Offshore Product Development
Offshore Product Development: Key Offerings
IT enterprises can off-shore the entire gamut of core and non-core activities related to product development lifecycle and depending on their convenience. Common services often outsourced to offshore product development include,
Core services, such as
- Market survey to mark out end user requirement
- Understanding and defining best suitable products in view of user specifications
- Creating detail technical specifications
- Functional specification improvement
- Finalizing the product design
Non-Core services, such as
- Whole or component development
- Product development and integration
- Product compatibility for cross platform use
- Development of multi-lingual features
- Localization or internationalization
- QA consulting
- Testing for function, performance, regression, security, etc.
- Test automation framework development
- IT Support
Offshore Product Development: Strategic Benefits
Offshore product development has been there for decades under the grab of outsourcing. The momentum picked up in the 1980s with the opening of large, cheap labor markets of China and Southeast Asia for European and American companies. In the mid-1990s, IT revolution picked up and countries, such as India and the Philippines with their English capable, IT-trained manpower, offered foreign IT companies new, cheap, and quality avenues for product development. Now, offshore independent software vendors provide more than just cost saving and high profitability. They offer an opportunity for IT enterprises to capitalize on a professional partnership assuring a host of strategic benefits to beat competition.
- Cost Efficiency: No prior investment and low operational cost enable better resource management and diversion for core activities. IT enterprises can save up to 60 percent of operational cost adopting offshore product development strategy. This increases profitability and allow them to offer low-cost quality solutions, a key parameter to retain market edge and acquire competitive advantage. Low license fees lead to more sales and add to the base of loyal customers.
- Enhanced Sustainability: Gone are the days when offshore product development began with focus on labor arbitrage. Though still cost considerations reign high, supplement benefits of a professional partnership grant superior benefits in terms of development discipline and value added services. Better quality, process efficiencies, international delivery practices, innovation, and dedicated, in-house teams assure greater ability to introduce market-oriented products and satisfy end users. Again these vendors save companies from large investments in training and technology that allows sustainability in the face of stiff market competition and expanding client demand.
- Improved Core Service Focus: Offshore vendors have matured process, technology, expertise, dedicated teams, and standards adherence that ensure quality and timely completion of product development. Focused improvements within short time span permit capability enhancement as required. IT enterprises can believe on the diligence of offshore vendors and outsource their core and non-core services adding more value and strength to their business expansion.
- Dedicated Team: Offshore product development vendors act as an extended arm of IT enterprises. Their dedicated teams, skills in a specific domain, and delivery within the deadline enable IT enterprises introduce quality and flawless products. Software developers can rely on them for emergencies and business growth and vendors’ commitment assure them significant advantage at no additional cost.
- Specialization: Domain-specific expertise, in-house professionals, technical proficiency, and dedicated teams make offshore vendors reliable and efficacious support for product development, architecture full cycle implementation, and deployment. They can hire specialized and trained manpower whenever required without costing extra to IT enterprises, a critical success factor. Teams working in dedicated labs also assure better intellectual protection and security.
- Better ROI and Timeliness: Cost savings through offshore product development and vendor expertise assure IT enterprises better ROI. Dedicated teams acting as extended arms guarantee against delay or budget over runs. Timeliness allows early market introduction that can lead to competitive market edge. An offshore vendor try to deliver within the deadline and the developer need not have to be worry about public holidays or vacations.
- Additional Service Leverage: IT enterprises can also depend on offshore product development service providers whenever need for any domain-specific service arises. Vendors can effectively provide support for independent component developments and add on products. Their reliable service can also be a great help for implementation, upkeep, and enhancement of any task requiring services by a separate entity.