et me quickly say that I don’t mean EVERY software company offshores their development. I know that starting off an article and immediately opposing the title isn’t a popular move, but please don’t feel click-baited just yet, there is value here!Not only will I provide you with some examples of popular software programs or companies, in this article you’ll also find some valuable benefits regarding offshoring. Let me start right off with the latter, and show you just why you and everyone who isn’t offshoring their development, should at least consider and delve deeper into what offshoring can do for you and your company or start-up idea.
1) Lower Cost
Developers are expensive! Out of our own experience, we’ve found that a team of well-qualified developers is a necessity to the success of your software project. But, having them all in-house, especially in Europe and America can increase your monthly expenses drastically. Using an offshore team brings other concerns like management (more on this further down) but can cut the cost down too often only a third.
2) Smaller, more skilled teams
Instead of having a large team of developers, offshoring traditionally works with smaller groups of dedicated people that have specific training in one field. You have web developers working on the front- and back-end of your webpage, while there’s a devoted team member working on the artificial intelligence for example. This results in a faster time-to-market without skyrocketing the cost.
3) Faster time-to-market
This can be accomplished by what I discussed in the 2nd point, using smaller, more qualified people on each section of the project as well as letting you focus totally on the other aspects of your business. Like sales, the creative and other core practices.
But how do you manage your offshore development team?
We work with appropriate tracking tools that allow us to plan, track, improve and finally release quality software that satisfies the needs of your business. Besides this, we also like to check in with the lead developer once a day over a video call. Discussing what work has been done, what’s on the agenda today and if the preset schedule is still adequate. This way we eliminate long-term issues.
What other companies or programs have been made with an offshore development team?
Take WhatsApp for example. They managed to keep the costs down by using offshore talent to develop their messaging app while their in-house staff focused on customer support, operations and the overall strategic approach of the company. Just 2 years after their launch, WhatsApp sold to Facebook for a colossal 19 Billion USD (16.650 Billion EUR). Read this excellent article that covers a number of other companies like Citi-Bank, Klout, and TransferWise.
From a financial standpoint, it’s quite a ‘no-brainer’, but it does come with some extra management challenges. Selecting the right offshore partner and tackling the project in small, coordinated steps and good communication are the key factors to make your project come to life.