When talent shortages stop your business from accessing the skills you need to scale, what options exist for expanding your software development operations? While the pandemic certainly brought different ways of working to further prominence, outsourcing and various types of offshore model have existed for some time. Without further ado, let’s look at the difference between outsourcing and offshoring to see which is most appropriate for your strategic objectives.
## Is an offshore model right for you?
Outsourcing is where your company signs up with an external vendor, often called a software house, and tasks them with allocating developers to your projects, managing their day-to-day workloads, and essentially doing your work for you at a lower cost. Offshoring for a long time was similar, although you usually did the final hiring, and there was much more control over the product and workflow**.** Today, a top-tier offshore model will encompass a ‘people-first’ approach — where the cultural fit aspect of hiring is given enormous importance, as well as the alignment between the engineers abroad and the team at home.
For example, outsourcing might be the better option if you have a one-off application to develop that doesn’t require continual delivery and iterative support. You’ll be able to find niche skills, and having them invested in the long-term vision of the company and its products isn’t really needed. However, offshoring is probably better suited if you’re facing crippling skills shortages at home and find yourself priced out by larger enterprises for elite developers.
## What does the right offshore model look like?
To leverage a proven, results-driven model you’ll need to partner with an expert on the ground in the location you choose to offshore to. The partner you collaborate with might even drive the site you select. Not all destinations are created equal, so it’s important to do your research to see which location has the specific skills and expertise you need. Similarly, it’s important to check the number of available developers in the cities or countries you’re looking for because a higher number of developers means a deeper pool of talent from which to source.
Once you’ve found the right offshoring partner, they’ll put together a roadmap consisting of timeframes and expectations. Typically, they’ll source and technical test a plethora of engineers that match your requirements. And, administer personality assessments to make sure they’ll make a good fit for your business. Once it’s been whittled down to the best of the best, the final hiring decisions will be made by you. They’ll also set up your office space, or facilitate a home-working arrangement if required, and manage the administrative and HR side of your offshore operations.
## Wrapping it up
Now, you’ll be in a better position to choose between outsourcing and offshoring since you have a clearer picture of the inner workings of a modern offshore model. Whichever avenue you go down when extending your development team overseas, it’s necessary to research the companies you’d like to partner with by checking their website, reading case studies, and looking for high-calibre testimonials from CTOs and other tech leaders in similar industries to yours. Finding a company with a finely tuned offshore model can be a massive competitive advantage — delivering a long-term, sustainable, and scalable engineering team.
This forum is for members to share and gain knowledge of Project Management. Got a question about project management? Need help with a problem? Wish to offer tips and advice? Post here.
1 post • Page 1 of 1