Top 10 Benefits of Hiring an Offshore Development Team
“If you deprive yourself of offshore development and your competitors do not, you’re putting yourself out of business.”
These are the famous words spoken by the late Lee Kuan Yew, the first Prime Minister of Singapore in the 1990s. Back then, offshore hiring was an absurd concept. Today, however, it is a significant strategy adopted by businesses to drive down operating costs while gaining access to quality talent from around the world. Advancements in global interconnectivity technologies, including the advent of numerous collaborative tools, have only fuelled the growth of such partnerships.
If you haven’t yet considered an offshore development team, here are some things you might be missing out on.
The overwhelming surge in new technologies, like AI and IoT, creates the need for businesses to recruit the right talent to make the most of the latest that technology has to offer. At the same time, finding and recruiting the right talent has been a growing challenge for businesses worldwide. Why go through all the trouble and cost of hiring in-house when you can easily and quickly reach out to an offshore development team?
For instance, deploying software tools for K-12 education, which include elements like gamification and other interactive forms of learning, can become a breeze when you get an outsourced white-label solution that allows you to not just customize the learning platform completely but also integrate it with existing legacy systems.
According to estimates, offshore development can reduce costs by up to 70% for a company. For instance, a junior developer in the US has a higher salary than a senior developer in India. As they gain more knowledge and expertise, it becomes difficult for smaller enterprises to afford them. Hence, it makes complete sense for companies to give offshore talent a shot.
3.No Need to Hire Full Time Employees
Companies often take on short-term projects and it becomes very expensive for them to maintain a full development team, regardless of whether there is an ongoing project or not. On the other hand, outsourcing specific projects or tasks can be done within a budget, without the need for broader investment in maintaining full-time staff and providing them benefits. However, this requires companies to have a project scope with clearly outlined, mutually agreed upon deliverables. This removes any obligations, when the project finally gets over.
4.Increased Speed to Market
Amidst tight deadlines and busy work schedules, a company might not have the required bandwidth to manage a roadmap, as quickly as they need to. There may be additional requirements to launch a product or add a new feature quickly, owing to circumstances like regulatory changes, first-mover advantage, client deadlines, etc. Offshore development companies already come with a working infrastructure, which means significant reduction in time to market.
5.Improved Service Quality
Outsourced teams often come packed with pleasant surprises. Having worked across industry verticals and regions, they are often one step ahead of an in-house development team. Working with such a team can ensure high quality results, especially when you get a dedicated team for your project. An external team could bring new insights, helping to improve the overall product development cycle.
6.Increased Focus on Core Business Activities
When companies are absolved of taking care of software development activities, they can invest time in core business functions. Offshore development teams have their own project managers, designers and developers, which means they now share a significant part of the responsibilities. Without the additional stress, companies can instead focus on other areas like marketing, sales and business expansion.
7.New Perspectives through Cultural Exposure
Every organization has a different way of getting things done. When companies hire offshore teams, they get to work with different people, often in the international markets, who bring in new perspectives. Sometimes this brings significant benefits for the organization.
For instance, while India remains a premier destination for outsourcing activities, other countries like Latin America and South East Asian nations like the Philippines are also becoming popular for offshoring, due to price flexibility and attractive IT policies.
8.Capturing on Time Zone Differences
Western companies outsource development activities in the East, to leverage on the time zone difference. This allows them to extend their business activities beyond the 24/5 timeframe. So, by the time their business hours start the next day, issues will likely have been resolved. This comes as a great relief.
9.Exposure to Superior Technologies
Major advances in technology in the Fintech industry, such as blockchain, data analytics, Leap Motion and AI, are quickly being adopted to stay one step ahead of the competition. Software developers well-versed in these technologies are in huge demand. This automatically turns the focus to offshore developers, who have experience working on such projects.
For instance, evolving technology leads to a dynamic regulatory environment for the financial services sector. This means that they not only need to quickly deploy fintech solutions based on the latest technologies, but also rapidly upskill their employees to be able to work with such technologies. If an organization can outsource managed learning services , they can ensure agility within their business and their training.
This is a low-risk growth strategy for businesses planning to expand. It is cost-effective and hence spares businesses from having to fire employees, in case of a slowdown. It also means that they don’t need to slow down new initiatives. Whether it is website development, extension builds or new app development, an external project team can handle it all, without the company needing to hire people with greater insight into these activities.
Technology is evolving at a rapid space. The average life span of a technology is 4-5 years in the IT sector today, which means that businesses need to build an agile workforce that can quickly absorb new skills and start working on new technologies. This too can be solved with an outsourced solution that reinvents corporate training, one that allows for quick creation, updating and deployment of training programs.