Are you a founder trying to scale software development and ramp up production time? You know that can be costly and time-consuming. So, if you could, you’d do whatever it takes to save time and expenses. One proven way to do that is to partner with an offshore software development company.
In this article, we’ll introduce what an offshore software development company is, explain how it functions, and how it can take your developer team or company to the next level.
Let’s dive in!
What is an Offshore Software Development Company?
Have a million-dollar software idea? You’ll need to hire developers to get that project going. If you don’t know where to look, an offshore software development company is a great place to start.
Offshore software development companies house their own developers and handle your application development needs. You can hire offshore developers working in this company to begin developing your software or app.
What Does Offshore Software Development Mean?
Offshore software development is when a company hires software developers from another country to work for them. This practice helps companies save on hiring costs while maintaining quality. It also enables access to a global talent pool, allowing businesses to find highly skilled developers who may not be available locally.
Offshore development also offers flexibility in scaling teams up or down based on project needs and can provide round-the-clock productivity due to time zone differences. While communication and cultural differences can present challenges, effective management, and clear expectations can help mitigate these issues, making offshore development a strategic choice for many companies.
How Do I Choose An Offshore Software Development Company?
Choosing an offshore software development company can be challenging. With many companies trying to grab your attention, you’re hard-pressed to find a good offshore company that fits your needs.
Despite the challenges, selecting the right offshore software development company is crucial to your success. The decision involves carefully considering many factors to ensure that the partnership will be productive, efficient, and aligned with your business goals.
Here are some key considerations to guide you in choosing the right offshore software development company:
Before beginning your search for an offshore development partner, it’s crucial to outline your project requirements clearly. Start by defining the scope of your project, which includes setting clear objectives, identifying deliverables, and establishing a realistic timeline.
Additionally, it’s helpful to determine the specific technical skills needed for your project by identifying the technologies and expertise required. Lastly, set a budget that aligns with your financial capabilities, ensuring that it is both realistic and sufficient to meet the project’s demands.
Research Potential Companies
\With your requirements in hand, you can begin researching potential offshore development companies. Look for companies with relevant experience by reviewing their portfolios for similar projects. Assess their reputation by reading client reviews and testimonials, which can provide valuable insights into their reliability and performance.
It’s also essential to confirm that they have the necessary expertise in the technologies and domains pertinent to your project to ensure they can deliver on your specific needs.
Evaluate Communication and Collaboration
Effective communication is critical to the success of any offshore partnership. When evaluating potential companies, consider how they handle communication. Ensure the team is proficient in English or your preferred language to avoid misunderstandings.
Check if they use reliable communication tools such as Slack, Zoom, or Microsoft Teams. These tools are essential for maintaining clear and consistent communication with your team.
Lastly, assess the response time and availability of your offshore developers, considering any time zone differences, to ensure they can meet your expectations for timely interactions.
Assess Technical Competence
Verifying the technical competence of the offshore company is a critical step to your success. Conduct technical interviews with their developers to directly evaluate their skills and expertise by asking for code samples or conduct a technical audit of their previous work to assess the quality of their coding practices.
Additionally, check if they adhere to industry standards and best practices, such as Agile, DevOps, or ISO certifications, which can assure their technical rigor and reliability.
Review Their Process and Workflow
Understanding the company’s development process and workflow is essential for ensuring their methods align with your project needs. Ensure they use development methodologies that fit your company culture, such as Agile or Scrum, which are known for their flexibility and iterative progress.
Confirm that they employ or have experience in robust project management tools like Jira or Trello, which are essential for tracking progress and maintaining organization. Lastly, it’s a good idea to inquire about their quality assurance processes to ensure they consistently maintain high standards throughout the development cycle.
Consider Cultural Compatibility
Cultural compatibility can significantly impact the success of your collaboration with an offshore development company, so take the time to understand their work culture and how it aligns with your company’s values and practices.
It’s also essential to ensure they have cultural sensitivity, meaning they’re aware of and respectful of cultural differences that could affect communication and collaboration. Connecting with other cultures is essential because a company that values cultural understanding will likely foster a more harmonious and productive partnership.
Evaluate Security and Confidentiality
Nobody wants to be a victim of hacking or scams. Therefore, protecting intellectual property and sensitive data should be a top priority when working with an offshore partner. Ensure that the company follows stringent data security protocols to safeguard your information.
