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How You Can Save IT Project Budget By Using Offshore Teams?

Published: April 20, 2021
How You Can Save IT Project Budget By Using Offshore Teams

Ever since the IT world discovered the concept of offshore development, IT firms in the West have managed to scale extensively by establishing their development centers in countries from Eastern Europe, South Asia, and the South American region.

The reason why Remote Software Project Development Services is growing at such a rapid pace is “Cost Saving.”

However, there are still many IT firms that resist going offshore and have so many doubts about making an investment to hire offshore development teams. Let us quickly dig down on these queries and find out how hiring offshore teams can help IT giants to save project budgets.

Before we jump on finding how offshore teams can help save money, let’s find out why IT project budget overruns are so common?

According to a research made by McKinsey, 66 percent of all IT projects go off their budget causing over expenses. These figures hold the account for 2 out of 3 IT projects carried across the globe. Besides, 14 percent of total IT Projects fail, despite taking a toll on the budget.

But why do IT projects go off their budget? With over two decades of serving the IT industry and firms across the globe, we have come up with the following reasons:

1. Unrealistic and Inaccurate budget
2. Communication gaps due to time zone difference and cultural differences
3. Altering the scope of the project
4. Improper planning of requirements
5. Leadership and coordination gaps between in-house teams and offshore developers

And here comes the most important question, how remote software project development services can be used to close the financial gap and ensure better revenue?

First of all, when you are an offshore development company established in one of the most expensive software development cities in the world, off shoring your project could bring you cheaper resources, better quality, and an improved overall experience.

Besides, when you can find some of the best development talents from the world in a country like India, which offers 3-4 times cheaper services than the west, why wouldn’t any firm outsource their software development projects. Also, you get to save on any legality or invest in development space and avail added benefits.

How it makes sense?

When you choose to hire offshore development teams, it allows you to reduce your own payroll costs without losing the output quality of the project. Moreover, it does not leave any chances of overshooting your project budget and gives you access to a wider pool of talent from different geographical regions.

Besides, offshore teams are meant to meet your business goals while allowing you to generate profit by delivering on your requirements. This even helps the offshore teams to learn new skills and have a shared business vision that caters to profitability.

Conclusion

All in all, offshoring allows you to scale your team while giving you the chance to accommodate more clients. Also, it allows you to plan better and reduce budget overruns while ensuring a stronger foundation for your business.

If you are convinced with the above reasons on how Offshore Teams could help you save budget, there is a lot more to explore when it comes to offshore development than just the aforementioned facts.

Netsmartz can be your ultimate offshore development partner and help you meet your ROI goals. Drop us a line to know more.


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