A recent report found that offshore software development rates vary with geographical location, experience, technology and project duration, despite development rates being ordinarily estimated by the full-time equivalent (FTE) or hourly rates.
When several offshore software development companies offer the same services at competitive prices, businesses often face a dilemma of choosing the right provider.
3 Factors that need to be considered while negotiating offshore software development rates include:
- Experience: You should consider the outsourcing team’s experience in the desired technologies and platforms that you want them to work on and ask for a portfolio of past projects to understand its complexities. A highly experienced team may require slightly higher development costs but can help reduce development time and offer quality-centric services.
- Team size: Defining your software development requirements accurately helps estimate the required team size for the project, so you should look for an offshore development company that allocates a project manager along with the dedicated resources.
- Development methodology: Agile, lean, DevOps and waterfall are some of the development methodologies used by software development companies – among these, agile and DevOps have gained popularity owing to its flexibility.
Different forms of agile methodology also include scrum, crystal, and feature-driven development methodology.
Written by Leah Alger