To keep things more secure, make sure the offshore developers are willing to sign non-disclosure agreements (NDAs) to protect your confidentiality.
Consider Cost and Value
While cost savings are a crucial advantage of offshore development, it’s also essential not to compromise on quality. Request a detailed cost breakdown from the offshore development company to understand what you’re paying for, including any potential hidden costs.
Assess their overall value, considering factors such as their expertise, the quality of their work, and the level of service they provide. Striking a balance between cost and quality is crucial to ensuring the best return on your investment.
Seek Recommendations and References
Finally, seek recommendations from your professional network to find reputable offshore development companies. There’s no shame in doing so! Colleagues or industry peers with experience in offshore development can provide valuable insights and recommendations.
You can also ask potential companies for client references. Seeking references allows you to speak to their past or current clients and can give you a clearer understanding of their performance, reliability, and overall satisfaction of their previous engagements.
Considering these things, you can make a well-informed decision and choose an offshore software development company that aligns with your project needs and business goals!
Now, what does an offshore developer do?
What Does An Offshore Developer Do?
An offshore developer is a software developer located in a different country than the hiring company. These developers are an integral part of the global workforce and perform a wide range of tasks to contribute to the success of software projects.
Here’s a detailed look at what offshore developers do:
Software Development and Programming
Offshore developers are primarily responsible for writing, testing, and maintaining code. They work on various types of software, including web applications, where they develop both front-end and back-end components.
They also build mobile applications for platforms like iOS and Android, create software for desktop environments, and develop embedded systems for hardware devices.
Collaborating with Onshore Teams
Offshore developers often work closely with onshore teams to ensure seamless integration and project continuity. The collaboration includes participating in daily standups to discuss progress and challenges, contributing to sprint planning in Agile projects, and engaging in code reviews to provide feedback and maintain code quality across the team.
Implementing Features and Fixing Bugs
A core responsibility of offshore developers is implementing new features and functionalities specified by project requirements. In addition to adding new capabilities, they are involved in bug fixing, identifying and resolving software issues to enhance performance and reliability.
They also refactor code, improving existing code structure to make it more maintainable and efficient.
Quality Assurance and Testing
Offshore developers play a crucial role in ensuring the quality of the software through various testing activities. They conduct unit testing to verify individual code components, perform integration testing to ensure that different parts of the application work together, and create automated tests to streamline the testing process and provide consistent results.
Participating in Design and Architecture
Experienced offshore developers often contribute to software design and architecture. They participate in system design, helping to shape the overall structure and make decisions about technology stacks and frameworks. They also write and maintain technical documentation, providing clear guidelines and reference materials for the development process.
Continuous Learning and Skill Development
Offshore developers engage in continuous learning to stay current with industry trends and advancements. They keep up with the latest programming languages, tools, and frameworks and participate in professional development activities like workshops, webinars, and conferences to enhance their skills and knowledge.
Project Management and Coordination
In some cases, offshore developers may take on project management responsibilities. Project management can include managing and prioritizing tasks to ensure timely delivery and coordinating with other team members to allocate resources effectively and meet project deadlines.
Client Communication
Offshore developers often interact directly with clients to gather requirements, provide updates, and discuss feedback. Communication involves understanding and translating the client’s needs into technical specifications, regularly updating clients on the project’s status, and incorporating their feedback to ensure the final product meets their expectations.
Adapting to Different Work Cultures and Time Zones
Offshore developers must adapt to working with teams from different cultural backgrounds and time zones. This requires cultural sensitivity, where they know and respect cultural differences to foster effective collaboration. Additionally, they manage time zone differences by coordinating work schedules to maximize overlap and ensure efficient communication.
When to Hire Offshore Developers
Deciding when to hire offshore developers can be challenging and can significantly impact the success and efficiency of your projects.
Here are some scenarios where hiring offshore developers can benefit your company:
Cost Optimization
When your company faces budget constraints, offshore developers can be a strategic solution. They can allow you to reduce development costs significantly while still maintaining high service quality. This approach is particularly beneficial for startups and small businesses that need to be financially efficient.
Offshore development offers a way to stretch your budget further without compromising the quality of work. It allows you to achieve your goals without the hefty price tag that often comes with hiring local developers.
