Life of an entrepreneur is often touted as the archetype of being "urban cool". Yet, the ground reality stands on the far opposite. Setting up a new company from the scratch is as hard as a work can get, with hundreds of tasks divided between the limited workforce. There are some goals that only you can achieve, but for everything else there is outsourcing. That's where offshore product development steps in.
What is Offshore Product Development (OPD)?
It's all there in the name. OPD takes up the task of developing products on behalf of other companies. The offshoring usually consists of the entire Software Development Life Cycle, including post-deployment support.
Why Offshore Product Development?
Offshoring your product development is not a new idea, and have been utilized by big tech companies for decades. The reason is simple: nobody is perfect. Even giant companies cannot have a team of experts on hand every time they work on a new project. Furthermore, developing products require an environment that supports the process. Even for core tech companies, it is not feasible to invest so much resource on a single initiative.
In such scenarios, Offshore Product development appears to be the best bet. It is as simple as delegating your work to someone else. Even the fiercest critiques of OPD do admit that "if it's not core, outsource".
What offshore product development offers to startups?
So, it might seem that offshoring product development is a good idea for big companies, but not so much for startups. Well, that is far from the truth.
Startups are almost always constrained by the budget. There are limited resources, and a lot to be done. You need to set up the Accounts department, customer support, and hire legal experts. Then there is the whole task of branding and marketing. All of them are essential for your company to establish and sustain. You simply cannot afford to compromise with them by diverting funds to build an entire infrastructure for product development.
Offshore Product Development solves this for you by taking your idea and developing it in a dedicated environment. There is a suitable platform and abundant resources, which could be scaled to your needs. Reputed OPD firms comply with international standards and develop your products by conforming to all the guidelines. They also assign all relevant Intellectual Property Rights to the Startup.
Another question entrepreneurs ask is "how can an offshore company communicate as effectively as an in-house team?" A decade ago, it might be true. But today, communication is not an issue even in the remotest of location.
So, the final question that remains is: Can core products be offshored? Many would say no to that. However, it is less caution and more fear-mongering. OPD firms are not here to steal your secrets; they are doing business, like you. Intellectual property theft might seem like a real threat here, but the terms and conditions specifically protect you from such instances.
How does Offshore Product Development affect ROI?
Return of Interest is one of the primary concerns entrepreneurs with a new startup face. There are two ways to increase ROI: increasing revenue or decreasing expenses. Offshore product development helps in the latter.
Like we mentioned earlier, OPD eliminates the need to have a dedicated platform for developing products, including team of agile software developers and the resources required. In effect, you get your product built without having to invest in the tools. This leads to lower costs and thus higher ROI. Another factor is the time. OPD usually have a shorter SDLC, largely because they have been doing it for long and the experience helps. Less time again contributes to better ROI.
In conclusion, there is no reason why a startup shouldn’t choose offshore product development over building the products on its own. With high efficiency, simplicity and better ROI, OPD is here to make things comfortable for you.