This engagement model is designed to address the needs of clients who require highest levels of security or confidentiality in their offshore software outsourcing undertakings. In our world cost effectiveness simply means lower cost without compromising quality. Outsourcing app development companies have the most experienced developers at their disposal. They work on various projects so they’re experienced, flexible, and can easily build any app from scratch.

What is an offshore development model

The next step involves seeking potential vendors with the experience, skill sets, and capacity to handle such tasks. What’s equally important is for the vendor to demonstrate an adequate understanding of your business. This will help to ensure that the vendor stays close to your business goals when developing the software. Depending on the type of software you’re building, you may find it tough to find such expertise within the local candidates.

Can Hiring A Full

The table below represents a high-level contrast between a traditional outsourcing arrangement and an ODC arrangement. The table reflects how the customer-supplier relationship is affected and what are common scenarios. You will likely have others to add if you currently outsource at any scale but these are perhaps the most common contrasts when discussing an ODC. Keep in mind that some may liken this to a BOT model and while some ODC setups do transition to this, it is not necessary and can be quite expensive.

This helps you to focus only on your work as everything else is already taken care of. For clients looking for a less expensive option, compared to onshore, we would recommend offshore development with a local project manager. As a new entrepreneur, managing a team and creating your product can be confusing. With a local product manager, you can ensure that your thoughts and ideas will be correctly communicated to the offshore team and that your project will be kept on schedule. Cultural differences can be a real challenge when you’re hiring an offshore app development company. When speaking about software development agencies from Eastern Europe, there won’t be significant cultural barriers.

  • Keeping our architects in close proximity to the developers and testers ensures quality of deliverables while keeping the overall cost of delivery reasonable.
  • When negotiating the project’s cost, ensure that the offshore development company outlines the services and infrastructure covered by the total costs and those that are not.
  • Therefore, the total price must include the cost of using the company’s infrastructure too.
  • Beware that while you shouldn’t go for the cheapest agency, expensiveness does not equal quality too.
  • If so, the vendor may need to channel more resources to your project and this may increase the developer’s fees.

Time is a crucial factor here as startups are born in a cut-throat competition setting. With a dedicated development team in place, you don’t have to invest time in project management https://globalcloudteam.com/ routines or other HR activities like employee retention. You also save time on training new employees as every outsourced employee already possesses the required skills.

Offshore development services aren’t limited to building an app from scratch. Developers may provide specific services such as back-end development, UI/UX design, or app development. Offshore outsourcing gives access to a larger talent pool and lower rates when compared to the US or Canada. Another significant advantage of outsourcing software development services to an offshore company is uninterrupted workflows. Different time zones may burden work and communication, but when well-planned and organized, you won’t even notice any time differences.

It has competitive labor costs compared to other countries, a large pool of IT talents with foreign language proficiency, and open policies regarding foreign companies of the government. Understanding how to successfully outsource software development begins with identifying which model is perfect for your project. Talent crunch in developed Western nations has triggered a hunt for offshore software development companies in talent-rich, cost-efficient countries. However, you’ll need to be aware of the pros and cons of such an arrangement before contracting an offshore IT development agency. By 2021, global IT outsourcing is expected to be worth a staggering $413.7 billion in market revenue.

Define Where To Hire Offshore Development Team

Your list of needs and goals must be as exhaustive as possible, comprising every conceivable aspect of the project. Every decision made at this point must give you a clearer picture of how you want the project/product to turn out. You may not even need the whole team ready from the start of the project. Instead, you can bring in the professionals necessary at each stage of the process.

What is an offshore development model

You’ll need to scrutinize if the developers are heading in the right direction and provide actionable feedback accordingly. Proper communication is the key to seamless collaboration between an offshore IT vendor and its client. At Uptech, we use an array of communication tools, such as Slack, Jira, Zoom, Figma, and Miro to work closely with our clients.


These achievements speak volumes of how Uptech has collaborated well with our clients and built apps that are not only functional but also matched the user’s requirements. Project Scope – Offshore outsourcing service isn’t strictly limited to building the app. Vendors may also offer QA testing and post-release support but they are charged separately from development. Outsourcing proves to be a resilient activity amidst the global pandemic challenge, based on Deloitte’s 2020 Global Outsourcing Survey.

A detailed project plan comprising milestones, guidelines and schedules is evolved and customer’s approval is obtained. The customer retains control over the project through interaction over the Internet and regular conference calls, status reviews, project reports etc. DSS’s institutionalized and proven methodology ensures customer’s comfort level and successful delivery.

As such, it’s impossible to place an exact figure on building a particular software. However, experience tells us that building a software application in Ukraine will cost between $50,000 – $250,000. The ODC model is designed to be more cost-effective than simply outsourcing a project. The team is managed by a local Project Leader following the customer’s expectations and instructions. An ODC commercial structure means that the customer pays a fixed fee monthly with an agreement to deliver either one large project or a set of projects. In recent years, Vietnam has been the ideal destination for you to find offshore development team.

Why Vietnam For Software Outsourcing?

It will be complicated with an in-house team to scale your team or change the technology stack conforming to the project stage and scope. However, such changes are widespread for startup environments, so flexibility is crucial here. Nearshoring has lots of benefits to offer—minimal time differences and much shorter travel time in case you need to hold some face-to-face meetings. Usually companies are situated within the same time zone or have a 1-3 hour difference. If you are looking for the advantage of offshore development, without some of the major disadvantages, nearshore might be the right option for you.

