Offshore vs In-House Team: Which is the Best Option?

Offshore Development
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6 min

Offshore vs In-House Team: Which is the Best Option?

Remote work has become the new employment paradigm. Millions of people around the world have adapted to this reality, and one could argue that in-house teams are so 2020. The shift towards remote teams has begun, and nothing sort of an apocalyptic event will stop it.

The establishment of offshore development centers is the latest trend of this paradigm shift. Major players in the IT industry, including Apple, Google, and many others, have started setting up R&D facilities across locations in Europe and Asia.

There are distinct reasons why companies (big and small) are making the move from in-house to offshore development.

Let's explore them.

A brief interlude: what exactly is an offshore development center?

As the name alludes to, an offshore development center (ODC) is a facility abroad, built to house one or more development teams that will work on projects on a client's behalf. Usually, ODCs are located in or near major technology hubs to take advantage of existing infrastructure, ease of access, transport, amenities, etc.

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Benefits of an ODC

Opening an ODC offers a range of very attractive benefits:

  • Access to local talent, which will make up for the lack on in-house expertise
  • Reduced costs (overheads, infrastructure, equipment, etc.)
  • Increased flexibility and cover, as timezone differences might suit the projects better
  • Enables the client to focus on its core business goals
  • Better return on investment
  • Business continuity
  • Shorter release cycles

In-house v offshore development: a comparison

In-house developers Offshore developers
Niche skillsets can be in great demand, which might make hiring a long and costly process. Expertise It is far easier to source and hire talent.
As the team grows, you either need to build more space, or open a new facility. Infrastructure Service companies already have office facilities offering all the comfort and amenities.
The cost of in-house teams remains the same, there is no increase, but there are no savings either. Cost Remote teams save money in overheads, salaries, and associated costs.
In-house staff is hired directly by you, which means that the process to restructure teams is harder and costlier. Flexibility Offshore development teams enable you to extend your in-house team with one person, or hire an entire team.

Statistical considerations

ODCs are becoming increasingly ubiquitous around the world, and for good reason. They offer great advantages, and very few, if any, inconveniences.

Here are a few statistics about ODCs:

  • According to Deloitte, 78% of companies have a positive opinion about the companies they outsource their development projects with.
  • A piece by Gartner quoted talent availability as one of the main problems for the adoption of new automation technologies
  • Statista says that 64% of companies engage third party providers to delegate some, or all of their software development projects.
Statistics about ODCs

Why Choose Poland for Offshore Development Team

Poland offers a stable, affordable, and supportive framework that favors foreign investment for the creation of research and development facilities.

Some of the benefits that Poland offers to multinational companies are:

  • Great location - Poland is just a few hours' flying time away from major European business hubs, including Frankfurt, Paris, Berlin, or London. Timezones are also quite similar.
  • Thriving IT market - With so many IT professionals in the country, Poland's IT community is a lively one. The IT services market is the fastest-growing, with figures projecting a 7.4% growth year-on-year. As a whole, Poland is home to a very solid and broad-ranging ecosystem of developers, tech companies, and entrepreneurs that support a growing and thriving community.
  • Member of the European Union - Poland has been a member of the European Union since 2004. This enables the country to have close financial ties with other European countries, easy cross-border mobility, and convenient regulatory environment.
  • A solid, stable economic framework - Following a rocky few years during the country's fight for sovereignty, Poland has achieved a rather stable and solid economy. Back in 2018, Poland entered the top 10 European countries with largest Gross Domestic Product (GDP). In fact, Poland's GDP has grown more than 7-fold since 1990.
  • Good level of business English language - English is undoubtedly the language of business, and Polish developers are well aware of this. English is in fact taught in most schools as a second language. By some estimates, some 14m Poles are able to speak English. This facilitates communication with clients abroad, and supports the outsourcing community.
  • Western cultural values - When it comes to software development, many might think that culture doesn't (or shouldn't) be a factor. But software development is a business practice just like any other, and culture does affect business. As such, Polish developers are quite adept at understanding Western values and abiding by established standards.
  • Tax incentives - The bottom line is important for any business, and one of the things that mostly affect it is taxation. Most major Polish cities have the standing of 'special economic zones,' which means that investors and foreign companies are granted exemptions favorable tax conditions. This has led to steady investment growth.

How AllSTARSIT Can Help You Hire Developers

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We use our deep expertise in recruitment and talent scouting to find the best software developers and build the best teams of developers in the CEE and LATAM Regions. Our driving principles are growth, integrity, and synergy.

With almost two decades of recruiting expertise behind us, our clients trust us to provide a top-class service when fulfilling their hiring needs. We can offer faster recruiting timelines and a very cost-effective solution to get your project off the ground.

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