Posted on October 6, 2020 at 11:04 AM
With the advent of globalization and technological advances that go hand in hand, the million-dollar question is, if your market is global then what about your workforce? Industry big wigs such as Tata Consultancy Services, Infosys, HCL, Wipro spreading their wings far and wide, and when they typically look at testing as an opening for a client are cases in point with their diversity in their workforce.
So what about start-ups, small and medium enterprises (SMEs), corporations who want to outsource or probably look at offshore development centres (ODCs)? This could be a viable alternative when it comes to software development through dedicated teams, subsidiaries, or an understanding with a partner at another location.
The above scenario could be a quintessential symbiotic relationship for both the companies involved and could lead to many advantages to tap into.
As mentioned earlier, if it is a big company, ’A’ opting for an offshore development centre through a third party, ‘C’ then ideally, ’A’ would be an investor in ‘C’ in terms of trust and how the management would still have a say in the day to day operations of ‘C’. Needless to add, a services-based entity would be able to get a 3x valuation from the parent in the present times.
Proof of Concept (POC)
A company in an offshore location could also relay information as a deliverable through an initial instalment by sharing a Proof of Concept. This would give the necessary impetus to the transaction, an inkling into the capabilities of delivering under most circumstances, and the technological prowess to handle such work.
Another advantage of offshore development could be white labelling of a product solution or particular services. History is replete with examples of how big companies have employed vendors for their solution and in turn, sold the end product as their own. For example, when you shop for groceries under Amazon Prime, then it does not mean that Amazon Prime is the manufacturer, instead wholesalers or retailers would prefer to sell under the Prime packaging.
Probably the most important factor to consider would be the cost incurred and the benefits accrued for a company. When Facebook acquired WhatsApp for $16 billion in a cash and stock deal in 2014, the sum was large but the rippling effect can still be felt today with the reach and popularity that WhatsApp can manage on its own.
The true value for a company is realized when it can tweak and replicate almost anything that is asked for in terms of customization. APIs(Application Programming Interfaces) hold the key to a majority of integrations and implementations but with a majority of deals done on the cloud today, the ‘compute’ is taken care of by the server to emphasize the point.
With the pandemic miscalculations taking place left, right and centre, it is all the more important to find ODCs to cut down costs and make a dent in the market. To reiterate a simple business model, “buy low, sell high” makes sense not just in 2020 but for industries at large, pun unintended. To know all this and more, register now for our webinar on October 20th, Tuesday, 2020. Listen to technologists on what makes it click and what is the survival mantra? It would be an informative session spanning an hour and in case you ask yourself about software solutions then you have to attend! Thanks for stopping by.
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Opting for Offshore development services is more convenient and cost effective than hiring a full-time team, you can enjoy many perks after you choose for offshore services.