Today we face the ways the blockchain is changing not only the Internet but the entire world. You are right if you think that blockchain will be used on a daily basis not only by the vast corporations but also by small local businesses worldwide. Every day this technology becomes cheaper, easier to handle and to implement.
At Azati we developed several complex software solutions related to the blockchain for our clients. We can frankly say: we have the decent expertise to speak about that technology from the experts’ point of view.
Why blockchain is helpful? It makes data transfers clear, smooth, secure and dedicated. In fact, blockchain is the new type of networks – modern, fast and reliable.
In this article, we will answer two complicated questions our clients often ask: “Is blockchain outsourcing worth it in 2023?” and “What are the factors that affect blockchain outsourcing costs?”
By the way, in our previous article, we already described another fundamental aspect – the overall blockchain development costs. Strongly recommend it for reading, if you still are not sure about general blockchain development costs, rates and other pricing moments.
The article headlines are:
– What are blockchain outsourcing services and how do they differ?
– Choosing the right programming language for blockchain project
– Pros and Cons of the outsourcing blockchain?
– Is blockchain outsourcing “evil” or not?
Interested? Keep on reading!
BLOCKCHAIN OUTSOURCING SERVICES AS THEY ARE
If you haven’t ever faced software outsourcing, we will briefly describe what it is.
According to Gartner.com:
Information Technology outsourcing is the use of external service providers to effectively deliver IT-enabled business processes, application services and infrastructure solutions for business outcomes.
Such outsourcing helps clients to develop the right sourcing strategies and vision; select the right IT service providers; structure the best possible contracts; govern deals for sustainable win-win relationships with external providers.
Even if the information above you already know, another fact is also notable – there are onshore, offshore and nearshore outsourcing providers. Let’s discover the difference.
What are the onshore blockchain outsourcing companies?
Onshore outsourcing means the closest outsourcing to the home office. In fact, it says that you outsource the blockchain development to another company in your country. Such an approach has all traditional IT outsourcing advantages, except one – it does not reduce any costs. The average hourly rates at onshore outsourcers start from 60$ per hour.
During onshore outsourcing, you and your development team work in the same country. So you do not need to solve additional legal and payment aspects. But the communication may still be sometimes complicated: if you have an office in NYC and your development team is in San Diego. Time Zones is the fact you can’t deny.
What is an offshore blockchain outsourcing agency?
Offshoring usually refers to working with the utterly remote IT providers in countries like Belarus, India, China, Ukraine, Poland, Taiwan, etc. All the benefits are included (as well as low hourly rates starting from 20$).
The most common problem our clients face – a lack of good communicators at the software outsourcing agencies and firms. Sometimes it is tough to explain what you expect from the project if your PM or business analyst has no proficiency in English.
This way, we recommend looking for a firm who has a dedicated office in the US or UK. At least in these companies, there are native speakers, who will understand you, your business and your business goals.
What is a nearshore blockchain outsourcing firm?
Nearshoring works just like offshoring except that your business pairs with workers in similar time zones, which makes communication much more of a breeze. Even onsite visits can happen faster and more frequently. Plus, compared to onshore outsourcing, nearshore still offers some cost savings.
For example, if you are in the US, the best choice for you will be companies located in Canada or the Mexica. The rates start at 40$ per hour.
We recommend you to choose the outsourcing partner according to your budget, communication skills, and business goals:
- If your primary goal is to save money. So try offshore development firms with the office in the UK or the US.
- If your primary goal is to find someone who will do your job instead of you – try onshore companies.
- If you are looking for the delicate balance – look at nearshore outsourcing agencies.
Frankly saying, blockchain software developments are slightly different from usual software development. As you already know, it is almost all about data. This way, in search of the blockchain development company or agency, pay attention to their expertise.
It is close to impossible to design a software solution correctly without the deep understanding of how to manage data sources. This way, there (in your outsourcing team) should be at least one experienced data scientist.
Let us discover the main aspects that affect the blockchain development price.
WHY PROGRAMMING LANGUAGE FOR BLOCKCHAIN MATTERS?
