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Offshore Software Development Services
Are you looking to start cooperating with an offshore software development company? If so, our company is right in the center of Europe. The ImpiCode head office is based in Poland – one of the best offshoring destinations worldwide. Many businesses from countries like the USA, Canada, and Australia offshore to Poland because of the vast software engineering talent pool, developed infrastructure, and favorable business conditions.
How can you benefit from offshore development services in Poland?
Offshoring ensures reduced costs of software development and maintenance services at a high level of quality.
Access to experienced developers
Poland is a hub of talented and knowledgeable software engineers. Our developers have experience in building software applications of international standards and quality.
Good knowledge of English
Most Polish developers speak English very well. Our lead developers are fluent in English, therefore, we don’t have any difficulties cooperating with foreign companies.
Acceptable time difference
Poland is located in the center of Europe. That is why the time difference between Poland and the USA or Poland and Australia is acceptable. There is still an overlap of a few office hours.
What is offshoring?
Offshoring is the relocation of business operations to a different country with lower labor costs. The main benefit, which is the cost difference, attracts mainly industrialized companies to relocate their operations. The most important factors influencing the selection of offshoring destinations are low labor costs, favorable tax conditions, proximity to raw materials, and easy access to the workforce.
There are two major types of offshoring. Production offshoring is the relocation of physical manufacturing processes overseas. Companies offshore their production to countries with access to required raw materials and a cheap workforce. The finished products are imported and sold on the domestic market. The second type of offshoring is the relocation of services to another country. As a result, companies can focus on their core business processes. The services usually being offshored are information technology, administrative tasks, marketing, human resources, customer services, and sales.
What is the difference between nearshoring, offshoring, and outsourcing?
Outsourcing is shifting some company operations to third-party companies by contracting with them. Both nearshoring and offshoring are types of outsourcing. The main difference between them is location. Nearshoring means outsourcing to a nearby country which is often in the same time zone. Such geographic proximity brings many benefits for companies. First, communication between clients and third-party providers is easier due to the lack of time difference. Additionally, employees from nearby countries usually have a similar culture and work ethic. An example of nearshoring would be a retail company from Germany hiring a software development company based in Poland to provide a mobile application. On the other hand, offshoring means transferring the company’s operations to a country located quite far from the head office, often to another continent. Businesses choose offshoring over internal departments or outsourcing in the domestic country because they can significantly reduce costs. An example of offshoring would be a Polish software development company maintaining and developing the IT systems of a company from the United States. In the case of some companies, the time difference is a desirable feature, as it enables continuous and round-the-clock execution of tasks such as the maintenance or even development of systems.
What is offshore software development?
Offshore software development is when a company decides to contract a software development company from another country located far away and in a different time zone to delegate the creation of an IT product or service. The offshore team can be responsible for the entire development or only for the maintenance of the software. By offshoring software development tasks, businesses save a lot of time and money. Therefore, companies can focus on core business operations while the offshore software development provider handles the technology-related project. Also, offshoring IT services can be a great choice for companies struggling with a lack of specialists. Thanks to such a solution, the company has access to a vast pool of talented and knowledgeable software engineers with extensive experience in developing software applications of international standards. Moreover, offshore software development companies are professionals who understand the challenges involved in the execution of international projects, as well as the procedures and organization of foreign clients’ work. Offshore software development services are excellent solutions for American, Australian, and Western European companies who wish to receive a high-quality product at minimum cost.
Examples of companies offshoring to other countries
Offshoring has been used by businesses to significantly reduce costs and get access to unique expertise. Below are examples of businesses which have chosen offshoring services.
Skype is a web and mobile application enabling video chat and voice calls. Individuals and businesses use this tool to organize online meetings. Skype was created by entrepreneurs Niklas Zennström and Janus Friis in 2003. They needed help in building the software, so they hired an Estonian dev team. Estonian developers built the back-end of the application. The founders turned to Estonian professionals for help, because they had the relevant knowledge and experience in completing similar projects. Thanks to this cooperation, Skype grew rapidly and was sold to Microsoft in 2011 for $8.5 bn.
Unilever is one of the world’s largest consumer goods companies. Although Unilever has thousands of employees worldwide, the business sometimes uses offshoring. In 2005, Unilever decided to outsource its ERP system integration project to a third-party company with experience in merging different ERP systems. Thanks to this, its in-house dev teams could focus on other activities.
WhatsApp is a free communication mobile application for sending text and voice messages, making video calls, and sharing images and documents. WhatsApp was created in 2009 by American developer Brian Acton and Ukrainian entrepreneur Jan Koum. The headquarters of the company are based in the United States. WhatsApp decided to offshore some of its services to Ukraine shortly after launching its business. The offshoring provider was in charge of maintaining the backend, providing design solutions, and supporting the in-house dev team in mobile application development. Thanks to such cooperation, the in-house developers could focus on client-related tasks, such as customer support. As a result, the company has grown very quickly and WhatsApp has become one of the top messenger apps. WhatsApp was acquired by Facebook in 2014 for $19 billion.
Top offshoring destinations
Choosing the right offshoring provider is a complex and difficult process. Before you start looking for a software development company, select the right offshoring destination. Businesses which offshore their services choose financially attractive countries, have a vast pool of talented and skilled employees, as well as the required infrastructure. Below are examples of the best destinations for offshoring software development services.
Poland is one of the best offshoring destinations in Europe. Companies decide to offshore their IT services here because of the country’s competitive prices, stable economy, welcome policies, favorable tax conditions, and convenient location. Additionally, Polish developers are experienced and skilled. They enjoy learning new technologies and using modern tools. Furthermore, the Polish tech market grows consistently by 5–10% per year. That is why a lot of companies establish or move their R&D centers to Poland. Google, Samsung, Intel, and Microsoft are just a few examples of companies which have their IT centers based in Poland.
According to A.T. Kearney’s 2019 Global Services Location Index, India ranks 1st in terms of attractiveness for offshoring. India has approximately 5.2 million software developers. Information technology is among the top industries in India. That is why the Indian government supports the growth of this industry. With the release of the “IT acts 2000” bill, India has become even more attractive for foreign investors. This act has facilitated the approval process of electronic contracts and supported the e-filing of documents.
Brazil is a leading offshoring destination in Latin America and also the biggest economy on this continent. Also, Brazil has a high position in various international rankings. According to the Tholons Global Innovation Country Index 2020, Brazil ranks third out of 50 nations worldwide. This index measures the attractiveness of locations for foreign investors. Factors such as experience, skills, costs, infrastructure, risk, and innovation are taken into account. The capital of Brazil is a global IT center. Many Brazilian IT specialists speak English fluently. Companies often offshore to Brazil mainly because of the average hourly rate of developers which is significantly lower than in the US or Western Europe.
The Philippines has become a major location for offshoring. According to Statista, the Philippines was in the top 10 leading countries in offshore business services worldwide in 2019. Its economy is one of the fastest growing in Southeast Asia. In addition, most Philippine employees are educated and proficient in English. Many companies offshore their services to the Philippines due to committed and hardworking staff members. In the Philippines, people place great importance on values such as loyalty, respect, and responsibility. That is why Philippine teams are known for finishing projects on time.
If you want to find out more about offshore software development services or if you need a similar solution – send us a request via contact form.