Recent Posts

nearshore software development Tag

The world has become a global village that offers a variety of opportunities for companies to experiment, execute, explore and grow. In a capitalistic market, it becomes really important for any company or service provider to stay and compete well. For most of us, 2020 has been uncertain, and it reduced the chances for individuals to learn and grow. The business processes saw a major setback in terms of development, collaborations, partnerships, and providers.


Nearshoring is a type of outsourcing that requires businesses to appoint certain processes, such as development and testing, to make them efficient and reduce costs. Companies based closer to the same time zones will share similar working hours and similar cultures. By being geographically nearer, a foreign company or a service provider can offer a reliable and stable connection to the parent company.  


Cost measures have always been really important and with the delegation of major activities to neighboring countries, companies can shift their focus on other business activities and turn the table towards exponential growth.


What is Nearshore Outsourcing


Nearshore Outsourcing is a practice to get the work completed using a set of services provided by the neighboring countries and not the organization’s native country. For example, any North American company would move some of its operations to Mexico or Uruguay for getting access to a wider pool of talent, cultural similarities, skills, and lower salary costs. Factors like lower language barrier, time zone compatibility, and mutual cultural understanding would enhance productivity. And this adds up to the company’s profile and offers amazing new opportunities.


The Rising Trend in the Global Market



Outsourcing follows the logic and economic principles of Adam Smith who changed the horizons by studying the divisions around labor. When we chunk a set of complex tasks into specific skills and assign them to individual workers, they specialize in that particular area and become more productive. Adam Smith with his productivity and economic theories turned out to become ‘The Father of Capitalism’.


The recent global pandemic forced several people to build their companies in-house and realize the importance of outsourcing, specifically nearshore outsourcing. The future of work is digital and the bots are automating most of our daily tasks. Social Media management would grow leaps and bounds, and according to a report generated by Forrester, it would experience a hike of at least forty percent. The current global situation demands the Business Process Outsourcing (BPO) partners and IT partners to possess hybrid capabilities. 


“What organizations are looking for now is a flexible partner,” said Barbara Hodge, principal analyst and global digital editor at Shared Services and Outsourcing Network (SSON), a professional network. “Critically, that means the ability to move seamlessly from traditional office environments to work-from-home (WFH).”


There would be some key points that nearshore clients and providers would look after which would add up to the future trends and charts. Let’s have a quick look into them:-



  • Company’s Culture and Diversity


Culture defines the ambiance that any company would carry. The more cross-culture/similar-culture diversion exists, the more openness it generates. Nearshore clients should actively engage with the outsourced teams to build an interactive cross-funcional objective towards a shared mission. It paves the path for the creation of better communities and safer workspaces that cherish both, the culture and work together. 



  • Regular Benchmarking


Cost-reduction strategies and price benchmarking should be the primary goal for nearshore clients in the upcoming years. Everyone is shifting towards automation and artificial intelligence nowadays. All the BPO and IT services have shifted to automation mostly. Machine Learning and Data science have made the market more cost-effective and super reliable. Regular benchmarking provides a platform for nearshore outsourcers to explain their value to clients and build significant relationships.



  • Distributed Computing and Secured Solutions


Freedom from the location is the ultimate goal for the nearshore providers, and they have started investing in cloud technologies to achieve that. The exponential trend would be a decentralized framework with multi-cloud technologies. Nearshore providers are looking for a decentralized data model, instead of central data providers, that are moving towards a less network congested area, with a potential towards apt data clients. 


Enhanced cybersecurity in the nearshore would help in data security and business management at an outreaching scale as well. These technical advancements and approaches would help the nearshore outsourcers to achieve the maximum nearshoring benefits and profits.


Nearshoring Services



Software outsourcing has proven to improve quality and increase focus and reduce costs within the company. Most successful companies in the world used the principle of outsourcing to excel, whether that be a data service or web development. The top companies that are competing extremely well are doing so simply because of nearshoring.


Let’s look at some examples:-



  • Google


The ubiquitous search engine earned a revenue of $26 Billion from 2016 to 2018, however, most people don’t realize that the foundation of their outrageous profit margin is outsourcing. In 2014 the company was outsourcing most of its nonessential IT functions to various countries. Google used a strategy to utilize resources from abroad via the method of outsourcing. This helped Google to achieve maximum developers output in its team and attain the highest potential of itself as a company. 



