Offshore Software Development Services Guide and Main Questions in 2024

Offshore software development services are currently most demanded among businesses. They give quick and easy access to the major benefits of technology and innovations, but what risks can they also carry?

In 2019, the global outsourcing market stood at $92.5 billion, with IT services amounting to $64.3 billion. This figure is expected to reach $409 billion by 2022. A huge surge in IT outsourcing is explained by the rapid development and demand for digital technologies. Both real-life and online companies are in need of digital transformation that allows for a better competitive edge and the upgrade of an existing business model. From mobile app development to cloud computing, IT providers across the globe are at the core of digital changes that are happening to both small firms and giant corporations.

Benefits

Offshore software development is generally viewed as a positive phenomenon. It is characterized by a number of advantages that any company can get by hiring a third-party development team:

• Cost savings. Offshore IT providers, namely from Asia and Eastern Europe, commonly charge less per hour of work. This difference will let you save on your spending and invest more resources in other areas of your business.
• Aptitude. Despite their far locations, offshore IT suppliers house numerous specialists that are ready to share their expertise to solve your business needs.
• No personnel expenses. Unlike an in-house team, outsourcing workers do not require regular payment and spare your company from the responsibility to provide for training, sick leave, vacation, and perks.

Risks

• Data vulnerability. You are bound to disclose part of your confidential information to third parties. Unless you are confident in your provider, there is a risk of data breach or scam.
• Communication gap. The lack of face-to-face communication that is frequently replaced by Skype calls or Slack messages which may lead to the misunderstanding that will impair the end results.

If these risks do not apply in your case, here are five simple rules you should follow in order to select the right IT company.

Quick Guide into How to Choose a Credible and Good IT Service Provider

1. Check technological expertise

First off, it is vital to make sure that the potential IT supplier has relevant certifications to deliver such services. Visit their web page to learn more about their credentials and history. Trustful companies generally tend to prove their expertise with an extended and multivariate portfolio and avoid using pretentious self-promotion on their website. Look into their previous projects and decide whether they look superb in a qualitative sense. If you are satisfied with the level of their web development services, it is time to take the next step.

2. Discuss the development process

At this point, you should focus on what you aspire to fulfill with the help of IT services. After communicating your needs, it is important to discuss each stage of the development process by clearly indicating what scope of work will be done and how many team members will be involved in it. Here, you can also clarify the number of scrum meetings or updates through which you will be able to monitor the workflow. In the end, you should have a detailed plan to which you both will stick afterward.

3. Agree on a deadline

It is the most significant part of any business deal that should be agreed to way before you shake hands. Since you are going to work with a remote supplier, it is advisable to set the date by which your project must be done. As an option, you can ask for some more intermediate deadlines on which you will check the progress and the quality of work being provided. Since no product can be developed without testing, it is good when you also have a couple of weeks before the final date during which you will be using the product to make sure it is glitch-free.

4. Define communication channels

Opt for the best communication channels that will suit both parties involved. Keep in mind your provider’s location and ask their representatives about the most suitable communication platform or messenger for them. In case they give you freedom of choice, it is your opportunity to offer the communication channel. It is best to select the platform that allows both of you to remain reachable anytime so that later any question will be addressed without difficulty. 

5. Sign the NDA

It is necessary to sign the Non-Disclosure Agreement (NDA), as this is the most universal contract in the IT world that is called to keep the project information confidential. By signing the NDA, you make sure that your data is secure and your relationship with the provider is based on mutual trust. Think about other variants only if you are sure that the NDA is a bad fit for your current case.

This brief guide is intended to help every business that looks for qualified advice in matters of IT consulting and IT services. Get the use of it and make the right decisions. 

About the Author:

Betty Lockwood is a journalist, mobile apps developer, fintech expert, and caring mother. She writes about informational technologies, news in the e-commerce world, traveling, and music events. Betty is also editor-in-chief at Computools. Follow Betty on Twitter.