If you are looking to partner with an offshore company to take care of your development needs, you might be concerned about making the wrong choice or worried about the potential risks of offshore outsourcing.
It's completely normal to have these concerns, especially when you hear negative comments and misconceptions surrounding offshore outsourcing. People often talk about the complexity of managing offshore teams, but what they fail to acknowledge is that most of these concerns are based on inaccurate information or outright falsehoods.
In this blog post, we will address the common misconceptions associated with offshore custom software development.
Myths associated with custom offshore software development
1) The sole purpose of offshore software development is merely cost reduction.
Many people mistakenly believe that forming a remote team is primarily aimed at minimizing expenses. Undoubtedly, offshoring to countries like India and Ukraine offers cost advantages. These countries have a lower cost of living compared to Western countries, which affects the developers' salaries. However, cost reduction is not the only or most significant benefit of offshoring.
Take India, for instance, a country that produces nearly 1.5 million engineers annually. Bangalore, often referred to as "India's Silicon Valley," is globally recognized for its achievements in engineering and scientific innovation.
Offshoring software development to India provides access to highly skilled and well-trained technical professionals. While salaries may be comparatively lower than in Euro or Pound denominations, the real advantage lies in leveraging exceptional talent.
2) Offshoring does not equate to quality work.
This misconception stems from the idea that choosing the cheapest option will result in subpar outcomes. Quality custom offshore software development involves working with top-tier talent to scale up and strengthen your company. Offshoring allows for sustainable growth with a cost advantage and an
abundance of talent. Underestimating the value of an offshore team in countries like India is a common mistake made by businesses.
Regardless of the industry you operate in, investing adequate time in recruiting and assembling a high-quality offshore team is crucial. If you put in the effort to select skilled professionals, there is no reason to expect subpar work from your employees. This myth about offshore risks is fueled by companies that rush the hiring process and neglect investing in people, leading to disappointing results.
3) Offshore development is unproductive due to logistical challenges.
Another prevalent myth about offshore risks is that remote development teams are inefficient due to geographical distance and time zone differences.
However, our experience suggests otherwise. In the past, working with remote teams posed challenges due to the complexities of long-distance communication. For instance, a UK corporation collaborating with a team in India faces a time difference of 5 to 6 hours. Clear communication becomes essential within the limited overlapping working hours.
Fortunately, with the availability of internet-powered tools such as instant messaging, screen sharing, and video calling, communication has become quick and easy. Furthermore, while software development services for startups in-house teams begin their workday, your offshore team has already completed a full morning's work. This overlap allows for stand-up meetings, check-ins, and reviews.
Geographical distance is no longer a significant hindrance, and in some cases, offshore teams can even enhance productivity more than having everyone in the same location.
4) Offshoring is limited to enterprises with substantial financial resources.
Many small and medium-sized enterprises (SMEs) mistakenly believe that offshore development is unattainable without significant capital or committed finances.
In reality, the cost of forming an offshore team depends entirely on your specific requirements, including the country, team size, desired quality, and additional services like electricity and internet connection. Offshoring is not a one-size-fits-all solution, and it can be a viable option for SMEs seeking growth.
While a three-person startup may not benefit from an offshore workforce due to its small scale, SMEs can greatly profit from offshore development if they are looking to expand.
5) Offshoring does not ensure data security.
Concerns about data security often deter businesses from offshoring their operations to another country. Data security is undeniably crucial in modern business. However, it is important to note that the risk of data breaches is not higher for your offshore team than it is for your local team. Implementing security measures is essential for both teams.
Establish strong non-disclosure agreements with your software development agency team to clearly define the terms of the contract. Regular checks on encrypted data and investment in robust firewalls can further protect your trade secrets.
This myth about offshore outsourcing risks can be debunked by taking appropriate measures to ensure data security, just as you would with your in-house team.
Offshore custom software development has gained significant popularity due to its impact on software product quality and labor cost differences. However, despite the IT industry accounting for over 54% of the total offshoring market, it faces several accusations. Misconceptions have emerged as a result of past instances of low-quality code, project failures, and inefficient offshore partnerships.
While these misconceptions have deterred many companies from considering offshore development, it is crucial to be aware of these myths. Understanding how offshore partners invest and strive to deliver high-quality results at a reduced cost is key to unlocking the numerous benefits that offshoring offers.
By dispelling these myths and embracing the potential of software development, organizations can tap into cost savings, access top talent, and achieve successful outcomes. It is essential to recognize the efforts made by offshore teams in ensuring quality and to leverage their expertise to drive business growth.