  • Github


Millions of users use Github as a collaborative tool to share codes and build products. Microsoft acquired Github for $7.5 Billion in stock because they used the maximum benefits of outsourcing to create their network. They conducted this IT outsourcing to achieve the highest talented potential. They filled their company’s skill gaps by hiring experienced professionals who built their entire backbone.



  • Whatsapp


Whatsapp relied heavily on outsourcing software for its core development. The office maintenance was done in the United States but the complete app development was outsourced. They hired a whole team for iOS development via outsourcing to enhance the existing skillset. iOS app development helped the app cross milestones and it contributed to the company’s success as a whole. 



  • Slack


It is a popular communication app used by maximum workspaces when a task like app-designing is outsourced. By nearshore software outsourcing their logo creation and marketing design, the company streamlined its imperial product.  Slack was able to establish a brand because of outsourcing of the app and web design. It helped them raise a $250 million round of investment with a valuation of $5 billion. 


There are several examples like Opera, Alibaba, Skype, and many more who used the power of nearshore software outsourcing to upscale their company. They realized the execution of the principle which added a crest to their company valuation in the long run and helped them become a gigantic name in the industry.


Difference between Nearshore, Offshore, and Onshore


Nearshoring


Nearshoring simply means outsourcing business processes to nearby nations. Business development needs smart solutions and nearshoring helps them to create a better pool of services using global talent. In contrast to offshore development, crucial nearshoring benefits are – seamless communication, better deals, and fewer cultural differences.


For example, USA-based companies would prefer nearshoring with Latin American countries such as Uruguay, Costa Rica, and Colombia. It is less expensive and provides effective working relationships. You can visit your team from time to time to those places and ensure whether the process is being taken care of in an organized manner or not. 


Offshoring


The operational activities are transferred to another country via offshoring. It has two types: 



  • Nearshoring (in the nearby countries) and

  • Farshoring (to distant countries)


Reducing personnel costs is the primary goal of offshoring. Technical barriers such as poor internet connection present a major challenge in these types of situations. It is vital to note that the contractors’ location is a major difference between nearshoring and offshoring.


Offshore software development yields successful businesses over time since it is located on another side of the globe, which is cheaper. Companies can hire an expert team at lower costs and access a global pool of talent. The right offshore company can assure you a wider range of services and deliverables provided under stricter deadlines. 


Onshoring


Onshoring is the process used to relocate any business to a new place inside its nations’ borders. It results in the quickest possible services and improves agility and cost structure within the organization. Product management becomes a flexible process, from manufacturing to supplying.  For instance, a company located in California will onshore to New Jersey. Here, the states are different but the country is the same. Communication, language, timezones would fall in one place, however, if you plan to reduce the development budget, then this won’t help.


Nearshoring Benefits




  • Easy traveling due to close distance


The close proximity of the country makes it more feasible for the teams to meet, which helps in building business relations, improving coordination, and creating social bonds. Also, these kinds of collaborations help businesses to build good relationships with neighboring countries and governments.



  • Cultural Similarities 


The cultural similarity is the key to nearshore development and partnerships. Because having almost the same lifestyle and spoken language enhances the belongingness within business teams. Instead of having teams with various cultural beliefs and language barriers, companies can opt for nearshoring to similar countries to theirs. In addition to that, this also creates a sense of trust between both the parties in their partnership.



  • Reduced Operational Cost 


Nearshoring reduces operational costs as we hire resources at low charges but with the same skillset and work efficiency. This eventually leads to maximization of the profitability of the business instead of having business with a country that is far away from your current location. To some countries, the traveling cost is high as the distance is larger, but in the nearshoring, the distance is less, which leads to lower cost of traveling, considering we’re paying lower wages for the same work, which leads to maximization of profit.



  • Time Zone compatibility 


Having close proximity with the neighboring country makes it easier because of lesser or no difference in time zones. In the case of offshoring, the time difference makes the work less efficient and creates a difference of almost 12-24 hours. However, with the neighboring country, it is easier to communicate and work accordingly because of similar working hours.



  • Improved Code Quality 


Nearshoring helps in improving code quality as you are hiring a professional and high-quality development team with comparatively less price, which is very hard to find in your native place, due to the developed economy. 



