IT team to offshore

If you’re a business owner, you should be ready to take a risk. But it’s always easier when you have a strategy. Let’s say your goal is to cut down business costs twice and keep efficiency at the same level. Then, your working strategy can be offshore IT outsourcing—delegating specific tasks to the third-party provider from a foreign (usually, far away) company instead of handling them in-house. 

By having access to a wider talent pool outside your country, you have all the chances to find the required expertise at a cheaper price but get the same quality of job done. Isn’t this the dream of any CEO? No wonder more and more companies shift their business services to offshore destinations, where the leading positions are taken by the Asian countries predominantly.

Hence, if you’re driven by the motive to reduce IT costs, shifting your IT team offshore can be a way to go. And today we’ll take you through the benefits of offshoring and the real cases it worked out the way it should. Stay with us to learn both! 

Сost difference between local and offshore IT teams 

As offshore outsourcing is one of the ideas for cost savings in a company, it’s good to illustrate it by numbers to feel the contrast to having a local IT team. 

For instance, if we talk about software development costs, you’ll need to pay $100 per hour on average to the developer from the US. Or you can think of giving the same task to the offshore developer and spend approximately $55 per hour for an equivalent level of quality. 

Now, let’s look at the details behind the numbers:

As you can count, partnering with offshore businesses allows you to reduce software costs from 40% to 70% of the overall sum. The percentage depends on the required skills, experience level, location, cooperation length, and English proficiency. 

Benefits of offshoring IT functions

Well, you’ve already learned what is offshoring in IT, and it’s time to discuss what it can bring to your business in addition to cost reduction.

Wider talent pool

If hiring the staff is more expensive and complicated in your region, it’s logical to look out of the box and consider the alternative—an offshore IT team. As a result, you’ll have access to the global workforce, which significantly simplifies finding the necessary IT talents. Moreover, you’ll also benefit from saving costs in business operations, as specialists from less developed countries usually voice lower salary expectations.

Modern technology

You may be surprised to see this outsourcing benefit, but people aren’t the only reason for going offshore in IT. You might be no less interested in obtaining resources and technologies that matter for your project. And if you choose a reputable IT offshore partner, you’ll address these gaps as well. It’s also guaranteed that your final product will be optimized, automated, and digitally savvy. 

Business expansion potential

Moving your operations offshore for an IT company means spreading brand recognition across the world. So, in case of doing it smart, you can reach new clients in other countries and speed up the company’s growth. Think of IT team outsourcing as the driving force of your business expansion and choose the new staff location based on thorough research. 

Improved efficiency 

Offshore outsourcing is usually the answer to the question of how to reduce operational costs, but it’s also tightly linked to service efficiency. First, through offshore in IT, you get skilled specialists from other countries who will do the job you need. Secondly, by partnering with the IT outsourcing provider, you also feel more automation thanks to the advanced technology used. All in all, your company’s processes are getting optimized and streamlined.

Quality service

That’s the logical consequence of the previous point—improved efficiency. If the delegated IT tasks are performed by a professional tech partner, you can also be sure of the qualitative outcomes. To protect yourself from risks, you’ll first sign a contract with the chosen provider. To monitor and assess the performance regularly, you can engage the PM/QA specialist in the team, depending on the project specifics. This person will work on improvements and drive the team in the right direction.

Success stories of companies that reduced costs through offshoring

Now that you’re familiar with the advantages of offshore outsourcing, let’s look at some examples to prove that the offshore team is truly one of the best cost-saving initiatives.

One of the fresh success stories comes from a US company that decided to replace the bigger part of the local development team (42 developers) with offshore remote engineers from Poland (41 developers) and India (5 developers). According to the findings by Denisov-Blanch, this measure resulted in cutting the annual business costs on development by 40%—from $12,3m до $7,4m

What’s more important, the qualitative and quantitative metrics of the team performance were equal to the ones conducted by the previous team. 

Isn’t it all inspiring? Another bright example is WhatsApp, which used offshore outsourcing to Eastern Europe for core app building, design, and backstage management. This decision allowed the in-house team to focus on client-related issues, and the company succeeded in growing fast and, finally, was bought by Facebook for $19b.

One more solid case to mention is Oracle. The company addressed the offshore outsourcing provider to replace local support teams with the ones from Europe and Asia. By this, they gained 15% savings, scalability, and new ties with regional markets.

Build your new IT team from Patternica's specialists offshore

No matter how large your company is, you always think of reducing business costs and staying the same efficient. Offshore outsourcing gives you a perfect instrument to achieve this goal. The only thing you need is a trustworthy tech partner like Patternica. Reach out to us today, and we’ll gather a new offshore team per your business needs.

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