In 2013, the global software outsourcing market reached $ 288 billion and has been growing at a CAGR of 5% ever since. The outsourcing paradigm, however, has shifted from cost reduction to innovation and access to new talent pools. Here’s our top IT outsourcing countries that offer high-quality software development services at a reasonable price.
Top Outsourcing Destinations for 2017 & beyond
Wait, where’s India, Philippines, Egypt, Thailand and other Asian/African countries that dominated the global offshore outsourcing market in the past?
As we’ve already told you, the outsourcing paradigm has changed. According to one of our customers, “getting an hourly rate of 1/3 the cost of others is great except if it takes 4 times as long to get to the final version of quality project that is needed”. Nowadays US and Western European companies look for skilled software developers who specialize in IoT, Artificial Intelligence, Virtual/Augmented reality, microservices architecture, etc. We’re not saying Asian and African developers lack expertise to handle complex software development projects. However, there are several factors that often keep them away from success – and mindset difference is the biggest of those. Most Asian and African countries have a higher Power Distance Index than Western nations. They are collectivist[4], demonstrate a strong MUM effect and seldom take responsibility for their actions. In order to monitor developers’ performance and ensure smoot project execution, you’ll have to find an experienced project manager, conduct frequent video meetings with your team and probably hire US/EU-based QA engineers to do testing. Even if you partner with an offshore vendor from Latin America or Eastern/Central Europe, you might have difficulties managing your project – after all, you can’t dismiss time, culture and language differences. Ways out? You can hire a Dedicated Development Team (DDT for short) who will spend 100% of their working time on your project, make use of the project management tools you recommend and even adopt your corporate culture if needed. The approach is not always suitable for small software development projects though. So here’s our further reading section – the two comprehensive articles that will help you choose the right vendor and project management methodology.
[1]http://www.zdnet.com/article/the-rise-of-lithuania-as-a-force-in-it-why-google-and-nasdaq-are-investing-here/
[2]https://www.microsoft.com/en-us/stories/skype/skype-chapter-2-welcome-to-estonia.aspx [3]https://www.atkearney.com/strategic-it/global-services-location-index [4]http://www.bbc.com/future/story/20170118-how-east-and-west-think-in-profoundly-different-ways
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