Introduction
The need for software developers is rising. The tech industry needs streamlined solutions without emptying its pockets. Finding the right developers within their budget is the ultimate goal for any business. Offshore software developers help in this respect to provide efficiency and productivity without making it too expensive.
What Is Offshore Software Development?
Offshore software development is the same as everywhere else worldwide. It is software development through a remote location. The critical feature of offshore software developers is their location. If the location of the software developer is the US, they are supposed to be based onshore, irrespective of the state.
On the other hand, offshore software developers are separated from businesses through international boundaries. There can be a significant difference in time zones and offshore developer rates depending on where you are looking. Offshore software development is when a business hires developers not based in their country. It is a type of outsourcing outside the country.
While typically, outsourcing does not depend on geographical location, offshore outsourcing does. Outsourcing requires another company or freelancer to fill in a position briefly or for a certain period without being an official employee of the hiring company. Offshore outsourcing works on the same principle. The only difference is that a company or freelancer can take up contract work anywhere around the world.
Importance Of Offshore Software Development
Whenever there is a chance of outsourcing, it is essential to consider the pros and cons. If outsourcing is a good deal for the company, different location and time zone does not remain a barrier. For any business, offshoring can prove to be a bargain because of the competency of the software developers.
Whenever any company hires a recruit, a significant amount of money goes into their training and initial orientation. The company can also suffer from new employees shifting jobs after working comparatively less time than expected. Outsourcing offshore software developers can mitigate these potential risks of hiring new employees.
Not only are offshore software developers very skilled, but they can also be accessible on the pocket. Outsourcing is especially helpful if the project will only last for a limited period. Apart from saving some money, you will also save time because you do not have to train anyone you hire on a contractual basis.
Even though different time zones seem like a deterrent, they can be easily managed. Maintaining open communication and consistency in the project management approach will help. The offshore developer rates may vary depending on location, but by the end of the day, your business will be walking away with a profit.
Why Should A Business Hire Offshore Software Developers?
A business should hire offshore software developers to streamline product delivery. It can also reduce operational costs. While paying a salary to offshore developers is a necessary cost, it will be significantly less than the cost of hiring a new employee.
Reduced Costs
The primary reason why many organizations consider outsourcing is to reduce their operating costs. There are numerous miscellaneous expenses that go into running a business. Therefore, it is important to consider alternatives that can reduce the overall costs and increase the profit margin.
Operational costs are related to all the expenditures a company undertakes for its daily functions. If the software developers are working remotely, the operational costs for the organization reduce by default. They do not require a computer setup at the workplace or any prerequisite training. While talking about expenditure, it is essential to mention the flexibility of offshore developer rates. Offshore outsourcing companies and freelancers are willing to negotiate and provide quality work.
Faster Results
The quality of the project matters, but so does the efficiency. The right software developers would deliver within deadlines without leaving room for mistakes. It is essential to focus on efficiency if you want to deliver faster in the market and gain a lead against the competition. In addition to the overall time reduction, offshore outsourcing helps with scalability.
Since they are familiar with the projects currently in demand in the industry, they know how to manage them best. For instance, they will likely know how many developers it would take to deliver a project on time. They can give you a realistic estimate that would save both time and money.
Trained Professionals
Rather than going through a training period and then learning the ropes, you can expect offshore software developers to be already familiar with the industry. In addition, they know how to work with the latest technologies, so the time taken for initiation also diminishes.
Suppose you are working on a project that requires expertise in multiple technologies. In that case, it would be better to hire an offshore team of professionals with diverse technical skills. While it may be challenging to put up a team such as that together by yourself on short notice, it is possible with offshore outsourcing. You can even have your pick of professionals based on their portfolio and your job description. It is easy enough to choose developers for one project and then move on to the next one.
Core Competencies
In addition to the efficiency of trained professionals, you would also get a chance to divert the resources of your company elsewhere. You can focus on core competencies and increase overall productivity. Every organization has a primary business objective that can get sidelined due to increased workload. However, it is easy to manage the workload with offshore outsourcing. Your core team can work on projects specifically for your company's objective. And outsourcing would allow you to branch off to new clients.
Cost To Consider For Hiring Offshore Software Developers
While hiring an employee is more expensive, the business will also incur some costs while hiring offshore software developers. While training is not a worry, some initial orientation may be necessary to get the new developers familiar with your work and quality standards.
Additionally, if you are planning on making offshore outsourcing a regular deal, you would also have to invest in a project management team to deal with your teams located in a different country. There may also be auxiliary or architecture costs that would need to be worked into the fee of the offshore developer rates. While considering costs, you can save a lot depending on where you choose your outsourcing team from.
