What is Offshore Software Development and Why Is It Important?

What is Offshore Software Development and Why Is It ImportantAccording to studies, global spending on outsourcing could reach $730 billion in 2023. Offshore software development refers to working with an outside business to create custom software products in the client’s country. In simple words, businesses may want to take help for end-to-end development services, mobile app development, web development, UI/UX design and more. 


How is offshore software development different from outsourcing?

While often used interchangeably, there is a difference between outsourcing and offshoring software development.

When an organization outsources its work, it typically contracts a specific process out to a third party. This is usually a company with expertise in the said field. Offshoring is when a company sends in-house jobs overseas. Both methods are aimed at saving costs, but only offshoring takes jobs out of one country and sends it to another. Another way to look at it is that while outsourcing can be done within and outside a country, offshoring usually means taking the jobs to a different country.

The right offshore company can handle the recruitment and evaluation of the team working for your project on your behalf. Finally, offshoring is all about finding talent that you may not be able to locate in your geographic area. It means that you can get developers from places where they have them in plenty.


When to hire an offshore software development company?

You may already have a good idea of ​​which offshore development services you will outsource for your particular needs. But it helps to know when it might be more appropriate. 

Below are some of the ambitious and aggressive goals that large companies are active in achieving through offshore outsourcing efforts:

  • Need fast scalability.
  • Ambition to enhance user experience.
  • Desire a faster speed to market products.
  • Strive to gain a competitive advantage over competitors.
  • Make up for lack of tech expertise.

Some scenarios prompt even medium to small companies to opt for outsourcing an offshore software development partner due to factors such as the following: 

  • When there is a talent gap in the company

A company may want to expand its software. This could mean using a new programming language, a new web service, or developing it for tools the company has little or no experience in doing. Outsourcing to an offshore development company will meet these needs. This company will also show how to use the technology for future expectations and reference.


  • When the budget is tight

When cash flow is a constraint, especially for startups, offshore outsourcing may also offer affordable pricing for the talent the company needs for its software. Other benefits include not worrying about insurance or pension payments and other payroll-related expenses. Contractual partnerships require an agreed rate and a signed agreement before work can begin.


  • When a task is too complex or too big for the internal team

Companies may have capable team members at times but do not have enough manpower to reach the deadlines on time. Taking on board a competent offshore software development partner can bring in additional team members to ensure that the code is written and completed efficiently and on time.


Important benefits of hiring an offshore development team

Offshoring development is not the same as working with an internal team. Choosing the right team provides the following benefits:  

Access to a wide field of talent

With the increasing competition in the market and the demand for specialized programmers, it becomes difficult to find the right ones for your team. Finding local talent is a complex task. However, now, you don’t have any location restrictions.

This means you can discover your offshore experts from all over the world. You have access to top-class offshore development services in your grasp.



Hiring local IT professionals in countries such as the U.S can be costly. In addition, payroll, equipment, workspace, daily amenities, and other employee benefits can add to the overall cost. Therefore, selecting an offshore development team can be beneficial to the organization. This also means that you can invest your capital in other business verticals.


A diverse team with a diverse approach

With diverse cultures and languages, you get more experience and detailed opinions on how to enhance a product or solve an issue. As a result, it will boost the overall progress of the project as well as the team. A major advantage of having a diverse team is the high quality of ideas that emerge from brainstorming and problem-solving from varied expert opinions.


Allows you to focus on other essential business tasks

Offshore development can be highly beneficial for all businesses, especially startups as they are short of time. Startups typically also have a limited workforce but are looking to make a quick mark in the industry. 

Hiring an offshore development team of professionals means you will be spared the tasks of employment and training. A high-performing team of professionals is at work. With their expertise and experience, you will gain a competitive edge.


Deploy the latest technologies

It is not possible for any new business, especially a startup, to have access to all the latest technologies due to their high cost. On the other hand, offshore development companies utilize most of their time to improve technologies and learn new software skills. 

Therefore, when you hire an offshore development team, you get well-designed strategies, good processes, and documentation. Moreover, they add the latest updates to the system as and when needed.


Factors in hiring an offshore software development company

When you want to hire the best offshore developers, here are some factors you should consider when hiring: 

Define your goals

Before looking for potential companies, make sure you know what you want to achieve by hiring an offshore development services provider. Consider a written proposal that outlines your specific goals and metrics, the projects you want to offshore, your growth plans, current issues and everything related to the project. 

A clear view of your expectations in terms of team size, skill level and other key details means you can accurately communicate your needs to the offshore software development company.


Focus on the experience

Finding the right offshore vendor who can build a world-class development team for your business is critical. It means hiring a company that has experience. You are not in the right place if a company cannot show its successful accomplishments. 

References and reviews are useful, and an impressive portfolio is also a key factor that highlights their ability to deliver high-quality results.


Ensure flawless communication

Hassle-free communication is the base of any project completion. To ensure efficiency, it is necessary to lay down rules regarding contact persons, their availability and estimated response times. It can be frustrating for any client to wait for a response. Use a time tracking program to keep this in check.

A client has to participate in a seamless communication workshop especially for projects that are critical or large. Therefore, understanding the behavior patterns of offshore partners is beneficial in the long run.


Prioritize long-term goals and strategy

Generally, offshore contracts last for years, so your partner should understand your current business needs as well as those you anticipate in two years, five years, or more. You need a partner who offers flexibility and adaptability and can initiate changes within your remote team without causing disruptions to your company. 

Considering the future, the recruitment strategy of hiring offshore developers becomes critical. You need world-class developers, but you also need them to be invested in your company for the long term.


Technologies in use

Developers often use Java, .NET, PHP, JavaScript, Python, React, Angular and more for building web apps. However, the tech stack choice depends on the business requirements of a particular app. It is a way that ensures you get dedicated support from the team.

Focus on the technology in which the software development company excels. It is wise to partner with a firm that specializes in multiple technologies.


Wrapping it up 

Offshoring development can help you gain a competitive edge and produce robust digital products. Different time zones and cultural differences need not be a constraint once you decide upon hiring a professional team with relevant skills, experience, ability to innovate and produce, and the way they fit your requirements. 

The above-mentioned tips and the ensuing benefits will help you hire the right offshore development team for your project with successful outcomes. 

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