6 Reasons to Start Using Offshore Software Development During the Crisis. How to Survive a Recession?

Although everyone is terrified that life will never be the same, it will. If we start adapting to technological changes and accept the advantages of current IT technology, in fact, it may become even better. Business owners will learn to redistribute their resources more effectively, switching to remote management. They will become prepared for unpreventable future crises and develop quality strategies for risk management.

In other words, they will do everything they should have done before the 2020s downturn, which was pretty much expected.

In the economic forecast published in 2019, Forbes already informed the public that the world was heading for a recession. 

New York Fed Recession Model

(Source: Forbes)

They didn’t predict COVID-19, but many experts warned business leaders about the upcoming downturn anyway. This gave the time to prepare that many companies didn’t use properly. The time to start optimizing business operations, learn how to outsource, and access accumulated technical expertise of remote teams while cutting expenditures.

Outsourcing software development to remote teams doesn’t only help to adapt to new ways of working. It has a range of other benefits. Discover 6 main advantages of using the services of a software outsourcing company below.


Technology Disruption in Business. 6 Reasons Why Offshore Software Development Can Make You Business Invincible


The tendency towards remote and offshore software development was emerging regardless of quarantine limitations. The latest Upwork’s report estimated that by 2028, 73% of teams would have remote workers. Today, this number is probably even higher. 

Thus, we encourage you to stop panicking and perceive the remote work as a way to make a quantum leap to:

#1. Tap into cost-effective development

We might talk about the ambitious goals of software development outsourcing, but the numbers are more eloquent. Despite being critical to business needs, an outsourcing strategy is mainly introduced to cut expenditures – admit 59% of outsourcers. The reason is clear. According to Glassdoor, the average backend engineer salary in California, US, is 124 thousand dollars. Top this with the cost of office rent, managerial and other critical expenses, and you’ll get quite a lot. Since any economic crisis forces business owners to review their budgets, outsourcing is the optimal solution to cut costs without sacrificing your performance. Many Eastern European and Asian markets ensure the same quality of software development with lower expenses on a dedicated software development team or individual employees. 


(Source: Anegis)


#2. Enjoy the easiest way of solving capacity issues

Quarantine is likely to take a toll on the capacity of any business. Generally, there are two main cases to consider. If a company has never been engaged in software development (which is the worst-case scenario), it may need to start digitalization from scratch. For example, develop an app that allows consumers to order from their smartphones. In this case, hiring software vendors that know how to outsource and specialize in remote work can help to launch the development process within the shortest time. The second scenario is a more common one. A company has used the blessings of custom software development but never outsourced. For example, it may be a startup that designs medical management software, the demand for which has sharply increased. Today, this company needs additional resources to focus on product development and promptly scale. Again, the remote management team can offer the necessary capacity and cover the software development demand the company cannot satisfy on its own. 

#3. Establish an emergency backup in another location

Business diversification is not only about entering new markets. It’s also about expanding your resources and facilities with third-party software vendors. Since the impact of COVID-19 differs among regions, having a team that can back you up from another location is essential. Besides, any software outsourcing company has the practices necessary for effective remote cooperation in place. They know how to manage remote employees and cover time differences. Such expertise in the dedicated team and extension models allows you to adopt ready-made solutions within the shortest time.

#4. Save time on on-site interviews and onboarding

Even though in the next few weeks, unemployment rates may skyrocket to as high as 32%, the tech field is pretty stable. Of course, it feels the adverse impact of the pandemic but much less than others. At the beginning of March, the number of IT job postings has declined by 16% compared to the end of February, yet the massive layoff is unlikely to start. Thus, the competition for qualified developers, QAs engineers, and other tech-related specialists remains high. Apart from that, in the modern market conditions, people are unlikely to willingly leave their jobs, start the circle of job interviews, and switch their beloved teams for unknown guys they see on Zoom. That’s why if a company needs several professional developers, the search will be tiring. If you start looking for a remote team globally, this will significantly speed up the hiring process and the start of software development consequently.

(Source: HackerRank)

#5. Make Adjustments to Ongoing Business Practices You Will Need in the Future

The long-lasting effect of the current technology disruption in business may be actually the best thing about it. The anti-crisis steps taken today and the shift towards outsourcing will continue boosting your business development after the crisis. Cooperation with third-party software helps you start enhancing service quality and build relationships with customers without worrying about remote team management. Many software outsourcing companies have PMs, HR teams, recruiters, and all the necessary staff at premises, narrowing communication with outsourcers to only the most critical questions. The right approach to workload distribution and corporate-level optimization are investments in your further stability.

#6. Focus on risk management and the most critical tasks

Before we explain why outsourcing helps you manage risks, there is one thing to note. Make sure you hire a software outsourcing company that works with maximum transparency and can justify all its decisions and requirements. The Scrum approach of the Agile methodology is generally considered a must-have in current IT technology teams. When you know how to use outsourcing transparency for risk management, remote software development becomes more efficient. You can evaluate steps at each stage of the work and jointly find lower-risk solutions. Another reason why outsourcing is helpful to reduce business risks is accumulated technical expertise. The software vendors that specialize in tech products know all the latest technological advancements and can provide businesses with valuable advice.


We hope our article on how to survive a recession with software outsourcing will help you make the right business choices. Wonder how to outsource if you have never done this before? Follow our blog and future publications for detailed instructions or contact Binariks right now to discuss your needs.