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Offshore Software Development: Things You Need to Know

Written By Ruhma Syed – Last Modified On April 19, 2024

Anyone who has ever managed a software development project knows that it can be a challenge to keep track of everything. There are deadlines to meet, project management to deal with, and staff supervision to handle. And that’s just the tip of the iceberg.

In times like these, you wish to have your responsibilities shared and burdens lessened. With offshore software development, you can do just that. By carefully selecting your partners and setting clear expectations, you can ensure that your offshore software development project is completed on time and within budget. 

Let’s begin by defining what offshore software development is, when should you outsource, and when should you not.

What is Offshore Software Development?

Offshore software development is the process of outsourcing the development of software to a third-party provider. This can be done for a variety of reasons, including reducing costs, accessing a larger pool of talent, or leveraging different time zones to achieve more efficient workflows. Offshore software development typically involves setting up a remote team of developers, who work in collaboration with the client’s in-house team. 

While this approach can offer many benefits, it also comes with some challenges, such as communication barriers and cultural differences which we will discuss later in the blog.

When done correctly, offshore software development can be a cost-effective way to get the high-quality software you need.

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Types of Outsourcing

Outsourcing can be divided into two main categories: internal outsourcing and external outsourcing.

1) Internal Outsourcing

Internal outsourcing is when you hire an employee to complete a certain task or series of tasks. You’re essentially hiring someone else in-house at your company so that they can accomplish something that one of your employees would otherwise have to do. 

2) External Outsourcing

External outsourcing is when you hire outside companies or individuals to help with specific tasks or projects. These outsourcers may be able to provide the same results as internal employees, but they often have more experience and expertise than your employees do in those areas.

Read Also: What is outsourcing application development?

What Services can be Outsourced?

When done effectively, offshore software development may be cost-effective, give access to a wider talent pool, or use multiple time zones to improve operations. The following services can be outsourced for maximum benefits:

1) Web Development

The process of developing and maintaining websites is known as web development. Web development is the process that goes on in the world to make a website appear amazing, function quickly, and perform effectively while providing a seamless experience for its users.

Web developers, sometimes known as “devs,” accomplish this goal by employing a wide array of programming languages. The kinds of jobs that they are doing and the kinds of platforms that they are working on both have a role in determining the languages that they utilize.

The ability to design websites is in high demand all around the world and also commands a good salary, making web development an excellent career choice. Because a conventional college degree is not required for qualification, it is one of the higher-paying occupations that is easiest to enter and most easily accessible.

It is the most outsourced service because it is cheaper to outsource than maintain an in-house web development team.

2) Mobile App Development

The process of building software for tiny, wireless computing devices like smartphones and other hand-held devices is known as mobile application development. Mobile application development refers to the collection of processes and procedures involved in this process.

The development of mobile applications, like the development of web applications, may be traced back to more conventional forms of software development. One significant distinction, on the other hand, is that mobile applications are frequently developed in such a way as to make the most of the specific capabilities offered by a given mobile device. For instance, a mobile gaming application may be programmed to take advantage of the accelerometer found on an iPhone, while a mobile health application could be programmed to take advantage of the temperature sensor found on a wristwatch.

iOS, developed by Apple, and Android, developed by Google, are now the two most prevalent mobile operating systems. Apple’s mobile devices, including smartphones and tablets, come with fundamental software already installed, such as a complete web browser and access to the Apple App Store. Android smartphones also come preinstalled with comparable applications, and the Google Play Store allows you to download and install more applications.

This rapidly expanding market needs creativity and innovation all the time to compete and outsourcing your development services is often the better choice for creativity.

Read Also: What are the benefits of usability testing for website owners?

3) UI/UX Development

The key to designing an app that is effective is to combine the functionality that your users want with an intuitive design and experience that makes the app’s interface as easy to use as is practically possible. Experts in UI and UX develop the ideal desktop, mobile, or online application to fit the particular requirements of your company as well as the criteria of your industry.

UI/UX development outsourcing is increasing rapidly due to the time consuming nature of it. Outsourcing is available at cheaper rates than it would cost to maintain an in-house team.

When To Outsource Your Software Development To An Offshore Firm?

So when is the right time to consider an offshore software development firm? And what are some benefits that come with it?

Let’s see some of the various scenarios:

1- For Reducing Liabilities 

Let’s face it, developing software is a risky business. There are so many things that can go wrong, and when they do, the results can be disastrous. When this happens, it seems a good idea to consider investing in a reliable offshore firm.

