What is Offshore Software Development and How to Manage it / Redwerk blog

Offshore software development makes sense, especially for smaller companies, because developing a product takes a lot of work. In-house teams are difficult to manage without an infusion of capital to cover costs. Deadlines are often missed and new features are slow to be implemented when small in-house teams are working tirelessly to push a product. Offshore software development can help alleviate many drawbacks in the creation process.

What is Offshore Software Development?

Offshore development is a simple concept: you outsource the work to a third-party developer. Product creation can happen on many different levels:

  • Mobile apps
  • Web development
  • Web application creation
  • Other services

Outsourcing can occur in one of two ways:

  • Individual: An individual with a specialized skillset fulfills your company’s needs.
  • Companies: A company, specializing in software creation, will deploy a team to meet the client’s needs.

Teams allow for a wider range of expertise during the development lifecycle, efficiency and cost savings.

Onshore, Nearshore, Offshore software development

Companies outsource their development needs to: reach deadlines, reduce costs and work with professionals that have a different skillset to enhance their products.

Pros and Cons of Offshore Software Development

Companies or individuals interested in offshore software development need to weigh the pros and cons of hiring an offshore developer:

Pros and cons of offshore software development - infographic by Redwerk

Offshore Software Development Trends

Offshore software developers are advancing their skills and following best practices. The industry, for a long time, included short-term relationships, which led to a disconnect between developers and businesses.
Industry trends include:

Best Practices in Offshore Software Development

Businesses can do a lot to ensure that they give developers all they need to produce an efficient, robust product. Companies wanting to get the most out of their outsourcing ought to:

  1. Define what is required of the outsourcing team.
  2. Choose a team that is within budget, offers adequate team sizing, communicates and is well-rated in the community.
  3. Monitor the development process and request work reports.
  4. Maintain close communication with the team.
  5. Sign a contract as well as a non-disclosure form and a right to use the source code provided.

Providing in-depth, detailed instructions and maintaining a close relationship with the team will provide a streamlined approach to development.

Offshore software development - reasons and goals / Infographic by Redwerk

As a whole, the following countries are the top European outsourced countries:

  • Ukraine
  • Poland
  • Bulgaria
  • Romania
  • Latvia
  • Turkey
  • Germany

Statistics from 2012 show that the industry growth for software outsourcing rose from $268 billion to $325 billion. Surveys found 2 out of 5 CIO’s planned to outsource their mobile and web needs in 2013.

Outsourcing will become an even more popular option as offshore teams learn to meet the cultural needs of clients.

How to Manage Offshore Software Development

A major aspect of managing an offshore team is to ensure effective management policies. Clients must provide the following to manage the process properly:

  1. Assign an experienced project manager to the team. The project manager will oversee all of the communication with the outsourced workers.
  2. Communication must be established to keep clear communication between clients and development teams. Tools can be used, such as Trello or Basecamp, for communication and project management.
  3. Deadlines and goals must be set for the project.
  4. Monitoring of work must be done daily to meet deadlines.

Proper monitoring and communication is key when outsourcing any form of work.

How to Work with Offshore Software Development

Working with an outsourcing company is an evolution as you learn the strengths, weaknesses and needs of a team. The process requires an in-depth approach from the client to create a team of qualified programmers that are effective and efficient.

Keys to success when working with an offshore team are:

  • Communication channels must be defined and open to all parties
  • Goals and milestones must be set and monitored
  • Progress must be monitored at all times
  • Daily and weekly reports should be requested

Strict management of the outsourced team is the best option to ensure a smooth process.

Offshore Software Development Costs

Project estimation is based on the scope of the project. Outsourcing companies will use the specifications provided by the client to determine how many hours a project will take to complete.

Different specialties needed to complete the project must also be built into the cost.
If a security expert is needed to be hired to ensure the best software practices are used to combat common security exploits, this will add to the cost of the project.
Hourly rates vary greatly from country-to-country, with the following being the “averages:”

Offshore software development costs; Rates comparison by country / Infographic by Redwerk

Clients must factor in the costs of managing the team or hiring a manager to help with the management process.

The Benefits of Outsourcing to Ukraine

Ukraine is becoming a hub for software development. There are 90,000 IT professionals in the country. Software engineering is slated to rise to over 200,000 professionals by 2020. Software developers in Ukraine have experience in the industry, with 19% of programmers having 7+ years of experience in development.
Clients outsourcing to Ukraine note:

  • Diverse, qualified IT specialists
  • High level of education
  • Fewer time zone issues
  • Affordable prices
  • Robust, growing IT community
  • Ideal conditions for start-ups

Ukraine offers a growing IT community, with highly skilled software developers that are able to meet the proficiency demands of clients.

About Redwerk

Redwerk is an offshore software development company. We’ve been delivering web, mobile and desktop solutions for the projects of the most different scale since 2005. We work a lot with the clients in Europe and North America and our strategic location can almost nullify any difference in the time zones. Our managers are always in touch with you, so you will always get timely feedback, be able to send corrections thus getting a quality product in time.

What is Offshore Software Development and How Does it Work?
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