Reasons to Hire Offshore .NET Developers

Let's get straight to it:

1. Cost Effectiveness

Developer salaries and other labor-related costs take a big chunk of most software development projects (it is estimated that at least 60% of your budget will go toward labor). More often than not, recurring costs related to remuneration can be prohibitive for small startups or SMEs in developed economies.

The cost of living in most software development outsourcing destinations like Western Europe and India is significantly low which means developers in these countries generally demand lower rates than their Western. Of course, this should not be misconstrued to mean that offshore developers are cheap, quite the opposite.

In addition to labor-related costs, most offshore software development hubs tend to have friendly tax environments and other incentives for overseas companies employing local talent. Some even go out of their way to reduce the cost of setting up shop and processing payments to local companies.

Another cost-saving factor to consider while engaging offshore developers is the IT infrastructure needed to develop your solutions. You’ll find that many outsourcing destinations have ready infrastructure like fast internet, co-working hubs and affordable office spaces, support services, etc. These are things you would normally have to budget for were you to hire locally.

Another often overlooked cost-saving effect of using an offshore developer is taxes. Assuming you are in the United States, you will be required to acquire a federal EIN to employ developers and pay all payroll taxes such as social security, Medicare, etc. In contrast, you can get tax deductions because contract-based offshore development costs are expenses on your balance sheet (you will not be responsible for payroll taxes for offshore developers).

The total cost savings as a result of outsourcing software development offshore ranges between 40% to 60% depending on the type of project, preferred offshore developer market, and contingent factors. To make sure you are getting the best out of this approach, it’s best to do a bit of research about the offshore destination you want to hire from and work with an outsourcing consultant.

2. Reduction of Development Time

There are two ways you can reduce software development project durations using offshore developers.

The first option has to do with different time zones and how they affect active working hours. Some offshore software developers’ working hours are inverted with their clients because they are in different time zone. To reduce project duration, you can have a 24-hour setup where developers on the other side of the world keep on working when you go to sleep.

A common approach is to have offshore development teams work on a project during their active working hours (9 to 5) and have an onshore team do the testing and code review. This way, there is a smooth feedback flow and handover from one phase of the software project to the next.

The second option is to take advantage of numbers in offshore labor markets to have more people working on your projects. Many offshore software development labor markets typically have high numbers of unemployed or under-employed experts. Most companies use this to this advantage by hiring several developers and splitting the project into small chunks for fast turnaround times.

3. Software Localization

Are you developing software solutions for an international audience? If so, then you might find it easier and more convenient to work with a geographically dispersed localization team in offshore markets. For instance, you can hire .NET developers in Africa to work on specific components of your solution that are only relevant to your clients in Africa.

Would love to hear thoughts on other reasons why one should hire offshore!