Little Known Benefits of an Offshore Development Team

.
August 18, 2023
IT Outsourcing

Offshore development teams are becoming more and more in demand. Why? Because businesses have realized that they can get things done faster and easier while saving costs simultaneously. Many individuals may disagree with this because they have had negative experiences working with offshore development teams. On the other hand, there are some positive testimonies out there.

This all depends on the hiring process and a handful of other things to consider. Regardless of your experience working with an offshore development team, you cannot deny the numerous benefits they bring to companies everywhere. This article will discuss offshore development teams and why companies opt for them. Let’s dive in.

What is an Offshore Development Team?

Offshore development is typically termed outsourcing and entails hiring a specialized group of individuals or a team to execute a particular project. However, it is slightly different from offshoring and involves hiring a specialized unit overseas to perform an in-house job or task. Contrary to popular opinion, the offshore team does not only cover software but also constitutes other industries such as customer support, product testing, and manufacturing. So why do companies decide to use offshore teams for some of their projects?

Why Do Companies Opt For Offshore Development?

Limited capacity

Sometimes, in business, there’s an immense amount of work coming in, but not enough in-house capability to complete it. So you don’t turn away these profit-making opportunities, companies may decide to send the work to an offshore development team. This gives companies the extra capacity without having to hire new employees.

New Projects

To develop and grow your business to the next level, you must continually undertake new projects. However, if you keep putting off new projects because of extra work, it may hinder growth. In that case, an offshore development team can quickly swoop in and help with extension builds, company website redesigns, etc.

Numerous Consultative Questions

If your business is continuously bombarded with questions you may not have all the answers to, you can hire offshore development teams to help take the reins off a little. They can deal with the nitty-gritty technology concepts while your company focuses on the consultative aspect of the business.

Inadequate Technical Skill

Every company has its strengths and weaknesses. Knowing what yours are is essential when streamlining activities to increase productivity better. If your company lacks some technical parts, you can bring in an offshore development team to ensure there is a good balance.  

Benefits Of Hiring An Offshore Development Team

Now that we are clear on the motivation to go offshore, let's look at the benefits of the offshore development center or team.

It is Cost-Effective

Hiring people overseas is much cheaper for companies in the Western world. For example, if a company in the U.K., U.S., or Canada wants to hire a local engineer or software developer, it’ll be expensive due to skill scarcity. However, if they source for these skills offshore, let’s say in The Philippines, they can find it at a marginally lower cost.

This is because India’s economy is not as big as its western counterparts, and the rupee is less than the dollar. As a result, you can obtain the same level of skill from India at a cheaper rate than locally in the U.S. That's why so many companies prefer to outsource some technical aspects of their business. It is budget-friendly.

Ability to Focus on Other Tasks

Most companies have numerous projects and are saddled with tight deadlines. Hiring an offshore software development team can help you focus on the core business functions while they work on technical projects. Most offshore development teams already come with project managers and developers. They will take that load off the company’s hand, freeing you to focus on other pertinent areas, such as business development and sales and marketing.

Access to Specialized Talents, Technologies, and Resources

Offshore development teams are a paradise of specialized skill, be it in software development, UX design, customer service, you name it. Hiring these teams entails bringing a bevy of highly trained professionals, with years of experience right to your doorstep. Because the mantra of these teams is “specialization,” they are equally up to date with the latest technology. Why? Because you cannot call yourself an expert if you have no idea about the latest and best resources to serve your client with.

Higher Quality of Service

This point is a consequence of access to specialized talents, technologies, and resources, as mentioned earlier. Since your offshore development team is chock full of professionals with the latest industry trends at their fingertips, you can be assured of obtaining high levels of quality service. This goes a long way to ensure the continued success of your organization.

Cultural Exposure

Hiring offshore teams allow companies to work with different people who bring in new perspectives. This is a plus when you think about the new work outlooks learned and implemented.

Hiring Full Time Employees is Unnecessary

Here, it all boils down to the cost-effectiveness when hiring an offshore development team. Some projects or contracts awarded may be short-term and will need the attention of a specialized team. Conducting local hiring may sometimes take weeks and can be a waste of time and money. Hiring an offshore development team means there's no need to concern yourself with employee benefits or maintaining full-time staff. Agree with the development team on the duration of the contract and how much it will cost.

Find out about the Top 23 offshore development companies to help in your hiring process if you decide to get one.

Author
Chief Technology Officer
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Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

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Cloud Employee is a fast-growing UK-managed offshore recruitment and staffing company in the Philippines. We tackle the growing global IT skills shortage by connecting tech companies based in Europe, the US, and Australia to our pool of expert software developers in the country.

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Lead/Senior Frontend Developer (UI/UX) - Brazil

Cloud Employee is a UK-owned business established eight years ago. We connect high-performing software engineer talent worldwide with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines and Brazil as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, career paths, individual training programs, and mentoring.

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Marketing Specialists

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Backend Developer (Python)

Cloud Employee, is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineer teams and grow their CV and skill-set.

