When To Set Up An Offshore Development Center – The Checklist

 

The newest Mckinsey Global survey shows that it’s arduous to find specialists with the required skill set.  

Whether it’s hiring new resources, establishing infrastructure for a new office, or any other business scaling-related task, everything needs significant investment, right? 

So, setting up an offshore development center with a reliable and entrusted service provider seems to offer a sigh of relief in the given circumstances. 

If you are reading this blog, you are probably either looking for a solution to create a software product in a budget-friendly way or planning to set up an offshore development center to expand your business in remote locations. 

Yes? Look no further! 

Offshore Development Centre is the answer to your dilemma. 

This comprehensive guide will shed light on everything you need to set up an offshore development center without leaving a burning hole in your pocket. But, before we dig a little deeper, let’s have a quick rundown of what offshore development means? 

What Does Offshore Development Means? 

Offshore development occurs when businesses hire a reliable partner company overseas to delegate IT project development.

Primarily, this means hiring an off-site or a remote team to work together on a software project varying from coding to development of mobile and web apps to software support and maintenance. 

Hiring offshore development services is an excellent way to build a team of experts overseas to deliver high-quality solutions that seem to be daunting on a local scale. 

An offshore development center can provide services like:

• Custom Software Development Services.
• QA and Software Testing.
• Testing Services.
• Design and Development services.
• Maintenance and support.

But when should a business set up an offshore development center?

Keep reading to discover! 

When To Set Up An Offshore Development Center?

You might be sitting on the fence as to when to hire offshore developers or set up an ODC?

There are many options when offshoring becomes the best viable choice. But, let’s shed light on the crucial ones! 

1. Lack of Tech Talent 

The world is experiencing a 15-year low point in an ongoing talent shortage. 

Unsurprisingly, India will witness a Level A TMT (Technology, Media and Telecommunication) surplus of 1.3 million workers by 2030, offering yet more opportunities for the nation. 

Although, in a recent study by Korn Ferry, India pulled in at No.7 (America was No.1). But, with the USA facing Level A talent crunch in 2020 – a shortfall predicted to exceed 625,000 TMT employees by 2030 – it can be filled by India with its skilled worker surplus, storming up the ranking surpassing US tech hubs. 

To put it simply, India could challenge America’s position well before 2030.  

Not to forget, the competition for adequate skills can impact the world as it can increase the cost of labor, lower quality, and also slows down production. So, to address these demurs, offshore development centers are one of the best options.

2. Oversee More Cost-Effective Operations

In the U.S and Western Europe, hiring the best talent comes at a premium. 

However, to start with, payroll is the only aspect of setting up a software development team. There is:

•  the end-to-end recruitment process, 
• office space, 
• state-of-the-art equipment 
• employee-centric benefits like insurance, health benefits, gratuity 

These all factors make the concept of building an in-house development team an expensive affair, especially when you are located in cities with a high cost of living like New York, Singapore, London. 

Therefore, going offshore and building a team in India or Ukraine can significantly reduce the cost. Moreover, the cost of living in these countries is a lot lower; you can hire equivalent labor at an affordable cost. 

3. Kickstart For First-Mover Advantage 

In a marketing strategy, “First-Mover Advantage” is the competitive benefit gained by the initial significant occupant of the respective market segment.  

That’s a typical situation where setting an ODC proves to be a viable working option. In simple words, an ODC helps to accelerate development on a potential project idea without any delay, especially when in-house teams are already involved in other critical projects. 

Furthermore, it helps companies and brands to establish strong brand recognition, customer loyalty, and early purchase of resources before other competitors enter the market and gain the lion’s share. 

4. Investment-Friendly Nature 

A little aside from being a budget-friendly option, setting up an Offshore Development Center proves to be investment-friendly too. 

Hiring offshore developers gives small to medium enterprises an opportunity to work with global talent. Furthermore, ODC helps build a global presence that eventually helps businesses acquire investments across the globe. 

Notably, it offers your company a chance to have an international network of professionals and build relationships which inadvertently helps your brand’s presence.  

5. Scale Your Business Quickly and At Your Own! 

Imagine your business is booming at an unprecedented pace, and you are growing like never before. Your company proves to be a hot pick from numerous potential clients, but just because you don’t have the potential that you need to scale and address the new requirements as they emerge, you have to turn down your valuable opportunities. 

And, businesses would never want to find themselves in these situations. 

However, investing in a trusted offshore development team that provides you with on-demand horizontal and vertical scaling to address the challenges of capacity planning ensures the right resources are in place to handle expected as well as unexpected traffic demands. 

Besides, offshoring offers companies the opportunity to meet deadlines and the surge in demand and quickly scale up and down as needed. Also, it quickly put together prototypes, proof of concepts, and minimum viable products that can be used to collect feedback and refine an idea before beginning the development process. 

In simple words, the speed and flexibility of offshoring need clearly defined requirements and quality. 

Is Offshore Development The Right Move For Your Business?

Offshore software development is a recommended choice in most scenarios, but it’s always crucial to have a complete overview of the project at hand before inching ahead on this option. 

To start, consider the following: 

• Make sure your partnered outsourcing company meets the delivery dates. 
• Pay attention to any skill gaps and capacity limitations that may take place in your in-house team. 

So, if you are a curious head and want to know how to hire the best offshore development team, click here. 

All in all, a lot of companies across the world are resorting to offshoring business operations. But, the most pressing question still remains unanswered – “Who can Benefit From Offshore Development Center?”

The original article is published on Your Team In India. Read more when to setup offshore development center