Tech Peak » Ultimate Guide to Outsourcing Software Development Company

Ultimate Guide to Outsourcing Software Development Company

by pixlogix
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Are you suffering from low-budget issues for your project? Or you might be looking for short-term support for your software development project because your team lacks a specific skill set. Then you have to go with an Offshore Software Development Company.

If you plan to use offshore software development services, you may need to understand some basics of hiring an offshore service provider.

With that in mind, we have prepared this comprehensive guide to hire an offshore software development company.

Before explaining the fundamental differences between offshore hiring and outsourcing, let’s start by stating that using both these terms interoperably is incorrect.

Outsourcing means when a company focuses on handing overall projects to a third-party organization with a more versatile workforce. On the other hand, the offshore recruitment model focuses on getting talent from overseas to work on in-house, in-house, or other project requirements.

Significant Reasons for Hiring an Offshore Development Company?

By hiring an offshore software development company, clients can address critical issues in their traditional hiring model. Service providers cannot only remove blockers in a seamless recruitment model but also help you ensure fast, cost-effective, and seamless solution delivery.

  • Reduced Liabilities

Businesses invest a lot of time and money in meeting short-term project goals by engaging offshore professionals. When the project ends, these resources remain idle and still cost the business.

Offshore recruitment is an effective solution to such situations as businesses would only hire talent with special skills for a fixed time. Their responsibility can also be substantive, where their employment in the organization ends after the project is completed.

  • Flexibility

Flexibility is the primary concern of various service providers who create enterprise-oriented solutions. From adapting new technologies to making fundamental changes in product structure, you can always rely on offshore professionals because they have specialized knowledge in a specific skill set.

  • Cost-Effectiveness

Most start-ups fail due to a lack of funding to hire the talent they need to turn their ideas into reality.

Offshore recruiting allows business leaders to seek foreign developers and other offshore professionals at a lower cost than in their home regions.

You invest your funds only in getting the job done, not training or HR expenses.

Since offshore talent would work remotely, there is no need to arrange or set up infrastructure for them.

Factors to Consider if You Want to Hire an Offshore Software Development Company

  • Recruitment Process

So, one might ask, why does the process matter now?

The hiring process determines the speed of implementation, solution delivery, and cost.

It would be best if you determined what project management methodology and how long it would take service providers to turn an initial project idea into a successful product.

  • Work Portfolio

When researching service experience, it’s essential to have a thorough overview of what they’ve worked on in recent years.

You can visit the service provider’s official website, market research, and company listing websites to check the portfolios.  You can also explore comprehensive reviews posted by service providers.

  • Tools of Project Management and Communication

An offshore development company’s project management and communication tools would demonstrate its technological capabilities.

Popular project management and communication tools include Trello, Bitrix, Slack, Asana, and more.

  • Industry Experience

One of the main parameters before considering hiring an offshore software development company is its experience in the market. It allows you to understand their establishment and sustainability as a service provider to offshore developers.

  • Compatibility

Compatibility is an underestimated and overlooked parameter when hiring an offshore development company. However, it is essential to find out if the service provider is ready to take on unprecedented and new challenges, repeat, discuss urgently, respond to your calls and even work in flexible timings.

  • Cost-Effectiveness

Indulging in cost-effective completion of dedicated projects is one of the main reasons businesses would consider offshore services.

So, you can list the best service providers and go through the research to create a benchmarking chart that will help you identify a cost-effective service provider to handle your software development project.

How Much Does It Cost to Hire an Offshore Software Development Company?

Clients in any region can use offshore development services from another region. However, the cost of hiring offshore developers remains a significant factor that drives the decision of any potential business leader.

Before you approach any offshore development company, you want to make sure you get a bargain. In this second, we discuss offshore software development costs for different regions.

Asia Pacific

Most parts of Asia Pacific include developing countries, and fees are lower than in other parts.

According to our Asia Pacific offshore development market research, the hourly cost of hiring offshore developers can fall between $15 and $30.

List of Asia Pacific Countries

  • India
  • Pakistan
  • Australia
  • Bangladesh
  • Japan
  • New Zealand

Western Europe

Western Europe is an economically developed region and has extensive access to technological resources.

If you plan to hire and build your team of offshore developers, you can pay anywhere between $50-$100 per hour.

List of Western Europe Countries

  • UK
  • Austria
  • Belgium
  • France
  • Germany

Eastern Europe

Eastern Europe represents a significant part of the global offshore software development market with a large base of software developers.

You can hire offshore talent from Eastern European countries for $25 to $40 per hour.

List of Eastern Europe Countries

  • Russia
  • Ukraine
  • Poland
  • Hungary

North America

The North American region is home to the world’s most prominent software leaders. You can find offshore developers who have an extensive skill set.

Hiring an offshore developer can cost anywhere between $50 and $80 per hour in North America.

List of North America

  • USA
  • Canada
  • Mexico

What Services Should You Expect from an Offshore Software Development Company?

  • Augmentation of Staff

As the name suggests, IT workforce augmentation services allow businesses to fill resource gaps in their existing workforce.

  • Team Outsourcing

Team outsourcing services focus on enabling businesses to outsource an entire team of professionals that may include developers, designers, and business experts.

  • Virtual CTO

Virtual CTO services allow clients to onboard an offshore technology officer to oversee technology processes within development projects.

  • Extended Team

This engagement model is simply an extension of the existing team. Business professionals working on certain projects eventually realize the need for a specific skill set. They can then approach an offshore development company to help them meet their project requirements.

  • Cost Optimization

Clients can eliminate or optimize cost weighting factors to create a brilliant budget plan using cost optimization service.

What Are the Different Models Involved in An Offshore Software Development Company?

There are several ways clients can communicate with the offshore development team.

Different engagement models for hiring an offshore software development company

Own Solution

Clients with extensive requirements can opt for a custom solution where an offshore development company would assist them with a team of professionals. Clients can manage and monitor the project’s progress at its end by directly implementing their ideas and instructions.

Managed Team

The managed team engagement model focuses on building a team of professionals with a project or account manager who oversees the workflow and manages the execution of tasks.

How Can an Award-Winning Web Design Company Help You in Building Your Website?

With more than 15 years of working on offshore project requirements, we at Pixlogix Infotech Pvt Ltd. has acquired impeccable and extensive expertise in product development and management.

You can consult experts here if you are planning to hire an offshore developer for your next project.

Wrapping Up

For any business idea, consistent implementation of plans is a priority. You don’t want unnecessary delays in development and delivery to hold back your business goals.

The goal of this blog post was to bring answers to your questions about offshore development services. However, for further help you can contact us.

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