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.
partners.
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.