What is offshore software development, and who is it for

Offshore software development means hiring overseas engineers to build your company's software. To maximise efficiency, organisations going offshore often open new offices with dedicated teams in countries like India. These offshore development centres feature fully equipped facilities.

Tech giants like Google, Microsoft, and Apple have established R&D Centers in Bangalore to access world-class developers and quick scaling without stress or expense. So, if finding and hiring top tech talent at home is challenging, offshore development is worth considering.

Two types of companies leverage offshore teams:

1. Non-technical businesses needing website improvements or new digital products.
2. Companies expanding in-house teams to take on bigger contracts and boost value.

The first lacks software expertise and needs skilled developers. The second wants to scale up and outpace competitors.

In both cases, dedicated offshore software development teams provide talent that is expensive and hard to find locally.

Three major benefits of going offshoreAccess global talentOffshoring opens access to top tech talent across the globe. Diligent developers in Eastern Europe, savvy English-speaking experts in India - the world is your oyster.

The US currently faces a developer shortage, with a demand for 170,000 new programmers annually. However, there is a lack of qualified experts to fill these roles domestically. Offshoring allows companies to tap into overseas talent pools ready to build software. For example, India produces 1.5 million engineering graduates yearly with strong English skills, primed to join international teams.

Scale fastScaling development teams offshore is faster and easier than expanding locally. Flexible cooperation models make it simple to build and grow teams on demand.

Offshoring provides agility to add talent at speed. If growth arises, your overseas provider can swiftly supply additional developers to scale your capabilities, take on more work, and meet expectations. The flexible offshore talent pool allows for rapid expansion when required.

Focus on your businessA strong offshore partner takes care of recruitment, administration, payroll and more - allowing you to focus your efforts elsewhere with peace of mind.

As they handle hiring and onboarding excellent developers, you can devote time to engaging with clients and expanding your business. Offshoring lifts heavy administrative burdens, empowering you to concentrate on core priorities and growth. With personnel and payroll managed overseas, you can direct energy toward what truly matters - your customers!

Top 3 offshore software development locationsAsia India is the leader in IT offshoring, with tech hubs like Bangalore producing 90,000 engineering graduates annually. Its large talent pool and lower costs make India an ideal destination for budget-conscious teams.

The Philippines also provides affordable overseas talent, though with fewer advanced qualifications on average. The average hourly rate in the Philippines is €28 — significantly lower than in Western markets.

Eastern Europe Countries such as Poland and Ukraine are renowned for their technical expertise. Their proximity to Western markets and similar time zones also facilitates seamless communication.

Experienced developers in these Eastern European nations excel at delivering complex projects that demand close coordination. With competitive average rates of around €32/hr, Poland and Ukraine balance top talent with cost efficiency.

Latin America Colombia, Mexico, and Argentina are emerging as strong tech hubs with cultural ties to Western clients. However, English proficiency can vary across these regions.

These Latin American countries offer proximity and cultural alignment for effective partnerships, though they may lack the depth of English fluency in other markets. With average hourly rates of around €37, they present cost savings over Western teams.

Source:https://www.articlesfactory.com/articles/business/the-cto-handbook-to-offshore-software-development.html

At The Scalers, we help innovative global businesses build highly talented software development teams in Bangalore — the second largest tech ecosystem in the world.