Offshoring software development is becoming an increasingly popular option for tech companies in Australia. By leveraging the talent and expertise available in Sri Lanka, these companies can save time and money while accessing talented resources, the latest technologies and best practices. In this blog post, we will discuss the benefits of offshoring software development, how to choose the right offshoring partner and how Australian tech companies are finding success in Sri Lanka.
Introduction to Offshoring Software Development
Offshoring software development is the process of outsourcing the development of software to a third-party vendor located in a different geographical region. It also can come in the form of IT augmentation where offshore resources are used in your project. This is typically done to reduce costs, gain access to specialized skills, and speed up the development process. It can also be used to access the latest technologies and best practices, as well as for Australian companies to grow into new markets such as Asia.
In recent years, offshoring software development has become increasingly popular among tech companies in Australia. By leveraging the expertise and talent available in Sri Lanka, these companies can save time and money. Additionally, they can access the latest technologies and best practices, as well as tap into new markets.
Benefits of Offshoring Software Development
The benefits of offshoring software development are numerous. First and foremost, it can reduce costs significantly. By offshoring development to a third-party vendor located in a different geographical region such as south Asia, companies can access talent and expertise at a much lower cost than if they were to hire full-time employees in-house within Australia. Additionally, since the process is outsourced to a third-party vendor, companies can avoid the overhead costs associated with managing a development team such as HR and real estate costs.
Also, by offshoring software development resourcing to a third-party vendor and having the flexibility to scale up or down as required companies can reduce the time to market, which can lead to quicker product releases and improved customer satisfaction.
Tips for selecting a Software Development Offshoring Partner
Selecting the right vendor for augmenting your IT team in Australia can be a challenge for businesses that are unfamiliar with the concept of offshoring. Here are a few tips to help businesses get started:
- Develop a good understanding of the software development offshoring industry and its players. This includes researching the different companies and organizations involved, you may find smaller start-ups can be more attractive than the traditional (big) players who have been just “body-shops” mainly targeting their own profits.
- Connect with the local tech community. This can be done by attending networking events and joining local tech groups. This way you can understand some of the models they use currently and obtain feedback on offshoring vendors.
- Identify potential outsourcing vendors. Companies should carefully research potential vendors to ensure that they have the expertise and talent needed to complete the project. Additionally, they should ensure that the vendor has a good track record and references from previous clients as well as being based locally in Australia for convenience.
- Develop an understanding of the commercial benefits. This might be tax benefits and Forex benefits. Having a local vendor who can manage your IT augmentation will deliver you long term benefits above and beyond the project delivery you’re focusing on.
Webco Talent is an Australian based software development offshoring company who can assist you with hiring dedicated development teams from Sri Lanka at a fraction of the cost. Let’s look at why Sri Lanka is so attractive for selecting IT talent.
The Sri Lankan IT Market
The Sri Lankan IT market is one of the fastest growing in the world. It is home to a highly skilled workforce with expertise in a wide range of technologies. Additionally, the cost of labour is much lower than in other countries such as India, Philippines, or some European countries which make Sri Lanka an attractive option for companies looking to outsource software development and hire software developers and QA testers. In the last decade the country has gained a lot of traction for its technical talent pool and in the last decade alone, the Sri Lankan IT-BPM industry has expanded by 300% to reach $1.2 Billion in export revenue. Software Development and IT services are some of the largest contributors to IT exports in Sri Lanka. The Sri Lankan IT-BPM industry is well on the way to achieve US $5 billion in exports by 2023, creating 250,000 direct jobs and launching 1,500 startups.
Sri Lanka has a 92% literacy rate – well above the global average of 86%. It has an impressive 20+ universities and private higher education centers that produce around 100,000 graduates annually which includes more than 5,000 tech students. English is used as the primary language within Sri Lanka’s business community.
Furthermore, the Sri Lankan government has taken a proactive approach to develop the IT sector. It has invested heavily in the infrastructure and resources needed to support the industry, as well as providing tax incentives to attract foreign investment. Additionally, the government has implemented programs to promote innovation and entrepreneurship, which has helped to create a vibrant tech ecosystem.
Understanding the Sri Lankan Tech Industry
The Sri Lankan tech industry comprises a wide range of companies and organizations, from startups to established multinationals. These companies are involved in a variety of activities, from software development and IT consulting to web design and mobile app development. Additionally, the industry is home to a number of accelerators and incubators, which provide mentorship and resources to help startups get off the ground.
The Sri Lankan tech industry is also home to a vibrant startup ecosystem. There are a number of venture capital firms and angel investors that provide funding to startups, as well as a number of incubators and accelerators that provide mentorship and support. Additionally, the government has implemented several initiatives to promote innovation and entrepreneurship, which has helped to create a thriving startup scene. Sri Lankan IT talent have supplied services for major Fortune 500 companies such as eBay, PayPal, Nike, Expedia, Uber and more and they are at the forefront of innovation.
With over 400+ IT companies, Sri Lanka has over 80,000 IT professionals growing 20% YoY with years of experience in offering IT services mainly application development and QA testing. This growing talent pool offers quick hiring opportunities for Australian businesses at a fraction of the cost they would have to pay for local developers.
How Australian Tech Companies are Finding Success in Sri Lanka
Australian tech companies are finding success in Sri Lanka by leveraging the expertise and talent available in the country’s tech sector with Sri Lanka boasting more than 40% IT literacy rate. With a higher general literacy rate and fluency in English than most of the other countries offering offshore services to Australian businesses, they are finding it easy to communicate with remote teams based in Sri Lanka which results in smooth on-time delivery of the projects. Also, Sri Lanka being one of the few countries having strong IP protection regulations and becoming the first South Asian country to enact comprehensive data protection legislation modeled after European Union’s General Data Protection Regulations (GDPR) Australian business feel safe to deal with remote teams based in Sri Lanka.
In conclusion, offshoring software development is becoming an increasingly popular option for tech companies in Australia. By following the outsourcing partner selection strategies outlined in this blog post, companies can maximize the benefits of offshoring and successfully master IT augmentation to dedicated remote teams. By leveraging the talent and expertise available in Sri Lanka, these companies can save time and money while accessing the latest technologies and best practices.
Use Webco Talent who handpicks the best IT talent from Sri Lanka for your next project so you can seamlessly grow your team without limits. Our office is in the heart of the CBD (Colombo) with superior internet connectivity and generator backed up electricity for offering uninterrupted services to our clients in Australia.