Software Building? Try Offshoring For Tax Advantages.

In the software development, the coder doesn’t have to connect work with the place of living. In this field, the remote IT jobs are on the top of the popularity. Programmers are contributing code to open source projects, to become a part of the international community. Silicon Valley even has developed a new “Woke” Code of Conduct for this case. So why should you search for the employees or work in your city, if offshore software development offers high quality and low taxes? Save costs and get outstanding results outsourcing

Inshore, Nearshore, and Offshore Software Development: Difference and Advantages

The types of outsourcing differ, depending on the location of the performers. The remote developer can live in any part of the world.

This kind of cooperation has some peculiarities, you should remember about:

Onshore/Inshore outsourcing – hiring people from the same country. The benefits are common language, culture and time zone.

Nearshore outsourcing – hiring of performers from the neighboring countries. The pros of this variant are people, living in the same or close time zone, and lack of cultural differences (or insignificant ones).

Offshore outsourcing – hiring of the developers from the other part of the globe. The benefits of this variant are 100% orientation on the performer’s proficiency, and an opportunity to look for the interesting projects with the corresponding salary for the developer.

How Remote Software Developer Jobs Can Reduce Your Taxes

In fact, offshore software development is a synonym to outsourcing. It means companies are delegating some tasks or even a particular project to the performers from the other country. Companies have several reasons to go offshore in software development:

The difference in taxation rates. In American or European country corporate tax rate can reach 40% or even more, but in small European and Asian countries you can find taxes lower than 15%, according to the Tax Foundation.

Options of reinvestment. It is possible to reinvest the money, earned abroad back to the foreign location. The profits will not be transferred to the home country, so there is no need to pay taxes for them.

Payroll taxes saving. People, performing remote tech jobs, work on the project basis. Outsourcing the software development, the company doesn’t have to pay taxes for employees. It is especially convenient, when you need software professionals for one project, but not for a long time.

Access through the internet. Thanks to the modern technologies the technical support of the application or website can be performed from anywhere. Building and maintaining the software don’t depend on the location of the specialist. Even if the customer needs post-service, it can be made offshore.

How to Manage Remote Teams: Tips and Tricks

Even the best remote jobs seem to be a hell of a job for the managers. It is troublesome to keep in touch with one remote worker, but what if you have a whole team?

Working with remote teams, try to follow these simple tricks:

Be flexible. Different time zones, national holidays and traditions make our working process differ from country to country. Agile workflow gives some space for the changes and saves both sides of the cooperation from stress.

Set deadlines. The project can last forever if the developers don’t have the precise timing. Deadlines help to stick to the plan of the project and control the middle-results of the work. But oppressed in time, performers will not be able to show a qualitative result.

Understand each other. Tasks, business goals and work process should be clear to the customer and developer. The weekly report is not enough for productive cooperation. Communicate more often, talk, and visualize the information. Workflow diagram is a good visual mean to show the way of the project from the goat to the final result.

Use workflow analysis. The periodical analysis helps to see the progress of the work; check how lean is the business process; find the points to be improved or removed. The productivity increases when people don’t waste time for unnecessary things.

Is remote work the future for software building industry? The tendency says – yes. Companies choose to outsource their software development, because of the high efficiency and low costs. For example, jobs lost to outsourcing statistics say, that 472,632 jobs in IT sphere have been outsourced in the USA in 2015. And since that time this number is increasing.

Offshore or nearshore outsourcing in IT sphere is profitable and convenient for the developers and their customers. Remote software development helps to reduce expenses for corporate and payroll taxes, and the full-time employees. If you know, how to manage remote teams, you build strong and productive cooperation without bounds and create outstanding products.

Offshore software development is profitable for both sides of cooperation. Need a team of professionals  who will work on your software? Outsourcing is a way to get qualitative service and proper results without a minimum of trouble.