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What Is Offshore Software Development & Why It’s Important for Your Business?

Software Development
August 25, 2022

No matter what business you’re in, offshore software development is one of the best options when you want to go digital. From software maintenance to mobile app development, and website design, you can free yourself from growing and managing an in-house IT team. By doing so, you not only ensure the best project quality and delivery time.

Join us and let’s discover how your business can benefit by hiring offshore software development companies.

What is Offshore Software Development?

offshore software development company
Newwave Solutions – A Reputable Offshore software development company in Vietnam

Offshore software development means transferring a project such as a fully or partially mobile app development of your company to a third-party software development service. However, if you intend to outsource the entire workflow, you should definitely hire a software development company, not a freelancer. Even though a freelancer may be an expert in one related field or more, you need at least a team of experienced designers, QA engineers, and software developers for a project like mobile app development.

Nowadays, offshore software development is quite popular and the worldwide IT outsourcing market is expected to obtain $425.19 billion in revenue from 2021 to 2026. Research showed that IT outsourcing services market profit reached $413.72 billion in 2021. According to this, the main reason why most corporations choose offshore software development is cost reduction, operational effectiveness, and consistency.

5 Benefits of Offshore Software Development

Still, wondering if it’s right to hire an offshore development service or start your own in-house team? Considering these 5 benefits that offshore software development can offer:

1. Lower Cost

Yes, it’s often challenging and costly to maintain an in-house IT team for most companies, especially when you or your teammates don’t have a lot of experience working together. So, by hiring an offshore software development company like Newwave Solutions, you don’t have to invest in IT infrastructure or spend time hiring, and training new employees anymore. Instead, you can focus those resources on a more important issue.

2. Access to a Vast Pool of Talent

With offshore software development, you can have the ability to access a vast pool of talented and experienced software engineers with higher international standards and quality. Even better, since the offshore development service has experience working with international clients and projects, they can understand the challenges involved and come up with a solution for pretty much every issue you might encounter in the future.

3. Faster Time-to-market

With a dedicated software development team, you can be sure to have your project delivered on time. Not only can you get it done faster, but you can also ensure your software or application reaches the market on schedule or even sooner. Plus, an outsourcing team can offer insights and new methods to improve your business processes, letting you leverage innovation and creativity at each stage of the software lifecycle. Imagine you have a sanitary equipment store, developing a simple web app for your business will probably take you at least 1 month.

4. More Time to Focus on Core Business Activities

Hiring an offshore software development company allows you to focus more on your core business strategy. So, instead of worrying about managing the entire software development process, which is quite complex and time-consuming. This means you can focus on core practices without the additional stress of running and managing a new software development department.

5. Undeniable Business Growth

Offshore software development gives businesses of all sizes access to skilled labor forces, reduced cost, and time required to develop software in-house. Not to mention the afterward benefits when your app is released. All of this will help your company work towards sustained business growth.

Best Offshore Software Development Companies

Finding the right partner is key to a successful offshore software development project. Reputable offshore software development companies have a proven track record of delivering high-quality solutions. They possess the expertise to manage projects effectively and mitigate risks, ensuring a seamless development process.

Offshore Software Development Company in India

India is a prominent destination for offshore software development due to its vast talent pool, cost-effectiveness, and English-speaking professionals. Partnering with an Indian software development company can be a strategic move for organizations seeking high-quality solutions.

However, it’s essential to address potential challenges such as time zone differences, communication issues, and cultural disparities to ensure a successful collaboration. Conduct thorough research and due diligence when choosing an Indian offshore development partner to mitigate risks and maximize the benefits.