  • Saves Time and Energy 


When you hire a nearshore development team, they start working within days, sometimes hours, which helps you to save your time, money, and energy instead of recruiting candidates natively. In Nearshore development, teamwork with professionals is smooth and it gives better quality results because they were hired for that specific task. This helps in scaling up the product quality and improving the overall productivity of the team.



  • Compensation of staff shortage


Whenever any company faces a staff shortage, Nearshore development teams are the best option available to fill the requirement. It takes lesser time, lower cost, and more proficient work delivery to the clients. This leads to the upliftment of the company and helps in the shorter run to grow fast.



  • Improving company efficiency


Nearshoring helps in improving efficiency and saving time for in-house employees and helps them deliver the projects faster. An outsourced team can take care of the mundane tasks while the core team can focus on the bigger picture and improving product quality. This enhances the efficiency of the company because the outsourcing team plays a vital role in software development which helps in distributing the large projects.



  • Access to global talent


Nearshoring means access to global talent and skills. When you hire a nearshore development team, you get to know their previous work and achievements. Connecting with them creates a bond that helps you to grow your network worldwide. Directly or indirectly, it helps you and your company to see things differently and find new and creative solutions to your problems.


Conclusion



Management and consistency are the keys to nearshore software outsourcing. A poorly managed outsourced resource would not be beneficial to the company, instead, it would add towards a higher risk of job loss within the organization. The organizational trust would be at risk if the employees feel that their jobs are threatened because of outsourcing.


Transparency should be kept intact while outsourcing – whether it be nearshore or offshore. 


Nearshore outsourcing can offer at least 30% of growth to markets by the end of 2022. It has broken European charts with a fine curve and reaching substantially larger audiences. The Nearshore development service market has enhanced standards in terms of quality and quantity. Companies can now involve themselves in innovations and build across strategic partners and teams.


offshore software development rates nearshore software development

Our goal with this article is to help you make your business grow using offshoring software development. Firstly we can agree that offshore development is the same as outsourcing, and the central part focuses on getting the best offshore software development rates.

In this context, you’re sending your software development to be done by people located in another country far from your business. Some software business managers could see ‘offshoring’ as a risky maneuver, but reality says that more software development companies trust this modality year after year.

Some of the reasons some businesses recourse to outsourcing are the lack of human resources or lack of needed qualification level within their own company. So, businesses with this need to search for a trustful third-party offshore development company with reasonable offshore software development rates that can help them. 

Most software development’s outsource tasks are mobile and web app application development, data management, blockchain, or AI development. By outsourcing, you don’t need to hire and train new staff, and at the same time, you can be sure to get the best quality software delivered to you at the accorded rates and terms.

You can trust the effectiveness of these long-standing practices adopted by many of the world’s largest and prominent corporations. Due to the digital transformation, many worldwide companies are motivated to offshore their software development needs. 

Below you can read why offshore development companies have become an essential part of the global economy.

How Can Offshore Software Development Help Your Business?

In accordance with this article from Skelia there are many reasons why software companies hire offshore developers, considering the speed at which the digital industry is expanding. 

Companies that want to stand ahead of their competitors need to assign lots of time, effort, and capital to develop innovative and creative software solutions. In this framework, businesses that are unable to hire the most talented recruits may not achieve their goals efficiently.

Therefore, by hiring offshore developers, these companies free themselves from the obstacle of finding first-class staff while they receive the best software solutions with predefined rates and terms.

Below you can find some of the reasons offshore software development can help your business:

Outsourcing Is More Cost-Effective

By hiring offshore developers, you can prevent your business from running out of money. You will not have to spend on additional expenses such as office rent, salaries, insurance payments, vacations, and many others. 

By hiring a trustful offshore developer with the best offshore software development rates, you will be routing funds into your business’s most crucial areas, developing your projects. 

Offers Flexibility

Flexibility is critical when you scale your team or change the technology stack to match the project’s size. Outsourcing developers are more flexible and can easily switch their focus from one task to another.

Delivers Advanced Skill

Many developers worldwide are working for well-known tech giants such as  Apple, Microsoft, DELL, IBM, and others. IT outsourcing provides you with broad access to a great talent pool with the right skills. 

