Today, companies are trying to keep up with the rapid pace of tech innovation. Otherwise, they will be left behind, while their competitors will be reaping all the benefits of smart tech solutions.
However, while it’s easy to understand that your business needs to embrace digital changes, it’s a bit confusing when it comes to choosing the right developing consultancy. Onshore, offshore, even nearshore, the head is just going dizzy with all the terms.
Have no worries, as in this brief guide, we will shed light on the essentials of onshore software development. This article includes concise and comprehensive definitions, pros, and cons that will help you to arrive at an accurate conclusion.
What is Onshore Software Development?
Let’s take a look at the very word ‘ONshore’. It presupposes that one receives services from a company located on the same shore as your own business is. In other terms, if your company is located in the USA, and you turn to another company for help in the USA, it means you’ll turn to an onshore company.
Still, let’s avoid wishy-washy explanations, dive into a bit of detail. Onshore companies are registered in the country they originated in, and most importantly, the key employees as well as the founder physically live in the same country. Plus, their services are also mainly provided in the region their company is registered in. So, in case your business is located in the same area, you’ll be receiving services from an onshore consultancy.
When it comes to onshore software development, the idea is pretty the same. If you turn to local contractors or your internal development team to craft tech solutions within the region your business operates in - this will be onshore.
What is The Difference Between Onshore and Offshore Software Development?
As you’ve already got the grasp of onshore companies, let’s now see what the main differences are between offshore and onshore services. Needless to say that if ‘onshore’ development happens in the same country your business is located, one receives offshore services from a consultancy registered outside the country in which your business is located. In other words, while you work with local contractors with onshore consultancies, you work with teams or individual freelance workers outside your region when you turn to offshore companies.
So, the key differences between onshore and offshore companies include the physical location of the company’s staff and pricing rates. While the latter enjoy lower tax rates and better privacy, the former has no privileges when it comes to tax laws. This particular difference influences the higher rates of onshore software development in comparison with those of offshore.
Pros and Cons of Onshore Software Development Services
If you’re reading this article, you’re probably trying to make up your mind what type of services to choose: onshore or offshore. That is why we have singled out the pros and cons of the onshore developing process for you to get the bigger picture.
What are the main benefits of turning to onshore development consultancies?
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They are great for a complex project, as face-to-face communication and in-person collaboration make the developing process faster and more transparent, as there will be fewer communication delays and language misunderstandings.
The more straightforward hiring process makes it easier to connect with the right team.
There is no time overlap between the working hours of your team and the developers.
There is apparent familiarity regarding the work culture.
It is easy to keep your systems agile.
However, despite the appealing advantages, there are several drawbacks to the onshore developing process. The main ones include the following:
The costs will be significantly higher in comparison with the rates for the same services you can get from offshore developers.
The range of services is narrower, as offshore companies can afford to keep more developers and engineers.
There is a smaller talent pool that limits the choices.
Miscommunication due to corporate cultural factors may still be a problem.
What are The Costs of Working With Onshore Software Development Companies?
It’s easy to get carried away with convenient onshore developers you speak the same language with and don’t have to adjust your schedule due to enormous time zone differences. It’s appealing not to worry about unfamiliar laws and tax rules of another country. However, you’re probably waiting for ‘but.’ There is a ‘but’, and it is the cost of onshore development projects.
While offshore development consultancy hourly rates may start at $30 per hour, the onshore rates may start at $130 per hour. It’s four times more expensive than offshore services. So in case your business has a tight budget, onshore services can be quite pricey.
Conclusion: Which is The Better Option?
No dreadful email thread to accept one teeny-tiny amendment, sketching ideas on a whiteboard and coming up with creative solutions, communicating during the workday of both teams - this all paints a bit of a perfect working model that makes onshore development romantically appealing. However, when we face reality, it turns out there are still dreadful email threads, and sketching on a whiteboard doesn’t always result in groundbreaking ideas.
The thing is while we may be endlessly dwelling upon advantages and disadvantages of onshore and offshore services, the final answer to ‘Which is the better option in 2020?’ will definitely be offshore. Maybe, even a few years ago, one could have hesitated to take into consideration the time zone and communication difficulties into account. Though today, with the endless opportunities of communication channels, efficient offshore team management models, and the growing number of high-quality offshore development companies, the choice is obvious.