 By doing so, you can reduce your liabilities and avoid the potential for costly mistakes. Offshore firms have the experience and expertise to get the job done right, and they can provide a level of quality control that is simply not possible with in-house development teams. 

So if you want to reduce your risks and keep your software development costs under control, offshore outsourcing is the way to go.

2- When You’re Low on Budget

Hiring in-house software developers isn’t cheap, especially for small or medium-sized businesses. If you have a tight budget, consider an offshore software development firm. By hiring an offshore software development firm, you can get access to a team of highly skilled software engineers at a fraction of the cost. 

One Deloitte study revealed that 70% of the companies outsource rather than develop in-house software due to cost-efficiency. Offshore software development firms also have the advantage of being able to scale up or down quickly, depending on your needs, and that won’t cost 

3- When You Have to Speed Up the Development Time

Developing software offshore can help you speed up the development process. This can be a great way to get your project completed faster, as you will have more developers working on it. In addition, offshore developers usually charge less than their counterparts in the US or Europe. As a result, you can save money while still getting a high-quality product.

Secondly, offshore developers are often more familiar with the latest technologies and trends. This means that they can provide your project with a cutting-edge solution that will give you a competitive edge.

Read also: How to plan a software project?

4- When You Want to Benefit from Only the Best of Tech

Offshore software development has come a long way in recent years. There are now multiple resources available to developers, which enhances the developing experience and their ability to create powerful software that leverages disruptive technologies. Therefore, if you want your work done by utilizing the top resources and technologies, an offshore development form is a great idea.

5- When the Quality of Your Services And Products Need a Revamp

If you notice your company’s products and services are starting to seem a little lackluster, it might be time to consider offshore software developers on board. By teaming up with developers based in other countries, you can inject some new life into your business. 

Offshore developers can bring a fresh perspective to your project, and they’re often more affordable than working with domestic firms. Plus, offshore development can help you tap into new markets and reach a global audience. 

6- When You’re Looking for a Contract-Based Work

In today’s business world, time is of the essence. That’s why many companies opt to work with offshore software development teams on a contractual basis. This way, they can get the project completed without having to worry about hiring a full-time developer. Plus, once the project is finished, their obligation to the offshore team ends. It’s a win-win situation for everyone involved! And who doesn’t love a good win-win?

When Not to Outsource Your Software Development To An Offshore Firm?

All of the above-mentioned benefits of offshoring will help you decide when you should opt for offshore software development. However, sometimes offshoring will not be the best idea. Let’s look at when:

1- When You Already Have the Needed Potential 

If you already have the talent, potential in-house knowledge, skills, and resources to execute proper development for your software, it is not advisable to offshore. Not only you will also have more control over the process and the end product You will save money in the long run

2- If The Cost Exceeds Your Budget 

Offshore software development can be a great way to save money on development costs. However, if the cost implications exceed your budget limits, you should explore other affordable options. While it may be tempting to try and cut corners, it’s often better to bite the bullet and pay for quality in the long run.

Read Also: What is the Gherkin language?

3- When the Stakes are Too High

Software development offshore comes with a unique set of challenges. Working with a team in another country can often create communication difficulties, and you may also have less control over the project than you would if the team was based in-house. 

This can elevate the risk of missing target deadlines, as well as increase the overall cost of the project. If your engagement with an offshore team creates the risk of failing to meet the desired objectives, it is advisable to consider other better alternatives.

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What to Look for in the Right Offshore Software Development Company?

When you have to choose an offshore development company, look for the following features in it:

1) The Location 

For years, Asia has been the go-to choice for offshore software development. India, in particular, has been a popular outsourcing destination due to its large pool of qualified engineers and relatively low costs. However, other emerging destinations are starting to prove themselves as viable options for software development. 

Countries like Ukraine, Romania, Vietnam and the Czech Republic have experienced rapid economic growth in recent years, and they boast a highly skilled workforce at a fraction of the cost of their Western counterparts. So if you’re looking to offshore your software development, don’t discount these up-and-coming destinations – they may just be the perfect fit for your needs.

2) Cost-Effectiveness 

When you offshore your software development, you don’t just want any development team – you want the best of the best. So how can you determine which company is going to be the ideal offshore development partner for your project? 

One key factor is flexibility. The best offshore development partners are flexible in both their project management style and pricing models. This flexibility allows them to adapt to the unique needs of each client and project, ensuring a successful outcome.

3) The Competency

When it comes to offshore software development, the success of a project is predicated on whether the offshore developer’s competencies align with the unique requirements of your project. In other words, if you’re looking for a top-notch offshore developer, you need to make sure that their skills and experience are a good fit for your needs. Otherwise, you run the risk of ending up with a subpar product.

