Offshore Software Development Services: How It Work And Benefits10 min read
With tech startups mushrooming like never before, industry experts predict there will be more than a million software companies in the world within the next 10 years. Nearly 50% of these businesses are tightly concentrated in Western European and American cities. Competition is at an all-time high, operating costs are rising, and talent is increasingly scarce.
Born in 2016, with the desire to help connect customers with highly skilled technical talents, Groove Technology exists to help businesses cope with challenges and embrace opportunities with a scalable, adaptable systems approach. We understand that your business, project and demands are unique. At a reasonable and affordable price, we offer global customers the best technology solution.
1. What is Offshore Software Development?
Offshore software development is another name for ‘outsourcing’ in software engineering. “Offshore” represents the type of development work where you are delegating project activities to another team, who are the same permanent employees as your local team, except that they are based in a different location. (It could be in another country, it could be another continent). Outsourcing can be beneficial because it provides access to a broad pool of software engineering talent that would otherwise be inaccessible. As a result, businesses can take advantage of a wide range of experts beyond their internal teams. For most companies, offshoring development is a great solution for projects that require specific expertise and high -quality, which is hard to find on a local scale.
In software engineering, offshore software development involves performing the software development process in a country with lower production costs, thereby reducing budget expenditure. Offshore software development may include the following services: product design and architecture, coding and testing; development SaaS, Internet/Intranet, e-commerce, CRM, project management and other special web services solutions (including Web 2.0 solutions).
For example, IT giants like Google, Microsoft and Apple have all set up their R&D centers in Bangalore, Asia’s Silicon Valley. The lower operating costs, large pool of talent, and the opportunity to scale quickly allow them to increase output and enhance their technical expertise without undue stress, complexity, or expense.
2. How Offshore Software Development Works?
Due to differences in geographical locations, customers may face time zone differences. Fortunately, these obstacles don’t matter today, with the help of various high-quality remote team management tools and the best video conferencing software, handle any task efficiently and collaborate with vendors from all over the world.
Basically, you have two options to choose your future development team:
The first is to find freelancers and connect them as a team. Nevertheless, this is not your best idea unless you are a product management geek. In this case, you should be ready to take full control of the development process and stay in touch with your remote members.
The second option is to switch to the services of an established group working on behalf of a registered company. In this case, you won’t have to worry about finding someone to manage the workflow. Instead, all these problems and many more will be solved by the company.
The outsourcing process begins with hiring new employees abroad. Professionals are hired based on full-time outsourcing and their service costs are almost three times lower than in-house staff. The offshore team is responsible for:
- Full software development
- Communicating with customers in the process
3. Onshore, Nearshore, and Offshore Software Development – what’s different?
I bet if you hear “Offshore” then you must have heard of “Onshore” and “Nearshore” for sure. In fact, these three service models differ according to the geographic point of view of the customer and its software development service partner.
Inbound outsourcing or Onshore occurs when a customer decides to hire software developers in their country or region.
Nearshore outsourcing takes place between countries with similar time zone, like the United States and Latin America.
Offshore software development engages customers and suppliers in distant countries of continents.
4. Benefits of Offshore Software Development
Minimizing costs to maximize profits is always the top concern of investors, more than ever, right at the time of the Covid-19 pandemic, saving and changing management methods to technology tools to maintain business operations is even more practical.
By offshoring, businesses can save up to 30% on software development costs, the rental package includes recruitment and salary expenses. In fact, businesses do not have to spend any capital to invest in software, hardware, and infrastructure as these costs will be taken care of by the service company.
Businesses in the US, for example, will tend to offshore service companies in Asian markets such as China, India or Vietnam where the labor cost is much cheaper than the host country but still ensure the quality of the output products.
In addition to the cost, the time factor also greatly affects the amount of capital spent on a project. The longer the implementation time takes, the more competitive opportunities you will lose in the market. Moreover, the longer it takes, the higher it costs. Offshore software companies have experienced many projects, and they will have a multi-dimensional view to consider the implementation time to help speed up the progress. In addition, the development process and Agile methods, the most advanced development tools, are guaranteed to improve and have a flexible response to each change that arises.
Besides, the benefit of working at a software development company abroad is that you will be working with a company in a different time zone. The time difference between time zones can be an advantage in helping your project reduce time to market.
More time to focus on core business activities
Offshore software development allows you to focus more on your core business strategy, instead of worrying about managing the complex and time-consuming software development process. It allows your company to focus on core operations without the added pressure of running and managing a software development department.
On-Demand Access to Knowledge and Expertise workforce
Thousands of well-trained software developers graduate every year. Countries that are famous for overseas software lifecycle development (such as Vietnam, Singapore, India, China) have invested heavily in education, especially in the IT industry. The aim is to develop the quantity and quality of software developers. This investment will aim to increase the number of IT professionals in the fields. Thereby solving the shortage of IT in the country. Then provide high-quality products to the international market.
While hiring IT experts in the country becomes difficult, then hiring offshore software from other countries will become a great solution. Offshore development teams with world-class expertise and experience in these areas can provide knowledge-intensive services based on offshore outsourcing contracts.