We pride ourselves on being supportive and cutting-edge work that continuously invests in staff development, engagement and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Senior Full-Stack PHP Developer

Cloud Employee is a UK-owned Philippines business established 8 years ago. We connect high-performing software engineer talent in the Philippines with some of the world’s leading and most innovative tech companies. Developers join to work from the Philippines as part of international engineering teams and grow their CV and skill-set.

We pride ourselves on being a supportive and cutting-edge workplace that continuously invests in staff development, engagement, and well-being. We provide security, and career paths, along with individual training programs and mentoring.

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Little Known Benefits of an Offshore Development Team

February 16, 2024

Offshore development teams are becoming more and more in demand. Why? Because businesses have realized that they can get things done faster and easier while saving costs simultaneously. Many individuals may disagree with this because they have had negative experiences working with offshore development teams. On the other hand, there are some positive testimonies out there.

This all depends on the hiring process and a handful of other things to consider. Regardless of your experience working with an offshore development team, you cannot deny the numerous benefits they bring to companies everywhere. This article will discuss offshore development teams and why companies opt for them. Let’s dive in.

What is an Offshore Development Team?

Offshore development is typically termed outsourcing and entails hiring a specialized group of individuals or a team to execute a particular project. However, it is slightly different from offshoring and involves hiring a specialized unit overseas to perform an in-house job or task. Contrary to popular opinion, the offshore team does not only cover software but also constitutes other industries such as customer support, product testing, and manufacturing. So why do companies decide to use offshore teams for some of their projects?

Why Do Companies Opt For Offshore Development?

Limited capacity

Sometimes, in business, there’s an immense amount of work coming in, but not enough in-house capability to complete it. So you don’t turn away these profit-making opportunities, companies may decide to send the work to an offshore development team. This gives companies the extra capacity without having to hire new employees.

New Projects

To develop and grow your business to the next level, you must continually undertake new projects. However, if you keep putting off new projects because of extra work, it may hinder growth. In that case, an offshore development team can quickly swoop in and help with extension builds, company website redesigns, etc.

Numerous Consultative Questions

If your business is continuously bombarded with questions you may not have all the answers to, you can hire offshore development teams to help take the reins off a little. They can deal with the nitty-gritty technology concepts while your company focuses on the consultative aspect of the business.

Inadequate Technical Skill

Every company has its strengths and weaknesses. Knowing what yours are is essential when streamlining activities to increase productivity better. If your company lacks some technical parts, you can bring in an offshore development team to ensure there is a good balance.  

Benefits Of Hiring An Offshore Development Team

Now that we are clear on the motivation to go offshore, let's look at the benefits of the offshore development center or team.

It is Cost-Effective

Hiring people overseas is much cheaper for companies in the Western world. For example, if a company in the U.K., U.S., or Canada wants to hire a local engineer or software developer, it’ll be expensive due to skill scarcity. However, if they source for these skills offshore, let’s say in The Philippines, they can find it at a marginally lower cost.

This is because India’s economy is not as big as its western counterparts, and the rupee is less than the dollar. As a result, you can obtain the same level of skill from India at a cheaper rate than locally in the U.S. That's why so many companies prefer to outsource some technical aspects of their business. It is budget-friendly.

Ability to Focus on Other Tasks

Most companies have numerous projects and are saddled with tight deadlines. Hiring an offshore software development team can help you focus on the core business functions while they work on technical projects. Most offshore development teams already come with project managers and developers. They will take that load off the company’s hand, freeing you to focus on other pertinent areas, such as business development and sales and marketing.

Access to Specialized Talents, Technologies, and Resources

Offshore development teams are a paradise of specialized skill, be it in software development, UX design, customer service, you name it. Hiring these teams entails bringing a bevy of highly trained professionals, with years of experience right to your doorstep. Because the mantra of these teams is “specialization,” they are equally up to date with the latest technology. Why? Because you cannot call yourself an expert if you have no idea about the latest and best resources to serve your client with.

Higher Quality of Service

This point is a consequence of access to specialized talents, technologies, and resources, as mentioned earlier. Since your offshore development team is chock full of professionals with the latest industry trends at their fingertips, you can be assured of obtaining high levels of quality service. This goes a long way to ensure the continued success of your organization.

Cultural Exposure

Hiring offshore teams allow companies to work with different people who bring in new perspectives. This is a plus when you think about the new work outlooks learned and implemented.

Hiring Full Time Employees is Unnecessary

Here, it all boils down to the cost-effectiveness when hiring an offshore development team. Some projects or contracts awarded may be short-term and will need the attention of a specialized team. Conducting local hiring may sometimes take weeks and can be a waste of time and money. Hiring an offshore development team means there's no need to concern yourself with employee benefits or maintaining full-time staff. Agree with the development team on the duration of the contract and how much it will cost.

Find out about the Top 23 offshore development companies to help in your hiring process if you decide to get one.

Webflow
Python
MySQL
Node.js
Angular
Android
React
Php
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