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What is an Offshore Software Development and How is it Beneficial?

Offshore software development means hiring a team of offshore developers based in some other country. Let’s say a US-based company can hire offshore developers from India for custom software development.

By SubinPublished 3 years ago 7 min read
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Web and mobile app development can be a costly endeavor. Opting it out would be an unwise step that can prevent you from reaching greater heights. But offshore software development services can act as a savior in this case. Read more at Offshore Software Development Company

Offshore software development means hiring a team of offshore developers based in some other country. Let’s say a US-based company can hire offshore developers from India for custom software development. It’s like any other native software development firm. But offshore developers follow a different time zone. Yet an offshore development firm allows choosing from a massive pool of talents. Moreover, the costs remain in the budget too!

Hiring offshore developers lower operational costs and improve technical expertise without the headache of added responsibilities and expenditure.

Even Google, Apple, and Microsoft outsource offshore software development services too! Still not clear about offshore software development services? Let’s see how offshore developers and offshore software development services differ from onshore and nearshore.

How are Onshore and Nearshore different from Offshore Software Development Company?

The simple difference between an onshore, nearshore, and offshore software development company is their location.

An onshore software outsourcing refers to subcontracting a company based in the same country. However, nearshore software outsourcing refers to hiring a company located in nearby countries for development projects. For example, a US company can nearshore software outsourcing from Canada. On the other hand, offshore software outsourcing refers to hiring an offshore software development company based in far-off countries with extensive time zones.

Compared to onshore, nearshore and offshore software outsourcing are in much demand. Since nearshore and offshore software outsourcing services provide better talent and resource usability at lower costs. So, which is a better option - nearshore and offshore software outsourcing?

Why should you opt for Offshore Development Firm?

Eliminating onshore services as a costly endeavor narrows down to nearshore and offshore development firms. Both nearshore and offshore development companies provide similar benefits. Yet approaching an offshore development firm can prove to be more beneficial.

Compared to nearshore firms, an offshore development firm provides much better talents, resources, and technology. Offshore development firms charge only $20 per hour! Which is 2 times cost-effective compared to a nearshore firm.

Yet many think that communication and time-zone can pose barriers. But nowadays, an offshore development company provides flexible offshore developers who easily work following any time zone! And what’s more an offshore development company uses advanced technology to prevent any bottlenecks caused by poor communication!

Hence, an offshore development firm is a beneficial choice compared to a nearshore firm.

What are the Benefits of Embracing Offshore Software Development Outsourcing?

Offshore software development outsourcing has proved beneficial for many companies. Here’s how.

Cost – Offshore software development outsourcing from developing countries has become quite cost-effective. Since an offshore software company has its own infrastructure and team of full-time offshore software developers along with the latest technological resources and tools. So, no need not worry about either the cost or the quality while choosing offshore software development outsourcing.

Skills – An offshore software company provides a wide range of offshore software developers with specialized skill sets who can resolve the most complex problems to derive the best outcome.

Low risks – Offshore software development outsourcing takes much burden off the shoulders. The offshore software company takes all the responsibilities of the project. Hence, opting for offshore software development outsourcing enables achieving top-notch results and fulfills global compliance necessities.

Experienced perspective - An offshore software company provides a different perspective to handle each project. Experienced offshore software developers provide market-based insights which add more value to any project.

Saves time- An offshore software company has its team. Hence, no spending time after hiring or training developers.

Best Offshore Software Development Center, you can Lookout for

The most cost-effective offshore software development centers can be found in three precise locations. Let’s learn a bit about them.

Asia

Out of the three locations, Asia houses the most resourceful and cost-effective offshore software development centers. Moreover, India is considered the earliest and most cost-effective offshore software development center in the world. India as an offshore software development center has huge experience in offshore software outsourcing for companies like the US, the UK, and other leading countries in the world. So, if the target demands low-cost yet high-quality outcomes then India stands first in the line.

Apart from India, China, Thailand, Hong Kong, the Philippines, and Vietnam also lend offshore development teams for successful project completion.

Eastern Europe

Eastern Europe is another location that houses the best offshore software development center. Moreover, major offshore software development centers have English at their command. Hence, there are lower chances of communication barriers. However, compared to Asia, the hiring costs are high. Some major offshore software development center countries include Poland, Ukraine, Romania, and Croatia.

Latin America

Latin America has strong communication channels and technology-oriented goal sets. Yet this offshore software development center has higher offshore software outsourcing costs compared to Eastern Europe and Asia. Moreover, the country has recently gained the title of “the hotspot offshore software development center”. Hence, this offshore software development center has lower experience in offshore software outsourcing compared to the above two countries.

How to Choose an Offshore Software Outsourcing Company?

Looking for an offshore outsourcing software development company? Then there are a few steps that can help to find the best one!

Research about Offshore Software Development Companies

The first and foremost step to finding the best among offshore software development companies is to research thoroughly since face-to-face meet isn’t an option. Look into offshore software development companies’ portfolios, client reviews and ratings, testimonials, and the industries they have worked with. Upwork Clutch and company review sites provide an unbiased overview of many offshore software development companies and their services.

Requirement Clarification

The next step is to clarify the requirements including benchmarks and goals to the offshore outsourcing software development company. Also, provide them with a required timeframe for project completion. If an offshore outsourcing software development company agrees to all the above, then half the work is done!

Communication Plan Outlining

Without communication nothing is possible. Hence, finding means for proper communication with the offshore outsourcing software development company holds prime importance. 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.

How to Manage Offshore Software Development Team?

Better management leads to better outcomes. Hence, it is quite obvious to keep in mind that an offshore software development team should know their responsibilities. Here’s a guide to effectively manage offshore software development projects!

Clear introduction

To attain better offshore software development engagement, the recruiter team must know every member of the offshore development team. That will develop a strong partnership with the offshore software developers. Hence, the offshore software development team must be cooperative and communicative.

A small-skilled team

Building a large team may cost you a huge investment. Hence, offshore software development companies suggest creating a small team filled with resourceful and skilled offshore software developers. That helps in better monitoring, communication along with complete transparency of the development.

Expert offshore team lead

The best offshore software development company will provide a responsible and expert offshore team lead. The team lead will accomplish timely communication and updates about business priorities.

Moreover, the lead will also be responsible for coding practices and standards establishment. Solving challenges and reviewing codes also falls under the responsibility of a responsible offshore team lead. Besides, the offshore team lead will take charge of mentoring and guiding the offshore development team through the whole journey.

Daily meetings

The two companies must meet once a day virtually to address challenges. This will improve offshore software development engagement and motivate the offshore software developers to meet their goals on time and successfully.

Tracking tools

Offshore software development companies provide development tracking tools like Jira. These tools enable task planning, even distribution of tasks among the team, and work prioritization.

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About the Creator

Subin

Subin is currently working as a Business Development Executive at CronJ IT Technologies, Bangalore. He has more than 2 years of experience in both Content Management and Business Development. He also loves to write tech related articles.

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  • Sofa Kraudabout a year ago

    Great post! Can I share your ideas on my blog? Here: https://www.cleveroad.com/blog/how-to-choose-offshore-software-development-company/ With reference to you, of course.

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