Building a new digital product (a website, a mobile app, a chatbot, an inventory management system, etc.) is no small feat. It requires vision, ingenuity, time, experts, and coordination. These are resources that businesses often can’t afford to have in-house constantly.

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For this reason, companies need to call on external partners to be able to supplement their workforce and their expertise, through off-shore development.

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What is Offshore Development?

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Developing software, an app or a website offshore consists in outsourcing tasks to a third-party software agency or developers, typically from a foreign country. The work is done remotely and virtually.

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The perks of doing so often relate to better rates (due to the difference in developer’s salaries from one country to the next), but also to reactivity (when you need to have teams operating around the clock), or even mastering certain skills/expertise on a particular market (e.g: a European client working with a development company in Vietnam to release a specific digital product in South East Asia).

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What about Nearshore Development?

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If most people already knew about off-shore, another concept has lately gained visibility and popularity: Nearshore. 

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Nearshore software development is the same thing as offshore outsourcing, with the only difference being proximity. In such cases, being closer to the client allows for better communication. Practically, this can mean being in the same time zone, or a neighboring country. This also means that the culture and work ethic will be similar to that of the client. 

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While the last few years have seen the rise of development studios in countries such as India, with more and more European and American companies taking advantage of the price gap, some noticed that communication and project management are sometimes left out of the equations. Misunderstandings, delays, as well as discrepancies between promises and results... These bad experiences have led industry players to review their strategies and seek partners that are closer to them, in every sense of the word.

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What are the pros of Near-Shore and Off-Shore Development?

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Value for money

Due to the lower cost of living, countries other than those of Northern America and Western Europe charge less in hourly rates. While developers for big businesses in the U.S may cost from 200 USD to 800 USD per hour, the rates for similar jobs range from 50 USD to 100 USD per hour in Eastern Europe, while South East Asia offers even more competitive conditions, between 30 to 60 USD per hour. 

So the more ambitious your development project is, the bigger the price difference will be if you compare off-shore companies with local ones.

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Specific Skills

We’re not necessarily referring here to pure development work. Indeed, the mastery of programming languages can be quite uniform around the world. However, when it comes to knowledge of a market and its population, consultants located in Asia will be able to better advise you on the development of your product for these markets. UI/UX concerns, for example, might be quite different from what you’re used to. So be aware of the cultural differences between your country of origin and the one you are targeting to make sure you will do things right.

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No administration, no additional investments

Outsourcing companies take care of their employees, as they have to stay competitive. When choosing a third-party developer instead of hiring your workforce, you skip the costly and time-consuming training process, and completely remove HR concerns. This means no negotiation, no contracts, no probation, and no turnover in management. You don’t have to worry one second about your developers.

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Not only do you not have to worry about HR, but you don't have to worry about the logistical and infrastructural process. This is due to a digital product development project not requiring a workforce, only needing: computers, test servers, offices, and other related costs (administrative, rental, electricity, internet access, etc.).

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Shared Responsibility and Development Boost

When working with an off-shore / near-shore development agency, consider that you are working with a partner that has stakes in your project. Keeping it running smoothly is as important to them as it is to you. You are not moving alone, but hand in hand with teams whose best interest is the same as yours, putting at stake their time, their reputation, and their incomes. The bond between your business and the development company is therefore very strong, with an assurance to have teams at your disposal that are fully dedicated to their work and deadlines.

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What should you pay attention to when choosing an Off-Shore / Near-Shore Development Company ?

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1. Developer Location

Choose a country or a representative office that is either close to you or close to your target for better understanding and synchronicity.  

With offices in France, Canada, Japan, and Vietnam, Dirox offers global cover so that you have access to an expert near you at all times.

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2. Agility And Cost-Effectiveness

Flexibility in project management and pricing models is essential. Pick a partner with varied contract types and with competitive prices. 

At Dirox we offer fixed price contracts for smaller projects with clearly defined requirements, but also custom solutions for more complex projects requiring flexibility when dynamics change.

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3. Skills Needed

Development companies can offer a wide variety of services other than coding. Pick a company that will complement your in-house assets and guarantees the right technical knowledge. Do they offer the right development techniques? Do you need specific disruptive technologies such as Artificial Intelligence, Virtual Reality, Augmented Reality, or Blockchain?

At Dirox, get access not only to software engineers, but also to experts in Business Digitization, UI / UX, Branding & Marketing, Security, Innovation, and much more! For every step of your project (conception, creation, release), you will be offered the experience and skills of specific IT consultants to match all the requirements of a successful digital product and bring you additional value.

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4. Reputation, Company Security Policies and Work Frame

Ensure that the outsourcing company is compliant with international security standards, has proven track records, and has established internal frameworks for data protection (NDAs, non-competition, and such) whilst maintaining security, and intellectual property rights. Since 2003, Dirox offers a safe environment for its partners from all industries, with 100+ digital products put on the market.

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Conclusion

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Outsourcing software development has proven to be very profitable for many startups and larger companies around the globe. 

In a connected world driven by the digital era, it is very easy to reap the benefits and have a devoted team that works to its full potential.

By working with us, you will:

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Reduce your liabilities

Respect your budget and minimize costs

Speed up development time

Use top resources and technology

Be more flexible

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Ask for our references in your industry and improve your competitive edge by outsourcing your digital project with Dirox!

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With its headquarters and its developers in Vietnam on one hand, and representative offices in Japan, Canada, and France on the other, we ensure a better contact with these markets by removing the so-called “cultural gap”. 

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Work with experts that know your culture in and out and speak your native tongue while getting all the advantages of a foreign workforce.

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