Access to Specialized Skills
Projects that require specific technical expertise, which may not be readily available locally, can greatly benefit from offshore development. Offshore developers bring niche expertise, filling gaps that might hinder your project’s progress.
Moreover, when your project involves emerging technologies like artificial intelligence, blockchain, or the Internet of Things, offshore teams can provide the specialized knowledge needed to navigate these cutting-edge fields. This access to a global talent pool ensures that you have the right skills, no matter how specialized your project may be.
Scalability Needs
As your project grows, quickly scaling your development team becomes crucial. Offshore developers offer the flexibility to scale up your team rapidly to meet pressing deadlines or to manage increased workloads effectively.
This scalability is invaluable for businesses that experience seasonal or cyclical demands. Offshore teams can adjust resources up or down as needed, ensuring that you have the right level of support during peak times without the long-term commitment that comes with hiring permanent staff.
Focus on Core Business Activities
Outsourcing development tasks to offshore teams allows your in-house team to focus on core business activities, such as strategy, marketing, and customer relations. This shift in focus enables your internal resources to be allocated more effectively, driving innovation and supporting business growth.
By freeing up your team from time-consuming development tasks, you can ensure that your company’s primary competencies receive the attention they deserve, leading to better overall performance.
Speed and Time-to-Market
Time is often of the essence in development projects, and offshore developers can accelerate the process significantly. By leveraging offshore talent, you can reduce the time to market for new products or features, giving your business a competitive edge.
Additionally, with teams working in different time zones, you can achieve round-the-clock productivity. This continuous development cycle means that work progresses while your local team is off the clock, resulting in faster project completion and market entry.
Handling Large Projects
Large, complex projects often require diverse skills and extensive resources that may not be readily available in-house. Offshore developers provide the necessary support and expertise to manage these projects effectively.
Whether your project involves multiple phases or requires concurrent handling of different tasks, offshore teams can help improve overall efficiency. Their ability to work on different project stages simultaneously ensures that complex projects are handled smoothly and delivered on time.
Temporary Projects
Hiring offshore developers temporarily is a cost-effective solution for projects with a defined end date. This approach allows you to meet short-term needs without the long-term commitment or expense of permanent hires.
Offshore teams are also ideal for managing pilot projects, where testing new ideas or products can be done with minimal risk and investment. Outsourcing these temporary projects allows you to remain agile and responsive to new opportunities.
Overcoming Local Talent Shortages
Offshore hiring provides a valuable alternative in markets with a shortage of skilled developers or where talent competition is high. Offshore development allows you to bridge local talent gaps by tapping into a global talent pool.
This approach ensures you can access the best developers regardless of geographic location. This approach enables your company to advance with the expertise required to succeed, even in a tight local job market.
What is the Difference Between Onshore, Nearshore, and Offshore Software Development?
There is confusion about what onshore, nearshore, and offshore software development is. Here’s a quick breakdown of the differences between these types of outsourcing.
Onshore Software Development
Onshore software development is when you hire offshore developers in the same country as your operations. Companies do this to take advantage of favorable tax laws or lower wages in different states or areas in their country.
Nearshore Software Development
This software development strategy takes advantage of countries closer to your own. An example would be a US company hiring an offshore software development company in Mexico or South America. By doing this, companies ensure they don’t have to deal with huge timezone differences and, in many cases, a different culture than their own.
Offshore Software Development
Offshore software development occurs when a company hires a team of developers from another country to work on its software. By hiring offshore, your team is expected to be located on the other side of the world, with a big time zone difference.
Why would companies do this? They want to take advantage of the significant cost savings in hiring and infrastructure.
Why Is Offshore Software Development Beneficial?
Offshore software development offers many benefits. As mentioned earlier, cost savings are a big driving factor for companies choosing to hire offshore developers.
Here’s a more detailed breakdown of the benefits that offshore software development brings:
Leverage cost savings
As I said, cost savings are a significant reason why companies choose to hire offshore software developers. Additionally, companies can save more because of affordable overhead costs, such as office spaces, because many offshore companies are located in countries with a lower cost of living.
Gaining more insight
Big companies like Google or Apple understand that they need to hire from a global talent pool to gain an edge over their competition. If your goal is to break into an international market, it’s essential to hire people from different cultures and backgrounds.
