• Industry insights
  • Product development
  • 8 Feb 2024

Offshore software development: an accurate overview for 2024 & Romania outsourcing

Excellent software is a must for companies

Offshore software development: an accurate overview for 2024 & Romania outsourcing Offshore software development: an accurate overview for 2024 & Romania outsourcing Offshore software development: an accurate overview for 2024 & Romania outsourcing

Offshore development outsourcing in 2024: Romania’s leading role

Today, having excellent software is a must for companies.

Have you thought about outsourcing to experts abroad? From the basics to the benefits, our guide takes you through offshore software development.

Imagine getting access to worldwide talent, saving money, and enjoying a number of rewards. With a 5% yearly growth rate, this trend is expanding and changing offshore software development, offering businesses a competitive advantage.

IT & Software Development Outsourcing

Source: https://invedus.com/blog/outsourcing-statistics/ Source: https://invedus.com/blog/outsourcing-statistics/

Why outsource software development? Top reasons to consider

Cost savings: companies opt for offshore software development services to cut costs. Collaborating with teams in low-labor-cost countries means notable services at wallet-friendly rates.

Global talent access: offshore teams bring diverse skills to the table. Companies benefit from specialized expertise and a rich blend of experiences.

Time zone advantage: on one hand, 24/7 availability sounds cool, but time zones can be a hitch. While it’s a plus for round-the-clock resources, on the other hand, coordinating across zones can be a challenge.

Surging popularity: cognitive Market Research forecasts a staggering 15.2% growth by 2030. More companies are riding the wave of offshore software development for cost efficiency and efficient operations.

Source: https://www.cognitivemarketresearch.com/offshore-software-development-market-report Source: https://www.cognitivemarketresearch.com/offshore-software-development-market-report

Market agility: When it comes to flexibility, offshore software development is great at quickly adjusting to industry changes and market demands. As a result, this helps companies smoothly change direction when needs shift.

These advantages position IT outsourcing software as a strategic choice for companies aiming to stay ahead.

It’s the key to cost-effectiveness and top-tier technical skills, ensuring a competitive edge in the market. 

Offshore software development: an accurate overview for 2024 & Romania outsourcing

What sets offshore and onshore software development apart

Let’s have a look! What about the onshore development?

Find out that it happens locally, close by. Benefits include direct talks, understanding local needs, and same time zones. But it can be pricier and harder to find specific talent.

Offshore software development means outsourcing to lower-cost countries. Perks include saving money, accessing global talent, flexible hours, and working across time zones.

Challenges include distance, time zone differences, and quality control issues.

So, why not both? Onshore for direct communication and local knowledge, offshore for cost savings and global talent. Nearshore is a mix of both.

Offshore software outsourcing combines cost savings and global talent. It’s like having an external expert team while freeing up your in-house team.

It cuts costs, speeds up development, and gives you an industry edge.

Balancing onshore and offshore meets project needs. Cheers to the best of both worlds!

Rapid changes in offshore processes during & post the Pandemic

The pandemic caused some controversy, especially in the software development world; offshore processes in software development went through a major speed-up.

The pandemic’s restrictions forced us all to adapt—hello, remote work! This shift drastically changed how businesses operate, putting a spotlight on the crucial need for global teamwork in IT.

Businesses urgently tried to find ways to continue with their projects.

Source: https://explodingtopics.com/blog/outsourcing-stats Source: https://explodingtopics.com/blog/outsourcing-stats

The rush led to a quick shift to offshore software development. The reason is simple: it highlighted the benefits of remote collaboration and accessing global talent to stay ahead in tech.

Take BEE CODED for example: they embraced remote work early on. The result? When the 2020 pandemic hit, they faced no development issues because they were already adept at remote work.

Unlocking the benefits and challenges of software development outsourcing

Outsourcing software development is a big decision.

70% of British businesses are opting to delegate tasks like IT, payroll, printing, and accounting.

In today’s fast-paced tech landscape, jumping on the IT outsourcing software train seems like the trend, with companies seeking specialized help to excel. However, it’s a game-changer that comes with pros and cons, which can significantly impact both business and tech projects.

Now, let’s explore the benefits!