  • Time Zone Differences: While time zone compatibility can be an advantage, it can also present challenges. Coordinating meetings and resolving issues in real-time can be difficult due to the significant time zone difference, potentially causing delays.
  • Communication Challenges: While English proficiency is generally high, differences in accents and communication styles may lead to misunderstandings or misinterpretations, particularly in complex technical discussions.
  • Cultural Differences: Although cultural adaptability is a pro, it can also be a con. Cultural differences in work practices, holidays, and communication styles may require extra effort to manage effectively.
  • Quality Variability: While India has many reputable offshore development companies, there is also variability in quality and reliability. Due diligence is essential when choosing a partner to ensure they meet your quality standards.
  • Intellectual Property Concerns: Protecting intellectual property can be a concern when working with offshore companies. Ensure that proper legal agreements and security measures are in place to safeguard your assets.
  • Legal and Regulatory Hurdles: Navigating different legal and regulatory systems can be complex. Understanding and complying with Indian and international laws can be a challenge, particularly in data protection and privacy.
  • Distance and Travel Costs: Visiting and managing an offshore team in India may require significant time and travel expenses. This can add to the overall project cost.

What Makes Vietnam an Ideal Choice for Establishing an Offshore Development Center?

Choosing between Vietnam and India as the best offshore software development destination depends on various factors and the specific needs of your project. While India has traditionally been a popular choice, Vietnam is gaining prominence in the global outsourcing industry. Let’s explore why Vietnam might be considered the best choice for some businesses:

  1. Cost-Effective Services:

Vietnam offers competitive labor costs, which are generally lower than those in Western countries. This cost advantage is a significant draw for businesses looking to optimize their budgets.

  1. Skilled Workforce:

Vietnam has a growing pool of highly skilled IT professionals who are proficient in various technologies and programming languages. The country is known for producing a high number of IT graduates, ensuring a steady supply of talent.

  1. Cultural Compatibility:

Vietnamese professionals are often praised for their cultural adaptability, making it easier to collaborate with clients from different parts of the world.

  1. Time Zone Advantage:

Vietnam is in a time zone that allows for overlap with both the United States and Europe, making real-time communication and coordination more manageable.

  1. Government Support:

The Vietnamese government has been actively supporting the IT industry, offering incentives and favorable policies to attract foreign investment and promote technology-driven growth.

  1. English Proficiency:

While English proficiency in Vietnam may not be as widespread as in India, it is steadily improving, and many IT professionals in Vietnam have a good command of English, particularly in the younger generation.

  1. Quality Assurance:

The quality of work from Vietnamese software development companies is on the rise, with many firms implementing international quality standards and best practices.

  1. Growing Tech Ecosystem:

Vietnam is experiencing a surge in the tech ecosystem, with the emergence of start-ups and a thriving technology community. This growth indicates a positive trajectory for the IT industry.

Must read: The Top 10 Offshore Software Development Companies in Vietnam

Best Practices for Successful Offshore Software Development

If you’re going to offshore some of your software development projects, then here are some best practices to help you reach your goals easier:

1. Get Introduced to All Offshore Developers

When offshoring your project, it’s best to get introduced to the entire team, not just the team leader. A strong partnership with your offshore developers is the key to a successful outcome. Also, this will give you and the offshore team a chance to improve better communication and understanding of your vision.

2. Small But Highly-Skilled Teams

When it comes to offshore development team size, the smaller the better! In fact, a small IT team of very highly skilled offshore developers like in Newwave Solutions will be more effective than a larger team of average developers. Also, if your offshore team starts growing in size, split it into multiple ones and choose team leads for each to get the required accountability, visibility, clarity, and focus on the development process.

3. Communicate Frequently

In order to get the most out of the offshore development service, it is best if the project manager can communicate with all offshore developers, not just the offshore team lead. The recommended frequency is at least once a week. Such direct communication with your team of offshore developers helps in identifying issues and coming up with a suitable solution more easily and much faster. Additionally, you should also look for ways to build a relationship with the offshore team through social, customer visits, or collaborative activities.

4. Daily Meetings for Status Updates using Video Conferencing

As mentioned above, frequent communication and collaboration are critical for meeting your project goals. So, instead of reading and checking reports daily, try to arrange small daily status meetings through video conferencing. This ensures that every issue is addressed in a timely and efficient manner.

5. Be Clear on Expectations

When partnering with any third party, having a mismatch in expectations is common. What is considered good or acceptable by you, might not work for your offshore software development partner, especially when it comes to quality, security, and user experience. The best way is to be detailed in every step and clear on the expectations. Share values instead of documents in order to ensure your expectations are always well understood.