Attain round-the-clock production
Round-the-clock production is a secret benefit that nobody is telling you about regarding offshore software development. When your in-house team is off the clock, you can be sure that your offshore team is awake and ready to pick up where your onshore team left off.
Many think that a significant timezone difference is a bad thing, but when you look at it from this angle, it has great benefits. The end result? Faster production and productivity that almost functions like a 24/7 team.
Best Offshore Software Development Companies in the Philippines
There are many offshore software development companies in the market today. Some focus on specific fields of software development, while others are Jacks of all trades.
Here is a list of the best offshore software development companies in the Philippines, not in any order.
CoDev
Excuse us, but we’ll have to put ourselves on this list.
CoDev has been in the business for over 15 years and focuses on connecting highly skilled developers from the Philippines with small and medium-sized businesses in the US and Canada. We have offices in Manila, Davao, and Bacolod, with our main office in Cebu City.
We augment your staff with hardworking and skilled offshore developers ready to take your team to the next level, all at a fraction of the cost of hiring in-house.
Our team comprises software developers, QA testers, project managers, and designers who are well-versed in the tech industry.
Accenture
Accenture is a leading global consulting and professional service company with a strong presence in the Philippines.
Over the years, Accenture has established itself as one of the top offshore software development companies in the world. It offers various services, including software and application development, maintenance, and quality assurance testing.
Arcanys
Arcanys is a premier Swiss software development outsourcing firm in the Philippines, with its main headquarters in Cebu City. Specializing in developing and refining highly skilled dedicated developer teams for startups and established companies, Arcanys addresses the demand for strong software capabilities with adaptable solutions that guarantee consistency.
If you’re looking for reliable offshore developers, Arcanys might be your choice.
Full Scale
Full Scale was founded by Matt Watson, a tech entrepreneur who wanted to build a team for his own company. Since 2018, Full Scale has perfected the staff augmentation model and worked with over 200 tech companies.
With a main office in the heart of Cebu City’s business district, Full Scale offers staff augmentation services with talented offshore developers.
7 Steps to Take Before Working with an Offshore Development Company
Before you decide on an offshore software developer company to partner with, there are steps you must first take before diving in.
Define Your Project Scope and Objectives
First, you must define the project scope and objectives you want to achieve. Define the project’s scope, including the specific features and functionalities you need, the target audience, and the end goals. Having a detailed project outline helps ensure that you and the offshore team are on the same page, reducing the risk of miscommunication and scope creep as the project progresses.
Research and Shortlist Potential Partners
Choosing the right offshore development company requires thorough research. Start by identifying companies with a proven track record in your industry or the specific technology stack you require.
Look for portfolios showcasing their previous work, read client testimonials, and explore case studies. Shortlist companies that have the technical expertise and demonstrate reliability and a commitment to quality.
Evaluate Communication and Collaboration Tools
Effective communication is the backbone of any successful offshore partnership. Ensure that the offshore company uses reliable communication tools like Slack or Microsoft Teams and project management platforms like Jira or Trello.
Assess how frequently the team communicates, how responsive they are, and how well they manage updates and feedback. Seamless collaboration tools are essential to bridging the geographical gap and ensuring the project stays on track.
Understand Time Zone Differences and Their Impact
Time zone differences can significantly impact project timelines and communication. It’s important to understand how these differences will affect your collaboration. Determine the overlapping working hours and agree on regular meeting times that accommodate both parties.
By planning ahead and setting clear expectations, you can turn time zone challenges into opportunities for round-the-clock productivity.
Assess Technical Expertise and Cultural Fit
Technical expertise is a given when selecting an offshore development partner, but cultural fit is equally important. Evaluate the offshore team’s skills in the technologies your project requires and ask for technical assessments or interviews if needed.
Beyond technical skills, consider how the team’s work ethic, communication style, and values align with your company’s culture. A good cultural fit leads to smoother collaboration and a more cohesive working relationship.
Clarify Legal and Security Considerations
Legal and security considerations should not be overlooked when working with an offshore development company. Ensure that you have clear agreements in place regarding intellectual property rights, data protection, and confidentiality.
