In the course of your business, likely the idea of ​​putting software in an efficient customer service process has come up to you quite a few times step by step improving our service every day to reach the threshold of digitalization applied to life.

However, businesses don’t operate in the same way. Some of them may need customized technology products to serve properly their customers and operation. The question here is whether they should assign a technical team in charge of this task or use outsourcing services instead. 

In fact, mobilizing a take care unit of each project when needed is considered to save more money than recruiting, training, and maintaining an IT department at the company. As a result, a perfect way for cost saving in the midst of this modern landscape for businesses – let’s say offshore software development.

For the IT community around the world, ‘offshore’ has long been a familiar phrase. In this article, let’s discuss how offshore software development is the perfect way to cost-saving?

Offshore software development, how to know?

Firstly, ‘Shore’ is related to outsourced software developers, in favor of geography. Currently, many investors, small business owners, and startups decide to follow this path and outsource their developers from abroad to save resources and optimize costs. In each case, there are bound to be clear benefits and drawbacks from both options, given two different approaches, and so you need to know when to use them and when to avoid them.

The terms “offshore” and “onshore” have traditionally been used to refer to two competing business models. Software outsourcing is the way of processing and completing a software project of company B for company A, generally. After that, through many trials and consultations, the official software will be released to customers and users; with instructions and an appropriate interface according to the nature of the business. If your country has enough resources to carry out the project, you will easily find partners and perform ‘onshore software outsourcing’; otherwise, you will need to find service providers from abroad and that is called “offshore software outsourcing”.

Onshore companies are ones that register to operate in their own country, founders and key employees are also located at that place. They are legally registered and do not receive any special treatment for law and tax. Working with onshore companies means that there is no language barrier or cultural differences to deal with.

Offshore companies will usually employ their operations in one country, receive projects, and carry out outside the territory – usually on another continent. In cases where it is impossible to find local talent or local experts with too high a fee, it is reasonable to outsource similar services to a foreign company.

Why can it be said Offshore Software Development is a Perfect way for Cost saving?

As you have also heard about the investment in technology and technology recognition in different regions and countries.

First of all, for countries in the Americas such as the US and Canada, finding a service provider close to shore is possible, thanks to the team of experts in neighboring areas like Mexico or in area South America. Likewise, countries in the European region can also operate software companies near shore, thanks to the potential of neighboring countries in the area.

However, to talk about the prices that go hand in hand with service quality, it is impossible not to mention Asian countries with many international listings, spanning from modern fields such as e-Commerce, and m-Commerce to health, banking, logistics … with a full chain of customers of all ages.

Every business today needs digital transformation. This is fine. Because, the cost of recruiting, training, and maintaining the entire IT department for a long time is not easy for all businesses. In fact, some businesses already have an IT department, when it comes to product results bearing modern trends and technology still need the support of part – or the whole – of things. Therefore, the use of an offshore software development team is a reasonable thing based on the flexibility of its members, more economical service rates maintaining a cumbersome IT department, and being up-to-date in exploring new technology and technology trends. All you need to do is come up with your own ideas and let developers do their work. Forget complicated processes and problems and focus on your own business – because developers will solve those problems for you and bring your ideas into real products.