Nearshore software development in LATAM countries can be very fruitful due to the qualified professionals who will be happy to participate in your startup’s development.

Guarantees Quality

When it comes to the quality of the code created by a dedicated development team, one important thing to keep in mind is that a project’s success and quality don’t depend on the country in which it is released. Instead, it depends on the people who built it and how passionate they were about their business.

What Is the Difference Between Nearshore, Offshore, and Onshore Software Development?

Choosing an IT outsourcing services vendor can be difficult, particularly when you don’t have experience with outsourcing. The first point you need to take is deciding where you will look for a software development outsourcing partner. 

Although you will be looking for the best offshore software development rates, you need to pay attention to the three primary options for outsourcing:

nearshore, offshore and onshore. Bellow, you have detailed the main differences between these options: 

Nearshore Software Development

Nearshore software development may be the most convenient option, and it is when you outsource to developers from countries located near similar time zones. 

Your business can get the best offshore software development rates by nearshoring software development. 

Typically, customers count on geographic proximity and cultural similarities. For instance, a nearshore software development location for the United States would be a LATAM country.

Offshore Software Development

With its option, the service provider’s company is located in a different country found in a different continent with a notable time zone difference. 

For instance, an offshore location for the United States would be India. The negative side of Offshore outsourcing is the lack of proximity and cultural similarities that can make the treatment between your team and the Offshore developer’s team complex.

Onshore Software Development

Onshore outsourcing is when you outsource to developers within your country. Some companies find this option convenient. 

Taking into account that the main reason for outsourcing is to reduce your business’ costs, the negative side of this option is that it can be more expensive than the other options on the list.

Offshore Software Development Rates

As we analyzed above, there are three significant options where you can find a software development outsourcing partner. This decision is crucial and needs to be taken comparing the best offshore software development rates and the quality of the partner.

Thanks to modern technologies, your business can save costs by outsourcing software development to an overseas programmer team, according to this article from youteam.io

Outsourcing methods as nearshoring and offshoring can allow your company to contact a vast global talent pool. The average cost of software development services differs from country to country, and development costs may change depending on the platform you use to hire offshore developers.

Offshore Software Development Hourly Rates by Region in 2021

Let now see an overview of regions and software development rates by areas with the different outsourcing methods that we have seen above. It will help your business make a more informed decision when hiring from overseas.

Nearshore Software Development Rates in Latin America

According to IDC, the Latin American IT industry will be growing in 2021 despite political uncertainty and low economic growth. As predicted by Ricardo Villate, vice president of the consultancy for the region, the IT market reached 4.8% in 2020. IDC reports an increase in business spending on technologies related to AR/VR, AI, IoT, 3D printing, cloud, security, and robotics. 

Uruguay, Argentina, and Brazil are the leading software outsourcing country in Latin America and South America. Over the last 15 years, Uruguay has become a first-class business hub and is chosen by foreign companies to develop their IT products or services.

Uruguay is a country of 3.5 million with an IT services machine that continues to perfect the global export model’s execution. Today, foreign companies come to this country to develop their IT products or services to expand their regional operations. 

Uruguay has remarkable technological advances, which place it at the forefront of technology in the region and the world, the highly qualified talent, and its quality of life. This country is a technological hub with outstanding connectivity and internet penetration. 

Ninety percent of Uruguayan homes have access to fiber optics, which guarantees fast download speeds, and 100% of public schools have Internet access.

Argentina is ranked 14th among the best software outsourcing countries and is number 2 in the region. It is also the world’s 10th digital nation in the Tholons Services Globalization Index 2019.

When it comes to offshore software development rates, the average hourly rate for software developer talent in Latin American countries is 45.00 dollars per hour.

Offshore Software Development Rates in Eastern Europe

Eastern European countries such as Ukraine, Belarus, Poland, and Romania are now among the top 5 global software development centers, according to a report issued by AVentures Capital, Aventis Capital, and Capital Times at the beginning of 2019.

The average hourly rate for software developer talent in these Eastern European countries is 33.00 dollars per hour.   

Offshore Software Development Rates in Asia

Asia boasts the most significant number of offshore software developers as compared with other regions. In 2018, only in India, this number amounted to almost 3 million. China is also an attractive offshore development destination. Chinese developers are the first across all HackerRank challenges. 

