10 Things you must know about Offshore Developers 2022

A majority of companies have previously relied on outsourcing companies to provide the talent. Over the past few years, more and more companies have realized the benefits of setting up offshore software development centers. 

Outsourcing to offshore locations is on the rise across the globe. Over the past few years, offshore developers have become increasingly popular. Nowadays, companies outsource their work for various reasons, such as saving costs, gaining access to top skills, and enjoying flexibility.

Do you have any idea why this might be happening? Working with an offshore team has countless benefits, from a lower cost of hiring developers to access a larger talent pool.

Have you ever considered offshore development and now want to know more about offshore developers? Are you familiar with some offshore developer facts?

We've got you covered!

This article will discuss offshore development, the factors to consider before hiring offshore developers, and their costs.

What is Offshore Development?

Offshore software development, also referred to as "offshoring," is the process of hiring a third-party vendor in a different nation to develop software or applications.

Generally, offshore refers to a situation with a significant time zone difference between the customer's and the offshore developer's locations.

As a result, these companies establish an overseas office and hire a specialized software development team.

Several IT giants have their R&D centers in Bangalore, the Silicon Valley of Asia, including Google, Apple, and Microsoft.

Startups can gain several advantages through offshore software development, including lower costs and increased efficiency. 

Developing an application from scratch is only a part of the range of offshore software development services. Offshore software development can benefit entrepreneurs and startups in numerous ways!

Who are Offshore Developers?

Due to COVID-19, global IT service expenditure will reach around 1.2 trillion US dollars in 2022, representing an 11.2% increase over 2020.

In order to save money, optimize their product development processes, and achieve cost savings, many companies are moving their software development activities offshore. 

Using offshore outsourcing provided access to a broader pool of tech talent due to the market's high demand for experienced offshore developers. 

Generally, offshore developers specialize in specific areas, such as app development, UI/UX design, or backend programming.

The advantage of hiring offshore developers is that startups can build a high-quality MVP while saving time and money. Furthermore, it allows startups to create new features, conduct experiments, and work on their backlog without worrying about human resources. 

10 Things To Know About Offshore Developers

Below are the top 10 points to consider before employing offshore developers for your software development.

1. Economical Approach

The Quartz report states that 46% of startups fail during their initial stages. Offshore developers won't put the startup in such a bind. 

Hiring offshore developers means one doesn't have to spend money on overhead costs. Instead, they can invest it in the growth of their business.

2. Enhanced Quality and Productivity

Offshore developers cut costs and shorten development times by improving the development process. 

As a result, there is no need to spend additional time on employee training when someone chooses to pursue software development with an offshore developer on their side. 

This way, they can concentrate on their main corporate goals.

3. Seize Potential Market Opportunities

As new technologies emerge, companies strive to establish their presence before competitors. 

To gain an edge over their competitors, startups should hire offshore developers if they don't have one already.

4. Scaling a business.

Growth is a crucial part of an expansion. Hiring an offshore developer enables operational flexibility and gives the company a competitive edge by assisting in optimizing the business process, entering international markets, or scaling up/down effectively.

5. Meeting Customer Expectations

One can meet their requirements without increasing operational costs by hiring offshore developers from an offshore location and collaborating with an existing local team.

6. Enhanced Productivity 

In addition to outsourcing the tasks or projects, it is also advisable to outsource the core competencies.

Hiring offshore developers would simplify the process and ensure the tasks are completed on time.

7. Diverse Abilities 

In the context of the IT industry specifically, few companies have technology specializations. Outsourcing with a solid grasp of an offshore developer can assist the business in setting up and managing the project.

8. Teamwork

Employing a professional offshore developer allows a corporation to direct its workforce in accordance with its needs and expectations. 

They can obtain offshore developers for hire through various online freelance sites in addition to existing groups.

9. Provide Expertise

There are several benefits of working with an offshore developer who can share cultural insights and maintain an open communication channel with customers that extends beyond technical expertise. 

Offshore developers can enhance a software development team's ability to understand the customer's needs and solve technical issues by providing insight into local conditions.

10. No Work Barrier

Despite efforts to eliminate workspace barriers, it isn't easy to ensure that local clients and offshore developers can communicate effectively. 

To resolve this issue, businesses should employ a corporate culture that embraces offshore developers from all regions, fosters learning and eliminates workplace barriers.

Suggested Reading: Nearshore vs offshore: The Ultimate Guide 2023

Cost of Hiring Offshore Developers

Outsourcing software development is becoming more popular because companies can find a more affordable talent pool offshore. 

There is, however, more to making a country an ideal location than just low offshore developer rates.

The living standard in Asian countries is relatively low compared to other continents due to the high population density. As a result of this influence, offshore developers charge as low as USD 18-25/hour.

Eastern Europe has a high density of software developers—about 1.5 per 100 people. Eastern European offshore developers typically charge between USD 25-30 per hour.

The concept of offshore software development in Latin America is relatively new. Consequently, hiring an offshore developer in Latin America generally costs between USD 30-50 per hour.

Africa's youthful population is one of the primary reasons for establishing an IT culture. It is one of the preferred outsourcing destinations because it offers offshore software developer rates of USD 20-40 per hour.

Conclusion

Globalization and technological advancement have paved the way for many companies to become successful through offshore software development.

As IT advances, finding offshore developers with the necessary expertise to work on software development projects has become increasingly difficult. Thus, many tech companies have decided to establish offshore development centers. 

It is estimated that the worldwide IT outsourcing market will generate $413.7 billion in revenue by 2023.

In order to control costs and maximize this popular method of collaboration, businesses are starting to hire offshore developers.

The benefits of hiring offshore developers include scaling your business, gaining access to different kinds of talent, increasing productivity, and saving money. Additionally, it helps you eliminate the challenges and hurdles associated with managing an in-house team.

In summary, it is reasonable to say that, nowadays, employing offshore developers can help your business in increasing its productivity.

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Frequently Asked Questions (FAQs)

What does an offshore developer do?

An offshore developer is a software developer or programmer who works remotely for a company located in another country. 

They are responsible for designing, coding, and testing software applications, as well as providing ongoing support and maintenance.

What is offshore development?

Offshore development refers to the practice of outsourcing software development tasks to a team or individual located in a different country. 

Companies choose offshore development to access a larger talent pool, minimize costs, and leverage different time zones for continuous development.

How do I find an offshore developer?

To find an offshore developer, you can use online platforms for freelancers and remote workers like Upwork, Freelancer, or Toptal, or you can use platforms like AppsRhino for hiring on-demand developers.

How to hire an offshore developer for startups?

When hiring an offshore developer for startups, define your project requirements, create a detailed job description, and post it on relevant job boards or platforms. 

Screen candidates carefully, conduct video interviews, and assess their technical skills and cultural fit. Finally, negotiate rates, sign a contract, and monitor progress closely.

What skills do you need to work offshore?

To work offshore as a developer, you need strong technical skills in programming languages, frameworks, and tools relevant to your domain. 

Besides technical skills, good communication, time management, adaptability, and cultural understanding are also essential to succeed in working remotely with offshore teams.