Heartland Development

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Heartland Development 

Combining modern software development and project management practices with middle America resources is a winning combination for companies that are serious about measuring their Total Cost of Ownership for outsourcing.

Offshore development teams lend themselves to inefficient development cycles that can expose your company to budget overruns, turnover, extensive ramp time, quality problems, and delivery dates slipping.  These factors can contribute to your product being obsolete the moment it is released.  A study from the Standish Group found that 74 percent of digital projects faced time overruns.

Why are so many offshore development teams struggling to meet deadlines, and how can you ensure that your company can meet your target timeframes?

Where Overseas teams fall short 

While some overseas dev teams use an Agile framework, many are still based around a more rigid Waterfall process that can easily allow for communication errors that lead to a subpar final product. Because such dev teams typically work in opposite time zones and members of the technical team may have limited English language skills, it can be difficult to coordinate regular audio and video meetings to address and resolve issues as they arise.

In contrast, Redtech's Heartland based development teams are well-versed in the Agile process, and have the structure in place to work collaboratively. While they may operate in a smaller city to conserve budget related to office and salary expenses, they are likely to be in the same or a similar time zone to your in-house team, making it simple to set up real-time meetings on a regular basis to review and discuss questions and next steps.

Research backs up the difference in quality: A 2016 Forrester survey found that two-thirds of respondents said that the quality of work is higher using onshore or nearshore firms, compared to offshore firms.

The financial and competitive impact of offshore development 

In fact, of the Forrester respondents, two-thirds of those who’d previously used offshore providers said that they were planning to shift the work back to onshore and nearshore providers.

One of the prime factors? Late projects, which 40 percent of these respondents cited as a reason for the shift. Poor quality (31 percent), poor communication (36 percent), and difficulty managing across time zones (29 percent) were also leading concerns.

Project delays can have a major negative financial impact. Of the survey respondents, 38 percent said delays led to lost revenue and profits; 28 percent cited higher total cost of ownership; and 21 percent mentioned lower average purchase volume.

Additionally, being too slow to launch a product means losing a competitive advantage: 25 percent of respondents lost market share, and 23 percent lost customers to competitors as a result of the delays.

Onshoring for faster time-to-market and overall process improvement 

If you’re considering the pros and cons of offshoring a digital transformation product, look beyond the quoted price. While you may see a lower number on the surface, it’s important to measure the potential impact of a project that goes beyond its quoted time frame—resulting in a difficult process that involves more of your team’s resources than anticipated, additional budget for rework, training, turnover, and ultimately, a loss of competitive advantage.

Today’s leading companies need to be fast, nimble, and able to quickly bring new products to market to remain on the cutting edge in their industry. In order to do this well, it’s essential to choose the right partner—and more often than not, that means staying close to home with an onshore development team.

Learn more about how to tap into the talents of agile software engineering teams in the American Heartland in our free ebook, Accelerated Innovation.  

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