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Market research when starting a remote (offshore) software development center

The criteria to considered while choosing an offshore software development vendor
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18 March 2023
Creating an offshore software development center is a strategically important step for many companies, which allows for reducing costs for software development and maintenance, as well as gaining access to a wider range of IT specialists. However, to successfully implement this project, it is necessary to choose a reliable partner who has experience in this area and is ready to provide high-quality services.

To choose a partner, it is necessary to conduct market research and evaluate companies that can provide the necessary services. There are several criteria that should be considered when choosing a partner to create an offshore software development center:

Work experience and qualifications of specialists

When choosing a partner, it is necessary to pay attention to the outsourcing experience and qualifications of specialists. The vendor should have extensive experience in the software development field and provide high-quality outsourcing services. It is also necessary to ensure that the vendor has a sufficient number of qualified developers and designers who can implement complex software projects on time and with a high level of quality.

Vendor reputation

The reputation of the offshore development company is another important criterion when choosing a partner. It is necessary to familiarize oneself with customer reviews who have already worked with the vendor and ensure that they are positive. It is also possible to refer to independent ratings (listings or catalogs) that evaluate the work of companies in this area. It is quite appropriate to study the portfolio of your potential partner for the launch of an offshore outsourcing development center. Based on the aggregate experience and reviews, a confident choice can be made in favor of one or another development center.

Technological capabilities

One of the main criteria that we consider when choosing a vendor for your project is the technological capabilities of the offshore development center. It is important to ensure that the vendor has not only the knowledge of necessary technologies and tools but also experience in their use for the implementation of similar projects.

In addition, pay attention to the programming languages and technologies used in the company. Investigate whether they meet the requirements of your project and consider the possibility of using new technologies if necessary.

We also advise paying attention to how the vendor reacts to changes in the technological environment and how it follows the latest trends in the industry. Experience and ease of adopting new technologies are key factors for the successful implementation of the project. Ensure that the vendor you choose meets our requirements in this regard.

Price and quality

Finally, it is necessary to take into account the pricing policy of the vendor and its ratio to the quality of the services provided. It is not worth choosing a vendor solely because of its low price, as this can negatively affect the quality of work. It is better to choose a vendor that provides high-quality services at a reasonable price.

Choosing a partner to create an offshore software development center is a responsible and complex process that requires taking into account multiple criteria. However, the right choice of a partner can significantly affect the success of the project and provide a significant economic effect.

Location and language skills

When choosing a vendor for an offshore development center, it is important to consider not only their professional skills but also the location of the vendor and the language skills of its employees. If the software development center is located in another country, it is necessary to ensure that the company has employees who are fluent in the language in which the communication will take place. This will help avoid possible misunderstandings and speed up the process of joint work.

In addition, it is necessary to take into account the time difference. If the partner is in a different time zone, there may be a need to adjust the work schedule or coordinate working hours. This may also affect the deadlines for the project and the required resources.

However, it should not be forgotten that cooperation with a vendor from another country can bring many advantages. For example, it can be an opportunity to gain access to new markets and technologies, as well as expand the geography of business. Therefore, when choosing a partner, it is necessary to balance the advantages and possible difficulties that may arise during joint work.

Accessibility and Communication

Another important criterion when choosing an offshore development vendor is accessibility and communication. It is necessary to make sure that the company has a reliable communication system and is ready to provide support at any time. It is also necessary to pay attention to the availability of the offshore company and its readiness to cooperate.
assess the risk

Risk assessment while choosing an offshore development center

When choosing a development center, it is also necessary to conduct a risk assessment and ensure that the vendor has a sufficient level of security and is ready to provide guarantees for contract performance. Possible risks should be taken into account and measures should be taken to reduce them.

For this purpose, a risk matrix can be used, which will help to determine which risks are the most significant and require the greatest attention.
  • Identify the list of risks
    The first step in assessing risks is to identify possible threats. These can be technological issues, development delays, data security breaches, and other risks. Then it is necessary to determine the probability of occurrence of each of these risks and their impact on the project.
  • Develop Action Plan
    The next step is to develop a joint action plan with the partner to reduce risks. Various strategies can be used for this, such as risk management or the use of additional security measures. It is also necessary to determine what actions should be taken and by whom in the event of risks occurring.
  • Receive guarantees
    Finally, it is necessary to ensure that the vendor is willing to provide guarantees for contract performance and possesses a sufficient level of security. To do this, you can conduct an audit of the company and familiarize yourself with information about its operations.
  • Preparing the Contract
    Together with your partner in deploying an offshore development center, you need to work out the relevant sections of the contract to establish areas of responsibility and guarantees in case of risks.
Overall, risk assessment is an important step in choosing a partner to create an offshore software development center. It is necessary to conduct a risk analysis and develop an action plan to mitigate risks, as well as ensure that the partner is willing to provide guarantees of contract performance and has a sufficient level of security.
Checklist
Things to keep in mind when choosing an offshore development center
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    Conduct market research and evaluate companies that can provide the necessary services
  • 2
    Pay attention to the experience and qualifications of specialists.
  • 3
    Familiarize yourself with customer reviews and make sure they are positive
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    Ensure that the company has the necessary technologies and tools, as well as experience in using them to implement similar projects

  • 5
    Consider the company's pricing policy and its ratio to the quality of services provided
  • 6
    Take into account the location of the company and the language skills of its employees
  • 7
    Ensure that the company has a reliable communication system and is ready to provide support at any time
Conclusion
In conclusion, choosing a partner to create an offshore software development center is a complex and responsible process that requires market research and consideration of many criteria. It is necessary to take into account the experience and qualifications of specialists, the reputation of the company, technological capabilities, pricing policy, location and language skills of its employees, accessibility, and communication, as well as risk assessment. Only the right choice of partner will allow the project to be implemented on time and with a high level of quality.
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Sergio Art is the entrepreneurial mind behind the Offshore Development Center (ODC), which he launched in 2010 to support U.S. businesses in their digital transformation efforts through access to skilled software engineers.

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