Subscribe to our blog

Join us to get latest updates
Want to Outshine Competitors?
The global economic slowdown has significantly impacted businesses in the United States and Europe. Organizations are seeking ways to save money, and one of the best ways to do that is by outsourcing work to offshore locations.

The growth rate for the market between 2021 and 2024 is predicted at around 3 to 5%. In 2020, the value of the worldwide IT outsourcing market was estimated to be about $92.5 billion.

In fact, the fluxes in the market‘s size are natural that usually occur every year. The market has constantly been rising and is expected to attain a value of 98 billion till 2024 whose value was $88.9 billion in 2015. (MarketWatch)

Moreover, according to Deloitte, 70% of companies who choose to outsource their software development projects save money.

Over the past few years, offshore outsourcing has been a controversial topic, but there are many benefits to doing it. This blog post will discuss why offshore outsourcing remains the best bet for American and European firms.

Unlocking the power of global talent - offshore outsourcing.

More than 94% of organizations use some form of IT outsourcing, So why not you?

The Benefits Of Outsourcing To Offshore Locations

Benefits of Outsourcing

There are several advantages to outsourcing work to offshore locations, some of which are stated here. Moreover, by connecting with the best software product development companies, you will get quality results within a limited time span.

  1. Cost Savings

One of the crucial reasons companies choose to outsource is for cost savings. If you’re a large company, it can be costly, not just in terms of salary but also in terms of time and management to hire and train employees.

When a company outsources work, they have less responsibility for that person or process. In other words, they can focus on what they do best and still benefit from extra hands when needed.

Not all companies need to outsource, though; many small businesses either build their products in-house or rely on temporary workers through sites like Odesk or Elance instead.

Moreover, some jobs are better suited for offshoring than others. If your business requires specialized skills, complex processes, or equipment that isn’t available locally, then offshoring might make sense. This way, your company can stay competitive while reducing costs at the same time.

However, if your business has relatively simple needs and doesn’t require complex processes or specialized equipment, then consider keeping these functions in-house so you don’t lose control over your product quality.

Also Read: 5+ Reasons Your Company Should Opt For Software Development Outsourcing

2. Quality of Work

The quality of work delivered by offshore developers is not a concern for most businesses. Thanks to global internet connectivity, most business owners can easily communicate with their offshore developers and troubleshoot issues as they come up.

If there are issues or delays in delivering work, these can often be managed and solved before they affect deadlines.

When you function with an offshore development team, you also benefit from access to an entire community of other skilled workers who can complete specific tasks or projects more efficiently than an alone developer. This is particularly true for sites that require multiple backend systems.

3. Attain Flexibility and Business Expansion

Flexibility is a significant benefit for businesses when it comes to outsourcing. Just because your business needs a specific expertise today doesn’t mean that need will always be there.

If your business requires a substantial change in direction, you can outsource it and bring it back in-house if necessary. Similarly, if you’re looking for short-term assistance with an upcoming project, it may make sense to outsource those particular services.

You can also grow your business by hiring experienced workers overseas and bringing them on as contractors or partners. This allows you to gain new skills without having to permanently hire someone or tie up capital in equipment and facilities costs.

4. Access To Talent

Outsourcing work overseas can significantly reduce costs and increase overall productivity, especially for small businesses. Hiring employees in other countries is an excellent way to find top talent, as companies like Infosys and Tata Consultancy Services have already established themselves as high-quality business services providers.

When your company lacks specialized expertise or needs to cover a project beyond its core competencies, sending work overseas is one way you can get it done without breaking your budget.

And even if you don’t need a full-time employee or office space, there are still benefits associated with using contractors in offshoring destinations. This permits you to maintain complete control over budgets and schedules while minimizing overall costs.

Also Read: Offshore Vs Nearshore Outsourcing: A Detailed Comparison

5. Lower Risks

Companies need not invest in expensive equipment or infrastructure; instead, they can rent all resources they need from a hosting company. This reduces risks and increases flexibility.

Digitalization has eliminated many traditional products, but it has also created new ones — for example, social media platforms. Outsourcing allows you to build your own business without worrying about traditional investments in hardware and software; a holster provides everything.

You’ll be able to concentrate on what really matters: your business idea itself. Moreover, if things don’t work out as planned, you won’t have to lay off employees because you don’t have any. Instead, you can simply stop using services from your hoster and save money until you come up with a better plan.