Salaries For Offshore Software Developers
If we go by hourly rates, you can expect an expenditure of about 30-45 USD. After Asia, the rates rise to 35-50 USD in Eastern Europe. South America is relatively expensive, with hourly rates ranging from 30-60 USD.
The most expensive rates for offshore hiring of software developers are from North America. You can expect to pay around 75-150 USD per hour. It is followed by Western Europe, which has varying rates for outsourcing software developers. You can expect an hourly cost of 55-200 USD.
Hourly Rates For Offshore Outsourcing By Country
There are multiple countries famous for their workforce in the software development industry.
Estonia
The country has an arsenal of software developers and expects a larger influx in the coming years. It can be termed the future silicon valley of Europe. The average hourly rates you can expect from Estonian developers range from 20-50 USD
Portugal
Europe may be associated with higher prices, but Portugal would give you your money's worth. It is seeing a growing market in software development and provides developers who can think out of the box. The average hourly rates you can expect are also lower than those of major countries like France or England. You can expect to pay around 20-55 USD.
Singapore
Singapore is emerging in the industry with a more significant number of contributors to the industry than before. While cultural barriers may pose a challenge, it is worth considering the talent Singapore has to offer. The average rates you can expect are 25-60 USD.
India
India has a vast base of software developers and engineers. There are new professionals joining the industry every year. The country offers both junior and senior developers depending on their relative expertise. The software developer rates would vary accordingly. You can expect to pay as low as 15 USD and as high as 60 USD depending on the developer you are looking for.
Brazil
Brazil has a significant fraction of IT professionals. It dominates the Latin American tech industry. Therefore, finding software developers for hourly rates ranging from 10-40 USD is easy.
Points To Consider While Hiring Offshore Software Developers
Any hire, albeit permanent or temporary, needs thought. Before any business can choose the right software developers, they would have to be sure that it is a worthwhile business decision. When a business hires a new offshore software development team, consider how that addition will impact the existing resources and business turnover.
Consider The Quality
Technical expertise is essential when considering any new hire for a new project. The quality standards of your company are in line with the product you provide to the client. To maintain a uniform quality across the entire project, the expectations of the organization should be communicated clearly. It may be helpful to write down all the expectations and responsibilities in one place. Having a certain architectural standard will help keep the quality in check. Maintaining stringent quality control will help you get the best out of the offshore hires.
Maintaining Communication
Establishing a clear channel of communication is essential for streamlining progress. If state lines and time zones separate you, keeping all the communication lines vital is critical. For example, regularly conducting meetings would help remotely manage the team's progress. Additionally, it is vital to make communication two-way. One should understand the developer side to make any necessary changes.
Sign Contracts
It is best to sign legally binding contracts that protect you from exploitation. Get an NDA signed digitally by the freelancing developers or offshore team. Legal formalities are a must before beginning your project. It is important to protect your interests on a stronger base than goodwill. Also ensure to factor in intellectual property rights in any contract you are drafting. Confidential information needs protection, and so does the reputation of your company.
Negotiate The Right Price
The offshore developer rates are to be lower than that of an onshore team. Yet, make sure you are getting the worth of your money. Initiating a negotiation means delegation of duties according to the fee paid. Thus, make sure that you are not lowering a rate that is already low. Yet, also take care to cover all your needs in the quoted price.
The Takeaway
Hiring software developers, as is outsourcing, is an integral part of any company. Every organization should know how to streamline its project delivery and reduce expenditure. Considering outsourcing projects to trained professionals based remotely is a calculated decision. It can help the company reduce costs without reducing quality or efficiency. Countries such as Estonia, Singapore, and India have many professionals ready. you can hire them to step into the role of software developers for your specialized projects.
Frequently Asked Questions (FAQs)
Where Can You Hire The Least Expensive Offshore Software Developers?
You can hire the least expensive offshore software developers depending on their expertise. Junior developers are the cheapest, while senior developers may be priced on the higher end. Countries like Brazil, Portugal, and Estonia are where you can find cheaper options for offshore outsourcing.
How Much Do You Pay Indian Software Developers For Offshore Outsourcing?
You can expect to pay significantly less to Indian software developers while offshoring. The average hourly rates for offshore outsourcing to India can fall in the range of 5-10 USD. Other South Asian countries like Nepal and Bangladesh may offer even cheaper rates.
Why Is It Cheaper To Do Offshore Outsourcing?
It is cheaper to do offshore outsourcing because you can get trained professionals at a reduced cost. You can save on operational costs and also focus on your core competencies. It can help deliver projects faster without compromising on quality.
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