Read Also: A Detailed Guide on Fractional CTO services

4) Security and Compliance

Offshore software development can be a great way to get quality work done at a lower cost. However, it’s important to be aware of the risks involved before you take the plunge. One of the biggest risks is the potential for legal problems. When you outsource work to another country, you’re subject to that country’s laws and regulations. Make sure you choose a firm that is:

  • Compliant with the security standards
  • Adheres to contractual agreements,
  • Protects your data and provides security 
  • Is open to your about how they will manage your data

5) Make Sure You know what You’re Looking for

Finally, make sure you have a clear idea of what exactly you’re looking for in terms of features and functionality before you start looking at different firms’ portfolios so that way when it comes time to choose one, you’re not wasting time looking at irrelevant options or having a hard time finding what exactly it is they’ve developed because they didn’t specify what features/functions were available on each site.

Benefits And Risks of Offshore Software Development

The benefits and risks of offshore software development are often debated. Some argue that the risks of outsourcing are too high, while others maintain that offshore development is not only cost-effective but also leads to better results.

1) The Benefits of Offshore Software Development

The benefits of outsourcing include reduced costs and quicker turnaround times for projects. With an offshore partner, you can get access to highly qualified talent at a fraction of what it would cost in your home country. You may also be able to avoid some tax implications if you work with an outsourced company.

In addition, your project will move faster because the time difference makes it easier for developers to respond to questions and concerns when it’s convenient for them.

The best part about offshore software development is that you can get the job done without having to relocate or move your entire team abroad. The process is streamlined and efficient so you can stay in touch with your employees, who work on other projects during their off hours as well!

Read also: How to choose a website design company?

2) The Risks of Offshore Software Development 

On the other hand, there are many risks associated with outsourcing as well. For example, if your project is based on proprietary technology or intellectual property that is not publicly available, then it may not be safe to outsource those tasks to an unfamiliar team. This could lead to security breaches or intellectual property theft by your partners overseas which could have serious repercussions for your company’s reputation and bottom line.

Another risk associated with outsourcing involves legal issues such as copyright infringement or patent infringement if you don’t have proper agreements in place before working with another company overseas; this can lead to costly litigation fees down the road which could offset any savings gained from lower labor costs during development stages early on in projects.”

Offshore Development Challenges

Offshore software development is a great option for many businesses. It’s cheaper, it allows companies to scale up more quickly, and it can help them stay competitive in the global marketplace. However, there are some challenges that come with offshore software development.

1) Expertise

Offshore developers may not have the same level of expertise as their onshore counterparts. They may also not be familiar with your company’s specific industry or business practices, which can lead to quality issues and even security risks down the line.

2) Local Partner

You may also need to work with a local partner who has experience managing an offshore team, which can be tricky if you don’t have any contacts in the area or don’t know exactly what you’re looking for in terms of project management and communication styles.

3) The Difference in Time Zones

Finally, there will always be some degree of time zone difference between onshore and offshore teams—which means that planning meetings around conference calls become difficult and prone to delays if both parties aren’t on the same page about when they’re available (or not).

Read Also: What Does “No Code Movement” Mean For A Software Developer?

To Sum Up

Offshore software development has come a long way in the past decade. With the advent of new technologies, offshore development is now more accessible and affordable than ever before. This makes it an attractive option for businesses looking to grow their operations and leverage the latest technological advancements. 

Offshore software development can provide a more straightforward path to expanding your business and taking advantage of the latest technology. In addition, offshore development can help you tap into new markets and reach new customers. With the right offshore partner, you can take your business to the next level.

Learn more!


What is meant by offshore software development?

When a corporation hires a specialized software development team and builds an offshore development center in another nation, it is referred to as offshore software development. Just like your local team, they’re full-time employees who are based somewhere else.

What is an offshore project?

The term “offshoring” refers to the practice of assigning a project or set of duties to a group of developers situated in a nation other than your own.

What is an offshore development center?

An offshore development center, also known as an ODC, is a development office that is located in a nation that engages in offshoring and is staffed by a group of software engineers. This is essentially a division of the corporation located in another region, where there is access to a larger talent pool and expenses are often lower.

How do you manage offshore software development?

Get the most out of an agile development team working abroad:
1-Specify the mission and vision statement for the product
2-Create a clear product plan
3-Conduct frequent demos
4-Make an investment in technology that enables cooperation
5-Participant collaboration may be improved through the use of agile team meetings
6-Always keep an open line of communication with your customers in order to improve your product

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