Staying competitive in this technological era might be daunting for some entrepreneurs. Many have closed shop due to not being able to meet the demands of the new generation. Thankfully every part of the world has experts in information technology, software engineers, software developers, consultants, and other IT professionals scattered, each having their own chosen expertise similar to how doctors choose their branch of medicine.
If you find yourself looking for software development services, there’s always a thought of hiring directly or outsourcing. The latter would often be the popular choice for small and medium-sized companies due to its cost efficiency. Hiring directly, however, is viable for large companies that plan to develop and maintain multiple software for an indefinite period.
Reasons for Offshoring
Offshore software development means outsourcing the service from a different country and the reasons for outsourcing greatly vary. An entrepreneur is usually attracted to this type of engagement due to the following reasons:
One of the main reasons for outsourcing is cost efficiency, however, this highly depends on where your company is located. Suppose your company is located in the United States, hiring software developers from countries with a higher population pool might be cheaper due to supply and demand.
Skills and Expertise
Each independent contractor can have multiple specialties and access materials that enhance their knowledge. However, different programming languages are popular in certain countries.
For example, Uzbekistan’s popular programming languages are Python, Java, and C++ while Australia has Laravel, Ruby on Rails, and Django. Popularity is often driven by the country’s educational standards and client demand.
Choosing an independent contractor or an offshore software development company can be driven by geographical location. Aside from the cost, the country’s educational curriculum, access to technology, culture, and language barrier are a few examples of reasons why location is important.
When scouting for offshore software development services, it would be helpful to know the specialties of each country through research, referrals, or even social media. Whichever location you choose for outsourcing, the decision will often be based on the final interview, skills, rates, the contract, and how comfortable you are with your contact.
Speed and Efficiency
For projects with tight deadlines, entrepreneurs value speed and efficiency among others. If you plan to hire an individual contractor or an offshore software development company, this key performance metric can often be measured through their portfolio or by doing a background check. Having an abundance of experience on a similar project is usually a deciding factor.
Offshore Software Development Benefits
Hiring offshore software developers gives you the ability to choose from a larger pool of professionals. Whether you are looking for quality or cost efficiency, it is safe to assume that you will be able to find a match. Below are a few potential advantages of offshore software development:
- Lower labor cost
- Knowledge from overseas markets
- Faster Service
- Reduced investment risk by finding a trusted software development company
- Focus on your core business – outsourcing frees up your internal resources
- Some countries offer tax holidays and financial incentives for foreign companies
Top 8 Countries for Offshore Software Development
Our assessment of the top 8 countries for offshore software development is based on the quality and skills. Middle software developers are a perfect pick for most employers as they are not much of a greenhorn when it comes to skills and experience but is not as costly as senior software developers. In some cases, you might even observe them to have more grit compared to senior developers due to their hunger for achievement and validation.
Poland has a great tech education, due to this and the higher living standard of the country they have much higher rates compared to their neighbor Ukraine.
Popular Programming Languages: Java, Python, C++
This Eastern European country is among the best choices when it comes to offshore web development in both quality and cost. Currently, a rising star and is home to over 250,000 developers.
Popular Programming Languages: Java, Ruby Python
This former Soviet Union Central Asian Country is a hidden gem in the offshore software development industry with a great reputation for high-quality software developers. Uzbekistan has also recently seen the highest increase in terms of population since the 1990s which makes it a hotspot for more talented programmers. Similar to Ukraine it strikes a wonderful balance between product quality and cost.
Popular Programming Languages: Python, Java, C++
The Czech Republic has many contributions to the software industry and is home to one popular antivirus software named Avast. It boasts strong connections with Microsoft, Android, and IOS. Additionally, due to the current strife between Ukraine and Russia, there has been an influx of developers from Ukraine migrating to neighboring countries such as Polland and the Czech Republic.
Popular Programming Languages: Java, PHP, C#, C, C++
As one of the leading global tech hubs, Japan stands with pride as one of the most expensive sources of offshore software development in Asia. Due to their strong belief in Confucianism, the majority of the Japanese worker have common values which include justice, loyalty, refined manners, and accountability. Traits that make client-provider relationship building easier. However, due to the low population and the demand for IT professionals in their own country, it makes it harder to seek available offshore developers which is also one reason why the average rate tends to be higher than other neighboring countries.
Similar to Japan, South Korea also has a good background in technology a lot of iconic tech companies reside in the country, making software development one of the desired professions.
Popular Programming Languages: PHP, ASP.NET, Java
North American countries such as Canada is also a great place for offshore software developers. It can be costly though as the country generally has high standards for product quality.
Popular Programming Languages: Java, Python, SQL, R
If budget is not a concern, hiring from Australia can be a great choice. Similar to Canada, the country has high standards in product quality and value speed among others. Usual barriers are higher rates for experienced developers and the time difference depending on where your company is located.
Popular Programming Languages: Laravel, Ruby on Rails, Django
Agencies vs. Independent Contractors
Choosing between an agency and a contractor depends on the complexity of the software and the tasks that you require to be accomplished. Hiring a contractor might look cheaper at the onset but there are limitations that you might come across which will depend on how skillful the contractor is. Additionally, assessing the total hourly cost for an independent contractor is almost impossible due to the absence of a project manager. Hiring an independent contractor is usually reserved for simple projects and not customized projects.
For something more refined, you have to factor in other necessary tasks for software development like design work, project management, quality assurance, and control, etc. In this case, it is ideal to hire an agency as they provide a package deal for all things related to software development. By hiring an agency gain access to a team of professionals such as business analysts, product designers, software developers, software quality assurance specialists, automation engineers, software architects, and DevOps. Agencies are also more likely to uphold the contract as it is in their best interest to delight their clients for repeat sales or referrals.