6. Time Savings

Companies can save time by having a team placed in another country. Employees do not have to travel for work, and employees do not have to deal with other countries’ cultures and languages.

This is especially helpful when dealing with customers or businesses that are overseas. Customers are able to access information quickly and more easily because they are speaking with people who understand their language immediately.

In addition, customers can be serviced at any hour of day or night through an online system such as Skype or GoToMeeting; working hours are no longer limited by location. Since there is no need for business owners (or others) located thousands of miles away from each other to set aside specific times for work calls due to differing work schedules.

Unlocking the power of global talent - offshore outsourcing.

More than 94% of organizations use some form of IT outsourcing, So why not you?

7. Access to a Variety of Resources

Offshore development allows you access to a large pool of talent, which can help you get your projects done quickly and give you access to resources that might be hard for you to get on your own.

Outsource your programming needs, web design needs, or just about any other type of project if you need expertise that’s outside your company’s usual business. You’ll find it easier and faster than trying to grow your own team in-house.

You don’t need a lot of employees in-house because once they’re trained, they can work on many different things.

8. Focus on Business Development

Business development is more than just making sales. For example, if you’re a freelancer, business development could involve getting new clients and keeping current ones happy.

If you’re looking for an entry-level job, your business development efforts might be about cold calling to secure interviews and following up with hiring managers after an interview. Business development can happen in many different ways depending on your situation.

But at its core, it means that you’re doing something positive that helps your business or career grow; it doesn’t just focus on making sales or securing an interview. However, those are two critical parts of developing your professional skill set.

Also Read: Benefits of Hiring IT Outsourcing Companies

Top Countries From Where American and European Firms Can Outsource Software Development Services

If you are in Europe or in the US and want to outsource software development services, you can choose from the top countries where firms can get the best quality of work done at the most reasonable prices. Here are some of the best choices available to you from where you can avail of custom offshore software development services.


Outsourcing to India

More than 50% of Fortune 500 companies in the US, Europe, and Japan hire software engineers in India. The reasons for outsourcing from India are:

  • A huge talent pool.
  • A rich IT experience base (India has more software professionals than anywhere else in the world).
  • Cost advantages due to wage arbitrage (Indian engineers are cheap as compared to western ones).

Headcount can be adjusted according to project needs without huge hiring costs every now & then. Larger projects also enable India-based firms to build dedicated centers where they can employ hundreds of skilled professionals.

This enables them not only to scale up rapidly but also reduce hiring costs over time. Due to the falling rupee, many companies are shifting their workforce back home — either temporarily or permanently.

Also Read: Outsourcing vs Hiring In-House Teams


Malaysia is home to numerous software development outsourcing firms, and the country offers excellent working conditions and competitive wages. Malaysian engineers are known for their quality and precision, making them a popular choice for companies looking to outsource their software development needs.

In addition, Malaysian firms are known for their flexibility and ability to scale up rapidly, making them a perfect choice for companies that need to ramp up their software development efforts quickly.

Unlocking the power of global talent - offshore outsourcing.

More than 94% of organizations use some form of IT outsourcing, So why not you?


Why Offshore Outsourcing Still Remains The Best Bet for American and European Firms

The Philippines has been a popular destination for outsourcing software development for over a decade. The country boasts of a large English-speaking population, making it an ideal destination for companies looking to outsource their contact center and back-office needs.

The country is also home to world-class engineering schools, which churn out thousands of graduates every year with the requisite skills to work on software development projects.

The Philippines also offers competitive wages and excellent working conditions, making it an attractive destination for firms looking to outsource their software development needs.


Offshore outsourcing continues to be the best bet for American and European firms looking to outsource their software development needs. Indian, Filipino, and Malaysian firms offer a wealth of talent and experience, as well as cost benefits that make them an appealing option for companies of all sizes.

Moreover, to get the best result, you should hire developers from one of the best offshore outsourcing software development companies (ValueCoders). They will help you with your project requirements, assess and manage risks, as well as take care of other aspects related to the offshore development process.

Why Offshore Outsourcing Still Remains The Best Bet for American and European Firms

Got a Project in Mind?

Let's embark on a journey to transform your idea into a compelling digital presence.