Offshore outsourcing software development has become a popular cost-saving tactic for many western companies. Some of the benefits of such a move include low-cost labor, improved quality, and product and service innovation. This tends to be a hotly debated topic, but there is no denying it has a direct impact on a company’s top and bottom line.
What is Offshore Outsourcing?
Offshore outsourcing is different from just outsourcing. The latter is simply the act of hiring a third-party company to perform some business task. You are hiring outside your company to fill a deficiency in competence in your own team. This third-party company may be abroad but it doesn’t have to be. Offshoring is the practice of outsourcing to a country other than the country where development and manufacturing occurs.
Reasons to Outsource Offshore
IT, manufacturing, and other services are typically outsourced to save money and stay competitive. Here are some reasons you might want to consider offshore outsourcing for your business.
- Lower labour costs – This is the primary reason many organizations choose to outsource some of their labour overseas. It gives a company a marked advantage monetarily.
- Focus on core competencies – If your business lacks experience in design, testing, or application development, offshoring probably makes sense. It allows your team to spend time on core business processes and helps to balance the workload during peak times.
- Faster time to market – Offshore outsourcing may give your company more flexibility allowing for quicker turnaround times. You essentially have labour working around the clock.
- Wider talent pool – Seeking talent internationally gives you access to a wider talent and knowledge base. You have the ability to hire teams of professionals with a wide range of technical experience, skills, and abilities.
- Motivation – Many offshore workers have a different mindset than full-time employees. They are motivated to deliver faster and more efficiently.
Differences to Consider
Because you are delegating tasks to teams in other countries, you should be aware of differences you might encounter. These nuances will depend greatly on what country you choose to outsource to. India has a very different culture than the Ukraine.
- Language and culture – Keep in mind the language and culture of offshore companies. Most countries offer English-speaking talent but fluency might be an issue. You might encounter cultural variations in language and meaning. This usually doesn’t become an issue especially as you build relationships.
- Time zones – Sometimes time zones work in your favour and sometimes they don’t. The biggest obstacle is keeping them in mind. Make sure to take these differences in time into consideration, so they are not a hindrance.
- Partnership – Working with offshore companies is about forming partnerships. Treat such relationships as such. Give your offshore employees the same consideration as your in-house team.
Outsourcing the Ukraine
Ukraine is becoming one of the lead countries to outsource offshore software services. They offer a great ratio of price to quality. Ukrainian specialists come at a more affordable price than in western countries but cost a little more than employees from India. Ukraine has lower living standards but quality education with a good technical base.
They have a strong IT market and produce many skilled mathematicians, scientists, and programmers. Ukraine is an established hotbed of innovation. This means good things for your company. Ukrainian software companies many high-quality software services performed by skilled professionals. Work ethics in the Ukraine are similar to those of Western business. They take an interest and pride in the work they are doing.
Upon getting independence, the Ukraine started rapidly developing its infrastructure, providing fast internet and telecommuting capabilities to millions of users. The government is on board with the country’s progression in the IT sector. They are aware of the importance this sector presents for the country’s modernization and global integration. This has led to important legislative changes in the field of IP protection.
If you are thinking about outsourcing some of your IT work to an offshore company, take the time to review the pros and cons of such a move. The Ukraine might be the perfect option. Labor costs are higher than in India, but the culture and time zone favours Western industry. Partnering with a Ukrainian software service company comes with many of the benefits associated with offshoring and few of the obstacles.
