The Ultimate Guide To Offshore Software Development To Build A Successful Product

When a company hires an overseas third party or a freelancer to develop a software project it is termed as offshore software development. The project can be the creation of a whole software product or a part of it. Offshore outsourcing is done primarily due to its cost-cutting benefits but there are several other merits and demerits attached to it that need consideration. Outsourcing can be done in three ways: offshore that includes a third party in a faraway country in another continent altogether, nearshore which involves a third party in another nearby country in a similar time zone, and an onshore software product development company is one that is in your country and near you as well.

When a company decides to create a software solution like a fully operational website or a customized app it has to hire an in-house team of developers which is quite expensive or opt for a third-party partnership in a faraway country where the cost of software development is much less. Depending upon the project size they can hire a freelance developer or an expert custom software development company to create a software solution for them. Nowadays any kind of software development like coding or testing call app development is outsourced to mainly Asian countries where the rates of skilled labor are very low.

The Pros And Cons Of Outsourcing Software Development

Let us first understand the advantages of outsourcing your project to Offshore software development services.

The main benefit of outsourcing is cost-cutting. Salaries of developers in other countries are really cheap and moreover, they are highly skilled in the niche. So you get an expert professional at one-third the price of what you need to pay in your country. Also, you do not have to spend on infrastructure and other facilities which again reduces the cost.

A software product development company gives you the option of changing the number of professionals in the testing phases of the project than you can actually do with fewer developers and thus reduce the testing time. With this, you can also avoid overpayment.

Outsourcing a part of the project will help you to focus on your core business and plan for your company’s future growth. The budget that is saved can be applied to other in-house operations that will help you in your expansion plan. Your in-house staff is free from the extra load and you can divert your internal resources towards the main objective of your company.

There are some problematic issues involved in outsourcing that need some consideration and discussion:

Data security, service quality, and on-time delivery have always led to some inconveniences in partnerships with an overseas web development company. A non-disclosure agreement can resolve the data security issue and a dedicated in-house project manager can easily guarantee the quality of service and on-time delivery of your project.

Some hidden charges always crop up and are quite common so be prepared to face it. Take note of the government taxes and regulations of that country beforehand because they can be quite heavy on the pocket. Discuss in detail with your development partner about them and if they are included in the development cost or not.

Some amount of miscommunication and time delay always exists because of cultural and geographical differences and that can be resolved if you hire dedicated developers as project managers who will be responsible for communication between you and your third-party partner, and will also be accountable for on-time delivery.

Management Of The Offshore Software Development Process

When you outsource your project to a foreign mobile app development company it becomes very difficult to oversee the project, and its management and control go out of your hand. Here are some basic points that will help you to oversee projects remotely without having to travel across the globe:

Give them a detailed picture of what you want in your software solution. Even if they are doing a part of your project your mobile app development company should know what your full software plan is so that they can give you an effective solution.

Effective communication is very necessary for a successful product so daily updation on the progress of your development project is very necessary. This will also help in discussing any issues that crop up and they can be resolved without delay.

Although this is a very difficult proposition when you are working with an offshore web development company it is very necessary as well. Overlapping working hours will help in conducting important meetings and discussions through video conferencing.

A humane touch is quite effective in creating a highly interactive and responsible team with your overseas software development services professionals. They are invincible to your project so treat them as an important member of the whole company.

How To Choose The Right Offshore Software Development Company

When selecting an offshore partner, review the rates of development in various countries and also consider the average ranking of which country has the best developers. Typically Latin American and Asian countries have very low rates but nowadays Eastern Europe is also becoming a preferred outsourcing partner.

For example, the rate of a lead developer in the US is 180 dollars, in Latin America it is $50, in Eastern Europe it is $50, and in Asia, it is $40. If you check the ranking of the country with the best developers, China scores 100, Mexico 75.7, and India, 77. Apart from the cost factor check for the experience of the custom software development company before hiring them for your project.


To earn the benefits of software outsourcing you need to set precise requirements and targets. Hire dedicated developers who are specialists in their own domain and stay in touch with them through continuous communication. Keep yourself updated with the development process on a daily basis. To avoid legal issues sign all agreements and negotiations after a thorough discussion with your third-party partner. A dedicated team of skilled professionals will help to create a successful software project.

Tarun Nagar is the Founder & CEO of Dev Technosys, a global ranking Web and Mobile App Development Company