All around the globe, offshore development centers are trending internationally. The increasing demand for hiring a more diverse and seasoned pool of specialists while lowering the overhead cost prompts local businesses to establish their offshore team. This approach is an option that many IT organizations are considering using to bolster their business success. In this article, we will discuss:
And some of the top reasons why companies are gradually moving from conventional in-house outsourcing to offshore development centers:
First, before we detail all the mentioned benefits of an offshore team, let’s have a quick grasp on what we call “Offshore Development Center”.
Offshore Development Center, more popularly known as ODC, provides a team which is under the primary company’s management and situated in a foreign country.
The center boasts all kinds of seasoned employees including but not limited to developers, programmers, testers, UI/UX designers, etc.
- 64% of firms outsource their software development operations to external companies. (Statista)
- Remote offices are used by 80% of the world's top 500 corporations to increase the development of software products and services.
- In 2021, the IT outsourcing industry was expected to be worth $413.7 billion. (Statista)
- The lack of tech talents is considered the biggest adoption obstacle for 75% of IT automation technologies and 41% of digital workplace technologies. (Gartner)
- 78% of businesses express their sense of satisfaction to their outsourcing partners. (Deloitte)
Now let’s take a closer look at Top 5 benefits that an OCD offers:
In developed countries such as the USA, UK, and Canada, it might be challenging to find highly skilled tech talents. Since offshore development centers give access to a wider range of software development experts from around the world, this strategy could be an effective solution.
You could connect with the top developers in your industry by locating your operations overseas. Therefore, a remote office eliminates the need to compete for top tech talents with major IT businesses while also reducing geographical constraints.
By setting up an offshore development center, you have access to a talent pool. You may seek seasoned developers in any country, which facilitates the recruiting process.
Additionally, if you choose a skilled software development partner, it won't take you more than 2-3 weeks to build a team capable of delivering a finished product. Vendors are not required to spend extra time on interviewing, tech screening, and code assessments since they have a pool of pre-screened candidates that has been carefully selected. Simply put, they choose the employees who fulfill the requirements of your project. In light of this, you can gather your ideal team in weeks rather than months.
The offshore business model enables you to combine strong technological potential with reasonable rates and minimal operating expenses. This technique can lead to significant average cost savings of 40% to 60% of the initial cost of development services in the United States, Australia, or Western European nations.
With an offshore development center, you may get the same quality of skilled employees from other countries at a considerably lower cost than recruiting domestically. The basic wage package is generally 1.25 to 1.4 times the employee's compensation, according to the US Small Business Administration. Taxes, health insurance, retirement savings programs, vacation, and medical leave reimbursement are all extra charges.
Offshore staffing often means a considerable time zone gap. While some may regard it as a disadvantage, it can absolutely speed up product delivery. The presence of some overlap between local and offshore work hours enables continuous work and a steady supply of services.
The around-the-clock availability of resources implies that there will always be someone working on site. This facilitates the quick identification and resolution of any difficulties that may arise throughout the project development.
Managing your own IT department is a challenging endeavor if your business is not totally focused on information technology. Outsourcing these challenging IT tasks to an ODC will save your time and money. You may then allocate this effort to other necessary and profitable projects.
NSC Software is the ideal partner if you are considering establishing your offshore development center. Team augmentation, dedicated teams, project-based model services and remote development offices are all part of our service model. We can help you develop an offshore development center of high-level specialists from scratch or recruit tech talents to strengthen your in-house IT team.
In the long term, working with NSC Software is simpler and more economical than recruiting locally. Just share your requirements with us, and our specialists will gather a team of pre-screened developers that fulfill your project specifications.