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Offshore Outsourcing Pros And Cons List Of 2022

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If there’s anything that the COVID-19 pandemic has shown us, it’s that businesses must constantly reinvent themselves in order to survive.

Deloitte’s 2021 Global Shared Services and Outsourcing Survey listed standardization and process efficiency (88%), reducing costs (84%) and driving a digital agenda (61%) as top current priorities for businesses.

The pandemic has fueled the digitization process for businesses worldwide, and many are struggling to keep up. More than half of employers in the United States struggled to fill positions in 2020, and with high staff turnover, it makes finding talent in industries like IT even more difficult.

This is why access to a global talent pool is one of the keys to success in today’s business world. It doesn’t matter where professionals are located–what matters is connecting with them! 

An increasing number of businesses are turning to IT offshore outsourcing to solve this issue. But how is offshoring helping companies?


In the global IT sphere, countries like Ukraine are a proven model for success in business outsourcing, due to the many talented Ukrainian developers that have been working with a variety of global clientele in recent years. The Ukrainian IT market has a large talent pool of over 200k highly-qualified professionals and its industry export volume is expected to reach US$8.4 billion by 2025

You might have some questions or even concerns about how offshore teams work, even though most people view offshore outsourcing as being good. Let’s assess arguments for and against outsourcing in 2022, and how your business can make the most out of it.

Reasons for Outsourcing - Key Drivers to Outsource

Reasons for Outsourcing

Pros Of Outsourcing Overseas

  • Building The Best Team 
  • Access to Specialists 
  • Better Prices
  • Focus On Core Business Tasks
  • Company Growth

Building The Best Team 

In today’s globalized world, highly-qualified workers from different countries are easily connected by modern technologies and a shared common language. They’re not only professionals but partners that are an integral part of your team.

Companies with offshore resources have access to a far more expansive talent pool, allowing you to streamline your business process. When you’re pleased with the team’s results, it’s almost guaranteed that you’ll want to foster this working relationship in the future.

Access To Specialists 

Outsourcing services also provide an unprecedented opportunity to professionals in countries that would otherwise only dream of working with big companies when they would have previously been inhibited from doing so because of work visas and other regulations. 

The Ukrainian IT market is filled with over 200k highly-educated and specialized developers. An overwhelmingly large percent of these developers speak English and they have a firm grasp on the ever-changing and emerging disciplines in the global IT sphere. 

Better Prices

One of the best pro outsourcing arguments is the price. You can reduce the costs of your project by hiring qualified professionals from the Ukrainian IT market, which has a large talent pool of over 200k highly-qualified professionals. Who wouldn’t want to hire top talent at a better price?

IT outsourcing pricing models

Pricing Models for IT Outsourcing

Focus On Core Business Tasks 

When you assemble a team of qualified professionals, it allows you to streamline your business and focus on core business tasks. 

A more efficient work flow means that you can worry less about deadlines and your project becomes more of a reality with each passing day.

Company Growth

In case you’re still contemplating the benefits of outsourcing jobs to foreign countries, consider this: a successful, streamlined workplace means that your company has nowhere to go but up. 

With members of your team located worldwide, you’re able to take on even more clients than before, and increase your company’s overall profit. 

Who knows? That success might lead you to expand the services your company offers and ultimately attract more clients from a wider array of business spheres.

Cons Of Offshore Outsourcing

What are the key challenges in offshore outsourcing? Although there are many benefits of outsourcing, businesses should be aware of its potential disadvantages. We offer you some practical solutions to avoid any issues with the cons of offshoring.

  • Cultural Differences
  • Time Zones
  • Commitment

Cultural Differences

Thanks to modern technologies it is easy to connect with people regardless of their location, but companies should still keep employees’ cultural differences in mind.

People from different cultures might approach work in different ways, from how they perceive business hierarchies to how they resolve conflicts with their coworkers. 

The solution?

You might initially shy away from outsourcing abroad  and working with Ukrainian developers, but don’t fret, the largest country in Europe shares a lot of common values with its western neighbors. The more you engage with Ukrainian developers, the more you’ll appreciate their work ethic and dedication

Why not invite them to work with you on site from time to time? Ukraine is only a one or two hour flight away from most of its European neighbors, meaning that a talent pool of over 200k highly-qualified professionals is within your reach. 

Offshore workers are an integral part of your team, and by occasionally changing up the dynamic, you’ll get to know each other better and develop a long-term working relationship without any real issues.

Time Zones

If a team of developers is spread out across countries or even continents then time management skills become even more essential than usual. When team members are located in different time zones you might start to worry about issues relating to quality control.

The solution?

A company should have realistic expectations as they seek to build the perfect team of developers for their project, especially when outsourcing abroad. 

Ukraine is located in a geographic sweet spot: it is only an hour ahead of most of its European neighbors, meaning that time difference isn’t much of an issue at all. You can assign specific tasks to the offshore team in advance, so that they continue to work efficiently, even when you’re not around. 

You shouldn’t have to worry about completing tasks as long as there’s an open line of communication!

Commitment

Some professionals just prefer to work in a large company that offers benefits and long term job stability. They think that working with an offshore outsourcing company doesn’t provide any benefits. 

The solution?

Daxx’s model of IT offshore outsourcing, with over 20 years of experience, offers quality and reliability, making it the logical choice to fulfill your business needs. Maintaining as much control over your project as you decide usually means that you can also save more money. This is not only a logical choice but an ideal one that enables you to get round one of the most glaring cons of offshore outsourcing. 

Being more involved in every step of the process–rather than delegating a sizable amount of control over to some third party vendor–puts a face to your vision that developers can believe in. 

The IT market is highly-competitive, meaning that companies are always trying to attract new talent with tempting offers, but it’s worth mentioning that our business model also results in higher professional retention. 

In fact, the rate of voluntary attrition at Daxx is 1.5x lower than the market average in Ukraine. What does this mean for you? You won’t have to worry as much about losing the developers you need for your project to another company.

Work With Daxx Today

Daxx was founded as a software outsourcing development company in The Netherlands more than twenty years ago. As a new member of the Grid Dynamics family, our company will only continue to grow. 

Today we have several offices located in Ukraine, the fastest-growing IT hub in Europe, and work with clients from all over the world. Our longstanding and successful business model is proof of how offshoring is helping companies. 

The majority of our technical staff are senior-level developers who speak good English and have a strong educational background, meaning that you have access to Ukraine’s large IT talent pool, which comes at a better price than most of our neighboring competitors.

Daxx is ready to make your idea a reality today. If you’re ready to take the first step, then please contact us about your project today.

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Kate Tsurkan

Digital Content Writer and Marketer

Kate Tsurkan is a Content Writer at Daxx with several years of experience working in journalism and the IT sphere

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