By taking advantage of outsourcing, clients cut expenses and increase their workflow efficiency by allowing their employees to focus on their primary business needs. The main reason why companies opt for app development outsourcing over hiring and managing new in-house developers is to reduce expenses and save time. While offshore software development generally results in cost-saving, the resources used differ depending on the type of project.

The country’s IT outsourcing industry is also spurred by its lower salary rate and cultural similarity with US-based clients. Admittedly, working with an offshore development offshore software development benefits team isn’t simple but it is manageable if you’ve laid the proper foundation for it. The demand for software outsourcing is expected to grow in the coming years.

This model is generally used for developing, testing, and deploying software offshore with the benefit of having a core, dedicated team and infrastructure. In other words, the best ODC setups look more like employees vs. vendors. DSS carries out the entire software development at their own premises in India as per the functional requirements defined by the customer.

So, what’s the best country to turn to when you need an outsourced software development company? Given the global demand for IT expertise, many countries across the world are vying for a spot in the preferred outsourcing destination list. When you outsource to software developers in a country with a lower cost of living, you enjoy the immediate benefit of lower development costs without compromising on quality. One model that has been around for some time and is often overlooked is the Offshore Development Center or as it is affectionately called; ODC.

Why Should A Company Outsource App Development?

For example, if you’re working with software experts in China, you’ll need to deal with a 12 hours time difference. This is complicated by the fact that not many Chinese developers are fluent English speakers. Outsourcing still represents many challenges and moving parts that are typically not accounted for from the onset of an engagement. If it is an agency, visit their website to find a portfolio of past projects they have handled. For individual freelancers, request their resumes and personal portfolios too. IT outsourcing gives you access to a larger pool of talents than you would find onsite.

Other Options For Building A Digital Product

To get a better picture of how much you can save, consider how much a US startup has to pay for a developer’s salary. According to Glassdoor, the average monthly salary of a US software developer is $97,763 per year but the same position in Ukraine only brings home $36,000 annually. Well defined communication processes to exchange important and needed information with stakeholders, i.e., weekly reports, corporate social media platform and so on. We have received many compliments from our customers who were pleasantly surprised at the ease with which they were able to communicate with our architects the first time.

Increasing your team size takes time and is costly, and for short duration (3-6 months), it’s even more difficult as people want stability in life. Reducing your team size can have a demoralizing effect on the remaining team members. Close proximity of our architects and PMs to developers and testers means better oversight resulting in a better quality work product. A vast majority of offshore companies focus on certain business industries of technologies to deliver top-notch software solutions. It is important to remember when hiring offshore developers that just because they come at a lower cost, it doesn’t necessarily translate to a successful outcome.

Startups couldn’t afford to be burdened with a large team of developers on a monthly payroll, particularly if they’re idling. With offshoring, you’ll have the flexibility of expertise, the number of developers, and the tenure of the collaboration. Offshore software development is preferred as it delivers the following benefits to businesses. For example, Dollar Shave Club, which is based in the US, engaged our Ukrainian-based team to develop new features for its app. With Ukraine being an average of 7 hours ahead of the US, this engagement is considered offshore outsourcing. VFQ are three principles which form the approach to how we transform the way people and companies work.

If you take the time to map out your goals, research, and talk with developers, you can find an option that will put your product on the path to success. A local project manager can help guide you throughout the entire process and create a less stressful environment. Instead of stressing about the development, you can focus on marketing and brand identity to help your product grow. Talk to us to learn how you can leverage our team of highly skilled software developers for your startup. Our product development philosophies have attracted clients like Aspiration, a US-based fintech startup that provides alternative banking solutions with an app.

Angular Development Company In Vietnam

Technical Complexity – This is what we’ve mentioned above, which includes the app type, supported platforms, UI/UX requirements, back-end processing, and 3rd party integrations. Before you reach out to potential vendors, you need to define what services you’re after. Besides that, offshoring also means that you don’t need to end up with a monthly commitment of employees’ social benefits, insurance, and other perks. As would be expected, OSDC classic is the most common and also the cheapest of the three models followed by OSDC branded and finally the OSDC trust. A not-for-profit organization, IEEE is the world’s largest technical professional organization dedicated to advancing technology for the benefit of humanity.

Our architects all have more than ten years of software development experience with advanced degrees in Computer Science or equivalent. Keeping our architects in close proximity to the developers and testers ensures quality of deliverables while keeping the overall cost of delivery reasonable. Nowadays, Eastern Europe tops the outsourcing market, providing quality app development services for a reasonable price. Outsourcing is the fastest way to get your mobile application or business software developed. This is when a company hires external resources to handle certain app development functions. India’s reputation as the top outsourcing country in Asia is strengthened by its 5,000,000+ software developers.

Aspiration not only allows its users to manage financial transactions but invest with the app. Based on my experience working with a diverse range of clients, I can vouch that the secret recipe to offshoring success is the amazing teamwork between the vendor and client. In short, you’ll need to work in sync with the outsourced developers as if they’re part of your team. Compared to managing an in-house team, you have no control on how the external vendor is developing the software. Neither do you have authority on how the vendor is managing sensitive information and how they keep their developers motivated towards a common goal.