Business transformation and resilience continue to be the top priority for organizations globally. The coronavirus pandemic further accelerated digital transformation initiatives, and IT decision-makers continually seek to stand out from the crowd and create innovative, powerful, and relevant software solutions.
However, the acute talent shortage in the US and Western Europe makes things challenging. For instance, 70% of tech employers in the UK experienced significant skills shortages in 2021.
Similarly, the lack of skilled IT talent could cost the US over $162 billion in unrealized revenues.
The reality is apparent — local talent in the West is scarce and expensive, and you have to look elsewhere to innovate and scale your business at speed. Let’s dive deeper into offshore solutions so you can assess whether it’s a solution for you…
Offshore software development: a sustainable long-term solution
Offshore development is when a company builds a permanent, dedicated team of developers in another country. They are regular, in-house employees in every sense except that instead of working locally, they’re based elsewhere. The offices that they work out of are called offshore software development centers.
Why should you hire offshore developers for your business?
There are many reasons why organizations choose to hire offshore developers in emerging tech nations like India and Ukraine. Some of them include:
Lower operating costs
Building teams in India or Eastern Europe is less expensive than in Paris, London, or New York. The lower cost of living in these regions means that the office premises, equipment, and salaries are all significantly lower.
Access to massive talent pools
Across Western Europe and America, highly-qualified software engineers can be hard to nail down. On the one hand, the talent shortage in the United States has more than tripled in the past decade. On the other, tech economies like Bangalore produce more world-class IT engineers than anywhere on the planet.
You can read more about the business benefits of hiring offshore developers in our blog post, ‘4 Reasons Why Companies Use Offshoring‘.
An opportunity to scale at speed
Quickly scaling up a business can be difficult. Going offshore lets businesses establish larger offices, recruit offshore developers at a faster pace and change more dynamically.