Latest Trends in Offshore Software Development

Starting a business with digital transformation has never been easy. This is a complex process that includes a series of tasks and usually requires your company to embrace the latest trends in order to remain competitive. So, here are some new trends in offshore software development in 2022:

  • Cloud computing. Cloud computing plays a crucial role in offering scalability and flexibility. So, companies that realize the potential and benefits of cloud computing will ensure a higher quality service for their clients.
  • Blockchain. The most popular use is improving security. Offshore software developers will be able to build much more secure software using Blockchain.
  • Automation. One of the best methods to reduce the dependence on human effort, driving down the costs and risks. Software development services can innovate and respond faster to changing business needs to gain major advantages with this technology.
Blockchain offers a new approach to help organizations become more transparent and secure
Blockchain offers a new approach to help organizations become more transparent & secure

Key Definitions to Familiarize Yourself with Before Delving into Offshore Custom Software Development

Custom software development allows businesses to create tailored solutions that meet their unique requirements. Offshore teams can design, develop, and maintain custom software to help organizations stand out in their respective industries.

  • Offshore Dedicated Development Team

A dedicated offshore development team is a group of professionals who exclusively work on your project, providing specialized expertise and long-term commitment.

  • Offshore Software Development Outsourcing

Outsourcing software development offshore can lead to substantial cost savings and access to top talent. It is a popular choice for businesses seeking to focus on their core competencies while leaving software development to experts.

  • Offshore Software Development Rates by Country

Different countries offer varying rates for offshore software development services. Understanding these rate variations can help you make an informed decision when selecting your offshore development partner.

  • Offshore Software Development Service

Offshore software development services cover a wide spectrum of solutions, from web and mobile app development to enterprise software and cloud solutions.

  • Offshore Software Development Teams

Offshore software development teams consist of professionals with diverse skills and backgrounds. They collaborate to bring your software projects to life, delivering innovative and high-quality solutions.

  • Offshore Software Product Development

Offshore teams can help with the complete product development cycle, from ideation and design to development, testing, and maintenance. This end-to-end approach ensures that your product reaches the market successfully.

  • Offshore Software Programmer

Offshore software programmers are skilled individuals who develop, test, and maintain software solutions. They play a crucial role in delivering high-quality software products.

  • Offshore Software Programming Company

Offshore software programming companies offer a range of development services. When choosing a company, consider their expertise, track record, and commitment to delivering exceptional solutions.

  • Offshore Team Management

Effectively managing an offshore team involves setting clear expectations, fostering open communication, and monitoring project progress closely.

  • Offshore Web Development

Offshore web development services cover the creation of websites and web applications, offering cost-effective and high-quality solutions for businesses of all sizes.

  • Offshore Web Development Company

Selecting a reliable offshore web development company is essential for achieving your online business goals. Look for a company with a strong portfolio and a history of successful projects.

  • Offshore Website Development

Offshore website development is a smart choice for businesses looking to establish a strong online presence. Expert developers can create user-friendly, responsive, and visually appealing websites.

  • Working with Offshore Teams

Collaborating with offshore teams requires a commitment to building strong relationships, fostering open communication, and embracing the benefits of global teamwork.

Final Thoughts

Even though offshore software development might seem a bit complicated, it is a decent financial and business decision for all companies. Carefully define your project, choose the right offshore development partner, and make use of best practices to keep work transparent, communication easy, and the project coordinated.

In recent years, Vietnam has become an emerging IT offshore market for companies all over the world due to cost advantages, an increasing number of IT experts, and professional software companies. With over 300+ employees, deep IT expertise, and a brand office in Japan, Newwave Solutions has been recognized as one of the leading offshore software development companies in Vietnam and the winner of many awards on Clutch and Goodfirm. At Newwave Solutions, we make offshoring easier for every client!

Let’s work together! Our team is ecstatic to hear from you. Contact us now to talk more about what you have in mind!

To Quang Duy is the CEO of Newwave Solutions, a leading Vietnamese software company. He is recognized as a standout technology consultant. Connect with him on LinkedIn and Twitter.

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Newwave Solutions is a Top 10 software company in Vietnam with over 12+ years of experience and 300+ dedicated employees.
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