There are many common misconceptions about offshore software development. In the software world, offshoring is where a company builds a dedicated team of developers and opens a new office, all in another country. They are regular employees in every sense except that instead of working locally, they’re based elsewhere.
These are called offshore software development centres, and there are many reasons a company might choose to establish one. Some of them include the following:
- **Operating costs: **Building teams in Eastern Europe or India is less expensive than in Paris, London, or New York. Premises, equipment, and salaries are all lower thanks to the more affordable cost of living.
- **Scarcity of talent: **Across Western Europe and America, highly-qualified software engineers can take a lot of work to nail down. Tech economies like Bangalore produce more world-class IT engineers than anywhere on the planet.
- **Limited expansion: **Quickly scaling-up business can be difficult. Going offshore lets businesses purchase larger offices, develop more dynamically, and not worry about finding adequate staff.
This has made tech hubs like Bangalore, the “Silicon Valley of Asia” goldmines where you can recruit the best engineers for software development. For instance, **IT giants like Google, Apple, Microsoft and SAP have all established R&D centres in Bangalore! **And they all got help from an offshore development services partner at the very beginning.