Reasons To Why Offshoring Product Development Fails | nCircle Tech
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Offshore development has become one of the most supported software development practices worldwide. Outsourcing software development comes with several advantages, and an increasing number of companies are opting for offshore development.

With the emergence of the global economy and ever-evolving technologies, it can become difficult for companies to expand the whole spectrum of software solutions in-house. To dodge the trouble associated with software development, companies may consider outsourcing. 


Why Offshore Development Centre Fails?  


  • Lack Of Clarity and Communication

Neglecting to determine responsibilities, roles with in-house and assigned teams is one of the causes behind many businesses outsourcing missteps.

Also, assuring that clients understand the process will help them to ease up. Providing your outsourcing partner with a sense of security becomes crucial to building up trust.

Companies often hide some knowledge from their outsourcing partners, and this can easily backfire. If the outsourcing company doesn’t quite understand what it’s supposed to achieve, then the job will not be performed as required. Don’t fret to share every detail of the project with the outsourced team.

Having a central database to which all involved parties including outsourcing partners have access helps in better communication and understanding.


  • Insufficient Technical Expertise

Companies regularly outsource software development to reduce the cost associated with hiring skilled employees. Many times due to the lack of skills and experience on the vendor side can lead to a bigger issue as they can’t provide the required outcomes. This could happen because the development team doesn’t have the right set of skills. Or maybe their method doesn’t fit well with the client’s workflow. The aim is to find the best partner who has the right resources to produce the best result.


  • Choosing The Cheapest Outsourcing Provider

Picking the cheapest outsourcing provider is not the right way to increase savings. Cheap outsourcing service providers often deliver substandard results including low-quality code, delays in the project, and miscommunication. The focus should be on gaining the most business value achievable from the partnership. Fast, inferior service will often lead to more obstacles in the long run.


  • Project Estimation

Some outsourcing businesses set unattainable time limits and estimates while bidding for a project. Don’t fall for this. Be real when it comes to time and cost estimation, and shun those who promise unattainable goals.


Debunking Myths of Offshoring Development


  • ‘Outsourcing’ and ‘Offshoring’ are the same thing

More often than not, offshoring and outsourcing are used interchangeably. However, this should not happen because these are two different terms with their separate functions. 

In brief, outsourcing happens when a company contracts a particular process out to a third party, finding someone who is skilled in whatever needs to be done. Offshoring happens when companies send in-house operations overseas. Both may save firm money, but only offshoring explicitly means sending jobs out of the country.

Note that outsourcing can be a part of offshoring. When a company outsources globally, it can be referred to as an act of offshoring. The goal of outsourcing business activities is to focus on the core operations of the company. Whereas, offshoring is done to minimize cost.


  • Offshore Software Development is all about reducing costs

Given the pace at which the offshoring industry is expanding, offshoring software development is a usual business move. By offshoring a spectrum of software development responsibilities – from simple coding to software support, mobile app development, and website design and development – you are not only relieving yourself from the hurdle of hiring skilled personnel but also guaranteeing you get the high-grade quality product delivered to you in the shortest time possible, which eventually decreases development time and increases your time-to-market.

So, offshore development isn’t only about reduced costs instead it benefits you by

  • Getting access to a broad pool of talent
  • Assured faster time-to-market
  • Extra time to focus on core business operations
  • Working towards sustainable Business growth


Major Pitfalls to Look Out for with Offshore Development Centres

Offshore Development Center is a customized business model that resolves IT-related challenges and businesses of every size can take advantage of this budget-friendly solution. The success of offshore development is supported by numbers amounting to $92.5 billion as per Statista.

Contrary to popular belief, setting up an ODC isn’t a complex process and it’s considerably easy to establish. While working with an offshore team is helpful, ODC also comes with some problems. Though ODC comes with some problems, if you are aware of the common pitfalls, it becomes quite straightforward to mitigate them.


  • A Clear Understanding of Outsourcing Objectives

Before diving into the outsourcing industry, You need to be sure of the reason you’re outsourcing and an outsourcing roadmap gives you an idea of what you want to accomplish and how you should achieve that goal. 

  • Decide your Project Objectives Before Hiring

This might seem too obvious to mention, but a successful project always starts with specific ideation of what you are expecting to achieve. Define your project requirements up front.

  • Make Sure you Choose the Right Partner

The outsourcing associate you pick should be aligned with your business practice, operations, and project objectives. Before hiring, check portfolios, reviews, and enquire about required expertise.

  • Be Ready for Possible Outcomes

Many times outsourcing fails due to disputes between internal and outsourced teams. To avoid this, keep your in-house team in the loop while interacting with the client and other teams.

  • Focus On Value

One of the perks of outsourcing is to save expenses. But it shouldn’t be the only motivation behind choosing an outsourcing company. Rather than focusing on affordable cost only, the business should focus more on value. 



As developing everything in-house doesn’t make sure you will get the best results, we assure you that all offshore outsourcing projects will not end up in vain. Given the increasing remote work culture, offshore development is the need of the hour and it will stay in the market forever.

Having worked with 75+ Software companies in Construction and Manufacturing for over a decade, nCircle Tech has successfully developed over 200+ client products providing a one-stop 2D/3D offshore product development studio. 

Our range of offerings includes dedicated development teams to augment your capacity, end to end product development on desktop/mobile/cloud and an innovative approach using Machine learning and AI.

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