It’s important to understand the legal framework in the offshore company’s country and how it aligns with your own. Additionally, verify that the offshore partner has robust security protocols to protect your sensitive data throughout the project lifecycle.
Set Clear Expectations and Establish Milestones
Setting clear expectations from the outset is key to a successful offshore collaboration. Define the project milestones, timelines, and deliverables in detail. Establish a roadmap with specific checkpoints to review progress and ensure the project is moving in the right direction.
Clear expectations help prevent misunderstandings and keep both teams aligned, resulting in a smoother project execution.
Plan for Long-term Engagement and Scalability
While your immediate focus may be on completing the current project, it’s wise to consider the potential for a long-term partnership. Discuss scalability with the offshore company to ensure they can handle future growth or additional projects.
Planning for the long term helps you build a reliable and consistent partnership, leading to better outcomes and reduced costs over time.
Prepare a Contingency Plan
Even with the best planning, unforeseen challenges can arise during a project. Having a contingency plan in place ensures you’re prepared to handle issues such as delays, resource shortages, or changes in project scope.
Discuss potential risks with your offshore partner and agree on how they will be managed. A well-thought-out contingency plan can minimize disruptions and keep the project on track, even when unexpected challenges occur.
10 Reasons to Outsource Software Development to the Philippines
Besides a hardworking workforce, there are many good reasons to outsource software development to the Philippines.
Here are some reasons in detail:
Cultural Affinity with Western Businesses
The Philippines’ historical ties with the West, particularly the United States, have led to a deep understanding of Western business practices and consumer behavior. This cultural affinity ensures that Filipino developers can easily grasp the nuances of Western projects, reducing the need for extensive training or adjustments.
Young, Tech-Savvy Population
The Philippines has a large, youthful population that is highly engaged with technology from a young age. This generation is well-versed in the latest programming languages, software tools, and digital trends, making them adept at handling innovative projects and quickly adapting to new technologies.
High Literacy and Education Rates
The Philippines boasts a literacy rate of over 95%, with a strong emphasis on education, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields. Many universities and technical schools offer specialized IT and computer science programs, ensuring a steady supply of qualified graduates ready to enter the tech workforce.
24/7 Service Capability
The Philippines has a well-established outsourcing industry that is familiar with providing 24/7 services. Many companies operate in shifts to cater to global clients, ensuring continuous progress on development projects. This round-the-clock capability is particularly beneficial for businesses that require rapid turnaround times or need to manage projects across different time zones.
Collaborative Work Environment
Filipino developers are known for their strong teamwork and collaborative mindset. They work well in diverse teams, both remotely and in-person, and are skilled at integrating into client teams. This collaborative approach leads to better communication, smoother project workflows, and more cohesive final products.
Focus on Work-Life Balance
While the Philippines is known for its hard-working professionals, there is also a strong cultural emphasis on maintaining a healthy work-life balance. This balance contributes to high job satisfaction, lower burnout rates, and increased productivity, resulting in better project outcomes and higher employee retention.
Growing Tech Ecosystem
The Philippine tech scene is rapidly expanding, with a growing number of tech startups, incubators, and accelerators. This burgeoning ecosystem fosters innovation and entrepreneurship, creating a dynamic environment where developers are exposed to cutting-edge technologies and industry best practices, making them valuable assets for any project.
Strong Community and Networking Culture
The Philippines has a vibrant developer community, with frequent tech events, hackathons, and meetups encouraging continuous learning and professional development. This strong networking culture helps developers stay up-to-date with the latest industry trends and fosters a sense of camaraderie and knowledge-sharing within the tech community.
Resilience and Adaptability
Filipino professionals are renowned for their resilience in the face of challenges. Whether it’s adjusting to new project requirements, overcoming technical hurdles, or adapting to changes in the global market, Filipino developers exhibit a high level of flexibility and determination, ensuring that projects stay on track and are delivered successfully.
Positive Work Attitude
The positive and optimistic attitude commonly found in the Filipino workforce contributes significantly to a productive working environment. Filipino developers are known for their enthusiasm, willingness to take on new challenges, and proactive approach to problem-solving, all of which lead to a more enjoyable and effective collaboration with clients.
Partner With a Great Offshore Software Development Company
If you want to learn more about partnering with CoDev as your offshore software development company, book a free discovery call here.
