Offshore custom software development
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Offshore custom software development, also known as offshore custom software engineering, is the type of activity (profession), and the process aimed at the establishment and maintenance of the software, using technologies and practices of information technology, project management, mathematics, engineering and other areas of expertise. Like other traditional engineering, software development deals with the problems of cost and reliability. It is also a practice of hiring an external organization to perform some business functions in a country other than a customer’s country.
Offshore software development can include following services: product design and architecture, coding and testing; develops SaaS, Internet/Intranet solutions, e-commerce, CRM, project management and other special web-services (including Web 2.0 solutions).
The leaders in offshore custom software development are Russia, India, Ukraine and China. Its business case should contain information covering five key aspects: strategic fit, options appraisal, commercial aspects, affordability and achievability.
Recent trends in the sector
Given the rapid growth of this sector, several companies have started to use offshore development in China, India and other countries with a lower cost per developer model. Several new Web 2.0 platforms and sites are now developed offshore while the entrepreneurs and management is located in Western countries such as US, UK and EU. The advantages mostly revolve around better cost-control over the process, which means that there is lower cash-outflow (often the biggest struggle for startups). Furthermore, the time difference when working with India and China for the Western world allows work to be done round the clock adding a competitive advantage. Notable firms that are involved in development include Tata Consultancy Services, Infosys, Wipro, and Satyam.