What Is Offshore Software Development Outsourcing? Guide


A top-notch software development company can produce excellent software that increases productivity for your business. The term offshore outsourcing refers to having a crew work on your project from another country. The question of offshore vs onshore software development is critical for organizations adopting an outsourcing strategy.

Usually it lowers costs and takes advantage of the contractor’s expertise. Offshore software development is a cool solution for those who can scale their business, but don’t have many resources. Through an offshore software development company, your business can access a large pool of talented developers, which can help you scale your product more quickly. Engaging in-house software developers is high-priced for SMBs or startups with limited funds. Recruiting skilled staff usually costs a lot of money; thus, the financial problem is critical when deciding whether to outsource software creation or not.

  • The research work is significant, and ignoring it can cause difficulties later.
  • While software development becomes the responsibility of a reliable partner, you can pay more attention to your core business and focus on growth strategy.
  • Let’s now look at the advantages of offshore software development model and why switching to this service may be critical for your business’s profitability.
  • Look over the company’s website for information on previous projects or their general experience.
  • Collaborate with the offshore team to know the current project progress and whether there are any issues or obstacles.
  • Let’s check out the top offshore software development service providers that businesses should consider partnering with.

On the other hand, if you’re looking for an off-the-shelf product, you may be able to find a company that offers development services as well. The wise decision in this circumstance is to use offshore software development services per the project’s needs. You have the most freedom working with offshore software developers. It’s also a more affordable choice because you have to pay them only for that specific project.

What is the difference between Onshore, Nearshore, and Offshore software development?

Set Mutually Agreeable Deadlines– When everyone agree to all details, set strict deadlines for each stage of the project to make sure everyone follows them. G) And last but not the least be aware of hidden costs, to avoid last minute hiccups. As you delegate a part of responsibilities to specialists, there is no need for heavy focus on management and other things. The overall cost of types of equipment from hardware to software license needed can be bought at low cost.

Here is a list of must-have hard and soft skills to look for in a UI/UX designer for hire. You can train employees from your Offshore Development Centers to create blog posts, engage users on social media applications, and write quora answers for the customers. You shall enquire about the city, region, and country for your ODC. Additionally, you can review the commencement of client meetings and significant projects and plan strategies for necessary outcomes. You want to expand your business and satisfy their technological needs regularly. Let’s understand the meaning of Offshore Development Centers before moving forward with the benefits for your business in Canada.

What is Offshore Software Development

The T & M model is often used when it’s difficult to estimate the scope of work and amount of resources required to develop the project. In this case, the agreement is more flexible than in the fixed-price model which guarantees a quicker start. Nearshore software development applies when they are located on the same continent. D) Analyze what capacities, skills, technologies and tools will you need to make it happen. Codersera has been pushing the limits of delivering complex business challenges by providing innovative technical expert solutions and redefining the operational standards.

Chances are, if they did not have production in China, they could not be able to sell their products at a reasonable price. Location & time-zone — Speaking about factors to consider when outsourcing MVP development, this one is the first https://globalcloudteam.com/ that comes to mind. It can be hard to connect with a team in a different time zone, so make sure that your business hours overlap. China is home to many growing IT companies — it has budget-friendly prices and qualified developers.

Why outsource MVP development?

So you can rest assured that no matter how complicated and challenging your project is, big offshore development companies can offer you the most professional working process. The company provides first-class software development teams around your needs. So, while you will be able to hire a developer who is skilled in a certain technology, it will be difficult to hire an entire team having multi-tech specializations. During the Great Recession, offshore software development spending lowered. In 2011, General Electric, whose CEO had a seat at the President’s Council on Jobs and Competitiveness, announced the creation of 11,000 onshore IT jobs. Offshore software development allows you to focus more on your business strategy instead of worrying about managing a team, development and rigorous software development process.

For example, creating mobile games requires a concept artist, Unity3D developer, 3D model artist, motion graphic designer, UX/UI designer, or all of them at times. No one developer could be an expert in all those areas, thus a few of developers or a company is an outsourcing option then. It is preferable to choose offshore outsourcing when you immediately need to scale your project, so you do on-demand hiring. Western European countries, for example, have the nearshore option among Eastern European countries, such as Poland and Ukraine.

