Costs

Reducing cost price

One of the important advantages in off-shoring is that it comes at a considerably lower cost to you than working with local experts. Research by Ernst & Young has shown national estimates concerning rates to be three times higher on average than the rates used in off-shoring. The table below is intended to reflect these rates as objectively as possible:

Gross wages in the Netherlands: Intermediair Salary Indicator
• Source total costs: Based on an overhead minimum of 50% (including: Development tools, workstation, management etc.)
• External employ: The rates for freelancers amount to approximately €90-€95 an hour, in addition to which you need to supply the workstations (including development tools). The listed rates are outsourcing rates.

Flexibility

Offshoring gives you a flexible team that does exactly what you want it to. Ultimately, you need to first provide work to which people are subsequently allocated, rather than be left with obligations that require the subsequent allocation of human resources. You can simply hire the appropriate experts per project and be left with no attachments whatsoever after finalisation.

Fixed price

Working project-oriented allows you to choose for a fixed-pricing approach, giving you the advantage of knowing exactly beforehand what your costs will be and considerably reducing your risks.

Capacity

Apart from the previously mentioned advantages it is simply becoming increasingly difficult to find the appropriate experts nationally, let alone getting them committed. Here too, off-shoring offers advantages. Our increased scale of development enables us to allocate a large team of professional developers to different projects.

Intelligent design

An intelligent design is the key to reliable, high quality software. Sadly, though, designs are often created under immense time pressure. More often than not with R&D departments, especially the smaller ones, designs are made while programming. One of the aspects requiring close scrutiny in off-shoring is that of creating a design. The main focal point of your organisation is to define a clear vision upon which a design is based, which after all is part of your core business. A clear vision facilitates the effective development of software and is essential for the success of off-shoring.

Drawback ?

It is tempting to think that off-shoring offers only advantages, but there are some drawbacks connected to it as well. What, for example, to think of language barriers, cultural differences, distance, the separation of development teams and the subsequent increased overhead? Throughout the years CoreTrek has learnt how to professionally integrate off-shoring into your organisation as part of your development strategy. It has also found a local partner in Initiative 2.0, a Dutch based conversation partner who acts as an intermediary on your behalf. A very important, although often considered less significant, aspect of off-shoring is the fact that it to some extent forces an organisation to follow certain procedures, ranging from functional design, technical design and perhaps launching a prototype to finalising a project. All this benefits the quality of development.