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Dear Developer,

Have you ever wondered how your competitors knockout profitable products month after month? And how they get so much done in less time?

No matter how many hours you work, you feel like you’ll never able to accomplish as much as they do, or even as much as you want to. Don’t feel sad, you are not alone! You don’t have to worry, we are here to tell you the secret of your competitor’s success.

They Outsource their work.

While there is no “secret recipe” to this trick, it’s important to say its not just outsourcing, but about outsourcing the right way. In this article, we will give you some insight on the different types of outsourcing and their benefits. Before that let me first give you a little intro for our newbies.

According to Wikipedia:

Offshore outsourcing is the practice of hiring an external organization to perform some business functions (“Outsourcing”) in a country other than the one where the products or services are actually developed or manufactured (“Offshore”).

Offshore outsourcing is no longer a business, buzzword, or jargon; it’s a way of doing business. Resurgence is piling about outsourcing as a useful business tool. Globally, outsourcing is seen as a viable solution for many operational issues in small and large companies, for both web development, software, and app development.

Here are the reasons why companies do offshore outsourcing

  • Low labor and operational cost.
  • Offshore outsourcing allows you to focus on core values.
  • Improves service quality and speed of delivery.
  • Helps a company to free up from internal resources that could be put into effect for another purpose.

Offshore outsourcing enables companies to realize the benefits of re-engineering.
Hopefully this provides a little insight into what offshore outsourcing really is. Let’s move forward and talk about different type of outsourcing.

Tactical Outsourcing

Tactical outsourcing focuses on short term problems such as hiring seasonal workers, locating scarce talent, or staffing up a critical project because it avoids the long process of searching for the right candidates for short-term projects.
Even when an organization has its own internal technology team, it is quite common to use tactical outsourcing as a tool for managing the legacy part of an operation.

Benefits for choosing Tactical outsourcing

  • Ramp up your work load in short notice.
  • Reduce or control operating cost.
  • Make capital funds available for core areas.
  • Generate cash infusion
  • Secure resources not available internally.

Offshore Development Center

There are two types of customers:

The first who have a series of projects in related fields and they don’t want to spend the time or resources to onboard, train, and manage various teams and inventors. The second are other customers who have an internal team that lacks the skill set to achieve the desired high quality results on time and within budget in a repeatable way.

Each of these scenarios lends themselves to offshore development center.

An Offshore development center, as opposed to one in your own country, is kind of development center which you open up overseas but another country is hosting and managing that for you. It is a perfect solution for customers who need long term steady software development, consistent cost saving, high quality, and productivity improvement, rather than one time savings. The key to success in offshore development center is it has strong technical team which enhances unsure teams lacking technical skills.

Offshore Development Centers are the best solution if you’re involved in ongoing development, maintenance, or support projects. It works as an extension of your in-house team, it accumulates knowledge, and it knows how to rapidly implement it for your needs.

Benefits of offshore development center:

  • Cost saving.
  • Office space, hardware, software and communication facilities.
  • Low risk, high return.
  • Short term contract possible.
  • Scale up or down at short notice
  • Build-Operate-Transfer (B-O-T)

First of all, you need to know that B-O-T is not outsourcing because B-O-T own and control over your own team in low cost region.

B-O-T refers to Build, Operate, and Transfer model which allow companies to initially leverage outsourcing vendors to establish an offshore team and environment, and in time, assume full control and ownership over the set-up.

It has become the preferred service model for middle-stage and mature startups as well as established firms.

Benefits for choosing a Build-Operate-Transfer (B-O-T) are

  • Save money and make the company more profitable.
  • Helps product come to market faster.
  • Increase job quality for original/ local employees which increase their satisfaction and loyalty.
  • Provide flexibility to hedge against problems in any one country or currency including your own.
  • Hope this article helps you to decide which type of offshore outsourcing is viable for your business.