ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

IT Startups and Offshore Web Development

Updated on December 18, 2015

Offshore Web Development: a Win-Win Solution for Startups

Although the rise of cloud computing may force IT outsourcing companies to adopt on-demand technologies and set new goals, the global spending on offshore web and application development has already surpassed $ 288 billion.

It’s time to consider outsourcing if…

  • Your business requires in-house IT staff, but cannot afford such expenditures;
  • IT is not on your annual expense budget;
  • Your tech startup craves for newest technology, but has neither money nor expertise in web and custom application development to successfully employ it;
  • Your IT project is of temporary nature.

If you agree with any of the above-mentioned statements, outsourcing is a win-win solution for your business.

The advantages of IT outsourcing

  • Staff and capital optimization;
  • Access to new technologies and top experts;
  • High quality service;
  • Calculable expenses (predetermined by contract and billing plan);
  • Focus on your core responsibilities;
  • Perfect (and fast!) product launch.

What tasks can you possibly outsource?

  • Web and application development;
  • Technical support (often referred to as “help desk”);
  • Email (handling and backup);
  • Malware protection;
  • Server and application hosting;
  • Infrastructure management;
  • Data storage and recovery;
  • Project planning.

Industries that outsource mobile app and website development

  • IT. Top vendors all around the globe face major financial challenges (the Cloud domination, the impact of Asian offshore vendors, etc.). In order to reduce costs of web development, tech companies tend to establish long-term business relations with third-party vendors from Eastern Europe;
  • Finance. Banks and real estate agencies rely on outsourcing in terms of data management, cost reduction and security. The new approach towards banking is determined by consumer expectations, technological advancement and the growing demand for connected solutions;
  • Healthcare. The US government revised Healthcare Organization funding, forcing medical institutions to seek new options to cut IT expenditures. Healthcare startups usually outsource app development (including electronic medical record solutions), provider services’ management, warehousing, telecommunication and security. By 2018, healthcare IT outsourcing market will be worth $ 50.4 billion;
  • Energy and utilities. Oil, gas and mining companies struggle to find a balance between operating costs, the ever-growing global demand for fossil fuels and resource depletion. Top market players tend to outsource software development, as well as infrastructure management, in order to reduce costs, drive quality and improve business environment;
  • Construction and engineering. As a rule, construction companies offshore IT and in-office routine activities;
  • Government. With multiple government services being delivered over the Web, outsourcing is the only way to cut expenses and relieve officials from software construction and maintenance duties;
  • Insurance. By 2020, the total revenue of insurance-related third party contracts in the USA will surpass $ 68 billion. The growth is largely driven by Obama healthcare reform (Obamacare):
  • Media and telecommunication. Outsourced tasks often include graphic content production, data protection and social media management.

Non-development services provided by IT outsourcing experts and companies

  • IT advisory and business analysis. Most startups come up with an idea that doesn’t solve any problem and subsequently fail. IT outsourcing companies provide assistance at all stages of product management, system analysis and facilitation. An expert will also help you define initial customer requirements. Even a minor shift in business strategy may improve your sales;
  • Usability review. Positive user experience predetermines success of any website or user application. It is essential to conduct a comprehensive usability review, paying attention to functionality, navigation, search and error management functions;
  • Code review. One of the key reasons to outsource mobile app and website development is the opportunity to detect and fix coding mistakes made by other vendors;
  • Digital marketing. The main difference between traditional and digital marketing lies in the heavy utilization of technology and media channels (common for the latter). The promotion of a website, service or application requires great content, strong SEO strategy and carefully planned advertising;
  • Software testing. In order to prevent software malfunction, vendors apply two types of tests (static and dynamic). The procedure allows you to detect mistakes in the code/technical documentation and check the results of running tests.

Looking for a reliable outsourcing company

Business tasks of a startup can be outsourced to a freelance developer or an offshore company. There are several pitfalls of outsourcing like disclosure of business data, unexpected costs and cultural differences. I shall cover the most common obstacles of offshore development in my next Hub (the topic is worth your attention, believe me!).

Let’s enumerate the benefits of working with a company:

  • Expertise in full cycle-project management (something freelancers often lack);
  • Outsourcing companies usually have in-house managers and employ various workflow enhancement tools;
  • Vendor teams offer two types of billing plans (“fixed price”, “time and materials”) and share legal responsibilities for potential failures.

Online platforms like Clutch, Elance and Upwork provide detailed information on the world’s leading offshore companies. Here are some tips that may help you find a great developer with great expertise in custom application development:

  • Choose at least 10 vendors;
  • Study their websites, paying attention to user interface, navigation and portfolio;
  • Reach out to the vendors who survived the selection;
  • Evaluate the quality of communication and data provided by sales department;
  • Negotiate the project, set clear goals, monitor your employees’ performance and achieve great results!

Why do IT Startups Fail?
Why do IT Startups Fail?

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      WEBZESTY 

      2 years ago from 97 Wigram Street Harris Park, NSW 2150

      Webzesty is a web design company offering, Website Design, Web Development and Internet Marketing Services.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)