The drivers spurring the rapid growth of offshore development centers
globally over the past decade encompass both cost savings and strategic value addition. While hourly billing rates for offshore developers in lower cost of living countries can reduce project spending by 30-50%
, perhaps a bigger motivation is gaining preferential access specialized skills. With global shortages around emerging skill areas like AI/ML, AR/VR
, having dedicated offshore teams mitigates key talent scarcity risks while fueling new innovations.
24x5 execution via nearshore locations also accelerates release velocity over 25%
- vital for fast-paced digital environments. But arguably most significantly, offshore development alleviates immense pressures on limited onshore leadership bandwidth - granting them space for more strategic thinking. Handing frequent task management to trusted offshore partners enables a sharper priorities focus. Offshore development has transformed from basic necessity to fundamental competitive advantage.