Offshore software development is an outsourcing process where the technical leader of a team delegates all development tasks or part of it to an outsourced company in another country, as long as it is in a culture and time zone totally different from the contracting country.
In most cases, this type of service is desired by startups looking for technology experts to develop their ideas and who do not find companies in their countries with the authority to carry out the project.
Currently, in the technology market, there are some trends that companies that carry out offshore sought to specialize. The main ones are: cloud computing (AWS or Google Cloud), automation, in addition to the development of technologies that involve Artificial Intelligence. Next, you will understand the main differences between the three types of outsourcing: onshore, offshore and nearshore, in addition to the negative and positive aspects of this type of contracting.
Differences between offshore, nearshore and onshore
Onshore outsourcing is characterized when a company decides to hire software developers within its own country of origin. This type of service ends up becoming more attractive to the client because it is more accessible and adaptable to any changes that may occur, in addition to offering greater control over the professionals.
Unlike the previous outsourcing model, the nearshore service is characterized by the hiring of a technology team from neighboring countries, but with a similar time zone and a very similar culture. Examples of this type of service are found when US startups hire developers from Mexico, Brazil or Canada. Or even when companies in Germany offer services to neighboring countries like France and Poland.
Positives of outsourcing
One of the main positive points of offshore software development is the reduction of expenses of your company. With this type of outsourcing in the technology area, there is no need for the entrepreneur to assemble a specific team and not even spend on training their employees to bring the project to life. Outsourcing comes with a team of specialists in the subject in order to avoid this type of cost, increasing the return on your investment.
Another positive point is that, with a team specialized in the subject, the final result will have higher quality in a shorter production time. This is due to the fact that the professionals allocated by outsourcing will use any and all cutting edge technology for the execution of the project, without using the resources of their business.
In addition, in the offshore model, it is possible to hire professionals specialized in certain programming languages without having to travel to the country of origin. In this way, your development team will have a total focus on developing the service with the aim of delivering it as quickly as possible.
Risk reduction is another positive aspect of technology outsourcing, both in terms of errors occurring during project execution and in the company’s total investment. As it is a group specialized in technology, the project will be carried out by highly trained professionals in the subject that will be managed by the contracted company, that is, the manager does not have to worry about coordinating the technical project.
The company also does not have to worry about the risks and investments it would possibly need to make, such as, for example, opening a new sector or hiring new employees just to perform the service.
Now entering the negative points, one of the problems of offshore software development that can occur during execution is the loss of control of the company over what is being produced. With that in mind, it is important to keep in touch with the outsourcing company frequently so that there are no delays and much less communication problems about what is being developed. In this way, structural problems in the project are also avoided.
Besides, another negative point that startups need to analyze before finding the ideal outsourcing company is in relation to security. When hiring this type of service for your company, the manager shares important data about your business and, if you trust an IT outsourcer without good references, your company’s confidentiality may be at risk.
Another tip is to constantly monitor the development of the project to know which areas are being worked on and if everything is in accordance with your ideals and with your business guidelines. This is because, as the offshore has a relationship with professionals from other parts of the world and with other cultures, communication can be flawed if not done in an assertive manner.
How to choose an outsourcing agency
After presenting the positive and negative points of this type of outsourcing, it is super important to know how to choose the ideal partner for this type of service. Because of this, we will present some points that make it easier to choose a reliable partner for outsourcing.
The first point of attention is to choose a company that has a cultural fit with yours and that fits your values. This is super important for the smooth running of the work routine and also to avoid discomfort with the outsourcing team. In addition, it is also important to ask about all costs involved, avoiding possible future surprises.
As it is a process that involves high investment, verifying the company’s authority through existing cases is one of the main tips to avoid that your investment is not matched.