The most important reason why investors change IT to offshore software companies is primarily to save money on labor. This does not merely apply to information technology but also in all other companies. Investors outsource these IT services. The reasons being pros and cons of offshoring companies offer more solutions to the changing IT industry, especially more complex problems. IT services face the same challenges when changing, just like other manufacturing companies.
Offshore IT development model
Offshore IT development refers to a process by which investors are outsourcing IT services such as mobile web, or even custom made software development. Offshore companies are mostly found in developing countries such as the Philippines, India, among others. As it’s stated earlier, changing IT offshore company is because of saving costs, it also minimizes overhead costs.
The offshore IT model has been used for a long time. In recent times, the world is becoming a global market and information technology, making it much easier than it was before. Therefore communication with everyone wherever they are found, thus the demand for changing IT offshore development, has augmented considerably owing to how simple it has to turn out to be.
IT offshore developments have a tendency to be a very cheap option for the reason that there are low costs of living in these countries. On the other hand, these rates can differ from one country to the other.
Changing the IT offshore model suggests that business growth as a continuous process. Offshore also affects changes in the work station. Thus has an impact on the decisions made and also exploits other avenues and opportunities’ for growth. Offshore companies can respond much more swiftly to customer requests since they are close to the customers.
Pros and cons of offshoring
Pros
- Cost Salary wages for offshore it developers can be reduced by 60% than it can be developed locally. Since these expenses’ are low, the businesses have a competitive advantage over those who don’t offshore.
- IT offshoring salaries are too low in these foreign countries. Therefore, one can keep them on toes in case there are no jobs. If the projects are many, you can easily add more experts in the team.
- Wide range of skills. There is ready human recourse in the foreign country than in the local country. Thus it is even more expensive and can’t be acquired more easily in the local country.
Cons
As everything has both pros and cons, offshore IT services aren’t left out. They include
- Language barriers: Most IT developers in the world may speak English. However, some of the offshore developers s maybe not be able to communicate effectively. A customer may have some queries, and it may turn to be a difficult task, especially in the understanding of where the problem is arising. At times may do wrong since he can understand the instruction given
- Cultural differences: Cultural differences arise since offshore teams have different beliefs and cultures than the locals. These teams may also have a solution to the problems faced. But the target group can have a different approach to it. For them to avoid this, they ought to follow all the requirement need as it may result in a conflict of interests
- Technical issues: The success of offshore IT growth may directly depend on the speed of the internet. In various countries and cities, the internet may be limited at times; that means that service delivery may be delayed most of the time. Most of the developers may use laptops and hotspots and thus can be a problem with electricity and the internet.
- Different time zones: Communication can be hard by the fact that there are different time zones. Thus changing IT offshoring collaboration between the companies can be very difficult. The main core task of the business is to have a competitive edge. The communication should be perfect in a way that they work as a team, and that response should be made as fast as possible soon that the project can continue.
- A meeting can be difficult because of differences in time zones, thus challenging, unlike those in the same time zones. They can have meetings at the same time as the get update in real-time.
The savings in changing offshore is very significant, but the real amount may not be as expected since more money is used in the development and installation of the Offshore company. There are various hidden costs in these companies.
