Outsourcing: Is It Better to Choose Software Companies Near Me or Offshore Ones?

Startups always begin with innovative and groundbreaking ideas. Nevertheless, soft applications cannot become successful and profitable only because of a bright concept.

Startup founders need software development firms to embody their ideas. Few of them have the in-house teams for this purpose. That’s when a question of outsourcing development comes up.

In 2019, the global IT outsourcing and outsourcing of business processes generated $66.5 billion and $26 billion, respectively. According to the statistics, more than 37% of small businesses outsource IT services, accounting, and digital marketing to cut costs and have access to a wider talent pool.

But the main question every startup founder has is what to choose ⁠ — development companies near me (onshore), companies in other countries (offshore), or freelancers?

Why Founders still look for Nearby Software Companies Instead of Outsourcing?

When startup founders decide to outsource website and software development of an MVP, they usually start looking for onshore and nearby companies. Even though it isn’t the best approach for startups, still it’s easy to understand.

By reaching the software development companies nearby, startup founders choose the simplest, but too costly way to go. But let’s be honest, this option has too many drawbacks besides high cost. And, surely, it has alternatives. Offshore outsourcing is one of the most efficient ones.

Outsourcing As an Efficient Alternative to Software Development Companies Near Me

There are a lot of myths and misconceptions created about offshore outsourcing. Some of them are related to the low quality, others to the language barrier, and many others. Now it’s time to disperse them.

The times of language ignorance are long gone. Today, nearly all the abroad specialists know English, and most of them are fluent in it. Moreover, a high level of digital technologies allows communicating with any person wherever he or she is located.

The market is ready to offer you any kind of tools for remote communication ⁠ — Zoom, Slack, Skype, and many others.

Another myth related to the communication issue is the time difference. Our company, for instance, is located in Ukraine, while our clients are mainly from US. Indeed, the time difference may become a problem, but only if your remote team doesn’t have a work schedule. Hence, it entirely depends on the team you are hiring.

Another myth is related to the trustworthiness of the company you are hiring. Some founders think, “If I find software companies around me, I can see their office and meet specialists before hiring them.” But the thing is that the offshore companies, like SpdLoad, have an office too. You can visit them if you need or want to.

The essential part of every product is an idea. Sometimes, founders don’t want to cooperate with the outsourcing companies because they are afraid that their idea would be stolen. That’s why we always sign a Non-Disclosure Agreement (NDA) with our clients. It ensures that both your idea and all the data related to your project are protected.

In case you are not aware of NDA contracts, you may lose your idea even if you have an in-house team. Therefore, offshore outsourcing doesn’t make you vulnerable. It’s just a matter of security approaches you will implement.

The main myth about offshore outsourcing is the poor quality of the provided services. Well, it’s better to say that it fully depends on the country you choose to outsource software development services to.

India, for example, is known for its extremely low rates, but, indeed, the quality is far from perfect.

On the other hand, Eastern-European countries are known for affordable prices, a vast pool of talents, exceptional quality of services, and corresponding mental model. Here, in Ukraine, the hourly charges of software development agencies are about $23–55. Let’s be honest, the cost is the most critical aspect for startups.

Examples of Software Startups that Gained Success With the Help of Offshore Outsourcing

Why Looking For Software Developers Near Me Is Not the Best Idea?

The IT companies near me can be the right choice for mature businesses with a substantial budget. But for startups, the best way to save budget and hire the most talented specialists is to outsource software development to offshore companies.

If you want your startup to become as profitable and famous as WhatsApp, Amazon, Basecamp, and others, the most efficient choice is offshore outsourcing to Eastern Europe.

Read the whole article here.

SpdLoad 🚀 Startup studio. The team concentrates especially on development startups from scratch (mostly SaaS and marketplace)