How to select the programming language or framework for blockchain development? That question is less complicated than it seems to be. You do not need to decide what programming language to use. It is pointless to dig into the topic of the pros and cons of every programming language. The best technology for you – the technology you are already familiar with.
If the majority of your applications are written in Java: the best programming language in your particular case is Java. Such an approach will help you to cut costs on software maintenance: it is easier to support several applications on a similar stack, that on a different one.
This way while looking for reliable blockchain developers you should consider the company technology stack first. Not the rates.
For example, Azati specializes at the open-source stack: our core programming languages are Java, Ruby, and PHP as the most versatile ones. It will take the time for us to find the blockchain software engineers with the proficiency in C# and .NET to provide affordable rates on blockchain application development.
PROS AND CONS OF THE OUTSOURCE BLOCKCHAIN DEVELOPMENT
As we already said it has both pros and cons. Let us discover it for you!
Blockchain Development Outsourcing Pros:
It saves costs
What makes outsourcing so popular today? It’s Development Cost Reduction. We won’t lie if we say that usually, it cuts down costs by 40% than the same work performed in-house in the US or Western Europe especially if we are talking about low-level tasks.
It saves time
It usually takes less time to deliver the product to the end-user. The remote team in comparison to the in-house may work all around the clock.
It removes the competence issues
Our customers often face the competence issue: when their in-house developers do not have the core competencies for the successful project. And it is normal. You develop your in-house team to solve the specific problem; they cannot know everything.
Unfortunately, concerning the blockchain, the competence issue is critical. The technology is new, and it has too many edges for the regular developer to learn it for a couple of days. So, it requires a more personalized approach. This way, it is usually easier to hire remote developers than to retrain your in-house team.
Outsourcing companies can offer you the exact specialist you need today. Also, such companies serve clients worldwide and can provide the expertise your in-house experts do not have. They develop and deliver blockchain software to various businesses. This way, they already passed the most common issues you may face during the in-house software development.
It makes your business flexible
When you outsource, you don’t have to spend time recruiting, hiring, training, and housing employees for short-term projects. All you need – contact the right person and provide the requirements
It makes the bright-headed specialists solve our business problems.
As was said above – you do not need to invest in personnel training. You shift that duty to the outsourcing company. For example, at Azati we usually invite the winners of the computer science olympiads to join our internship program. This helps us to hire bright professionals from a young age.
Blockchain Development Outsourcing Cons:
Possible loss of control over a company’s business processes
During outsourcing processes, you will provide the information about your business related to the product development or maintenance. You would trust essential business processes to another person you are unable to control entirely.
It’s usual for the huge corporations, but maybe confusing for small teams.
Problems related to quality
There are two main things the customers want to see first: terms and code quality. This way, it is critical to deliver the result in time without additional expenses.
Unfortunately, some companies can’t satisfy the customer. They disrupt the deadlines and ask for additional funding ruining all the plans and strategies. That’s why we recommend you to spend more time in the search for the company you can trust.
As we already mentioned – communication is critical. It makes you suffer when you are unable to explain what you expect from the project. But the most painful is the situation when something goes wrong, and no one can explain to you what is exactly wrong.
So, all you need to do – find an outsourcing provider with comprehensive soft skills. By the way, today for a software developer in Belarus it is essential to have at least B2 (intermediate) English.
SO IS BLOCKCHAIN OUTSOURCING “EVIL” OR NOT?
As you understood blockchain is as complex technology as the trendy one. That is why you need to find a company with proven expertise.
To outsource blockchain development is the way you can solve multiple business goals. But remember: it is not a swiss-knife, that can resolve all the issues your business faces.
Now briefly, what business issues do development outsourcing solve (the problems our customers care about):
– Reduces costs
– Reduces the software development terms
– Gives flexibility
The negative sides:
– A lack of control. You trust your blockchain development to another company and can’t fully control the process.
– Finding a reliable partner for the first time may be hard.
And well, from our point of view – outsourcing blockchain is worth a try.