If you wonder why offshore software development made in Cluj is getting on hype, you have to investigate what is particular for the location and its IT business environment. In software development is all about the skills of the team and the infrastructure they can work with. Therefore, if you are a technology officer of project manager on the other side of the planet and wonder why and where to offshore your software development activities, it is essential to build a good case for your decision.

Why would for example a US company or a Japanese company offshore software development to Cluj? Most would say that is definitely for the financial advantages, but the two corporate buyers may have. contrasting motivations to do so.

Offshoring software development refers to the relocation of the software development processes to other countries. This can be achieved by setting up an offshore subsidiary or by contracting an established firm to handle the outsourced software development process.  The later, is also the case of our SOFTECH, a software development company from Cluj-Napoca, Transylvania.

Disparities among labor costs favor offshore software development

The cost of labor means the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. One of the key reasons why a company based in a developed economy (such as US or Japan) would outsource its software development processes to a company based in a lower developed economy is the favorable difference between the total costs with work force. When salaries are almost half than those in your country of origin it already makes sense to consider that location as a target for offshore software development.

For more information on this aspect  you are welcome to consult us directly and we can provide you the specific offshore software development labor costs in Cluj-Napoca, Romania.

The cost of living impacts offshore software development

Most businesses care for their employer image and want to create an environment that favors the lifestyle of their employees as a means to achieve higher productivity and keep them attached to the company. Why most offshore software development businesses work is also because the investors and managers exploit the difference between the cost of living in different countries, in the sense that with a little plus in the monthly income  of the offshored teams, they can generate a slightly better lifestyle for them due to the lower cost of living in their homeland.

We can provide you with exact examples from our own experience, here in Cluj.

Relationships boost offshore software development effectiveness

Business relationships grow over time and are truly tested in difficult times. Each party must be aware of what they expect from the other, what responsibility they can handle and why the business relationships is rewarding.  Sharing knowledge among the team members of the offshore software development company and its customer is one of the foundations of a long term contractual relationship.

Trust is a key element of offshore software development

A company who has decided to outsource in a foreign country its software development processes must allow credit to the service provider to be able to fulfill  the scope of the contract. It is a matter of trust in the skills, abilities and competencies to get things done as agreed. Trust develops mutually as both parties succeed several common projects and achieve their goals.

Despite time zone differences, despite the physical distance, teams have been working across the globe for many decades already.

Cultural similarities help offshore software development teams

When two remote teams have similar values, similar principles and behaviors it will be easier for the team members involved in the offshore software development process to attune. The perception of workload tends to be similar, the work pace equalizes among the two teams and conflicts will be handled in a familiar way.

Language capabilities are table stakes for offshore software development

Good and clear communication is essential for a productive offshore software development cooperation. When the provider and the customer speak the same language, the space for misunderstandings gets narrower, while abstract thinking, ideations, requests and feedback  find a natural flow.

The ability to capture idiosyncratic business practices

At SOFTECH we call this the “fine tuning” principle, but at more in-depth analysis it is really about the ability of a team to capture the unique cultural differences of a customer company. Their way of doing business, of approaching the users /customers must be well understood in order to deliver software development as expected.

As to conclude, if the first two factors are the key influencers when making the decision to offshore software development, the following four factors are the one who really make the difference. In other words, Romania may be already on your potential offshoring map, but Cluj, and namely SOFTECH may worth a deeper look!