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When to start offshore development?A question-guide for CEOs

Since the last decade or two, more and more businesses are going offshore and building a development team in countries like India, Ukraine, and The Philippines. While the benefits of offshoring, most notably cost, is enough for some companies to take the plunge, others aren’t quite sure if it’s the right business move.

Working with in-house teams vs. offshore outsourcing can be a tough debate in the business world. Weighing the pros and cons of either model and making a decision is time-consuming and laborious. As the experts in the offshoring industry, we’ve simplified this process for you.

In this blog post, we’ll discuss the different factors that a company must consider before going offshore, the pros and cons, and how to start offshore development.

First things first – Do you have enough in-house developers?

A study conducted in the US showed that by the year 2028, the acute shortage of talent will lead to a potential loss of over $454 billion in economic output. Another study conducted in the UK reported that the IT industry would need around 186,000 skilled recruits every year until 2024 to combat the talent shortage.

The reality is quite obvious. Companies in the West are finding it harder to find the right tech talents, and more often than not, they’re paying a heavy price for it. For many businesses, offering higher salary packages to attract engineering talent or invest in automation technology to overcome the demand may seem like a good solution. However, in today’s IT scenario, it’s just not enough.

do you have enough in house developers

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Employee wages account for more than half of the fixed costs of an average business in the West. When you hire expensive local talent, you’re looking at eye-watering salaries, a lengthy recruitment process, and a headache.

And that’s one of the main advantages of offshore development. You get to scale your development team quickly and save money, without compromising on your output quality. So, if you’re struggling to scale your team, you might want to start offshore development!

Can your in-house team undertake multiple projects at once?

Let’s consider an ideal scenario. Your business is growing like never before, and you’re receiving inquiries from potential clients every other day. You’re exactly where you want to be, but unfortunately, your in-house team is at its full capacity and cannot accommodate more projects. Instead of signing deals and growing your business, you’re turning profit-generating opportunities away.

Does that sound familiar?

If it does, then you’re in a great position to start offshore development. You’ll gain access to a massive talent pool of qualified engineers who can deliver top-quality products faster than you can think. And because they’re a value-adding extension of your business and not outsourced help, they’re in it for the long haul – just like you.

Your offshore team will either assist your in-house team with existing projects or take on new projects so you can scale your business. A fully-integrated, dedicated team that is laser-focused on building state-of-the-art software for your business is exactly what you’ll get.

Once you’ve determined if your business can benefit from starting offshore development, here’s the next question.

Should you make an offshore team by yourself?

Setting up an offshore development center

It’s quite easy to research offshore development and be confident that you can start offshore development all on your own, without the help of an offshore development company. After all, it’s just hiring a few developers in another country – right? Wrong.

When going offshore and setting up a team in a country that’s thousands of miles away, proper planning is crucial. One of the major reasons why companies partner with an offshore development company is so that they can focus on their core business. Working with an offshore partner means that you’ll find the right talent quicker, with considerably less hassle, and at a better value for money.

Your offshore development partner must be someone who knows the industry, the culture, and everything about it. They should be able to take care of the end-to-end recruitment process, setting up the office space, and all the administrative duties.

Ready to start offshore development with us?

At The Scalers, we implement a simple, scalable, and proven offshore development model that can work for businesses across the globe. If you want to know how we can do that for you, feel free to fill out the contact form below and we’ll get in touch with you!

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