Having the best foreign developers on your team reduces the inherent risks of the project. IT outsourcing companies have experienced many projects from home to abroad. They will anticipate common risks and apply best practices to increase flexibility and reduce downtime.
With all of the above benefits, they still serve the same ultimate goal of business growth. Offshore software development gives companies of all sizes access to the same skilled workforce, reducing the cost and time required to develop software. Freeing up time allows you to leverage your strengths and core activities and work towards sustainable business growth.
5. Why choose Groove Technology for Offshore Development?
Groove Technology is providing a high quality, highly productive, low risk, low friction, cost effective alternative to onshore/in-house software resourcing. Being a partner with Groove Technology, your business will benefit greatly from our outsourcing services.
At Groove, we always have a ready-to-go team of talented professionals and we even assist with recruitment to recruit the right resources to exact needs, with easy access to high-quality human resources from all over the world.
Access skilled people
We provide high-quality human resources ready to meet all requirements and qualifications of customers. Our team of experts are not only strong in their profession but also have fluent language skills, soft skills and a professional teamwork style.
We work with enthusiasm to bring high-quality products from project management, software testing and commitment to ensure optimal product quality.
And yet, we have a flexible & scalable workflow, the principle is to listen and adapt to each customer. Take full control of operations using dedicated resources, state-of-the-art tools of reputable, quality, and easy-to-switch software.
You will work with a reliable and cost-effective offshore partner you can trust.
6. Our experts
Node JS Engineers
Our team of experts will take advantage of the amazing benefits of Node.js, ease of sharing and scaling, speed, support tools, reusable code, and more. Groove Technology has experience using Node.js to build several projects like E-Commerce, Parent-Teacher Communication Application, etc.
React Native Engineers
Many large companies use React Native as a powerful tool, such as Facebook, Netflix, PayPal, Dropbox, etc. Groove Technology’s React engineers have helped many customers digitize their businesses with applications. Applications include Food Delivery App, Online Grocery, SAAS-based management platform, etc.
When you use Groove Technology’s team enhancement service, you’ll be working with a team experienced in custom software development services and mobile application development. We have created and optimized several projects using Python, such as Learning Management for a global logistics company, Retail Analytics platform, email marketing platform based on SAAS, and more.
With the .NET team enhancement service from Groove Technology, you can create for the web, tablet, desktop, games, and IoT using a variety of editors and libraries. As .NET provides various benefits such as easier deployment, less coding, legacy system integration, Groove Technology used .NET in building Job Portal, management platform SAAS-based supply chain, etc.
Angular engineers work closely with backend and design team members to ensure API requirements support user interface needs, suggest improvements, and accelerate project development.
7. How to Choose an Offshore Software Outsourcing Company?
Always check your potential IT partner’s references, previous client lists, and completed projects. This information will give you some insight into the performance, workflow style, and quality of the IT company’s software products.
Great communication skills and fluent English
Language difference is one of the obstacles when offshore so smooth communication and workflow is the most important step. Your Outsourcing Partner must be fully fluent in English or the language of your choice. In addition, their workflow should match your workflow throughout the development cycle.
Standardized Security Protocols
As technology advances, cybersecurity is more important than ever. Make sure that the IT company you choose has up-to-date security protocols to keep all data and software products safe.
Top Talent Software Engineers
Outsourcing development abroad gives you access to world-class IT talent. The mission of an outsourcing company is to bring together the best software developers from the region and use their talents to build the best possible product for you.
Full Range of Services
The best outsourcing companies that specialize in many areas will be able to handle your project from a holistic and highly experienced approach.
8. How to Embrace Offshore Software Development Best Practices?
Define your goals
Having a clear idea of what you are aiming for and the results you expect within a given time frame will make it easy to plan a custom technology solution to suit your needs.
Choose the right partner
Do they have a good understanding of your business requirements? Do they have experience in your industry? Does your potential partner have a time-tested development approach? Are their previous clients satisfied with the company’s work? Answering these questions helps you determine if your partner is a good fit for your company.
Get introduced to all offshore developers
The most important thing for offshore is teamwork so it’s best for your team to be introduced to the entire team, not just the offshore team leader. Close cooperation with foreign developers is the key to successful results.
Arrange for daily meetings using videoconferencing
Due to the geographical distance, regular communication and exchange between local and foreign team leaders is imperative to achieve the project objectives. Arrange for daily status meetings, preferably via video conferencing, to listen to all input so that any issues are resolved promptly and effectively.
Use appropriate software development tracking tools
Use effective tracking tools that fit your project right from the planning stage, assign work, and track progress closely.
9. Communication is the Key to Success
As a professional offshore software company and serving many foreign customers in particular, Groove concludes that Communication is the key to success. Communication arises at the very beginning to understand the partner; Communication appears as a must throughout the project development. Any communication interruption affects the project, and multilingualism is also highly appreciated when choosing offshore software companies. Whatever communication channel you and your IT partner use to collaborate (email, phone, video call, web platform, etc.), return to it periodically to get the most out of it from your software developer.
At Groove Technology, we always dedicate the best knowledge, experience, technology, service, and more to bring the world-class experience to customers across the world. Contact us now to get started on your epic project!