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A Complete Guide to Offshore Development

29/02/2024

A Complete Guide to Offshore Development

 

Many companies often hire distributed dedicated teams from offshore development firms to augment their business. Using these models, firms can hire developers from overseas through a company. The offshore staff then work with your in-office team on projects. This method provides the business with a flexible workforce that comes at a cheaper cost with high expertise in their fields. By using offshore development models, businesses can save up to 50% in labor costs. In general, it is far more beneficial than simply hiring freelancers. 

 

Offshore Development Model Levels

 

Offshore development models are quickly changing and diversifying to adapt to the requirements of firms. Most offshore development firms categorize their services into levels. If your business is still wondering which model you should choose, consider sorting them through their levels to come to an effective decision. These levels are.

 

Low-Level Outsourcing

 

This is the cheapest model that offers attractive prices but the lowest engagement of the offshore companies. In this tier, low-level coding solutions and software are delivered. In a low-level offshore development model, product management is handled by the customer firm, while the quality assurance and development of the project are done by the offshoring firm. 

 

High-Level Outsourcing

 

This is a mid-tier model that offers more in-depth services and higher costs compared to low-level outsourcing. Mid-level services and solutions are provided by the developers in this tier. In this model, the solution, management of the project, and the test design are done by the offshoring company. On the other hand, the customer handles the testing and the quality assurance.

 

Complete Outsourcing

 

As the name suggests, in this offshore development model, the complete project is outsourced to the offshore team. It is the most expensive level but provides complete development of the project. The customer firm and the offshore team remain in contact to regularly discuss the progress and the changes needed, if any.

 

Offshore Development Model Services

 

The offshore development firms also provide specific services to meet the requirements of the company. The service model is categorized based on the type of work that the customer firm needs from its offshore team. 

 

Staff Augmentation

 

Staff augmentation is when a firm needs to add to the strength of their in-office staff with offshore developers to perform simple routine tasks. Staff augmentation is usually done when a firm needs staff quickly to get things done. The customer firm manages the developers directly. While augmented staff does not have a lot of freedom to come up with their own ideas, they also do not have a lot of responsibilities for the project. Here the leadership is given to the local staff of the company. Augmented staff usually deals with things like prototyping, routine development, and testing. 

 

Project-Based

 

In this offshore development model, the responsibility for the entire project is given to the offshore team. It is great for firms who are on a limited budget and time and need to do a medium to low complexity project. It is perfect for projects with precise requirements that will not undergo changes and need to be done within a timeframe. It might be better to go with another model if your firm thinks the project might need a lot of changes during development.

 

Offshore Development Center

 

This model is for long-term projects that have a lot of work. It is best suited for high complexity projects that will be in service for a long time. It allows the customer firm to reduce costs while maintaining the quality of the project. In this model, a highly-skilled, dedicated team is reserved for the project. They constantly manage the project independently and are responsible for its day-to-day maintenance. 

 

What are the benefits of offshore development?

 

Offshoring your staff has a ton of mutual benefits. Normally businesses in developed countries are the ones doing most of the outsourcing. This allows them to get great services while the developers get more pay than they would make working for local firms. Of course, there are many other benefits too.

 

 

  • Cost-efficiency: A significant amount of a company’s finances go into staff salaries. When you delegate your project to an offshore development firm, your firm saves a lot in labor costs. As a general rule, offshore teams are 2-3 times cheaper than local company staff. 

 

  • Flexibility: Going for an offshore development model gives you a lot of flexibility over your staff. You can add or reduce your workers involved in the project anytime. Further, you can ask for changes in the project anytime. It is also highly convenient as your offshore team is most likely in a different time zone, which means almost 24/7 work on it in some models.

 

  • Quality of service: Offshore workers are highly experienced and experts in their fields. Not only will they be able to make your project a resounding success, but they will also make it scalable and future-proof. By leveraging their abilities, you will be able to create a project that matches your standards and requirements. 

 

  • Diverse approach: Different perspectives and points of view are crucial to innovation. By using an offshore development model, you will be able to see the perspective of a team that thinks entirely differently from your own. Such views are very valuable, especially when the target audience is international. 

 

Focaloid for Offshore Development Models

 

An offshore development team is a true extension of your local team. WIth Focaloid, a company providing state-of-the-art digital solutions, hire offshore staff as per your requirement. Our highly experienced staff follows the best industry practices to deliver the best results. We provide highly skilled workers across a range of skill sets, from UI/UX designers to quality analysts. Our team models include specific engineers and fully dedicated teams. Set up a team with Focaloid and enjoy the benefits of high performance from our staff.

 

 

Conclusion

 

Offshore development models can be highly beneficial to your firm if you choose the right model that matches your requirements and needs. It is cost-effective and easy to implement. As there are several offshore development models, even small firms can find options that suit them best. By leveraging the pros of the offshore development models, you can take your company output to the next level while easily reeling in the costs.  

Published:29/02/2024

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