Outsourcing is the practice of moving the processes to a third party (the location of a third party is not specified). If the processes are moved within your country of residence, it’s called “onshoring.” Offshoring, however, is the practice of relocation of processes from one country to another.
So when Apple moves their manufacturing factories from the US, it’s offshoring. When Ford opens an IT hub in India to handle email processing and CAD/CAM development, it’s offshoring. When you get your app developed by an Indian or a Filipino company because of financial attractiveness, it’s offshoring, too.
A quick analysis indicates clear offshoring patterns: some IT functions, such as software app development and maintenance, are outsourced more, while the others – specifically business process outsourcing and knowledge process outsourcing – tend to remain in-house.
In 2021, the top reason to offshore is cost reduction – it was one of a few benefits in the past, but the COVID-19 recession changed the game. Today, many companies seek to reduce costs while receiving quality services through offshoring.
The Benefits of the Outsourcing Software Development
If you’re wondering whether to take advantage of IT outsourcing, here’re some benefits to consider:
- quality services of a software agency. Developers usually have relevant expertise in the area you need and can offer several options for project development;
- low cost, since the clients only pay for the services provided, without production expenses;
- no additional charges for staff members;
- quick problem solving, since tasks are correctly distributed among team members.
Thus, offshore development makes it possible to hire highly qualified specialists who provide the services you need faster and cheaper. For successful cooperation, the customer and the outsourcing company must agree on all working conditions and project details in advance.
What Does the Quality of the Offshore Services Depend On?
The quality of the developers’ work can be assessed even within the framework of one project. The quality of services results from the following aspects:
- Optimized recruitment system within the company;
- Setting clear goals and time frames;
- Effective staff training system.
Market demands are constantly changing. Project managers should know how to adjust to them – this is the key to successful work.
Outsourced Project Management
To ensure the success of your outsourced software project, follow these guidelines:
- Establish cooperation: you don’t need to control the entire process of work, but it’s advisable to be in touch in order to timely answer questions, make changes, etc.
- Set a clear goal: try to carefully define the details of your project, as well as the goals and needs of your business.
- Define project milestones and deliverables.
- Check intermediate results: the more issues you check, the better product you get.
Successful collaboration with an outsourcing team depends on many factors. The main thing is to stay in touch, carefully specify the requirements, and set clear deadlines.
Possible Difficulties You Need To Keep In Mind
Offshore software development comes with some risks and challenges you should be aware of:
- Configuration management
For the development process to be as efficient as possible, configuration and change management activities must be well coordinated. It is advisable to start the selection of configuration items at the earliest possible stages of the life cycle, with constant analysis to improve and modernize the product.
- Poor attention to detail
The project cannot be implemented on time without a detailed analysis of the requirements and characteristics of the product as well as accurate work planning.
- Lack of the well-defined hierarchy
A hierarchical structure is essential for a clearer understanding of the roles and functions of team members as well as assigning responsibility for decisions at different levels of project management.
Bear in mind that a common understanding of the specifics of the project between the customer and the development team is very important for offshore development. Terms of Reference, a specific requirements document, will help to define the project development path, resources, and requirements.
Yuliia Makarova is a dedicated content writer at a top Ukrainian outsourcing software development company — Yojji. She provides useful and relevant content that delivers an engaging experience for the audience.