Core focus: IT outsourcing software helps companies concentrate on their main game—strategy and innovation—by handing off secondary tasks.

Speedy delivery: specialized teams can supercharge product development and get things out the door faster.

Diversity boost: different perspectives and cultural diversity mean fresh ideas and approaches.

Business goals: it helps companies focus on goals and performance, reducing administrative tasks.

Source: https://explodingtopics.com/blog/outsourcing-stats Source: https://explodingtopics.com/blog/outsourcing-stats

These benefits show how outsourcing can boost software development, regardless of team location.

That said, it’s important to customize them to each company’s specific needs. However, there are also challenges to consider.

  • Distance and time zones: team sync-ups can be tricky due to time differences and distance.
  • Quality challenges: cultural and language gaps might cause misunderstandings, impacting the final product’s quality.
  • Confidentiality concerns: sharing sensitive data with external teams can pose security risks.
  • External dependency: relying too much on outside teams might limit project control and flexibility.

How do I choose an offshore software development company?

Choosing the right offshore software development partner is a big deal. It’s like putting together a winning team for your project. First off, communication is key.

Make sure you and your offshore team are on the same page, talking without any language barriers.

Tech stuff matters too. Check that the offshore team is up to speed with the technology you want for your project. They need to know their stuff.

Now, maturity is a big player here. Find a company that matches your level of experience for a smooth collaboration.

You don’t want a partner who’s too advanced or too green, messing up the Software Development Life Cycle.

And let’s talk about money. The right mix of communication, tech compatibility, and maturity will give you the best price for your project. 

How do you decide what to outsource?

Outsourcing is smart for quickly improving a product by accessing specialized expertise.

In particular, it’s useful when adding new technology beyond your team’s skills or aiming for rapid development using niche knowledge.

Also, IT outsourcing is cost-effective when starting a project from scratch isn’t feasible due to budget or logistical reasons.

Here are more reasons to consider outsourcing:

  • When you’re looking to level up your existing product and need a quick boost for a specific part of the development process.
  • If your coding skills aren’t top-notch for a tech project.
  • Imagine needing to create something quickly and leveraging existing specialized expertise.
  • Or, if you’re starting a software product from scratch and can’t afford to keep an in-house team long-term.

When to consider software development outsourcing

Access outsourcing’s potential in these four crucial scenarios. 

  1. Want to develop excellent software without hiring permanent staff internally? Outsourcing is your cost-effective option.
  1. Quickly creating a product? You can get speed by outsourcing. Make use of specialized knowledge to do tasks quickly.
  1. Improving a current product? Temporary expertise is provided all over development through outsourcing.
  1. Exploring new technology? Your internal talent gaps are filled by outsourcing. Whether you’re just a DTangle concept person, outsourcing is a cost-effective way to develop software. 

Romania: Your strategic hub for software development outsourcing

Romania – the new offshore development center – is making waves in the IT outsourcing scene, grabbing the attention of global companies.

Why outsourcing in Romania, you ask? Here’s why it’s becoming a hot pick for companies worldwide:

  1. Skilled workforce: Romania’s IT field is bustling with highly educated, skilled workers, especially in IT. Universities and training programs produce top talent.
  1. Tech expertise: in outsourcing to Romania, the IT industry covers a wide range of services, from software development to support, testing, and data analysis. Witness some impressive technical skills in action!
  1. Cultural fit: Romania shares close cultural and language ties with many European countries, making collaboration a breeze.
  1. Cost-effectiveness: Romania’s outsourcing industry offers a cost-saving advantage. With lower labor costs than its European counterparts, Romania is an affordable option for businesses seeking outsourcing solutions.
  1. Time zone advantage: having the advantage of being in the GMT+2 time zone makes working with other European countries easy.
  1. Tech-ready infrastructure: in the process of outsourcing in Romania, leverage this country’s strong tech infrastructure and high-speed internet for seamless remote work. Romania boosts your outsourcing with its tech expertise. 
  1. Stability: political and legal stability provide a secure environment for investments and business.

These perks paint Romania as an ideal spot for outsourcing software development.

It’s a blend of talent, infrastructure, and cost-effectiveness, making it the perfect partner for your tech operations!