In today’s digital landscape, companies pour huge amounts of time, hard work, and money into creating unique Offshore custom software development products and services. Why go through all this trouble? Well, the tech industry is becoming increasingly jam-packed with similar solutions.
It's an incredibly competitive marketplace, forcing software businesses to craft customised software specifically suited to individuals or groups of clients. This growing demand for tailored software only escalates as we march through 2023.
That's why more companies are looking into offshore development teams to lend a hand.
Defying offshore custom software development
For years, companies have relied on generic off-the-shelf software and hardware - ready-made products built for plugging into existing systems.
Microsoft Office is a prime example of ubiquitous commercial software packaged up and ready for any business. While handy in the past, today's IT landscape has gotten more complex. Companies now offer more specific solutions to meet unique needs - and that's where offshore custom software development comes in.
Custom software is fully tailored to the particular requirements of one user group. Not only do clients get full ownership of the product, but they can also ask for extensions or new capabilities by working with the developers.
The challenges of developing custom products
Scarce tech talent
There's an incredibly high demand for experienced and skilled software development engineers - nearly 250,000 software jobs remain unfilled in the US alone. But low graduation rates make the shortage even worse - the US produces only 35,000 computer science grads yearly.
Additionally, experienced developers often face hefty workloads, working more than 60 hours weekly to meet strict deadlines. The big gap between the high demand for experienced developers and the small number available leads to longer times to develop products.
High operation cost
Developing custom software can be costly. This is mainly because software engineers earn high salaries, averaging around €85,000 in the US. It's also worth noting the recruitment fees, typically falling between 20% and 25% of the engineer's salary, and these expenses can mount up over time.
But that's not all – there are other expenses to consider too. Such as:
- Office space
- Equipment
- Training for your team
- Healthcare
- Retirement plans
- Other benefits
On the other hand, off-the-shelf software solutions are usually more budget-friendly. Even though they may not perfectly align with your organisation's needs and might require some adjustments to your processes, they often prove to be a more cost-effective choice.
Other options for building custom software
Outsourcing
Outsourcing development can work for established software companies but can be expensive. Most businesses choose the cheapest outsourcing option. The result? Developers lacking customer focus, technical skills, or quality deliverables.
According to the Project Management Institute, only 70% of outsourced projects meet goals - the rest are late, over budget, or fail. The decision to outsource is often price-driven, which can produce subpar and non-sustainable results, especially for one-time projects.
Offshoring
When you opt for offshoring, you're working with an engineering team that is part of your company but operates in a different country, with access to a rich talent pool.
For example, India produces over 1 million engineers yearly, providing a vast talent pool to find the required skills. Offshoring to India allows companies to tap into this abundance of skilled engineers and create an extension of their software development team. By working with an experienced offshoring provider in India, organisations can quickly scale their development capabilities and free up local resources to focus on core competencies.
Wrapping up
In the end, offshoring emerges as the best strategy for organisations seeking to overcome the hurdles of custom software development in 2023. By leveraging an experienced offshore provider, companies can access specialised technical talent without recruitment pains.
With the right offshore development partner, you can defy custom software challenges and create innovative products faster tan ever.
Reach out to The Scalers today to learn more about how offshore development can transform your business!
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