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July 17, 2021

Intelligent Offshoring: The New Side Of Offshore Software Development

Today, more and more companies are choosing to offload their software development projects to human businesses. This is because hiring in-house employees upon the supply and demand for the skills and employees, potentially leading to skills shortage or wage increases. They realize that the business environment and the market, too, differs from one country to another. This is where offshoring, which is the practice of moving jobs to an offshore company in distant, low-wage countries, steps in. In a nutshell, offshore software development means that the software is developed by an outside party, rather than being developed by a company.

Offshoring software development has become very popular, particularly among western countries as it allows foreign companies to save money by avoiding the labor cost. Furthermore, they can have the software developers work on much more specialized tasks that can be completed faster than if developed in-house.

Intelligent Offshoring

The techno-digital landscape is undergoing a revolution, with Digitalization Blockchain Industry 4.0 Internet of Things, Technology, etc., all pointing towards one thing - INNOVATION. And that is where offshore software development is heading by taking on a new identity, that of "Intelligent offshoring".

Intelligent offshoring of software solutions allows companies to hire teams for custom software development projects. This not only cuts costs, but also provides a helping hand in incorporating innovation in their business. Intelligent offshoring has surfaced like a new kid at school, and already surpassed outsourcing. This indicates that the software industry has realized that cost is no longer the lone significant factor in the process.

However, Intelligent offshoring witnesses extreme shifts in the offshoring industry, especially considering the post-Covid business landscape. Thus, outsourcing of software development can be difficult, even as pioneering research and software development centers replace the back-office functions like administrative services.

Therefore, to help companies trying to shift their software development projects out of the country, we discuss some best practices.

Best Practices for Selecting an Offshore Software Development Company 

Performance Assessment

This is a strategy of intelligent offshoring which basically helps software developers match the expectations of the client and from the software development project. During this process, the performance assessment of a task given to the team happens in significant detail. This becomes a way to execute a systematic performance measure and detect any inefficiency.

Performance assessment also provides a good chance to rebuild structures, processes and procedures of an organization. This process makes funneling of the software developers easier because the expectations of the organizations clearly lay down their expectations on the table. The organizations can expect services beyond the cost factor and curtail discrepancies, resulting in quality software.

Understanding The Domestic Market

This point swings somewhere in between accepting the offshore team and understanding the local employment market. To minimize risks, employers need to scrutinize the job market thoroughly and understand what entices the employees. Favorable commuting facilities, pensions, tax benefits, paid leaves, etc., are factors which may motivate the employees. In-depth knowledge of these aspects can help an employer decide the kind of work worth delegating to an offshore team.

Respecting Work Culture

Deep knowledge about the work culture of any offshore team can help a company execute their projects effectively. Work culture comprehends a team's ability to cope up with deadlines, manage communications and understand the meaning of different words in different languages. Bridging potential differences in language, gaining insights on tasks managements and objectives achievement plan can reduce gnawing of information across the organization.

Innovation

Intelligent offshoring has also paved a way for product innovation rather than copying the current scenario of technology. This kind of offshoring focuses more on the relationship between the client and the software development company to execute a long-term business relation.

Today, both the client and the vendor work on creation and innovation together to develop a product which is exceptional and at par. Earlier, cost-saving and innovation were seen as different entities, but intelligent offshoring has overcome this difference through intimate relationships between client and vendor.

Examine Entire Value Chain

When a company offshores services, the cost-saving factor is consistently present during the entire project. However, cost saving at the expense of a weak project is not worthwhile.

This strategy needs longevity. The objectives of the businesses continuously develop and many a time they cannot be predicted. Thus, companies need to amalgamate a flexible structure of business processes that meets the technical requirements of the software development idea.

Thus, it is imperative to evaluate the entire value chain, in particular, the following checklist:

  • Software development idea
  • Type of software
  • Software functionality requirements
  • Non-functional requirements
  • Tech teams background check and quality
  • Supply of engineers

And many more so that it doesn't disturb the complete approach of the project.

Many people might think that vendors can either offer cost-cutting benefits or quality output, but never both. However, intelligent offshoring depends on innovation and the focus is more on the quality of the product rather than on cost.

All the aforementioned points highlight intelligent offshoring strategy. However, factors like openness, transparency and cooperation are also important factors for its unerring execution.

 

The future of the offshore software development to India

The offshoring practice was once called ‘du jour' (used to describe something that is enjoying great but probably short-lived popularity or publicity). However, the scenario is changing with offshore countries retaining their talent pools. Over 2.46 million students graduate from Indian universities every year. Out of this, highly qualified students that make suitable engineers are hired by an Indian company rather than a company from a high-cost country. And, this has helped to carve a new face of offshoring.

On the other hand, offshore software development is undergoing further digital transformation in the post-covid business landscape. The industry is witnessing an increase in remote-ready technology infrastructure in western countries, especially the American countries. 

Recently, software development projects are being carried out by remote teams using emerging automation technologies instead of always outsourcing software development. These technologies even allow the tech teams to actually negate the source code without affecting the user experience. 

The IT-enabled services negate the need for a large supply of engineers or tech teams. Thus, rather than absolute offshore software development in low-wage countries, the software development projects are being carried out using emerging technologies. These include artificial intelligence, natural language processing, and robotic process automation, among others.

Of course, smart offshore software developers are already adopting these technologies themselves, thereby combining the best of both the worlds. Thus, we have unprecedented quality softwares arising from smart technologies at low costs.

Workshore is one such smart digital media and software development company that offers intelligent offshoring. Come, discover a new way to outsource your software development that may make you rethink your current strategy!


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