’s take a quick look at what drives the adoption of the practice. Crucial were advancements in international telecommunications capacity and cost reductions. The cloud computing age also enabled the digitization and easy sharing of most software services, allowing remote team members to do more with less. Because of these changes, organizational boundaries and national borders play a much smaller role in determining the location of software development.
Moreover, the COVID pandemic opened a new realm for offshore development. Research suggests that in-office work expectations have changed and if jobs can be done remotely, they can be done abroad, and often more cheaply.
So now back to the benefits of offshoring. The list of reasons why companies hire offshore workers is virtually endless but here are the top five most cited ones:
#1. Cost savings
Hiring offshore developers from a country where the cost of living is lower will help your company save significant money. Salaries paid to offshore hires are relatively lower than those paid to local experts. In essence, you’ll incur less cost on infrastructure, employee maintenance, and wages.
That said, lower salaries do not necessarily mean a lower standard of living when comparing different countries. For instance, the cost of living in the United States is 215% higher than in India.
#2. Access to talent
The U.S has a dearth of software development talent and most are high priced. Offshoring gives you a way to beat the scarcity and access more skilled talent abroad. Moreover, adding more skilled people to your team will help boost your productivity level and accelerate your speed to market.
#3. Scalability
Scaling your business requires time, resources, and effectiveness. When you achieve scalability, you can afford more time, resources, and productivity. And by outsourcing to an offshore team, you can improve your effectiveness.
To save time and overhead costs consider contacting an outsourcing company, like TurnKey to help you. We already have a database of evaluated and qualified candidates awaiting deployment.
#4. Increased productivity
The offshoring model can help software development companies make the most of talent wherever they reside. According to research, 80% of remote workers surveyed report that they enjoy working from home, and 41% say that they are more productive than they had been before.
Again, if developers can do it from home, they can do it abroad. And when your offshore team works on a different time schedule than your local team at headquarters because of time zone differences, it means you’ve got teams working around the clock.
#5. Frees up time for complex tasks
Offshoring allows you to focus on other aspects of your product development; you can give key tasks or projects for this team to manage and run autonomously.
Speaking of freeing up time, find an expert offshoring development firm (like TurnKey!) who can help build these dedicated teams for you. They handle recruiting, HR, payroll and more—all you have to worry about is building great software.
#6. Globalization
If you have ever collaborated on a project with someone that is not in the same country as you, then you have undoubtedly encountered the impacts of globalization. Day by day, the world is becoming more integrated, and workplace dynamics are aligning with it. So, it’s not surprising that the market size of the offshore industry has surged from $45.6 Billion in 2000 to $413.7 Billion in 2021.
By hiring internationally, a company can set up branches abroad and still operate them from their native country. For instance, such companies can use offshore development talent from geographical locations like Latin America and Eastern Europe, where labor costs are low compared to the United States and Western Europe. And they can do this while maintaining extremely high product quality. Pretty amazing, right?
If you still consider if offshoring is great for you, watch this video from our CEO:
Need Access to a Larger Talent Pool? Let Us Help Hire a Highly Professional Development Team for Your Needs.
Cons of offshore software development
While offshore development and management have budgetary benefits, it also has some drawbacks. Here are a few potential downsides of offshore software development.
#1. Time zone differences
Time zones are a finicky thing. The time difference between the East and West coasts of the United States is just three hours—easy!
But it’s far more difficult to keep track of the local time in Eastern Europe or India when you’re part of a global remote dev team. Determining the best time to have a meeting with remote team members in different time zones takes some back-and-forth, with the majority time zone usually winning out. Collaboration can suffer.
#2. Ethical issues
One argument from offshoring critics is that employers take advantage of talent from emerging and under-developed countries by offering worse wages than in more developed economies. But this doesn’t take into account cost of living, meaning purchasing power for a developer in Brazil may ultimately be the same as a developer in America.
To be sure, TurnKey is tuned into pay scales and what top talent is asking worldwide. We ensure our talent are super happy, paid competitively, and given all kinds of perks and benefits that keep them loyal and productive.
#3. Cultural & language barriers
A communication gulf created by cultural or linguistic barriers, or both, can lead to a breakdown in interpersonal connections within an organization. When seemingly harmless statements in one culture are interpreted incorrectly in another, this can raise a red flag in the hiring of offshore developers.
Want to know how to build a rock solid (and totally rocking!) culture within your remote culture? Check out this guide.
If You Want to Go Global, Reach Out to the Experts at Turnkey and Let’s Get To Work.
How to work with offshore developers — aka the Yourshore way!
At TurnKey, we understand that you don’t want a paycheck-driven offshore development staff; you want a dedicated workforce that shares your vision and follows your lead.
Or, to put it plainly: you want developers who work seamlessly with YOUR team, are committed to YOUR goals, are ingrained in YOUR culture, and follow YOUR rules. That is what Yourshore provides in spades.
In other words, it’s offshoring, your way.
We recruit developers who are exactly customized to your needs, and the team is fully dedicated to your company. And if there is ever a problem, you simply contact your US-based account manager, and we take care of it right away.
In other words, TurnKey Tech Staffing approach is everything you’ve always wanted in a partner for offshore software development but have never had. With us, dealing with offshore software developers means:
- Expert advice: We know how hard it is to build great software since we’ve done it ourselves many times before. Leverage our experience so you don’t make the same mistakes we did. TurnKey is here to give you unbiased and professional suggestions on how to go about hiring offshore developers and building high performing dev teams.
- Highly reliable: At TurnKey, we are committed to you and your goals—we see ourselves as an extension of your company and not just a contractor. We handle every project like it's our own and believe that responsiveness is a virtue.
- Easy communication: We hold your hand through the entire process, and then regularly communicate with you after your dedicated team is built in order to make sure your operations are fully optimized.
Quick summary
When you work with TurnKey, the inherent challenges attached to offshoring become minor speed bumps. You save money, engage with spectacular development talent worldwide, and scale your business in the smartest way possible.
Sounds Great, Right? Want to Recruit an Offshore Team but Are Still Confused About the Best Place to Start?
FAQ
An offshore developer is a professional who is hired in a country other than the one in which the company is based.
Onshore developers are located in the same region as the country they work for, but offshore employees do not work in the same country or region as the company for which they are employed.
TurnKey Staffing provides information for general guidance only and does not offer legal, tax, or accounting advice. We encourage you to consult with professional advisors before making any decision or taking any action that may affect your business or legal rights.
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