As the name suggests, when a business recruits a software development team within its geographic location, it is referred to as an onshore software development process. So, how to choose a compatible offshore development center for your business? There are many criteria to consider when making the decision, such as the size of your project, your budget, your requirements, your time, etc. Moreover, experienced developers are better at solving arising problems.


ODCs can offer various services, including software development, website development, SEO, and IT support. It can be viewed as a form of collaboration where a third party trusts the tasks of one organization. For instance, a business in America may assign its development tasks to a company in Vietnam that offers software development services. The question of offshore software development outsourcing is no longer up for debate. Consider your company’s needs, management capabilities, and current team skill set as you compare them to standard outsourcing options.

What is Offshore Software Development

His 10+ experience enables him to provide digital solutions to new start-ups based on Web app development. It will be beneficial to collaborate with software experts if you have a general idea of the app’s purpose but need to familiarize yourself with the technical details. Businesses can profit in various ways from consulting for software development. Ensure your team is dedicated and competent for the idea and product consultation.

#2: Construct a test project first.

Due to having many skillful experts, the developer team can handle projects of any size and different levels of complexity. Depending on your requirements for the offshore development project, you can hire as many software engineers as you want to create the best solution for your goals. The huge cost reductions are the second main advantage of selecting an offshore software development business.

What is Offshore Software Development

The risks to data security must therefore be carefully considered by businesses considering outsourcing, and they must select a software vendor who understands and values security. A benefit of using an outsourcing network is that businesses have a much better probability of hiring new employees on a contract basis. If they are a company worth its salt, it will be able to find you the best candidates for the job from anywhere in the globe on a one-time basis with no future commitment. Since time truly is money, you can reduce expenses even more by hiring pre-approved professionals. Developers in outsourced teams have already completed the hiring and research processes.

One of the things an offshore team can do for you is software development, among many other things. Consider time zone differences and communication delays in your outsourcing decision. Keep in mind, real-time communication and collaboration are key to time-efficient project management. Hence, always insist that your offshore development partner craft a well-designed plan before team members work on the project. Analyze what capacities, skills, technologies and tools will you need to make it happen. Research available outsourcing models and select the one that suits you best.

What Is the Price of Outsourcing Software Development?

Finding digital communication platforms like mail will enable smooth communication with the best amongst offshore software development companies. Make sure that the offshore software developers understand English. Also, ask about the project management tools they use to ensure timely development progress updates. They include the option of hiring a programmer offshore meaning in software or a whole team of developers on a full-time basis and buying them out in some time. That is when an offshore software development team can become part of your internal workforce. We at YouTeam have collected statistics on the average cost of software development per hour based on technology (e.g., .NET, JavaScript, Python, etc.) and experience .

Why Offshore Software Development is the best pick?

Offshoring software development is a good option when it comes to finding an expert team with access to the latest technologies. Offshore software development offers a plethora of services including web designing, custom software development, CRM systems, and much more. It not only gives you the edge over other competitive companies but provides expert advice and technical recommendations. For example, many companies like Google, CISCO, or IBM employ these offshore software development companies or a team overseas.

How to manage an offshore development team?

For instance, you might not be able to reach your team before the outset of their working day if you need any explanations or just want to get in touch. Ukraine as well as entire Eastern Europe is known to have lower tax rates than Western Europe. Nevertheless, not all companies are willing to share their income with the state. They work with offshore developers as with private entrepreneurs and as a result, pay fewer taxes. It’s important that you check all the documentation and ensure that all transactions between you and an offshore company are transparent. Some companies that are paid on an hourly basis may charge for more hours than they really spent working on projects that low offshore development rates.

So, when organizations want a faster workflow and easy scaling option, an offshore development model can be the perfect fit. So, offshoring is accessing the talent and skills that organizations can’t find locally to enhance the team’s expertise and increase productivity for a faster deployment process. More than 200,000 IT professionals contact Ukraine, and the country’s economy is heavily oriented toward outsourcing. Reputable firms routinely highlight the country as a good location for IT offshore.

If you partner with an Offshore Software Development Center in countries like India, Poland, and others, you will find candidates with fluent communication and customer management skills. Post COVID-19, all the major operations of any organization can be outsourced. However, it is important that you should make sure to maintain proper cyber security and compliance.