Software Development Companies – Facts That Influence Offshore Business

By | September 16, 2014

Top offshore software development companies in New Jersey are making it great by accomplishing overseas valuable clients, offering them affordable software development services and assisting them to create a strong software app using cost effective talented resources. But, the trend is altering and most of the offshore software development organizations are struggling with challenging background amid enhancing competition, recent inflation and the huge success of cloud services that facilitates companies with pay-as-you-go business model.

Hence, saving a great amount of money which would otherwise have changed into a huge investment in creating on-premise infrastructure. Here, you will know some important factors that are responsible for changing the landscape of offshore software development.

Throat-cut Competition

It is a known fact that most of the software development organizations come from developing countries such as China, Romania, Argentina, Philippines and India. Moreover, these offshore organizations aim to target a niche market as well as have a solid presence in the United States market which is considered as the biggest IT outsourcing market. Apart from that, some other countries like Indonesia, Ireland and Ukraine have also tried to grab maximum profit out of software development solutions. Hence, due to this tough competition, most of the software development companies in USA find it difficult to maintain their current growth rate.

Currency Fluctuations

It is a known fact that offering low cost software development solutions are the key point behind the great success of many offshore software development organizations. Currently, most of the developing nations are finding it quite difficult to cope with Euro or Dollar fluctuating exchange prices or rates fueled by recession in the American economy and Greek crisis.

Changing Business Framework

Software as a service or Saas is earning great popularity among the contemporary businesses. It allows enterprises to avail subscription-based pricing system. It is a known fact that with the changing IT environment, most of the businesses prefer going with Cloud rather than traditional options likes investing money in establishing an expensive in-house IT infrastructure. Thus, it is really difficult for a software development company to remain in the competition.

Information Technology Policies

Many offshore software solutions providers usually live in developing nations. Most of these nations have diverse views on information technology and unstable government. Hence, it directly cuts on important IT policies and thus foreign nations are wary of partnering with any nation that doesn’t have a strong IT favoring government. Therefore, rigorous IPR laws are needed in order to protect sensitive business data.

Difficult To Retain Skilled Staff

Most of the software development companies find it difficult to manage or retain their skilled staff. It is seen that these employees easily join the next company if they are given a better opportunity. Moreover, due to the absence of business contracts, skilled employees at an offshore company simply leave the job. Hence, it is quite difficult for offshore companies to retain their skilled staff in order to provide quality work. Needless to say, if offshore companies try to increase the salary of their employees, they have to charge extra from their clients for high-end software development solutions.

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