Who can Benefit from Offshore IT Development and for what Purpose?
Offshoring in the IT industry consists in outsourcing your web development needs to another country. You relocate activities to an offshore site but, continue to manage them within your company.
An offshore operation can be carried out by a subsidiary of your company or by an external service provider.
If you are a business owner looking to expand your company, offshore may be the right choice for you. It is one of the best cost-cutting strategies that companies use to expand their business.
But cost reduction is only one of the many benefits of offshoring.
In this article, we will find out what the benefits of doing offshore web development are and who this practice is for.
Offshore IT development, what is it and for whom?
Offshore outsourcing consists in moving one or several activities or processes of a company to another country.
What type of company profile can benefit from offshore IT?
From the moment you have a need in IT development, nothing prevents you from turning to offshore, whatever your requirements. Whether you are a startup, an SME or a large account, each type of business has its own interests in using offshore for its IT development.
The most requested processes in outsourcing are:
- Software development
- Virtual assistance
- Accounting software
- Data entry
- Search engine optimization
- Customer support
As far as offshore IT services are concerned, the most popular destinations are Asia (India, Philippines, Vietnam), Eastern Europe (Ukraine, Poland), without forgetting very attractive countries such as Madagascar and Mauritius. Within the latter two, developers have the advantage of speaking French 😉 and the time difference with France is at most 3 hours.
These regions are full of professionals with excellent coding skills, great command of English and French with a strong work ethic.
There are different options regarding the process of outsourcing:
- Onshore outsourcing: this consists of a company transferring one or more of its services/processes to another company whose premises are located in the same country. An onshore outsourcing partner is advantageous if you prefer a partner in your time zone and geographically closer, but this comes with a higher service cost.
- Nearshore outsourcing: here, the outsourcing of services is done in a nearby or neighboring country. The advantages of nearshoring are numerous, but time zone compatibility and cultural proximity of the two countries can be key criteria for choice. Nearshoring can be just as expensive as onshoring, and is generally less profitable than offshoring.
- Mixed or hybrid offshoring: This is a mix of the 2 approaches described above. Having operations spread across multiple locations, territories and countries, offers advantages, such as the ability to offer more hours of coverage for customer support, or to create a robust business continuity plan. Companies that have been able to maintain their operations and keep in touch with their customers, even as the pandemic has progressed, are often those that have incorporated offshore outsourcing into their outsourcing mix.
The benefits associated with offshore IT development
💰 Saving money
The financial side is one of the most important benefits of offshoring and offshore software development services. Many companies incorporate offshore development into their strategies in order to hire lower cost resources in countries with cheaper labor, instead of adding expensive local specialists to their teams.
👩💻 Find the talent you need
Having access to a variety of specialists, beyond your borders, who have a wide range of backgrounds is another benefit of offshored IT services. For example, Vietnam, has a large number of skilled software engineers, making it an ideal destination to build a remote software development team.
Expand your revenue
In addition to the obvious cost savings, offshore outsourcing offers companies the opportunity to focus more on their core business. For example, outsourcing your routine back-office tasks, frees up valuable resources to handle more complex operations, ultimately increasing your company’s profits and performance.
Many companies also use offshore outsourcing to meet their seasonal recruitment needs, while reducing otherwise high recruitment and operational costs. Ultimately, this establishes a diverse and scalable customer support service delivery platform. Countries such as India, China and the Philippines, which have an abundant workforce, are well-known offshore outsourcing locations for seasonal support.
☎️ Maintain 24/7 support
Businesses traditionally operate from 9am to 5pm, but with the advent of the internet, businesses no longer have standard office hours. Customers expect an immediate solution to their problems, even if it’s at 3am. Without outsourcing, this type of 24/7 accessibility is difficult and expensive to obtain. This type of support can make all the difference to your business. Problems are resolved immediately and customers are more satisfied, which builds loyalty. Operating in labor markets across multiple time zones provides 24/7 support in multiple languages and industries.