What is Offshore Software Development


The information technology world is constantly changing and growing. It’s only natural that offshore software development has become a standard business practice for many companies throughout the industry and beyond.

Offshore software development allows a company to save time on hiring, managing, and maintaining a software development team. There are pros and cons to offshore outsourcing your company’s software development projects. But first, let’s understand just what offshore software development is.

How Offshore Software Development Works

Offshoring is almost exactly how it sounds. Your company hires a company or employees overseas for the sole purpose of a specific project. These experts work full time for nearly three times less than what you would pay for software development New York or in your locality. The offshore team will be responsible for software development, testing, and maintenance, communicating with the client throughout the process.

The Pros and Cons of Offshore Software Development Outsourcing

As with most anything, there are both advantages and disadvantages to delegating your software development project to an offshore team.


  • Offshoring is cost-effective.
  • Offshoring can save time.
  • Offshoring allows for the hiring of a scalable team.
  • You will have access to a larger talent pool.
  • Offshoring can reduce product to market time exponentially.


  • Offshore teams require continuous management
  • Time zone and cultural differences could become a problem.
  • There could be hidden costs despite hiring what seems to be an inexpensive, offshore team.
  • You risk the theft of your data.

The Risks of Offshore Software Development

As with many things that require the assistance of an outside hire, there are a lot of risks involved with offshoring.

  • Data Privacy
  • Communication Barriers
  • Quality Assurance Risk
  • Management Difficulties

Managing an Offshore Software Development Team

Managing an offshore software development team can be a major challenge. But, if done right, can mean a successfully completed project and a pleasant work environment for all parties involved. The essentials of managing your offshore team are:

  • Clear and effective communication.
  • Arrange regular visits or video conferencing.
  • Use collaboration tools to ensure better teamwork.
  • Provide regular and constructive feedback.
  • Treat your offshore team as if they were in-house.

Best Practices for Offshore Software Development

Most companies today know how to leverage software development teams offshore. However, if you are new to offshoring, then knowing and understanding clear best practices and guidelines can aid you in having a successful partnership with your offshore team. Here are a few best practice tips to guide you.

  • Define your goals, establishing clear and actionable instructions. And make sure you document everything.
  • Be selective about choosing your offshoring partner. Make sure they have a clear understanding of your business and software requirements.
  • Stay connected through collaboration. You want to stay up to date on the progress of your software project.
  • Don’t just contact your offshore team for updates. Be engaged. Recognize your team’s successes, acknowledge their input, and hold them accountable for problems that arise.
  • Maintain a library of frequently used in-house resources that your team or other outsourced service provider may need. This helps speed up product development, while reducing costs.

Choose the Right Offshore Software Development Company

There are a lot of offshore software development companies. Choosing the best company to partner with can be a bit of a challenge with so much talent to choose from. Still, consider these key factors in seeking out an offshore development team to help maximize the success of your project.

Excellent communication skills. English is the primary language of the tech world. Make sure your potential offshore team is fluent.

Make sure there is either a small difference in time zone or they are capable of working within your time zone.

  • They have experience in your industry.
  • Their team’s technology skills meet or exceed your needs.
  • While cost effectiveness is great, make sure there are no hidden costs.
  • They have the capability to meet or even exceed your standards.

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