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Offshore Outsourcing – What Is It? Is It Worth Considering?

There are three models of outsourcing – nearshoring, offshoring and onshoring. One of them has been gaining particular popularity in recent years – offshoring. You might be wondering what offshore outsourcing is. Is it worth your attention? In today’s article, we’ll be addressing just that.

In short, offshore outsourcing or offshoring is a process where services or products are obtained from another company operating in another country. Offshoring happens when some business procedures provided in country A are outsourced to a foreign country B.

For example, you can operate in the United States on a daily basis but have your whole team working for you in Poland.

Staff augmentation – a part of offshore outsourcing

“Team extension”, “IT staff augmentation”, or “dedicated team”, these terms refer to a strategy where your current in-house team’s skill-set is evaluated. The skills that are not strong enough (developers lack experience or knowledge) are supplemented with an external, remote team of experts. The only difference between this and an in-house team is that they work remotely, acting as an addition to your in-house developers.

When it comes to management, you just focus on the current task and its execution. You do not need to worry about the hiring process, paperwork, additional costs, social/additional benefits, workspace, trainings or sick-leaves. That takes plenty of things off your mind.

Staff augmentation can be beneficial when it comes to issues like project control, cost-effectiveness, and risk management.

Is Poland a good offshore outsourcing partner? See the article to find out.

Poland’s offshore outsourcing attractiveness

More and more companies in Central Europe are favorable, stable, professional and diligent. Even when it comes to involvement in private equity funds, Central Europe ranks high. Deloitte’s 23rd regional survey “Central Europe Private Equity Confidence Survey” showed that the index of optimism – Central Europe PE Confidence Index – is 144 (in the 22nd edition it was 127). This number is predicted to grow in the future as more modern business companies eagerly outsource their workforce offshore.

Poland, being in the center of the European continent, has become one of the most sought after and popular offshoring and outsourcing locations among clients and investors abroad. What’s more, our country is not currently experiencing any internal or external conflict – that means safety, stability, and diligence.

Polish market: safe to offshore your software

Poland has been a member of the European Union for 15 years and has no plans to exit. Our country is obliged to comply with all of the required standards when it comes to business, ethics, and law according to EU directives. Operating according to the European Union norms makes the whole process of offshore outsourcing transparent and easy for a foreign client.

Is offshore outsourcing worth considering? – Benefits of offshore outsourcing to Poland

See the list of benefits of offshore outsourcing.

> Quality

Polish software houses that offer offshore outsourcing hire developers who work remotely and are experienced in producing high-quality software. We think that the quality of development software needs to be planned and implemented in the first place. The reason behind this statement is clear: it is always better to focus on quality and prevent certain errors than to pay double for correcting mistakes after deployment.

> Tax & Tariffs

Many entrepreneurs may consider a central European country when it comes to outsourcing due to certain tax or tariff reliefs. Some concessions and reliefs in taxes and tariffs may facilitate saving costs, importing products cheaper and generating more reliable resources.

If you want to learn more about this topic, we recommend reading the article on the Integrated Tariff of the European Union published by the European Commission.

> Experienced developers

IT developers in Poland are placed highest in terms of coding experience when they start their professional path, according to Stack Overflow’s Developer Survey Results from 2017. Polish software development teams are known for their creativity and ambition, so outsourcing complicated and challenging projects to Polish companies is the right choice.

> Specialization

You do not need to be an expert in IT, web app development, or computer manufacturing. Offshore outsourcing offers the availability of all the knowledge, experience, and quality within even the most narrow specialization. You just have found the best company in the area you are interested in and may outsource their experts to work for you.

> Flexibility

Outsourcing is very flexible as it comes to paying – it is simple enough: you pay for what you need – no additional bonuses or unnecessary expenses.

> Control

A great benefit of offshoring is that a company does not lose control over the process of developing a product or service. Some processes are quite fragile, time-dependent and many depend on the outsourced company. In such situations, offshoring guarantees that the control and responsibility are taken seriously and are secure.

> Costs

It often happens that the overall cost may be the deciding factor in choosing a cheaper country – in case of offshoring in Poland saving and high quality are both achievable.

> Saving funds for capital expenses

Offshore outsourcing helps to hire professionals cheaper – what you save can be used to boost capital funds. It means that you spend much less money when offshoring. You can allocate funds to the core business activities or capital investments. As a result, such a solution allows you to generate revenue and get additional profits to grow and expand on the market with more income.

> Time efficiency

The fact is that offshoring means working with a software development team located on the other side of the globe. Even when you work from the USA, the time zone difference is not that significant. Speaking from our experience: such time zone difference allows for bigger efficiency: the development process can be done faster – two separate development teams can work in shifts 24/7.

Resources:

  • http://www.businessdictionary.com/article/1090/offshoring-vs-outsourcing-d1412/
  • https://www.raconteur.net/business-innovation
  • http://multishoring.info/market-news/everest-poland-is-an-ideal-place-for-offshoring-it-projects/

Matt Warcholinski

Matt Warcholinski is the COO of Brainhub (a software house building awesome node.js web and mobile apps) who loves to build startups and play guitar.

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