How Offshore Outsourcing is helping SMBs in 2022?

Introduction

With the advent of the pandemic, the world has shifted its business operations on the digital platform. Now embracing Information Technology’s leadership is a complicated matter and pricey endeavor for beginners. While there are a lot of options to approach digitization, major start-ups and SMBs are opting for offshore outsourcing.

What is Offshore Outsourcing?

Gartner describes IT outsourcing as the process of utilizing third-party service providers to derive IT-based application services, business processes, and infrastructure solutions for cost-effective and effective business outcomes. Moreover, Garter explains the process of offshoring as relocating a team to derive services at a comparatively lesser cost.

So we can define Offshore IT outsourcing as the process of virtually hiring a team of software engineers based in a far-off country to derive development services at a reduced cost. Another alternative is IT Staff Augmentation

What benefits are SMBs deriving from Offshore Outsourcing in 2022?

Offshore outsourcing was considered a risky try in the past. But today it has been in high demand. Nearly 8 out of 10, that is 80% of SMBs plan to outsource 27% of their IT services in 2021, says Clutch. Conditions like tech talent shortage, raging infrastructure and resource costs, lack of time, and much more have led them to opt for offshore IT outsourcing.

Apart from that offshore outsourcing has benefited SMBs and start-ups greatly. Here are some of the ways!

Reduces Costs

In-housing requires setting up an infrastructure, gathering resources and tools, hiring tech talents, and other necessities which pile up the number on your bill. Outsourcing, as we know, has always been a cost-effective option for SMBs and startups.

Offshore outsourcing companies allow SMBs and start-ups to hire a set of tech experts without going about infrastructure, resources, and tools. Since it comes under their services! Hence, SMBs and start-ups can eliminate additional costs and focus on more crucial matters with offshore outsourcing.

Removes Hiring Headaches

Selecting and hiring the right set of talents can be quite a burden. Moreover, according to McKinsey, nearly 87% of organizations have chosen IT outsourcing due to a shortage of talents. Furthermore, a lot of risks are involved while hiring talents on your own. Besides, you also need to train your hired talents, which consumes much of your precious time.

Offshore IT outsourcing companies provide an extensive range of virtual talents. Furthermore, these companies analyze your expectations and market trends to provide you with appropriate skills and experience-bearing talents who can meet your business requirements.

Provides Absolute Flexibility

In housing developers often add up to your expenditure, since you need to pay them even when you don’t have any particular work for them. According to Clutch, 33% of SMBs and start-ups go for offshore outsourcing due to flexible resource accessibility.

Offshore IT outsourcing helps you to hire a full team of developers and even individual developers to collaborate with your team. SMBs and start-ups even get the option to hire them as per their required tenure. Moreover, offshore outsourcing developers hold the flexibility to work according to any time zone.

Hence, offshore developers integrate seamlessly with organizations to meet business goals in the least possible time.

Guarantees Scalability

Start-ups and SMBs want to get recognition and scale in the market. Moreover, these companies work on a fixed budget. Hence, 19% of SMBs opt for offshore IT outsourcing because they get objective-oriented and efficient talents in low-budgets, says Clutch.

Uses Trending Technology and Tools

Almost every IT outsourcing firm acquires its infrastructure along with the latest technology and tools. However, SMBs and small start-ups can save much if they offshore software development services.

Since offshore IT companies hold the latest technology, tools, and resources. They use the same to develop their solutions at a very low cost. Hence, SMBs can get their hands on edge-cutting solutions at the most reasonable cost and thereby, cut down costs.

Ensures Top-notch Quality

Offshore software development companies are very typical about hiring developers. Developers go through a thorough recruiting process that includes resolute vetting and screening procedures. Hence, offshore outsourcing companies select the best out of best talents for development procedures.

Moreover, offshore IT outsourcing companies check the functionality of their developed products using the best testing methods to assure that only the avant-garde quality is delivered.

Accelerates Marketing Time

Time-To-Market or TTM is crucial when it comes to launching your software. Moreover, accelerated TTM has its own set of advantages. Firstly, it enables SMBs to gain a competitive edge in the market. And secondly, it brings timely ROI for your developed software.

This adds another point to the list of benefits that SMBs receive from offshore outsourcing. Offshore IT outsourcing companies help SMBs to prevent trials and tribulations while hiring their developers. Furthermore, with risk mitigation and fast-paced development provided by offshore companies, you are sure to gain the lead in the market!

Decreases Risks

Software development projects are in demand and hence need your constant attention. However, SMBs also need to focus on their day-to-day business operations to keep going on.

That’s where offshore outsourcing comes to help. Offshore IT outsourcing agencies aid SMBs to mitigate liabilities in the absence of in-housing developers. Moreover, they also provide required technologies at the last minute for an amazing development experience.

What are the best locations for Offshore Outsourcing in 2022?

The West has opted for offshore software development outsourcing mainly because of their low availability of rich talents that leads to high operational costs. This cumulates to sky-touching expenditure which becomes impossible for business organizations to provide. Plus, quality solution development is another factor they need to keep in mind.

Some of the major offshore software development outsourcing centers that have gained a huge reputation for their low operational costs, trending technology implementations, wide richly skilled talent pool, and qualitative solution development include the following.

• Asia
• Middle Europe
• Latin America

Out of these three, Asia, especially India holds around 1 million software developers. This rich talent pool uses the best of infrastructure and technology stack to develop top-quality software for as low as $20 to $30 dollars an hour. It is also said, India outsources $137 billion of the entire global export.

Conclusion

While many factors are said to hamper the offshore IT outsourcing development journey like the difference in time zones, poor communication efficiency, and others. Yet technology has bridged the gap all the same. The best places to look for offshore development projects include Asia, Eastern Europe, and Latin America.

Hence, offshore IT outsourcing is acting as a catalyst for business growth and achievement on the digital platform.