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How Can US Companies Calculate Offshore Software Development Costs in 2021?

Posted Offshore Team

In order to remain competitive in 2021, the US entrepreneurs have to enhance their product value proposition by doing a meticulous value proposition analysis. Cost-effectiveness is one of the key indicators in the evaluation of the value chain: from the cost of raw materials to the salaries of the workforce.

No secret that in pursuit of cost-effectiveness, businesses turn to outsourcing with software development being the most widely outsourced service. By leveraging offshore software development workforce the US businesses can tackle the cost-effectiveness problem, improve their competitive advantage and increase profit margins for the company.


In this whitepaper, we aimed to collect and analyze the most relevant qualitative and quantitative data on offshore software development. The suggested solutions and recommendations are provided from the standpoint of US businesses considering leveraging offshore software development workforce in 2021 and beyond.

What’s Inside the Whitepaper?

offshore software development costs contents

 

Download the full whitepaper below

Benefits of a Remote Offshore Development Workforce for the US Businesses

32% of senior executives rarely update their operating model, while 73% of executives in the US say that shifting to offshore development was a success.

  • Get a greater profit margin

Savings on hiring an offshore software developer reach 50-70% by cutting on salaries and operating expenses.

Savings on operating expenses come in the form of less money spent on office premises, furniture, janitorial services, electricity, the purchase and maintenance of technology, and other overhead costs. 

  • Adapt quickly to changes caused by technology disruption

82% of workers expect a digital transformation in their work in the next three years, but only 3% of executives plan to significantly increase investment in skills development programs. The US, Europe, and the Nordics face severe tech talent shortage due to the lack of supply of skilled software developers, poor technical education, and reskilling programs. Overall, 54% of companies report talent shortages.

By leveraging offshore software development workforce, businesses will ensure that they have enough talent supply to meet the technology disruption challenges. 

why choose offshore software development

Offshore software development reasons

How to Calculate Offshore Software Development Costs

59% of businesses claim that cutting costs is the top reason for them to seek offshore software development. In order to know how much exactly you will save on offshore development, firstly you must have complete data on the cost of your current operations with an in-house team or the overall cost if you’d hire software developers locally. Poor cost-consciousness can result in unexpected expenses and holes in the budget.

inhouse vs offshore software development

What About Guarantees?

Offshore software development in partnership with a service provider procures such recruitment process that guarantees a high probability of finding an offshore developer that fully meets a client’s need and expectations. Also, depending on the type of contract, a service provider can guarantee clear visibility on the payments and no ad-hoc expenses. 

To get full information, download the whitepaper below.

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Natalia Kosenko

Digital Content Writer and Marketer

Natalia is a seasoned professional with 7+ years of hands-on experience in content creation and communication. She's an energetic promoter of Ukraine and Daxx on the global business arena.

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