The global expense and demand for IT services, especially the top offshore software development companies is expected to rise to over one trillion U.S. dollars in 2021, according to a forecast from Statista. Today, an uninterrupted and powerful digital presence to keep up with the trend, competitors, and time has played a much more important role than ever. The question for business owners or corporate decision-makers in the 21st-century changes from “Should I outsource?” to “How much should I outsource?”
This kind of situation has turned the competition between offshore software development companies to a cut-throat game, with main players coming from everywhere: India, Asia, Latin America, and Eastern Europe.
CMC Global, to help you find the best partner, has selected several top offshore software development companies that can dominate the software outsourcing market in 2020.
1. What is Offshore Software Development?
Generally, “offshore software development” means working with overseas agencies/ outsiders to develop software products. Therefore, many may think that “Software outsourcing” and “Offshore software development” can be used interchangeably. However, outsourcing is just a small part of the game.
Read more here: Outsourcing: Definition and models
The main benefits of this practice are the low production cost. Since most of such agencies are situated in countries with low operational costs, this gives clients the opportunities to optimize their business without investing too much in resources.
Offshore software development services involve custom software development, web development, mobile application development, etc. They can be accounted for the whole project or just some specific features/ phases by taking into account different considerations in the product life cycle and other stages.
2. Top Offshore Software Development Companies
Belitsoft is a company from Belarus with world-class software development services. The company has succeeded over 100 projects with a rate of 50%+ clients return for another project/ extending their contract. Home to over 50 domain specialists, the company has left its footprint in various industries such as healthcare, e-learning, finance, and telecommunications, etc.
You can hire professionals who are experts in PHP, .NET, Java, and other technologies. These experts are the assets that enable the company to maintain its top position as one of the world’s most reliable offshore software solutions providers.
Daxx is famous for IT outsourcing, a match-maker for businesses in need to hire qualified experienced software developers for long term contracts. Their history of 300+ clients throughout 20 years is quite impressive.
Daxx connects its customers with talented technology engineers. This is an optimal offshore software development solution for customers to both cut costs and improve their quality in comparison to investing in an in-house team. Daxx’s clients now have a wide range of choices, from a dedicated team to additional services including quality assurance, IT relocation, security testing, DevOps, process consulting, etc.
SoftServe has a strong global presence with 50+ offices, 8,000 people on board in 11 countries. Their services range from quality assurance, product engineering, project management, and business analysis.
With more than 1000 successful projects from their 23 years of history, SoftServe has become a leader in delivering innovative digital solutions for businesses in several industries, for instance, healthcare, e-commerce, energy, oil, and gas.
SDLC Infotech is a reliable name for overseas businesses in need of one-stop software development solutions. So what does SDLC Infotech provide? It provides custom software solutions with their usual customers looking for focused technological solutions for CRM, lead management, inventory management, and human resources management. You can find Java, PHP, .NET, Laravel, etc. experts here, they are the ones who keep track of the latest software solutions trends.
In addition to outsourcing software development, SDLC Infotech is also an ideal choice for digital marketing solutions. They have a team of SEO experts, social media, and content professionals to run any requested email marketing and PPC campaigns. They also care for online reputation management, which accounts for a dependable image of a business. SDLC Infotech is known for its professional outlook, quick turnaround, and on-time delivery of projects.
QBurst is a global company that provides full-cycle digital products services. Most of its clients are mid-market of industries such as education, healthcare, retail, and renewables.
With more than 5,000 employees on board, their top services ranging from Cloud, Data, App Development, DevOps, Design, Quality Assurance, to Digital Marketing services.
Another one coming from Ukraine is Intellias – a reputable offshore company to handle
Being in this field for over 15 years, Intellias specializes in developing custom platforms to meet specific requirements from customers. They can execute briefs for devising cloud-based solutions, software development kits (SDKs), or integration solutions so that on-site and third-party applications can work in complete synchronization in a consolidated environment.
You can expect a lot when it comes to Intellias: from end to end SaaS development solutions, web and mobile apps, APIs, data storage, to cloud-based hosting. With numerous of native iOS and Android mobile applications crafted, the agency has proved their capability with the help of talented UI/ UX professionals who provide amazing user experience for the solution’s end-users.
