This saying could not have been truer for communication technologies and software development. Technology’s unprecedented reach continues to open the doorway for new ways of doing business.

Read this: Best Practices for Outsourcing Software Development in 2016

Best Practices for IT Outsourcing in 2016

Starting an IT outsourcing business is not only possible, but advantageous. The outsourcing market has recently seen a shift from previous years, with more companies looking outside for expertise, and barriers like location or lack of capital are coming down.

Choosing an optimal location for your team

The steady march of globalization means that everywhere you look, people are becoming increasingly similar in terms of jobs and marketable skills. Yet, because there are so many options, you should be careful when choosing your offshoring team’s location.

Think about India and IT. It’s safe to say that the two are linked, and why not? The sheer number of computer programmers and IT professionals in a country with over a billion people is not easy to dismiss. All this comes with a low cost of living, so many companies can get more for less.

But there are problems too. Perhaps because India is a popular destination for IT offshoring, there is more competition now compared to before. A case in point is wages, which are set to rise faster for Indian workers than the rest of the Asian Pacific region.

Now contrast that with Eastern Europe. Whether or not a location is optimal for your R&D or software development team depends on more than cost-cutting, but it is a major consideration. Take Ukraine for instance. The country has a lower cost of living than the US or Western Europe, and due to its proximity to large, international markets, boasts over 2000 IT Startups. This number is only possible thanks to the many English-speaking IT professionals, who form the backbone of the country’s outsourcing industry.

So, you considered the options and now have a location for your outsourcing team. What next?

Choosing the profile and niches most suited for you