The Ups and Downs of offshoring: Traditional vs Offshore 2.0 model

4 min read
23 August 2023

Let’s face the facts: 95% of tech companies struggle with talent scarcity. 

If you find yourself in this situation, you're not alone.

In this post, you’ll find a breakdown of the ins and outs of offshoring, the pros and cons of offshoring, tips on how to find the perfect fit for your business, and how to nab top-notch tech talent from around the world.

CTOs, CEOs, and tech leaders consider this your strategic go-to offshoring guide!

Offshoring: the basics

Offshoring involves sending operations abroad, such as hiring Indian developers for your US/European business. Offshoring offers lower recruitment costs, access to global expertise, and many more benefits.

Yet there's some doubt because of not-so-great providers. It's vital to tell these apart from top-notch offshoring, also known as "offshore 2.0."

Before you begin your adventure with offshoring, it's essential to grasp the contrasts between the old way and the new "offshore 2.0."

Exploring the traditional offshore model

The old offshore method means briefly working with outside engineering teams on specific projects. In this setup, developers focus on tasks but don't provide lasting value beyond the project. High turnover is typical as developers handle multiple projects at once.

Imagine this: You need a small team of developers for a five-month project. The classic offshoring model checks these boxes.

Pros and cons of traditional offshoring

Pros:

  • Cost-efficiency
  • Round-the-clock operations

Cons:

  • Execution over value
  • Quality control concerns
  • High engineer turnover

The future of offshoring: the offshore 2.0 model

Offshore 2.0 is the next level in offshore software development, built on lasting collaboration and true partnership.

With Offshore 2.0, you access a dedicated team of top-notch offshore developers who share your company's mission, culture, and values and are fully invested in your goals.

Offshore 2.0 is about more than just cost savings; it adds value by making offshore developers essential members of your team, not just outsiders.

Offshore 2.0 pros and cons

Pros:

  • access to global talent 
  • hands-off operations
  • integrated and culturally aligned teams
  • scalability and flexibility
  • enhanced Security and data protection

Cons:

  • geographical disparity

The smarter offshore strategy

Now that you know the differences between traditional offshoring and Offshore 2.0, it's time to pick the right fit for your business.

As a tech leader, your goal is to embrace cutting-edge technology and grow your talent pool in sync with your expansion plans.

That's where The Scalers come in. Based in Bangalore, the Silicon Valley of Asia, they're masters at building offshore software teams for global companies. With a blend of European and Indian leadership, The Scalers have revolutionised offshoring, making it quick and efficient for you to expand your engineering team.

The Scalers’ model to success: the five-step strategy

  1. Leveraging Bangalore's tech scene

The Scalers tap into the remarkable tech talent of Bangalore, Asia's Silicon Valley.

  1. Recruiting elite Indian developers

They handpick the top 1% Indian developers, renowned for niche skills and seasoned expertise.

  1. Commitment to long-term teams

The Scalers construct dedicated teams for enduring collaboration, typically spanning 3-5 years.

  1. Comprehensive ground operations

They oversee all on-ground operations—HR, payroll, set up, and administrative tasks—ensuring seamless functioning.

  1. Fostering a people-centric culture

At The Scalers, a culture centred on people thrives, engendering a nurturing and vibrant work environment.

Wrapping up

Navigating the challenge of developer scarcity in Western nations can be overwhelming. That’s where offshoring comes in! 

Offshoring provides cost-effective access to top-tier tech talent and specialised programming skills. However, traditional offshoring involves communication hurdles, quality control issues, and potential value gaps. On the other hand, Offshore 2.0 introduces the concept of trust-based partnerships, improved talent access, streamlined operations, scalability, and robust on-ground support. 

The Scalers offer a distinctive Offshore 2.0 model by enlisting top-notch Indian developers, creating dedicated teams and managing administrative aspects. 

Keep an eye out on our blog for further insights into offshoring and strategies driving digital transformation!

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The Scalers 18
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