Why choose Offshore Software Development Companies?
Posted by stevemartin on August 27th, 2014
Software development process includes- research, development, prototyping, modification, reuse, maintenance, re-engineering and many other activities prior to roll out. There is a huge demand for software across industries and more often than not, most companies aren’t equipped to deal with it on their own. These tasks are then assigned to companies who can take care of software development and some of these are located commonly in different countries and are called offshore software development firms. The main reason for which many software development organisations hire offshore developing agencies is to avoid the huge development and research costs that they have to bear for the local service providers.
The Major Countries Involved in the Industry
As per statistics of 2003, this booming business of offshore software development was controlled by companies like India, Philippines, Canada and Israel and in later 2009, 50% of the combined share of world market for offshore software development was with India and Philippines. Countries like Portugal, Poland, Czech Republic, Serbia, Croatia, and Bosnia have also invested in this arena recently.
The Major Offshore Hubs of the word
The Gartner report states that the cities that have invested in offshore development companies are categorized as tier 1, tier 2 and tier 3 based on multiple factors such as quality of infrastructure, global connectivity corridor and availability of man power capital for the purpose of better investments and results. The report concludes by stating that cities like Bangalore, Yerevan, Noida, Mumbai, Ahmedabad, Bucharest, New Delhi, Tel Aviv (Israel), Chennai, Pune, Indore, Gurgaon, Thiruvananthapuram, Greater Toronto Area, Ottawa, Montreal, Moscow & St. Petersburg shall be the best places to set up Offshore software development companies and hence these are categorized under Tier 1 group. To be noted, given the present trend of growth in this sector, several companies have started to use offshore development companies in China also along with India with a lower cost per developer model.
The major services provided by offshore development companies are software development, mobile application developments, applications re-engineering, Software QA Testing services, maintenance and support and project resource. Many a number of Web 2.0 platforms and websites are also developed offshore while the management and entrepreneurs are situated at the US, UK and Europe. Furthermore, the difference in time zone when working with India and China for the western part of the world allows work to be done round the clock making it a competitive advantage for the investors.
