Taking risks with offshore development in Eastern Europe

Software development is a complex process that begins with conceptualizing a software product, which can be an application, a software component, or a structure.

In an era of fierce competition, organizations and businesses strive to reduce costs and increase efficiency in order to improve the company’s chances of survival. In the field of software development, outsourcing software development work has become one of the best ways to reduce the cost of designing, developing, monitoring, and maintaining a product while getting the best talent from anywhere in the world to implement a software development project over the last decade or so.

Let’s start with software development before moving on to offshore software development. Software development is a complex process that begins with conceptualizing a software product, which can be an application, a software component, or a structure. The following step is determining goals and requirements, which is followed by the development, coding, documentation, and testing, and final bug fixing. This means that many steps must be completed between the conception of an idea and the creation of a software product.
The tough task of researching, designing, coding, adjusting, reusing, reengineering, and establishing software is involved in the software development life cycle.

The transformation of a virtual concept into a physical product demands a different set of skills. We are talking about organizational, strategic, and financial resources.

How does it work and why is it so appealing?

Individuals and businesses implement the concept of offshore software development in a variety of ways. By opting for offshore software development, a company or individual can gain access to the best minds for a software project from anywhere in the world, at any time. These people and businesses are just as capable and qualified as anyone else. At the same time, it is well known that people working for offshore companies have experience in more than one field, giving them the advantage of completing tasks faster than others.

Currently, there is a certain distribution of software development outsourcing by region around the world, owing primarily to economic considerations. Eastern Europe is a well-known region for distribution outsourcing. The price is supported by the level of IT top-notch specialists and, at times, a low price for services. As a result, many Western companies successfully outsource projects or portions of projects to Ukrainian, Polish, Hungarian, Russian and Belarusian developers.

Eastern European countries have been one of the most appealing locations for IT outsourcing over the last decade. Many large technology firms, including Google, Apple, Microsoft have already established development centers in Poland, Belarus, Ukraine, and other Eastern European countries. Eastern Europe’s IT sector has a diverse range of technicians and a well-developed infrastructure. The majority of IT companies in this sector are distinguished not only by the rapid development of the outsourcing market but also by a solid educational foundation.

No matter how many advantages are going to be presented, people will always be concerned with the risks of offshore software development. Let’s analyze the complications that you may experience while selecting a vendor and organizing the whole process.

Not all that gold that glitters

It may sound harsh but the vendor assures you that the best team has been appointed to work on your project. Project expenses are skyrocketing, and you are expecting likewise results. However, the job is actually done by low-level software engineers who lack the appropriate skills and expertise. And the expectation versus reality is obvious.

UNITEDCODE tests all developers and also gives our clients the opportunity to perform the checks. For example, if the client lacks sufficient experience in selecting vendors, we are always willing to assist, because a completed project and a satisfied client are our primary goals.

Constant replacements at work

The IT market in most East European countries is incredibly dynamic, which means that developers will not stay on a project with poor working conditions for an extended period of time. They will seek better job offers, unsteady and frequent replacements can negatively reflect on your project’s results.

It is unlikely that anyone can guarantee that the developer you have hired will stay with you till the end of the project, but it is awesome when the company can guarantee you a “hot and quick replacement of the developer” within 2–3 days. Furthermore, such conditions are frequently stipulated in the contract, and the company is responsible for them, so you can rest assured that your project will not be frozen for a week or two.

It’s always about money

A client wants to save some expenditures while the vendor is planning to gain some profit. And here we come to money misunderstandings. The price does matter. Make sure that you agree upon the payment method whether it is hourly pricing or the fixed rate.

Money transferring can be a bit of an issue

You may encounter problems with currency conversion, the unprofessional vendors who are always trying to avoid taxation, etc. The taxation system in some Eastern European countries may perplex offshore clients. It is critical that you thoroughly review the legal documents and confirm that the transactions between your company and the vendor are completely transparent and with all names verified. If we look at Ukraine, we can see that it has one of the lowest tax rates in Europe.

This can be a serious problem if you have not encountered this issue before. For the majority of our clients, it is essential that the responsibility for legal, financial, and delivery matters remain with the company, which is based in the United States and will not vanish into the thin air.

Leaked information

Some contracts can be signed in haste without an NDA. All the details must be discussed at the first stages of the partnership.

Signing an NDA is a necessary condition for UNITEDCODE’s collaboration with both clients and vendors. It provides peace of mind as well as a guarantee for tomorrow.

Conclusions

Offshore software development has become popular among companies operating in the developed world. This option has been made easier by tremendous technological advances, which have also been aided by an interacting and interconnected globalized world in which the flow of information is easily enabled by the availability of fast and effective communications. It is now possible to run a business from anywhere in the world thanks to advances in technology and the Internet.

In general, we acknowledge that with proper project organization, a significant portion of the software development project can be outsourced and UNITEDCODE can demonstrate and display a vast experience in this sphere. With a balanced approach to selecting the types of activities transferred to third-party organizations, you can maintain both your own strategic advantages and significant funds spent on non-core tasks for the company.