Offshore Software Development
28 Aug

Offshore Software Development: Challenges and Benefits

Mahipal Nehra

Offshore Software Development: Challenges and Benefits. Are you thinking about outsourcing an offshore software development company? Then this blog will help you understand everything related to offshoring, ensuring a successful application development.

Are you thinking about developing a software application for your business but worried about the expenses that come with an in-house development team? You don’t have to worry about hiring an in-house development team to fulfill different tasks and services.

With technology advancement, you can easily access a large talent pool worldwide and outsource development teams for your project at lower costs without compromising the software quality.

But wait, what do we mean by offshore software development? How can it benefit your business, and what is the cost of outsourcing an offshore software development company?

What is Offshore Software Development?

Offshoring or Offshore software development is the process of hiring or outsourcing an external software development company from different countries to take on the task of developing software applications for one’s business. The term ‘offshoring’ refers to the fact that there will be differences in time zone, culture, language, etc.

Read: Operations Management Software Development

It is up to the business whether they want to outsource end-to-end development services or hire for processes like web development, UI/UX development, mobile app development, or quality assurance. Businesses can also choose whether to hire an entire development team or individual developer through the dedicated development company for fulfilling the tasks they want to assign.

Read: Kiosk Software Development

Benefits of Offshore Software Development

Some of the benefits of outsourcing offshore software development companies are as follows:

  • Access to Global Talent Pool

  • Lower Cost

  • Time-Saving

  • Flexibility

  • Attention to Core Activities

Access to Global Talent Pool: Unlike nearshore or onshore outsourcing, offshoring gives you access to the global talent pool where you can easily find a partner with experienced software engineers to develop software through the latest tools and technologies, ensuring you stay ahead of your competitors.

Lower Cost: With offshoring, you can save tons of money as you will not have to spend money on office space, hardware, software, recruitment, and salary. In offshoring all you need to do is outsource a software development company and pay for the software development, the rest will be taken care of by the offshored company.

Time-Saving: By offshoring a software development company you can easily spare yourself from the torturous process of recruiting professional developers that fits your work culture and also have the right skills to work on your project idea. The offshore development team has all the experience and expertise that helps to develop products rapidly leading to faster time to market.

Flexibility: With offshoring a software development company, you get the ability to scale the team up and down based on the requirements you have for the project.

Attention to Core Activities: Outsourcing a software application development project to the offshore team helps you to focus on being more strategic about its capabilities and developing the product roadmap instead of being worried about the operational details.

Read: How to Choose a Software Development Company

Offshore Software Development Challenges

A few challenges that a business might have to face while outsourcing an offshore development team are:

  • Difference in Time Zone

  • Risks of Data Thefts

Difference in Time Zone: One of the biggest challenges that offshoring brings is the difference in the time zone due to geographical locations. However, it can be easily resolved through pre-scheduling calls and meetings that suit your work schedule and be aligned with the team.

Risks of Data Thefts: If you haven’t verified the company you are about to offshore, you are more likely to face security issues like data thefts. To avoid so, ensure that you have done a background check on the company and also signed an NDA before starting with the project.

Read: Sales Management Software Development

Offshore Software Development

Factors to Consider When Outsourcing Offshore Software Development Company

While outsourcing an offshore software development company, you must keep the following points in mind to avoid conflicts or failure in the future.

  • Standardized Security Protocols

  • Prior Experience

  • Fluent Communication and Workflow

  • Use Collaboration Tools

Standardized Security Protocols: In the tech-driven world we are residing in, it has become essential to secure a business application or website from cyber threats. Therefore, offshoring ensures that the service vendor has updated security protocols to keep data safe, regardless of the software development model you are going for.

Prior Experience: Although you might be aware of this part, we would suggest checking the previous projects, client feedback, reviews, and references of the outsourcing partner to give you some insights into their quality and workflow style.

Fluent Communication and Workflow: Another thing that you need to consider is that your outsourcing partner must be fluent in the language of your choice to avoid the language barrier. This will help in maintaining fluent communication and a smoother development process.

Use Collaboration Tools: Once you have outsourced a company, start using collaboration tools like Trello, Jira, Slack, etc. to run meetings effectively, have regular updates, and cross-check changes on the go.


Outsourcing a software development company can be beneficial for businesses with tight schedules and limited budgets that want to scale their technical capabilities, add new features, speed up the development process, or need the utmost flexibility.

Also, most offshore service providers provide affordable pricing for developing a high-quality software application for your business. While Asian countries like India cost you around $15 to $40 hourly rate per developer, European countries can range between $25 to $150 per developer, and so on.

So that was all about offshore software development. And if you too are looking for a software development company to outsource, then contact our experts, share your requirements, and hire individual developers or an entire development team from us within your budget.

FAQs: Offshore Software Development

  • What is software offshoring?

Offshoring or Offshore software development is the process of outsourcing an external software development company from other countries to take on the task of developing software applications for one’s business.

  • What is the difference between offshore and onshore software development?

Offshore software development refers to hiring a software development team or company internationally whereas onshore software development is the process of outsourcing service providers within your country.

  • Why choose offshore software development?

Some of the reasons why businesses should consider offshore software development are:

  • Access to Global Talent Pool

  • Lower Cost

  • Time-Saving

  • Flexibility

  • Attention to Core Activities

Posted by Mahipal Nehra | Posted at 28 Aug, 2023 Web