The trend of Offshore Software Development in UK has been one of the best trend till date. Due to its low cost competitive advantage, high tech enterprises used it to develop cutting edge software solutions.
If you don’t know what offshore software development is all about, let’s dig deeper.
Near-shore VS Offshore Software Development
Basically, near shore software development refers to an outsourcing software development project in a neighbouring or nearby country due to the benefits of similar language and efficient collaboration.
On the other hand, Offshore Software Development refers to an outsourcing project that has been given to a foreign country in order to attain higher cost savings than a near-shore project.
Offshore has its own advantages but just like anything else, it has weaknesses too. It may become disadvantageous when you are unable to get aligned with the foreign country’s culture and language.
Need of Offshore Software Development Project
You might be still thinking why so many enterprises are dependent on offshore software development projects? The answer is quite simple. These are highly cost effective solutions as they provide you with their services at a very low rate.
Top 5 Challenges in an Offshore Software Development Project
Here are some of the factors on which Offshore Software Development is dependent on:
Increase in Competition
Day by day, competition is getting more and more. New Software Development companies are being setup in countries like India, China, Philippines, and Romania etc. Due to this rising competition, many small scale software development companies find it hard to survive.
Market crisis on a global level has affected various countries. The basic concept of foundation for the offshore software development was to cut on the expenses. But today, many countries are facing difficulties to compete with Dollar or Euro exchange rates.
Most of these offshore software development countries are developing ones. Some of them have strict and unstable government. These unstable government aren’t so favourable towards the IT sector which affects the practice of doing business in their country. Their strict views for sensitive data and security affects the business relations which causes a service provider to back off his foot from such type of land with such policies.
SAAS or Software as a Service was one of the basic model till date. Nowadays, people prefer Cloud Solutions instead of investing in expensive IT infrastructure solutions. Moreover, the flexibility of these solutions can affect your business.
Managing Offshore Staff
Managing the onsite staff can be a tough task for the employers. Software Development Companies employees are often caught up by the high dollar pay scale. Moreover, due to the location problem, it is hard to maintain skilled working staff for the new projects.
Some companies are even coming up with solutions like signing bond amounts etc. to limit the movement of their employees to other companies.
But all these challenges are some of the basic challenges that any Offshore Software Development Company in UK has to face.