The Chinese government supports the tech sector by offering economic incentives. For example, now, there are more than 50 science and technology industry parks across the country. 

The average hourly rate for software developer talent in Asian countries is 26.00 dollars per hour.

Advantages of  Nearshore Software Development in Latin America

You need to look for reliable partners with whom you can achieve long-term relationships. Therefore, it is essential to know why Latin America is an excellent nearshore software development destination, according to this article from perficient.com

Great Value and Cultural Similarities

Prices in Latin American are commonly higher than in places like China or India, but the benefits far exceed total costs. It’s not enough for companies to focus on the cost benefits. 

The end costs might be very similar when you factor that you’ll be spending more time trying to connect with your vendor in Asia than in Latin America.

Little Time Difference

As  Latin America is so close to the United States, the time difference is minimal compared to India or China. It means that your business will have nearly an entire workday of overlap with your nearshore software development team.

The number of issues that originate from time differences cannot be discounted. It can often lead to massive delays, which can significantly increase the project’s cost, especially if it’s a vital component of a larger project.

Accessibility

Building a solid relationship with your team is the key to success in any IT outsourcing endeavor. The great proximity means that it’s easier and cheaper to get there.

Being able to hop on a flight, visit your team, and return within a few days is invaluable, and you can do it with far greater frequency than if you were outsourcing to Asia.

Cultural Similarities

It is another excellent advantage of proximity. Latin American culture similarities with the U.S. make intercultural interaction to goes much smoother. Latin Americans will have no problem suggesting more effective alternatives when they can’t do something. 

In Asia, in contrast, the attitude of saying no or contradicting your client is considered a lack of respect. And although it was for the client’s benefit, it is something they simply don’t do. 

As miscommunications and delays are reduced over the long term, the cultural similarities between Latin American and the U.S. can eventually lead to far more significant advantages.

Creativity

Creativity is essential in your business to generate innovation and to remain competitive. It isn’t easy to innovate when working with an IT outsourcing team that will never develop new ideas or more efficient ways of doing things because it’s not how they’ve been brought up to think.

Latin Americans will always tell you if there’s a more efficient way of doing something or if your idea isn’t quite as great as you believe it to be. Latin America is a great creativity hub. Combined with their lack of timidity in expressing themselves, people from this area of the world are great partners for any company that wants to innovate.

This creativity is also great when it comes to problem-solving. An Asian team will wait for clear instructions on how to solve an issue, even a minor one. A team from Latin America will at least try to find a way to solve the problem.

Investing in the Future

Many Latin American governments have realized that the IT industry can provide them with significant growth independent of poor infrastructure issues. 

With software development, all a partner company needs is a minimal infrastructure focused on the quality of computers and internet connections. Due to this, many Latin American countries have been investing heavily in IT, especially in tech workers’ education and training.

To end this article, we want to desire you good luck in your future projects. Now you know the cost-savings benefits when offshoring software development and that a nearshore partner from LATAM can be the best option for your software development business.

About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

nearshore, software development software development south america, software development latin america

Offshore software development services emerged for businesses looking to reduce operational costs while having access to a global talent pool. Recently, the US tech job market has been saturated, which resulted in companies looking for more options.

If you want to get ahead of the crowded offshoring market, check out this in-depth guide on offshore software development. Learn why it has been considered reliable and profitable among CEOs and stakeholders.

What is Offshore Software Development?

Offshore software development refers to the digital product development process’s delegation to the developers or a company that offers that service outside the country. Developers from outside the US usually offer relatively cheaper services compared with hiring locals. Companies in the US find it more affordable as they don’t need to cover financial incentives and tax holidays.

Apart from the low operating costs, they get to take advantage of a diverse talent pool. It offers a less taxing way to scale up quickly and improve their technical expertise.

Simply put, businesses get to expand their operations with a diverse team of skilled developers who are geographically distant from the existing employees.

Benefits of Offshore Software Development

There are many benefits to offshoring your software development team. Here are some of them:

Lower Operating Cost

Positions in tech around the world are one of the most in-demand and highly paid workforces today. However, there has been a significant disparity in the rates between US developers and abroad. The average hourly rate of an entry-level developer in the US ranges from $75 to $125. In contrast, skilled developers from Latin America, for example, charge an hourly rate worth $30 to $50. Their wages are significantly higher, not to mention the financial incentives and tax holidays in payroll. When the required wages for US developers account for a considerable portion of your company’s operational costs, it is only practical to opt for offshore services.

