One of the most significant changes brought about by the Covid-19 pandemic was the normalisation of remote working. This shift led to evolving attitudes towards offshore software development, with more companies looking to benefit from accessing a skilled workforce at reduced rates.
However, what does this mean for UK-based software developers? Is the UK’s software development industry heading in the same direction as manufacturing, where offshoring led to a decline in domestic skills and capabilities? What role will home-grown software development companies play in this new landscape?
Despite the growth of offshoring, this isn’t a story of unmitigated success. Some companies have encountered challenges with their offshore teams and have brought development back home. This is where UK-based companies can step in and offer real value by acting as intermediaries between businesses and their offshore teams, effectively mitigating risk and ensuring quality.
The Rise of Offshore Development
Looking at the rates for software developers worldwide, it’s no surprise that many businesses seek cost savings. According to Accelerance’s 2024 Global Software Outsourcing Rates and Trends Guide, hourly rates for a senior developer are:
-
Latin America: $65 – $74
-
Eastern Europe: $64 – $78
-
South Asia: $40 – $46
-
Southeast Asia: $29 – $42
In comparison, rates for UK-based developers range from $76 to $92 (£60 – £127). Therefore, it’s understandable why businesses seek to hire highly skilled developers in South and Southeast Asia.
However, focusing solely on price can lead businesses to overlook the complexities of developing high-quality applications. The success of any software project depends, to a large extent, on good communication and management. When working with developers overseas, the added barriers of time zones, culture, and language heighten these challenges, making them even more critical.
Books like Erin Meyer’s The Culture Map: Decoding How People Think, Lead, and Get Things Done Across Cultures and Craig Storti’s Speaking of India: Bridging the Communication Gap When Working with Indians highlight how people in different cultures tend to communicate and the importance of recognising this and adapting accordingly.
For example, in some cultures like the US, people tend to communicate directly and say exactly what they mean. In many Asian cultures, however, the communication style tends to be more indirect, with meaning implied rather than made explicit. Too much directness may even be viewed as rudeness.
Consider a manager in a direct culture asking a developer in an indirect culture whether they will be able to complete a piece of work by Tuesday. The developer responds that this could be difficult. The manager could interpret this as the work will be done, albeit with some difficulty, while the developer actually means it won’t be completed on time.
Simple misunderstandings like this highlight the challenges of working with offshore teams and the problems that can arise if they are not addressed.
The Role of UK-Based Intermediaries
UK-based intermediaries can play a crucial role in mitigating the risks of offshoring development by providing senior developers to work alongside offshore teams. By acting as a bridge between businesses and their overseas teams, they can help ensure smooth and efficient operations.
Being UK-based, these developers can visit a company, spend time with key people, and understand how their business operates. At the same time, by working on the same problems alongside overseas teams, they can share knowledge, ensure that requirements are understood, and help maintain high standards of quality.
Returning to the manager’s question to the developer about completing a piece of work, the UK intermediaries can help avoid such misunderstandings. By being involved in the work alongside their colleagues overseas, they will have a good understanding of the current situation and will be able to communicate that back.
Future Outlook
Spending on offshore development is expected to continue growing as companies benefit from a skilled global workforce at significantly reduced rates. At the same time, it is important not to overlook the challenges of working with offshore developers. Businesses need to be careful not to just work with the cheapest supplier, as it can be a false economy. Once the right supplier has been found, a lot of work is still required to ensure the relationship is successful.
UK-based intermediaries can help reduce the risks of working with offshore teams by providing senior developers who act as a bridge between businesses and their teams. The role of intermediaries will become increasingly important in navigating the complexities of global collaboration.
Elastic Mint has worked with UK-based businesses since its inception in 2018. We have provided developers with typically 10 – 15 years of experience who have worked alongside our clients’ teams around the world, sharing their skills and knowledge, ensuring quality control, enhancing collaboration and boosting productivity.
