Today, businesses rely more on outsourcing, automation, and AI than hiring large in-house teams. This shift means remote teams work as efficiently as those on-premise.
One approach that allows leaders to develop products without spending fortunes on in-house teams is offshore software development. Working with remote talent following an agile approach aims to deliver project results while cutting costs and overheads.
Despite concerns surrounding offshore software development, leaders need to understand the basics of the development model, how it helps businesses succeed, and how to hire the right offshore partner.
What is Offshore Software Development?
Offshore development is a business practice where companies outsource software development, IT services, or other technical tasks to third-party vendors in distant countries. This approach allows businesses to leverage cost savings, access specialized talent, and efficiently scale operations.
These offshore teams are often located in regions with comparatively lower development costs but can operate anywhere outside the client’s home country.
The outsourcing approach allows businesses to build their digital product from scratch and acquire assistance with deadlines, staff augmentation, and handling the technical peculiarities of their project.
Why Business Leaders Prefer Offshore Agile Development?
According to industry trends, the demand for software development offshore is rising. In fact, a Statista study states that the IT outsourcing market is projected to reach a worth of $812.7 billion by 2029.
With businesses today unwilling to afford even a one-day delivery lag, offshore software development offers CEOs and leaders the right reasons to opt for efficient and budget-friendly solutions.
Cost-effective solutions
Business leaders leverage offshore agile development to reduce costs compared to onshore development without affecting the quality standards for their products. Moreover, agile methodologies further improve cost efficiency by encouraging iterative development and ensuring resources are used effectively.
Faster project delivery
Although time zone differences are often seen as a challenge in the offshore model, the follow-the-sun model, i.e., round-the-clock productivity, allows you to see work progress even outside your business hours. When your in-house team completes their workday, the offshore team will continue the proceedings.
High-quality deliverables
One major misconception is that due to geographical differences, offshore teams tend to lose sight of quality standards due to a lack of real-time supervision. Being culturally aligned with the client’s quality standards, offshore teams ensure high-quality outcomes by rigorously testing their products and incorporating continuous feedback.
More control for clients
CEOs, particularly those with limited budgets and service offerings, love to exercise greater control over the development process. You can frequently do virtual meetups with your hired teams during their active hours, while transparency through tools like Kanban boards and sprint reviews keeps you informed and involved.
Access to top talent
Clients can access a pool of highly skilled and experienced professionals in offshore regions. Agile methodologies ensure this talent is utilized effectively, with team resources appropriately allocated to meet milestones and accomplish optimum productivity.
Factors to Consider Before Hiring an Offshore Agile Development Partner
There are plenty of considerations to take into account before selecting the right offshore team for your business needs.
Determine the scope of your project
Start by outlining your goals, deliverables, timelines, and budget. A well-thought scope on paper helps you communicate your requirements to the offshore team, see if they understand your pain points and objectives, and if they’re able to plan sprints and deliverables effectively.
Although the agile approach thrives on flexibility, starting your homework on the right note is essential for aligning expectations and measuring progress.
Consider an ecommerce company that wants to build a mobile app to improve customer experience. Instead of immediately contacting offshore developers, the company must first define the scope, i.e., key features like one-click checkout, push notifications, AI-driven recommendations, a six-month timeline, and a set budget.
Look for proven agile experience
Look for tech partners with a proven track record in offshore development and agile methodologies. For instance, experience in practices like Scrum, Kanban, or SAFe (Scaled Agile Framework) and familiarity with agile tools like Jira, Trello, or Azure DevOps.
A team with sufficient agile expertise will be better equipped and confident in handling iterative development, managing sprints, conducting retrospectives, adapting to changes, and delivering incremental value without missing milestones and exceeding the client’s budget.
Suppose a fintech company wants to develop a secure payment processing platform. It would be wise to choose an offshore vendor with a firm grasp of Scrum and Jira for sprint tracking. During development, the vendor’s agile expertise will assist them in quickly adapting to regulatory changes, conducting regular sprint reviews, and ensuring continuous delivery.
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Consider language and communication skills
Could a healthcare SaaS company successfully build a patient management system if its offshore team struggled with English and couldn’t clearly explain technical concepts to non-technical stakeholders? Or would miscommunication lead to costly misunderstandings and project delays?
Effective communication is a cornerstone for every successful technology partnership, whether offshore, offshore, or in-house development. See that the team has strong language proficiency, ideally in the language your business operates in.
The purpose is to minimize misunderstandings and ensure that requirements, feedback, and updates are conveyed accurately. Furthermore, evaluate their ability to communicate technical concepts in a way that stakeholders can understand.
Evaluate time zone alignment
Time zone alignment is among the most challenging aspects that put offshore teams off the priority list for many business leaders. But it could be used to your advantage for continuous product development.
Suppose a retail company is developing an AI-based inventory management system with an offshore team. In that case, they can hold daily stand-ups without scheduling conflicts, quickly resolve issues, and implement timely feedback as part of the 24/7 development cycle.
If a certain number of resources from your offshore team work during your active hours, this smooth collaboration will keep the project on schedule and efficiently adapt to business needs.
Look for a collaborative mindset
Offshore development relies heavily on direct communication between the client and the development team. When hiring a tech partner, determine their willingness to work as an extension of your in-house team or augment your existing staff. The best options are partners who prioritize transparency, actively seek feedback, and are open to adapting their processes to align with the client’s needs.
For instance, when a cybersecurity service provider partners with an offshore team to improve its threat detection platform, the offshore developers must integrate seamlessly with the in-house security team, joining daily stand-ups and proactively seeking feedback.
The idea is to establish trust that ensures the team is fully invested in the project’s success. This will lead to better, timely product development and a strengthened partnership.
Focus on technical expertise and innovation
When hiring an agile software development company, technical expertise and an innovative mindset are a must-have. Determine your partner’s proficiency in the specific tech stacks required for your project. Moreover, an experienced team demonstrates innovation and a proactive approach to problem-solving.
Suppose a logistics company wants to hire a team to optimize its route planning system. The developers must not only have expertise in AI and cloud computing but also be able to propose a machine learning algorithm to predict delivery delays based on traffic patterns.
Besides meeting expectations by timely deliveries, agile teams should suggest improvements and stay updated with industry trends to keep the client’s product sustainable and competitive.
Is Offshore the Best Option for Your Business?
There is no straightforward answer, as every business has its own requirements and constraints that decide whether it should opt for onshore, offshore, hybrid, dedicated teams, or a staff augmentation model.
Offshore software development outsourcing offers a powerful solution for businesses wanting to scale and accelerate digital transformation without high costs.
However, success depends on selecting the right technology partner with proven agile experience, strong communication skills, technical expertise, and a collaborative mindset. Moreover, you can also go through their accomplishments and portfolio, online credibility on social platforms, and verified customer feedback on trusted platforms like DesignRush and others.
By carefully considering these factors, business leaders can work with a reliable software development offshore partner to achieve their strategic goals efficiently.