Hiring offshore developers let businesses increase their margins without compromising operational costs and the operation itself.

Access to Diverse Talent Pool

Working with offshore development vendors streamlines the recruitment process while giving you access to a global talent pool. As it’s the core of their business, offshore vendors have more experience with hiring seasoned talents. They usually utilize well-established processes to help you fulfill your vacancies within your preferred time frame. With their connections to a network of software developers worldwide, there is less competition for acquiring skilled professionals.

Although their skills are in-demand in the global job market, there is an influx of talent everywhere. For instance, Uruguay contains over 700 tech companies in the IT sector. Uruguay’s massive growth in tech companies stems from their exemption from income tax for any earnings for exporting or outsourced IT services and development. This also keeps costs low without sacrificing the quality of work when outsourcing to Uruguay. On top of their low costs, Uruguay ranks third in English speaking skills throughout all of Latin America. Ultimately, hiring offshore developers eliminates the issue of delay in onboarding your offshore team.

Focus on Core Business Goals

Forming an offshore software development team lets businesses focus on their primary business goals. Companies can concentrate on their critical operations and let the in-house developers concentrate on other significant tasks.

Perhaps it is the perfect opportunity to expand your product and make improvements without overworking your internal team. A team of seasoned offshore developers can manage the work’s development process or configure its add-on services. For instance, they can help you craft a version of your product that addresses a new market at a low cost. Having them perform the advancements for existing products is generally more accessible as it only requires the existing product documentation. This way, there are lesser risks involved, and you can always halt the project when it fails. Otherwise, you can entrust them with larger projects and more complicated tasks.

Timezone and distance will never be an issue if you provide constant communication. Consistently communicate to stay updated about the processes. It is also vital that you articulate the project in detail to prevent misunderstandings and conflict.

Augmenting Offshore Developers with Your In-House Software Development Team

Offshore software development services are especially helpful for businesses that don’t specialize in tech and small to medium-sized tech companies who need on-demand talent based on their project needs. Most tech-focused companies like Google augment offshore developers with their existing team to strengthen their workforce. Whether they have plans for new software or improve versions of their current products, hiring offshore expands technical expertise. It helps them broaden their horizons with specific practices that their internal team might lack.

Communication-barriers might be one of the reasons why many companies are hesitant in hiring offshore developers. It is since collaboration across teams is integral throughout the product definition and development phases. With proper management, offshore developers can contribute to either coding or quality assurance to improve its pace. Given that QA engineers are understaffed in many software development organizations, you can use the extra hand. Offshore QA team doesn’t need to divulge the source code, eliminating the security and risks of compromising your intellectual property. Additionally, outsourcing to countries like Uruguay and Argentina minimize communication barriers since their time-zones align with the United States’ time zones.

Moreover, augmenting offshore developers allows you to streamline significant developments. You can take advantage of a team that is multiple time zones ahead to accomplish round-the-clock software updates.

Finding the Best Offshore Development Company Partners

Before you hire a team of offshore software developers, here are some factors you need to consider:

Prioritize Quality Over Quantity/Costs

Most businesses opt for offshore developers to acquire cheaper services. Given that most of these developers charge less, it is imperative to look for those offering great value.

When the prices are too low, it might be too good to be true. There is always a catch for these circumstances, so it’s vital to screen your hires efficiently. Ask for their credentials, portfolio, and experiences. No one would want to waste your time and money on an underqualified software development team, so choose them wisely.

Are They Reliable?

As mentioned, they should be able to provide a verifiable track record of their previous projects. You have to ensure that the team you are hiring is worth it.

Is Their Time Zone Going to be an Issue?

Most offshore developers adjust their time zone according to the preferences of their clients. It is vital to discuss office hours with your offshore development team before the project.

This communication ensures that their office hours can overlap with your head office.

English Proficiency

To prevent further communication-barriers, it makes more sense to hire a team that speaks your language. It promotes productivity and facilitates cooperation across your internal team at your head office.

Where Can You Find Offshore Software Developers?

