Reducing the cost of development is not the only main motive for a company to hire an offshore development team. As the competition between the companies to make their product best among the league has gotten more fierce, people are looking to outsource most of their development to the offshore development team. This guide highlights the key points to keep in mind before hiring an offshore development team and also how to select one that would be right for your next app development.
Introduction to an offshore development team
An offshore development team is a vendor team that provides its development expertise from a country other than the service requester country.
Popular terms searched by the companies in 2019-2020 for their software requirements
- iOS App Development Agency
- Android App Development Startup Companies
- Open-source Development Company
- Best WordPress Development Company
These search terms reflect the competition got more fierce between the companies to develop their products and codebase, and also the increase in need of an Offshore or an in-house development team.
Each app development agency has its SDLC processes and engagement models. Usually, such agencies offer a simple several-steps process. However, to stand among the top in the competition, a company should choose a team of offshore developers, that provides a complete solution package.
Today, offshore outsourcing is at its popularity peak, as the key reason is the lower cost to the requesting company when compared to in-country developers. When compared the gap between the salary packages of the development teams between developed and underdeveloped countries, it’s enormous. In the USA, the average amount charged by an iOS app development agency is around 15,000 USD, whereas, in India, it is around 4000-5000 USD (based on project and experience).
However, despite the fact of lower development costs, companies are more skeptical in hiring an offshore development company. They have doubts and wonder whether outsourcing is worth it. Are there any risks, pitfalls, or drawbacks involved while hiring an offshore development team. Let’s weigh up all the pros and cons.
Pros of Hiring an Offshore Development Team
We have curated the top benefits of hiring an offshore development team, that will factor into your decision.
It is an estimate that a top Android app development startup company based in the USA or any other developed countries will charge higher to their clients due to high labor costs. With offshore outsourcing, clients can save money in countries where there are low labor costs.
With fierce competition among companies, acquiring talent in the native country is getting difficult. Whereas, in offshore countries like India, Ukraine, and many more., there is a tech pool being developed, having highly qualified and talented developers exist at lower rates.
Many undeveloped countries give tax benefits to the companies that invest in the employment generation. Countries like India, which has the top iOS app development agency, open-source development company, has Zero tax rate.
With offshore development teams, the company can give more time to the business part rather than the development of software. Even a company can hire both an open-source development company and the best WordPress development company for multiple projects, which means more revenue generation.
Cons of Hiring an Offshore Development Team
Below are the curated feedbacks or critical points highlighted by the companies that tried hiring an offshore development team and failed.
For product development to be successful requires constant excellent communication between the product owners and developers. Language plays a vital role in this. For example, with a miscommunication between the company and Android app development startup companies, it can lead to the wrong extraction of project requirements. Hence, the product delivered will not be as expected by the client.
Sometimes, for the client, it is required to meet the offshore development team. So, it becomes expensive if the offshore development team is located in some remote location. It is futile for the client to burden travel cost, even though the offshore is the best open-source development company.
Some offshore development team does have tendencies to sell the same software to multiple companies, also though the companies might be competitors. Since there’s no particular law regarding Intellectual Property rights, it might cause serious legal risk, unless everything is signed and documented between client and team.
Lack of Proper Documentation
There’s a high chance that offshore teams fail to create adequate documentation for the clients in case of troubleshooting. Based on the fact of improper documentation, they might charge extra to their clients for post-delivery support.
Tips for Finding the Top Offshore Development Team Seamlessly
Focus on Goals
Instead of defining the “How” for the offshore development team, the client should focus on “What” they desire from the product.
Look for Expertise
Expertise in the software development industry will make sure the developed product follows the industry guidelines strictly, and also understands the client’s need.
The client’s timely involvement during product development helps a lot to the offshore development team. As the client knows his business requirement well and can steer the product development according to his need.
A client should define their expectations. It helps the offshore development team to deliver the product on time and matching the client’s expectation level.
Contract plays a crucial role in binding the expectations and the delivery of the product. It ensures the delivered product is an outcome of a negotiated and agreed contract.
If we summarize the above guide, we can conclude that hiring an offshore development team is not that easy, and it’s cost-efficient, but not easy. The client and the team should have their expectations matched, and the client should know their “What,” and the team should know their “How.” They both should prevent language barriers and have clear communication about their goals. All these key points will ensure the client stays afloat in the tight competitive market.