What’s an Offshore Development Center and How Can They Help Save Your Business Finances?

Opting for offshore development is the right action when you have a million-dollar idea and are looking to build rapidly to get to market on a sustainable budget. Offshoring can cut down the cost of developing web, mobile or cloud based applications significantly.

Economic strains in the world and local economies force IT businesses to adopt cost-effective methods to optimise investments in human resources without compromising the skill sets required for best practices driven software development. Now, one would ask what offshore development centres are and how they help achieve this goal.

What are offshore development centers?

Offshore development centres are packed with teams of skilled and experienced professionals offshore, housed in a modern day IT infrastructure with appropriate security guidelines and support staff to help software engineers complete development procedures for their overseas customers. Typically, a project manager oversees and takes onus of the development activities.

Companies save between 50-60% on software production projects when they hire a team offshore as offshore development centers. For instance, if a US-based company hires an IT Consultancy cum Services company as an offshore develpment centre (ODC) based in India, then the new contrated ODC operates like a team extension of the main office In the US; however, the team follows a different time zone. Responsible offshore development centres make changes in their employee shifts to have time zone overlaps to maintain a daily contact between their teams and their customers’ teams.

Even companies such as Google, Microsoft, and Apple have offshore development centers in various nations across the globe. It’s also vital that you don’t confuse onshore, nearshore, and offshore development companies.

The difference between Onshore, Nearshore & Offshore

The primary difference between onshore, nearshore, and offshore development center services is based on their location.

Onshore

An onshore software center is where a company gets subcontracted work within the same country. For example, a company based in the UK can subcontract another company based in the UK.

Nearshore

On the other hand, a nearshore software outsourcing agency refers to a company located in a country nearby. For instance, a company based in the US can hire a nearshore company in Brazil as a subcontractor.

Offshore

Similarly, a dedicated offshore development center is one where the software development company is based further away in terms of location than a nearshore nation. For instance, a company based in Canada hires subcontractors based in India with an allocated infrastructure, working for the company in a different time zone.

Which Model is Best for Your Business?

The model you choose for your business heavily depends on your budgetary regulations, requirements, and time to market. If your business has no budget constraints and can afford top-quality developers onshore, go for an agency with onshore developers.

However, if your business has significant budget constraints and a shorter time to market but requires dedicated developers, you may prefer to go with an offshore development center.

On the other hand, if the focus is on completing work within a moderate budget and developers, you may want to opt for nearshore centres.

If you prefer to go the offshore route, here’s why you should go ahead!

Why Opt for an Offshore Development Firm?

Best Offshore Developers are in Demand.

Dedicated software developers offshore are resourceful, have the expertise, and are available at lower costs. Both onshore and offshore companies have a great talent pool, but we can eliminate onshore agencies due to their high prices. On the other hand, comparing both nearshore and offshore centers, offshore have better technology and workforce.

Flexible Offshore Developers

It’s only natural to assume that the vast time difference between onshore and offshore firms could pose many barriers to workflow. However, the time-zone change only ensures that work is being done at all day hours. It is highly efficient when offshore dedicated software developers can work in their time zone and get feedback from the home branch when they return to work the next day.

On the other hand, when clients require developers to work on Western time zones, they are equipped with flexible offshore developers who can efficiently work within their North American time zone.
These are the two fundamental reasons companies should opt for offshore development companies rather than nearshore or onshore firms.

Are you looking for an experienced, cost-effective offshore software development center with dedicated software developers? Contact us at Netsmartz for consultation.