Why Australian businesses are turning to offshore software development
Why are Australian businesses turning to offshore software development?
Australian businesses use offshore software development to beat the local tech talent shortage while cutting costs and speeding up hiring.
- It opens access to skilled developers beyond a tight local market.
- It can save 50% to 60% on operating costs without lowering quality.
- It makes teams easy to scale up or down as demand shifts.
Offshore software development has become a go-to strategy for many Australian firms. The local tech labor market stays tight. So turning to offshore providers gives companies relief from a global shortage of skilled tech workers.
This shortage is not unique to Australia. However, the country’s aging population makes the case for offshore outsourcing even stronger. As a result, more firms now look abroad for talent.
Even Sander van’t Noordende, CEO of Randstad, has weighed in on the global skills gap. Randstad is the world’s largest talent firm. He notes that talent scarcity is here to stay.”
To that end, he backs offshoring as a way to fight the shortage. Your specialist does not have to sit in Sydney. Instead, they can work from somewhere outside Australia.
What is offshore software development?
Offshore software development happens when a company hands its software work to a partner in another country. In many cases, this looks a lot like software development outsourcing at scale.
Still, the practice is close to nearshore software development. The only real difference is how far away the partner sits. To compare the trade-offs, see this guide to offshore versus onshore work.
Offshore software development brings many benefits. For example, it can lower costs, lift output, and speed up hiring.
Why Australian businesses are turning to offshore software development
As noted above, offshore software development offers plenty of gains. Here are just a few of them.
Cost savings
Offshoring software work can help firms save as much as 50% to 60% on running costs. Even better, quality does not have to drop. For example, software team extension providers like Arcanys give staff strong benefits and perks. Higher-wage countries like Australia often cannot match those.
Lower living costs in developing countries help here. So BPO firms there can attract top talent without hurting a client’s bottom line.
Companies also save on recruitment, training, and equipment. This is clearest when they partner with a provider that keeps staff turnover low, such as Arcanys and its attrition rate that never exceeds 10%. In short, offshore work drives clear offshore staffing benefits for growing teams.
Flexible scalability
Offshore teams give businesses greater flexibility in scaling. So companies can grow or shrink their teams as demand shifts.
During off-peak seasons, firms can downsize and save on staff costs. Meanwhile, they can add people fast when demand rises. As a result, they cope better with busy and quiet spells alike.
Better recruitment processes
Offshore team augmentation firms give you access to a large pool of pre-vetted talent. To get the most from it, follow these offshore team best practices.
So you can fill vacancies fast with remote workers of varied skill and experience. This works much like staff augmentation for your core team.
With offshore outsourcing, you no longer spend days chasing applicants. Instead, you go straight to interviewing the talent your BPO partner has lined up.
Qualities of a good offshore software development services provider
First, check the skill and service quality of any partner before you sign. Here are some traits your offshore software development provider should have.
High Net Promoter Score
A high Net Promoter Score, or NPS is a good sign of a strong company. A firm’s NPS moves up or down with client satisfaction.
Also, BPOs measure their own NPS through client surveys. In turn, these surveys help them protect quality.
Flexible and transparent
First, you want a provider that fits the unique needs of your business. So weigh their business model, communication style, and time zone.
When offshoring, you may prefer a region close to your own time zone. For instance, Australian businesses often outsource their operations to the Philippines. After all, the two countries differ by only three hours at most.
Offshore software development through Arcanys
Arcanys is a top choice for Australian firms that want to offshore software development to the Philippines. The company helps businesses build a team of dedicated Filipino software developers. In effect, they work as an extension of your own team.
In addition, access to the Philippine labor market lets you double your output. Better yet, you can do it without raising your budget.
Start offshoring with Arcanys now!
Frequently asked questions
What is offshore software development?
It is when a company hands its software work to a partner in another country. The partner builds, tests, and maintains the software. So the client gains skilled help at a lower cost.
How much can offshore software development save?
Many firms save 50% to 60% on running costs. Lower living costs abroad drive most of these savings. Still, good providers keep quality high.
Why do Australian firms offshore to the Philippines?
The time zones differ by only a few hours. English skills are strong there too. As a result, teams collaborate with little friction.
How do you choose a good offshore provider?
Check their Net Promoter Score and client reviews. Then weigh their flexibility, communication, and time zone. A clear, open partner is usually the safer choice.
Is offshore different from nearshore software development?
Yes, but only by distance. For example, nearshore partners sit in nearby countries. By contrast, offshore partners work farther away, often across several time zones.
Independent
