Offshore Software Development Outsourcing from VEL Technologies, Russia

Offshore and Remote Software Outsourcing Solutions by VEL Technologies enable businesses to reduce software development costs.
Offshore software development company with 10 years’ experience provides high-quality offshore software outsourcing and offshore software development services. We specialize in Java, .Net, ?/C++ programming as well as in database and Linux/Unix development and administration. Enjoy offshore software outsourcing benefits from professional software development company

 

VEL Technologies has developed a unique value proposition for companies that want to balance low cost with high productivity. At the core of this value proposition is creation of an offshore development center in St. Petersburg, Russia. In the last five years, St. Petersburg is rapidly becoming the center of Russian hi-tech industry, with a number of large and small western companies opening R&D centers there. Highly qualified programmers with experience in modern technologies are available for hire at salaries substantially lower than in North America and Western Europe.

VEL Technologies offers a complete set of services to businesses that are planning to set up and run the development center. We help to set up the Russian corporation, find real estate, supply computers and set up communication systems. Our experienced managers work with our client's IT department to hire staff in St. Petersburg and train the US and Russian staff in our remote project management methodologies. These managers also help to jump-start the project development and, once the center is set up, transfer the knowledge to the client's employees. The client takes complete control of the development staff and can realize substantial ongoing savings, while VEL continues to manage the general administration aspects of the center.

 

Substantial Cost Savings

In order to analyze the savings that the client will realize from the creation of the development center, let's compare setup costs and monthly costs of a development team that consists of 1 manager, 10 highly qualified developers, 1 QA person and 1 system administrator. The table below shows monthly savings of VEL's approach compared to the US based development and to the offshore outsourcing to India. All personnel expenses include local taxes and employer overhead and personnel related costs. Remote facilities and VEL management fees are calculated based on the amount of people in the center in case of a branch office setup.

Monthly Cost Comparison

  US Based In-House Development India Based Outsourcing VEL's Remote Development Center
Remote Technology Personnel $0 $55,200 $15,290
Local Technology Personnel $110,833 $12,500 12,000
Remote Facilities $0 $0 $4,530
VEL Management Fee $0 $0 $7,314
Total $110,833 $67,700 $39,134

As one can easily see, once the center is established, the client can realize substantial ongoing savings compared with both alternative options, while not compromising on the quality of the development or its speed.

The setup costs are also very low. We estimate that in example above, the entire setup project will not exceed $20,000 plus real estate lease expenses, which are currently in the range of 10 to18 dollars per square foot a year, depending on the space; and renovation costs, which usually run around 5 to 7 dollars per square foot.