Those looking for custom web application development solutions must know Existek well. They are teams of Ukrainian experts who know well about devising desktop software, mobile apps for all kinds of user environments, and even web applications. Years of experience in this industry give Existek a thorough and structured process to deal with and fulfill client needs.
When a client is looking to outsource software development approaches, Existek will jump in and analyze what they want, the project requirements, and outline a mock-up. After a legal contract to map the project clearly, they will start working.
Existek is among the few agencies to provide custom software development services using both Agile and Waterfall methodologies, depending on the projects’ nature. They also have experts in Java and .NET and the latest technological tools to generate the best results and robust solutions.
Not having the same perk of cost as their peers in Asia, this fast-growing IT services in the US – BairesDev has their way to grow into the big player in the IT’s global game. With 11 offices and over 1,300 tech specialists, the company is the fastest-growing software outsourcing company in Latin America.
Their strategy is to employ solid engineering teams that can provide end-to-end delivery of technology solutions to companies of all sizes. BairesDev has partnered with startups, middle-market companies, and even the ones from Fortune 500. Their main markets are the US, Argentina, Brazil, Colombia, and Mexico, which fits its mission perfectly: to become the region’s largest outsourcing company of all time.
How to Pick the Right Offshore Software Outsourcing Companies?
Understand thoroughly the Software Outsourcing Company’s Management Capabilities and Cultural Fit
To guarantee the project’s success, things like time zones, geographical distances, and the company’s capability should always be taken into consideration seriously. A project manager should also take language and culture barriers, strong management, and guidance into account as they are among the top risks in an offshore model based IT engagement, according to a report from TechRepublic.
Therefore, what you can and should do is directly asking the company for their management capability robust and reliable, as well as some effective offshore case studies for previous customers.
For example, many of CMC Global’s customers are from Korea since our time zone, cultural compatibility, and work ethic match theirs. Furthermore, CMC Global has proved its capability in delivering qualified products, manage all required administration tasks with due diligence.
We also partner with several companies in other countries, of all time zones and industries. Read more about our offshore software development case studies
Evaluate Cost-effectiveness, not Cost
One of the main reasons for the demand for offshore software development is cost reduction, so the problem one may consider the most is: how to get the best talent possible, with the most affordable price?
According to the report from AT Kearney’s 2019 Global Services Location Index (GSLI 2019) research, Vietnam is among the top 5 IT service providers. Even big companies in the world continue to select Vietnam as an attractive location to invest in for their growing highly skilled workforce and dedicated services. Despite such strength, Vietnamese IT professionals are getting much lower payments than their peers in the region. Highly-skilled engineers in Vietnam earn around $10,000 per year. This is $5000 lower than the average cost in Malaysia or their neighbor Thailand.
That leads to a situation: all Vietnamese offshore software development companies have the same cost of living, so every offshoring partner here is going to offer you a much lower rate than in western Europe or the US. The key to assessing which can bring out the best value, as not all the cheapest deals can deliver a great result.
The thing to be considered here is the people: do you feel confident enough to let an offshore software development company build out your business from scratch? You can sort this out by asking about timelines, quotes, risk management plans, and how they handle unforeseen incidents during their previous project. The right partner will be the one who can give you all the answers without hesitation.
Prioritize Long-term Goals and Strategy
Opting out an offshore software development company means you are expecting to work together for the long-term. Normally, offshore contracts run for years so not only your partner needs to understand your current business, but they also have to have the vision for at least 2 more years, and ten years at max.
Therefore, things to seek out here are the flexibility and adaptability to instigate changes within your remote team without a broader disruption to the company. Everyone fancies world-class developers, but the best may not be the most suitable for your need. Any IT company can offer you outsourcing services, but you need to figure out what your business need, their capability, and the potential to work together in the long term.
At CMC Global, we strive to offer our customers the most qualified of products and services, using the best technology solutions and talented developers. CMC Global has achieved the Sao Khue Award for the category “IT Outsourcing Service” for two years consecutively. The huge number of our partners we have is the proofs for our strong competence in technology breakthroughs, commitments and working attitudes.