For tech companies, there are many compelling reasons to offshore all or parts of their software development. By doing so, they can save money, improve efficiency, and increase their profit. Let’s dive into the main reasons why tech companies should consider the benefits of offshoring.
Nowadays, businesses are under immense pressure to deliver perfect products to their customers. This pressure is even more of a hurdle for startups that are just starting to gain traction. But even with constant innovation and reinvention of processes, many businesses and startups get to experience the benefits of offshoring.
Offshoring is the process of extending a company’s operations, all or part of it, abroad. Companies can offshore as a subsidiary, where they build a branch of their business on to another country. Or hire a third-party offshore vendor to augment their needs.
In this blog post, we will discuss the top five reasons why tech companies offshore their operations.
Reasons to Offshore Your Software Project
Offshoring software development comes with many benefits. Such advantages are exactly why tech startups should consider offshoring as an option for their business. So, here are the top 5 major impacts of offshoring for tech startups.
#1 Offshoring allows you to save BIG on costs
The major reason why tech companies offshore their business operations are to save money. By outsourcing certain processes, businesses can reduce the high costs of maintaining an in-house staff. Additionally, you can benefit from the economies of scale due to the efficiencies that come with outsourcing from a provider.
For example, let’s say a tech company outsources its software development team to an offshore provider. The company can then save on the costs of hiring and training software developers and instead pour those savings back into growing the business.
Most offshore service providers, like us at Full Scale, already have a pool of tech talent with different specialties and seniority levels available. All you have to do is define what your project requires, and the offshore service provider takes care of delegating the right resources to you.
#2 Offshoring offers improved efficiency
In the previous item, we mentioned the efficiencies of working with an offshore service provider. And improved efficiency is one of the reasons to offshore your tech or software project.
When you outsource your operations, you can tap into the expertise of experienced professionals. This can help you to streamline processes and improve your overall performance. How? Businesses can save time and resources by outsourcing operational functions to experts.
For example, a tech company that hires offshore software developers gives back so much time to your hiring or recruiting team. Instead, the company can work with offshore service providers to focus more on product management and marketing or funding. As a result, the company can improve its overall efficiency and performance.
#3 Offshoring helps you increase your revenue
The third reason to offshore your software project is to increase profits. By outsourcing your operations, you can free up internal resources that can be redirected towards more profitable activities. Additionally, you can take advantage of the lower costs associated with offshore outsourcing.
Since there is a lower cost in offshoring, businesses can increase profits without worrying about overhead costs. For example, a tech company that outsources its software development team can save on the costs of recruitment, training, equipment, and office space. As a result, the company can generate higher profits without passing on the costs to its customers.
#4 Offshoring your software development improves product quality
If you want to improve the quality of your product, then you should definitely consider offshoring. Why? Offshoring expands the available talent pool for you. As everyone knows, there is an ongoing software and tech talent shortage in the United States. This situation limits the variety and availability of software developers onshore.
With offshoring, you can find some of the best and brightest employees from around the world. Additionally, you can benefit from the knowledge and expertise of experienced professionals.
#5 Offshoring software development improves customer satisfaction
Finally, one top reason to offshore your software development is to improve customer service and satisfaction.
For one, hiring reliable tech professionals guarantees less effort on micromanagement. As mentioned earlier, this allows you to focus more on product management and marketing. And these areas put the customers at the center of the product.
Secondly, it provides continuous support. What does this mean? The offshore team works in different timezone and time frames. You can leverage this time margin to provide continuous team and customer support after your local working hours.
For example, once your local team is finished with their working day, the offshore team can pick up the development, testing, and tech support efforts. In this way, you hasten the delivery time of your product to your customers.
Offshore Your Software Development with Full Scale
Cost savings, customer satisfaction, and improved product quality are just some of the top reasons to offshore your software development. Depending on how you execute your strategies, you can unravel even more advantages of offshoring. And if you partner with a reliable offshore vendor, you’re well on your way to attaining startup success.
How can we confidently state that? Well, we’ve been helping tech startups accomplish their software development goals for years now. Watching our client partners grow, scale into new markets, and continue hiring more and more developers is what we get to enjoy every single day.
Full Scale supports businesses and startups in their growth journey with our offshore software development services. We provide fast, affordable, and quality software development services to our global clients. Through the years of service and with over 2,000,000 logged development hours for our clients, we recently made the 2022 list of Inc 5000’s fastest-growing private companies in the United States.
What’s our secret? Our tough hiring process ensures that we only hire the best to provide only the best. We take care of the entire recruitment process—from scanning, testing, and interviewing candidates—so you don’t have to worry about it. Are you ready to start your offshoring journey? Connect with us today!