Offshore software development has captured the attention of numerous companies, and it’s not hard to see why. The allure lies in the substantial cost savings and the potential for a higher return on investment (ROI).
According to estimates, around 25% of Information Technology (IT) enterprises consider labor costs a significant barrier to expanding their business scale. The offshore model allows companies to reduce labor costs compared to onshore development substantially. Specialized IT labor often commands higher salaries than other industries, and managing in-house employees also comes with substantial financial commitments.
However, there is more to it than cost savings. An increased return on investment (ROI) is promised by the offshore model. By reducing labor and infrastructure expenses, businesses are able to allocate funds to other project aspects or expansion. This strategy frequently results in substantial cost reductions during construction and maintenance, allowing for even greater returns on investment in the future.