How to reduce cost with offshore outsourcing?
Introduction
Offshore outsourcing is the process by which companies outsource their work, so they don’t have to hire permanent people or go through the hassle of hiring and retaining staff. It is also a great option to outsource when you don’t need to maintain the staff once the project is over. Most companies decide to outsource their projects because there are several benefits attached to them. Let’s check what they are!
The benefits of outsourcing
The very purpose of outsourcing is to have a great team at reduced rates to do your software development projects. There are software development companies located in countries like Asia and the UK that provide great teams of people.
Reduce costs, of course
Sometimes, companies decide to outsource their entire project, and sometimes only a part of it. It all depends on the company in question. Certain companies prefer developing their applications with their in-house team and then outsourcing the testing part. Most of the time, startups and small to medium range companies depend on the entire process of software development right from ideation to development, testing and finally, launching the app.
Be more flexible
With an in-house team, you know the skills and limitations of your team. But when you outsource the project or a part of the project to the team, you know it will be in the hands of experts. It is possible to hire software developers anytime you need and retain them in a contract or until the project is over.
No need to go over the hassle of hiring, retaining new employees, and then having to train them to do your project. There is no need to pay any employee benefits because they are not your staff. The freelance developers can be hired for the course of the project and then dispersed once the project is over.
Faster app development
With the software development company providing you with the team, you don’t have to go through the hassle of hiring, onboarding and training. You will also get a full-time dedicated team just for that project. Whereas, with your in-house team, the chances that they get distracted with other projects is higher.
Offshore outsourcing itself falls into three major categories – Software outsourcing, Infrastructure and technology Outsourcing and Business Process Outsourcing or BPO.
Access to world class talent
With outsourcing, you no longer have to be content with limited physical boundaries of talent. Since you can hire anyone from any part of the world and gain benefit from their expertise and knowledge. There is no limitation to whom you can hire for the project, provided they are paid well. It would be greatly helpful when you are ready to scale. With the right people on the team, you can bring domain knowledge to the table.
Scale your project
If you already have an app that’s doing pretty well, and you need to scale it up with more advanced features, then outsourcing the project would be wiser. Especially, if your in-house team is busy with other projects, or if you don’t have a team at all.
Saving on outsourcing
So now that you have decided to outsource your software development projects to countries that specialise in accepting such projects, it would be good to know how that it can be cost-saving and effective for you in the long run.
Check out these tips to save money on outsourcing
Since you have decided to outsource your work, you need it to be successful, in terms of financial benefit, work quality and time advantage. Here’s how you can do that:
Technology to train and brief the team
Thanks to innovative technology and various online meeting software, you don’t have to travel halfway across the world to brief the team on the new project. This is a huge time and money saver. With online tutorials, presentations and webinars, you can brief them, and at the same time, monitor the work, and keep track of how far they have accomplished. Someone in your in-house team can keep the communication stream open all the time.
Hire only the key people in the beginning
Rather than hiring an entire team right from the beginning, you can start by taking it slow. Hire only an integral part of the offshore team in the beginning and watch how that goes. Eventually, the experienced people in the outsourced team can train the new people when you are ready to take them and absorb them into the team. That way, you can keep the costs in check. And when the projects grow, and you need more people to support the key people in the team, you can hire more.
Understand what kind of prevention technology they use
Before choosing your favourite outsourcing team from the software development company, have a chat with them, and find out what strategies they employ to prevent leakage, and what they do to protect critical information. How do they prevent security hacks from happening, how do they vet the software developers, testers and quality analysts before taking them on? Never outsource the work without analysing these factors, because there have been instances of thefts and hacks and losing of confidential information. It always pays to be careful.
The software development company provides all the infrastructure
It is always best to partner with an established software development team because they will always have updated infrastructure, so you don’t have to provide any of your own. They will also have all the required licences like hardware licence, software licence, IT system maintenance, other utilities etc. You don’t have to rent any office space or equipment because that will all be provided by the company. So make sure the company you partner with has all the facilities and they have the latest ones too, including the infrastructure, licences etc.
Recognising and working towards outsourcing best practices
With outsourcing best practices, it is possible to reach your objectives faster, and in a much easier fashion. One of the first rules of successful outsourcing is, of course, finding the right partner. With the right partner on board you can focus on your business’s core competencies. It allows you to invest in better value-driven activities. You will be able to align the business objectives with your outsourcing goals.
Conclusion
Outsourcing intelligently can reduce the burden on the administration and management because they don’t have to be bothered with hiring and training new staff. Choosing the outsourced country is also a critical element because there are a lot of things to consider like timezones, language variations, cultural disparities etc.
Interesting Links:
What are the advantages and disadvantages of Offshore Outsourcing?
Offshore Outsourcing: Everything You Need to Know
Hi, my name is Rahil. I work at YUHIRO Global and I help web agencies and software companies from Europe to build developer teams in India.