Offshore Software Development

Offshore software development

Offshore software development means delegating the responsibility of software development to an external organization overseas that has core competency within that area.

Globally IT (Information Technology) is one of the most widely outsourced sectors in current industrial scenario. Supported by statistics (National Association for Software and Service Companies, India), there has been a 34% increase in software services export from India.

Benefits of offshore software development

Offshore software development has a number of benefits to its credit. Some of them are:

• Save on resources and insurance: Cutthroat competition today makes it imperative for any organization to optimize its resource utilization and minimize on risks. offshore software development of work facilitates revitalized utilization of existing resources and helps an organization concentrate on its strengths.
• Risk sharing: Offshore software development enables risk and responsibility sharing.
• Improve efficiency: Focusing on core business helps improve efficiency. With the help of offshore software development, an organization can concentrate on its core competencies while an offshore firm handles other processes.
• Save on labor cost and training: Offshore software development helps in a major reduction in the need to hire and train human resources.

Why India? - Epicenter of Offshore Outsourcing

India is at the forefront of offshore software development with the IT industry growing exponentially. Some of the advantages of outsourcing to India are:

• Availability of resources: India has one of the world's best education system with a very emphasis on computer literacy. With English as the second mother tongue, India has abundant highly skilled English speaking IT professionals across all domains.
• Cheaper resources: The value of Indian currency is much lower than that of most developed nations. This introduces a large gap between the cost of resources between India and most developed nations.
• Favorable government policies: Indian government has constantly worked towards supporting Information Technology and has laid down IT outsourcing favorable policies. In fact, India is one of the few countries to have an Information Technology ministry to ensure IT growth and welfare. In fact, India is one of the twelve nations to have special cyber laws to curb on Internet based crime.

Cost of offshore software development

Like any other business process, offshore software development has a cost associated with it. The cost varies with the nature of work outsourced, however, some of the not-so-transparent costs associated with IT outsourcing are:

• Selecting an offshore software development partner: This is the first step and perhaps the most important of all. It includes preparation of preliminary documents like RFP (Request for Proposal), reviewing responses received on RFP (Request for Proposal) by different outsourcing firms, negotiations and other legal formalities.
• Delegation of work: After selecting a suitable IT outsourcing company or service provider for outsourcing work, an important factor that contributes to the cost of outsourcing is the delegation of work. Cultural differences, infrastructural differences and accessibility add to the cost of IT outsourcing:
  • Cultural differences: These differences are raised by the fact that people are not alike everywhere. Across the nations different languages are used and different traditions are followed. Cost is directly proportional to the level of differences you may face as it may lead to poor communication or hindrances in expression. Considering this factor at the time of vendor selection can save on this cost drastically.
  • Infrastructural differences: Outsourcing work to a company might involve cost of upgrading their resources for seamless transition of work and better accessibility.
• Other overheads: Offshore software development comes with other overheads like the cost to manage the contract and to keep a track on the work progress, verify invoices and timesheet audit.

Vinove as an offshore software development company

Vinove is a premium offshore software development company with a dedicated development center in New Delhi, India. Professionals at Vinove help you identify what and how you could go about outsourcing your IT requirements, making the process much smoother and seamless. With top of the line infrastructure and a highly skilled team, Vinove could be your next offshore IT outsourcing partner.

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