Eastern Europe

Eastern European countries are rich with almost 1 million professional software developers. Countries such as Ukraine, Belarus, and Poland are leading resource hubs for skilled developers. A majority of offshore developers in Eastern Europe are well-versed in numerous programming languages.

Ukrainian software engineers are proficient at Java, JavaScript, and Python. A majority of Polish developers utilize PHP as their primary programming language, along with Java and .NET.

Depending on the required skills, experiences, and project complexity, European offshore developers’ average hourly rate goes around $25 to $40. These rates are consistent, compared with the average rates of professional engineers in North America and Europe. However, you would probably find developers with the same competencies in other regions like Asia that charge cheaper.

Asia

Throughout the Asian region, India produces the most number of professional software engineers. This influx of talent is the primary reason many tech giants like Oracle, IBM, and Amazon expanded their business in Bangalore, India. There have been millions of software engineers who graduate in the country annually. With this influx of talent pool, businesses also benefit from lower service costs. The average hourly rate for an entry-level software developer ranges between $18 and $25.

The low prices can come with a significant disadvantage. More often than not, project quality tends to be lower. Businesses must screen their hire carefully to weed out the underqualified applicants. India is followed by China, although their average hourly rates are generally higher. You can acquire an offshore developer by spending around $30 to $40 per hour.

Latin America

Latin American countries have also emerged within the offshore software development industry. Many businesses began taking notice of offshore developers in Argentina, Uruguay, Mexico, and Brazil. Minimal time zone differences and cultural proximity are making it easier to partner with these offshoring destinations. An entry-level offshore developer’s average hourly rate in Latin America reaches around $30 to $50 because the quality is higher.

How CEOs Manage an Offshore Software Development Team

Once you have formed an offshore software development team, it is essential to know the role they play in your business. Depending on whether the team will handle software upgrades, an extension of your products, or help you launch a new product, you must manage them accordingly. As a stakeholder of the company, you must take action to manage your offshore software development team. Here are a few things you need to consider to lead a distant group successfully.

Impart Your Vision

Before anything else, the key to a successful partnership involves a shared vision. You must take time to impart to the team your business goals and mission. Sharing your vision helps them understand your perspective, needs, and plans as a business. It is also an ideal opportunity to get to know them and explore what they can contribute to your business’s future.

More often than not, companies only view offshore teams as an extension of the business rather than a dedicated member of the team. However, this is discouraging and disrespectful due to the significant contribution to your product’s development. Simply put, they play an essential role in its success and progress. Thus, the key is to establish a connection with your team, regardless if they are geographically distant from you. The more they know about your brand, the more they can determine ways to improve their work process.

Right from the moment you start building your offshore team, communicate your vision to let them your brand’s purpose.

Managing Cultural Differences

There are many cultural differences, especially if you are working with offshore developers located in farther regions. They might have different beliefs and aspirations, but you must overcome these differences. Instead of seeing it as a hindrance, make an effort to foster a unified culture of belonging through recognition and appreciation.

Be open with these differences and remind your teams to work towards a common goal. The primary focus should be on the success of the project. It should not matter where they are from nor what they believe.

As the head of the business, it is your responsibility to keep your offshore developers recognized. Ensure polite communication across teams and no one in the group feels excluded. You can break the ice by facilitating welcome conferences. It is an opportunity for teams to get to know and learn more about each other. When teams communicate well, collaboration would not be a hassle.

Communicate Effectively

The key to a successful collaboration with software development teams located offshore is through consistent communication. You must prioritize effective communication across teams above anything else. When teams can reach out to one another without a fuss, they can be more productive. There is nothing that can derail your software development project.

Here are the most common communication channels that you can use between your in-house and virtual teams:

  • E-mails

Email serves as the primary channel of communication for most businesses. It is more formal, typically for tailoring schedules, project details, and project meeting notes.

  • Instant messaging

Instant messaging facilitates consistent communication across the team regardless of their location. For quick clarifications and immediate concerns, you can use Slack, Skype, GoToMeeting, Zoom, Google Drive, Slack, Gmail Suite, and Jira.

  • Productivity tools

Project management is crucial when working with offshore teams to monitor their workflow and processes. Tools like JIRA, Asana, and Basecamp allow you to track their progress easily.

About ZirconTech: A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.