Offshore software development: How to make it work in 2021

In a globalised economy, offshore software development is one of the fastest-growing phenomena. This outsourcing of software or mobile app development project management is generally presented as an effective way to reduce the cost of application infrastructure and lead times. 

This is the reason why an increasing number of companies decide to outsource the creation of their e-commerce site, the design and development of their computer applications, their software development or the overhaul of their computer system. When an internal team cannot deliver a project due to limited skills, it is natural to think about training collaborators first. 

But this solution is time-consuming and expensive, especially for small businesses with limited budgets.

It is important to note that offshore IT/web development projects rarely fail due to a lack of expertise or technical skills, but rather due to a lack of communication and mutual understanding, which is at the cost of the source of most problems.

Hanna Schnaider presents in this article the methods to adopt to succeed in your offshore software development project in 2021.

What does onshore, offshore and nearshore mean?

The main difference between onshore, offshore and nearshore is the distance that separates the contracting company and the contracted company. For example, in the case of a Canadian firm:

• Onshore: It would mean hiring a national custom software development company. 
• Offshore: Would involve partnering with an Asian or American company. 
• Nearshore: It would mean opting for a European provider or a nearby country.

Onshore

The company that hires an onshore custom software developer hires a software company and/or team that works in the same country. 

The main advantage of outsourcing services nationwide is communication. Better accessibility at a higher cost. The fact of speaking the same language favours understanding between the parties. Also, it will be easier for the supplier to integrate into the customer’s work routines.

This is generally the most successful option in organisations with more stringent legal requirements. The regulations for the protection of intellectual property vary depending on the country. 

In this sense, opting for a nearshore custom software development agency ensures the client’s work within the same legislative framework.

The onshore option also contemplates variations in itself, since it’s possible to choose an onsite or offsite model. In the first case, the employee or subcontracted team works on the client’s premises. 

In this way, the contractor must prepare a space in his office that will be accompanied by other general expenses such as technical support or work material.

Offshore

Whether thanks to the advancement of technology for software developers working remotely or the great need for high-quality software development, the offshore trend is increasing in recent years.

Offshoring is used as a synonym for offshoring. It means prioritising cost reduction, opting for it outsourcing companies located in more economically affordable regions. These development companies are usually located in more distant countries located in Africa, Asia or Latin America.

Unlike onshore, outsourcing services to foreign companies raises the language barrier. This is a factor that can slow down the work rate of the company. 

Also, cultural mismatch can damage team relationships if you don’t work to avoid it. On the other hand, compliance with local laws can be complex when the company and the supplier do not belong to the same country.

The time difference is another decisive factor that can hinder workflow. The reduction in hiring costs is likely to be accompanied by an increase in investment in project management. The more difficult the understanding, the more necessary the management between teams.

Nearshore

Near-shoring is probably the most popular software development outsourcing option today. The main reason: it combines the best of offshore and onshore.

Also known in English as in-between choice, it represents the association with a foreign custom software company located in a nearby country (same or similar time zone). 

In this case, in-person communication, cultural understanding, and relationship building are enhanced. Traveling to visit the team is cheaper and faster, so healthy collaboration is easier to achieve.

Looking for a nearshore team allows a company to broaden the horizon of possibilities, so it is easier to find well-qualified teams. Also, it supposes a reduction of costs in comparison with a national supplier. 

Best ways to make offshore software development work in 2021

1. Explain your goals and share your vision with the offshore team

To get started, it’s important to define the main goals. The offshore custom software development team should have a clear understanding of the business and its goals. 

They must have a precise and complete vision of the project. Schedule multiple meetings if the team cannot fully understand the goals of the project in one meeting. This does not imply mobilising hours of training; a few video briefing sessions should suffice. 

The other aspect of the presentation to remember is concerns of the market and the target customer. 

Once the offshore agency identifies the clients’ profile, their needs and those of users in general, it’s possible to know that both are on the same page.

2. Develop a comprehensive plan together

Planning is essential for IT project management. It charts a course that everyone must follow and respect.  Therefore, developing a plan that defines how software projects are developed is an important step that should not be missed. 

Work with the company offshore web development to define a detailed plan that clearly shows what tasks need to be done and when. 

Set deadlines for all important activities to get the necessary deliverables on time.

3. Build strong communication

Good feedback and a good understanding of the issues and the steps to be taken are as important as the level of technical expertise and professional experience of the offshore service provider. 

Regular video conferences and personal meetings for the implementation of the project are the key to success and it is better to plan more than not enough.

Incomplete communication can lead to a great decrease in the productivity of teamwork. An improved communication (increase the number of meetings and fluidity mechanisms) can lead to a substantial acceleration of the development process.

4. Trust software developers

Software developers love a challenge and offshore custom software developers are no exception. As a client, some might have a web technology idea or concept in mind, but the offshore software company can offer a better technical or functional solution through its expertise in programming languages ​​in particular. 

This allows developers to suggest better designs or ideas to solve the problems and recommend a better technical solution.

5. Get 100% involved in your project

Beyond skills, it’s necessary to devote time to the offshore custom software development firm. The success of a software project, outsourced or not, is linked to the quality of the exchanges between all the players. Take the time to integrate and follow the project entrusted to the IT partner.

Key takeaways

The success of a software project primarily depends on the web or mobile app development company. Therefore, choose the right custom software development company, one that excels in the IT professions. 

To be successful, it is essential to have confidence in the project management capabilities of the chosen offshore company, which must be professional, reliable and offer the best web developers and the best software solutions.

Once the reputable offshore development company is found, take advantage of the tips shared in this article to ensure that the collaboration results in the successful delivery of the web project. 

Fortyseven software professionals is a custom software development agency in the UK, specialising in outsourcing and offshore development IT services.  It’s known for the quality of the software projects it manages. It ensures individual management of your software development projects to achieve the objectives set while respecting their particularities.

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