The world has seen an unprecedented pace and growth in all business verticals post-pandemic because, for a couple of years, the global economy had become a standstill, and a big boost was expected once everything is back on track. The pandemic also pushed most organizations, agencies, companies, and firms to shift their work from brick-and-mortar to online.
While outsourcing software project development had been in practice for quite a long time, the pandemic further accelerated the acceptance of remote product development to offshore companies in countries like India and the Philippines.
Here are some of the stunning stats by Statista on IT outsourcing worldwide:
- IT outsourcing revenue is projected to reach US$460.10bn in 2023.
- The total revenue is likely to witness an annual growth rate (CAGR 2023-2028) of 11.07% with a market volume of US$777.70bn by 2028.
- The IT outsourcing average Spend per Employee is anticipated to touch US$132.10 in 2023.
Reasons why enterprises prefer remote product development
So, a million-dollar question is why are enterprises shifting toward remote development. Even further, software development outsourcing is temporary or it is here to stay for long. Here are some of the solid facts and reasons why entrepreneurs are shifting their interest toward remote product development for their software needs.
Reduced costs and risks for enterprises
Outsourcing software projects is a common practice among enterprises especially to reduce cost and risk.
Outsourcing can offer several benefits to entrepreneurs such as:
- Getting more flexibility and scalability. Such benefits allow entrepreneurs to adjust the scope and budget of their software project as per their business requirements and user demands.
- Reducing overheads and operational costs. Since offshore companies are generally situated in countries with lower currency and labor costs and taxes enterprises can save a lot on these plus infrastructure expenses.
- Mitigating risks that involve the transfer of legal, financial, and technical documents to and from the outsourcing provider.
Flexibility to bring world-class domain experts on board
Outsourcing software projects by entrepreneurs is a strategic decision for their businesses because it can bring in global talent and domain experts. Enterprises contact offshore companies with extensive skills and experience in a specific niche. Global hiring is possible from different countries and regions to have customized and innovative software solutions through best practices.
Remote development, as mentioned earlier, help enterprises reduce the overall budget without any compromise on quality. Plus, business owners with outsourced projects get benefited from accelerated time-to-market while they focus on their core competencies and let the outsourced team handle the technical aspects of the project.
Faster delivery and scalability of projects
Entrepreneurs also prefer remote development of software projects to have faster delivery and scalability of their products. Outsourcing certainly reduces the overall product price and risks related to hiring, training, and managing in-house software developers.
Remote developers that are handpicked for a specific project can assure buyers of improved quality and efficiency of the software development process because outsourced teams can leverage their experience and best coding practices to produce high-quality digital products in a timely manner.
When enterprises from first-world countries prefer to build their products remotely,they also facilitate communication and collaboration between offshore companies and remote developers through several project tracking platforms and methods to share feedback and updates. Remote development of software solutions and tools is also supposed to offer the best features and facilities because offshore companies can work on any change in the scope and size of the project according to buyers’ preferences.
Focus on their core competencies and strategic goals
One of the main advantages of remote product development for software projects is that it sets entrepreneurs free to focus on their core competencies and strategic goals because these business owners won’t have to spend time and resources on developing software in-house.
Enterprises outsource software projects to leverage the technology expertise, domain experience, and fair efficiency of the service providers. By having a remote product development contract with offshore software companies, entrepreneurs are assured of getting high-quality software solutions aligned with their requirements and expectations.
Outsourcing software projects can also benefit business persons with reduced costs and risks because buyers don’t have to take any headaches to hire, train and manage software developer teams. They don’t have to invest in software infrastructure and tools either.
How to find the best remote developers for your software products or solutions?
Hiring remote developers from a reputed mobile and web app development company is not a tough nut to crack these days. There are ample ways entrepreneurs can search for offshore companies that provide customized software development as per business objectives and predefined product scope.
Here are some of the effective ways to decide on the best company to hire remote developers for your software product or solution:
Experience and domain expertise
Not all software companies from outsourcing hubs such as India are competitive and, therefore, you need to be quite cautious selecting a proper one. The offshore companies you choose for software development must have extensive experience and domain expertise, especially in the field you are developing a business app. For instance, if you are a healthcare company, the remote development company you choose must have relevant experience.
Flexible hiring models
Budget is one of the main constraints for most entrepreneurs, especially startup enthusiasts. You must choose remote developers from a company that offers you, various hiring models, through which you engage programmers or coders for your project. Most offshore companies suggest going for a dedicated model in which you hire dedicated remote developers who shall exclusively work on your project and nothing else; nevertheless, you can always discuss other engagement models to select the best one for your project’s complexity, type, and budget.
Project security and safety
Remote developers for your product should abide by stringent rules and regulations which come through various company and contractual clauses such as NDA. Renowned companies are quite concerned about project safety and therefore they sign NDA and other documents required to keep software development confidential. They do not share any data or information on projects with any third-party companies unless buyers give written permission.
Market and brand reputation
A locally famous and reputed offshore company offers many advantages over other options. First, it means that the company has qualified and experienced remote developers with a proven track record of delivering high-quality software solutions to its local clients.
Remote development companies possess the required skills, expertise, and experience to tackle complex and diverse projects with ease; furthermore, reputed offshore companies hold credibility in their local market and they carry values of customer satisfaction, professionalism, and ethics.
Summary
All in all, enterprises shifting to remote product development at reputed offshore software solutions is completely logical because the project would undergo a stable and reliable development environment. In other words, outsourcing product development for software solutions is profitable today and will remain in the coming years.