The IT market place is a frenzy of new software whether it’s mobile apps, PC programs or cloud-based apps. There is an IT solution for everybody’s needs and the demand is only increasing. The challenge, as it always has been is to produce the highest quality products at the lowest cost. The IT industry is particularly lucky in the sense that outsourcing is a great way to achieve low prices and high quality.
Developers can befound all over the world with a high number in the US, India, and smallercountries like Belarus and Romania. But how do you choose a developer that willsuit all of your needs and well as the needs of the software? The UK and the USoften turn to Eastern Europe and Asia to solve this problem.
Why is it worth outsourcing IT services?
The cost
The US does have high standards of work, yet so does Ukraine sometimes even better! The difference is that the quality remains, but the cost of labor in both these countries is much lower. Statistics have shown that you could save over to 60% when you outsource IT services to these countries.
Higher efficiency
There are numerous accounts of satisfied clients when it comes to outsourcing. IT specialists get the work done in a timely manner by developers who have expert talents. It doesn’t matter if your project is simple or complex, there will be a developer for you!
More free time for you
If you want you could take a book and relax, but in general this means that while your IT needs are outsourced, you can spend more time on other areas of your business.
Saving on infrastructure
At times, a new project will require some investment. You might need to buy new hardware or software to develop your product. If you choose to outsource you won’t have to spend that money because the outsourcing company is responsible for the resources used.
Speed and quality
IT development is an incredibly fast industry. There is no time to be wasted when it comes to releasing your product. Outsourcing will have your product ready for the market quicker than you probably could (no offense but you have multiple tasks to do, an outsourcer has your project to do!).
Different types out outsourcing
Outsourcing can be sub-categorized into three areas, offshoring, nearshoring and onshoring. We are going to take a quick look at the difference between the three.
Offshoring
When you choose tooffshore outsourcing, you are choosing a country that is far away from yours totake advantage of its low costs and high quality. You have access to a hugetalent pool. Generally speaking, when you offshore you will be subject to an8-10 hour time difference so bear this in mind if you need to be able toconstantly communicate with your developer.
Nearshoring
Nearshore outsourcing is much like offshoring in the sense that you will outsource your project to a different country. The main difference is that (as the name suggests) the country will be a lot nearer to your own. Typically nearshoring means working with a developer in a country that is either in the same time zone as you are or just a couple hours difference.
Communication tends to be easier when nearshoring. The country your developer is in is probably a neighbour county and therefore there are fewer cultural differences.
Onshoring
Onshore outsourcing or homeshoring is when you outsource your project to a person or company that is in the same country as you are. It is typically used when your business doesn’t have the necessary skills to perform a task and you don’t want to hire someone just for that purpose. You will be able to reduce costs.
The IT Market in Ukraine
Ukraine has been onthe right path for the past 20 years but recently things have just taken offThere are over 1500 IT companies in Ukraine and more than 230,000 highlytalented software developers. More and more people are choosing to invest inUkraine and the IT services market is likely to double by 2020 as stated in thePwC report.
The Ukrainians have a very similar cultural attitude as the Europeans. They have strong values and work ethic. The majority of software developers in Ukraine speak a very good level of English so you won’t need to worry about miscommunication.
The IT Market in the Philippines
One might say that the Philippines s the Asian version of Ukraine. It is a leading outsourcing country in Asia with a good talent pool.
The Philippine Software Industry Association (PSI) reported that there were 123,000 software developers.
As with the Ukrainians, a large number of Philippines developers are pretty good in English.
Another aspect you should take into consideration is that each year, the Philippines gets more than 20 typhoons, and at least 5 of them are very devastating. If you plan to outsource your IT services in this country, you should expect that there are times when your experts won’t be able to deliver on time.