One of the studies conducted by Value Leadership Group has proved that Small and Medium Enterprises (SME) in Europe benefit from using offshore software development

Some SMEs are surely afraid of losing jobs if they would outsource development functions. Despite the fact that this fear exists, the study shows that none of the companies that took part in the research lost work places. Another important point is that brilliant IT engineers are in small in number in Europe but it’s possible to find them in the offshore (near shore) countries, for example in Russia.
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Originally offshore software development services were widely used for low-level maintenance jobs. In recent years we have seen that globalization and a great increase in communicational technologies has made the world flat and connecting, putting new meaning into well-known things. The present-day trend of doing small and medium business effectively is using high profile offshore partners to establish and run a dedicated team overseas. The development teams of suuch partners not only should do coding, but they should also perform high-level tasks, such as product design and architecture. Sometimes the entire engineering department may be located overseas, while investors, top executives, sales and marketing people would be located in the home country. This refers both to the US and European copmanis. SME require extremely effective business strategies that create the best balance between costs and quality.  

Who says that SME get significant competitive advantage in the global arena and occupy the leading position in the market by offshoring? We do say. We can also provide some examples where companies save their capital and get competitive advantages if they move part of their value chain offshore.