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Challenges faced by an offshore product development company

by Mic Johnson

A journey to making software is never an easy one, and this is where offshore product development comes in. Offshore product development is so much in demand because of the low-cost development results it has. There has been a continuous rise in the trend of hiring offshore product development companies.

And with the increase in demand, there are lots and lots of product development companies who are jumping into this pool of providing offshore assistance to clients situated in different countries. But this high competition level has also posed a few challenges for product development companies. Not only the numerous competitors, but sometimes the clients also make it difficult for the vendor company to live up to their words and provide the outcome exactly what they expect.

Want to know more? Read on to find out the top challenges faced by product development companies while providing offshore product development assistance.

Unclear goals

Many a time, it happens that the clients do not list down their goals properly. And as expected, the output may lag behind and may not meet the expectation level of the client. And when the product is delivered, there can be a long list of complaints from the client, which can cause unpleasantness.

Thus, it is highly relevant to clearly explain the needs and requisites to the product development company so that there is no wriggle room for miscommunication and misunderstandings. Sometimes, the clients make unrealistic expectations from the vendors, which also leads to dissatisfaction on the client’s part.

Time zone challenge

Offshore product development companies can help business owners in vast ways, but time zone difference acts as a barrier for effective communication. Though the business owners may expect work to be done even when they are sleeping, owing to the time-zone gap between the two countries in which both the parties reside; it creates a pothole for communication.

Communication is vital for preventing the product development from taking a wrong turn, and thus either of the two parties may have to come out of their comfort zone to interact with each other for efficiency in product development. Therefore, time zone variation can be a major hindrance and one of the toughest challenges faced by a product development company.

Miscommunication

Owing to the cultural and language barriers, there are chances of miscommunication and misunderstandings during the project. The effective functioning of an offshore product development company largely depends on the understanding they have acquired for a particular project.

If the software developers do not get an exact understanding of what the client expects from them, the outputs and end results can come as a shocker. Such a condition arises due to the language difference between the two parties. Though English is a universally accepted language, still there can be a scope for confusion, which poses a tough challenge in front of a product development company to cross it with excellence to come out with flying colors.

Ineffective project management

A product development company does not only work on a single project. The higher authorities may take up multiple projects for the benefit of the company. It may further increase the workload on the employees, and further can cause a decline in productivity. It is a common saying that you cannot sail on two boats, but there may be chances that the software development team may be handling two or more projects at a time, causing their minds to distract.

Thus there arises the need for effective project management, which comes as a challenge in front of the team leaders to manage their teams such that they can deliver the clients with quality work, meeting the deadlines at the same time. The upper-level team leaders should also ensure that they have ample workforce for the same to proceed with the project development task smoothly.

Variance in business practices

When two different parties belong to two different countries, there are high chances that both may practice different patterns for business operations. The client may have an entirely different outlook for business operations, whereas the vendor company may have their own distinctive approach for the business. It depends on the different cultures and backgrounds that the two parties come from, which may result in confusion and uncertainties between the product development company and their clients.

Rising Competition

Another problem faced by offshore product development companies is rising competition. New offshore product development companies are being laid off every new day, which increases competition. With different cultures and regions, the problem can be the change in the budget of the product laid by the competition.

Owing to the high-level competition, many times, the best companies that are capable of providing quality work do not have enough clients. In contrast, companies that provide substandard work but charge less money tend to fetch more clients and work. This factor has made the monetary consideration win over the quality factor, which poses a risk for the companies who claim excellence in their work. 

Bottom Line

Challenges are a vital part of life & victory goes into the hands of those companies who have the might of fighting such things and overcoming it to emerge out as a winner in the market. An offshore company does generate a lot of profit when selling their products, but there are a lot of challenges that they may have to deal with to establish their brand.

Picking on Saigon Technology for your offshore product development needs can be a game-changer. Not only do they have the caliber of overcoming their shortcomings and challenges but claims of fledging their clients with quality work at budgeted prices.

So, are you looking for a product development company to handle your project? Call for the Saigon professionals now and see how your decision can make a big difference for your business.

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