A list of attractive countries to turn to for offshore services
Source: Kearney GSLI 2019
Ironically, the majority of cons offshore services are known for has been disappearing due to tech advances. Convenient video conferences and virtual meetings are barely different from face-to-face communication. The language barrier is being blurred, as English has successfully confirmed itself as the ‘lingua franca’. Finally, cultural differences don’t have as much influence as before, as globally, people are becoming more and more alike, especially when it comes to their relations to tech innovations.
This leaves us with offshore pros overweighing its potential cons. You can find a freelance developer or turn to an offshore development team that will fit almost any project. What is more, the costs will be significantly lower without affecting the quality of the work.
As with any team, it is essential to build loyal and symbiotic relationships to bring the maximum value to the project you’ll be working on. The bad news is it’s a challenging task. Though, the good news is that searching offshore provides you with unlimited opportunities to find the team that will be just right to breathe life into your ideas.
We, at Intellectsoft, empower companies and their workforce with cutting-edge transformative solutions and data-driven insights. Are you and your organization ready to shift the mindsets and get the most out of innovations?
Talk to our experts and find out more about the topic and how your business or project can start benefiting from it today!
The hospitality industry depends a lot on keeping customers happy, but it’s
getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher
than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win
customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and
increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that
getting their attention is a real challenge. It’s not easy to make them choose your business over others. What
worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But
with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy,
expectations have changed. The good news is these businesses have shown what works: great customer
service. They focus on personalizing the experience, making things easy for customers, offering loyalty
programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how
they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction
in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the
backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers
are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a
study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase
in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a
company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality
industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the
hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer
service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s
biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor
Customer Service
Even with strong and high-quality business offerings, poor customer service can
drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we
live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with
technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39%
upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some
still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage
their data and create new systems or add features.
Some of the recent examples include clients coming to us to
create AI solutions for their services
while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company
objective, and working on keeping the data clean (centralized, structured, and segmented).
When
we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI
and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing,
centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so
we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start
with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for
gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide
you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and
travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and
retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers
place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff
not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team,
helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine
having an app dedicated to making your team’s work easier and more efficient!
How Technology
Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar
technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation
and working hand in hand with technology to achieve the highest standards and establish brand-new “golden
standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports
customer service.
Examples of Intellectsoft projects
Property management systems
(PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers
extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with
managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The
platform also includes features for equipment management, key instructions, workflows, and custom permissions. This
makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus,
tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged
community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed
marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining,
make reservations, and interact with staff— through a simple tablet in their room. The solution includes three
parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and
a backend system that connects everything together. This approach makes things easier for guests and staff,
improving both convenience and efficiency.
Existing Customers First: Building Loyalty with
Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that
retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs
five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the
number one revenue driver for the company.
Moreover, a 5% increase in customer retention can
lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a
business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster
long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business
model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s
part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With
the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t
forget.
More than half of hotel chains are already using personalization features on their websites, booking
platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest
preferences perfectly.
Source: Deloitte
How does
technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special
requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping
them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to
local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls
adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every
customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our
clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to
control services, explore amenities, and find resort information-- with a special touch to their suite type. For the
client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing
issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty
program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive
benefits.
Our solutions not only helped the client with special experiences for guests; it also improved
operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We
transitioned away from ESB (Enterprise Service
Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions.
Similarly, we’ve implemented Device Farms that improved operations
and saved resources."
Leveraging Software to
Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and
introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to
introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by
analyzing your database in detail.
Upselling via Apps
Boosting revenue in the
hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your
app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner
reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations
during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience.
And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their
previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource
Management Software
Making every resource count in your hospitality business is key. Inventory and
resource management software allows you to effortlessly track everything from linens to room availability, ensuring
nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations
assists sustainably keep everything under control and know what you need to focus more. It helps maximize room
occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This
approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how
technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service
Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the
right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest
experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by
identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track
customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best
solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look
for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM
software, live chat tools, or a guest experience app can make a difference.
3. Equip Your
Team
Technology is only as effective as the people using it. Train your staff to make the most of the
new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff
creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well
the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you
fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality
Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility
bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer
satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our
experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and
experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building
strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points
and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and
continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software
development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and
systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the
hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer
experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention
strategy with personalized technology? Contact our experts, and
we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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Source: Kearney GSLI 2019
