Offshore Software Development: Key Points You Need to Know

offshore software development

September 5, 2024

Offshore Software Development Market size is valued to be $122B in 2024 (Verified Marketing Research)

Offshore software development is the ultimate future, which is why big names like Canva, Amazon, and Google have offshore teams to strengthen their operations. If you are still not convinced, then the stats tell the real story here!!

offshore software development stats

Other than the names mentioned above the other giants that have strengthened themselves with offshore development teams are 👇

offshore software development outsourcing

The offshore development services are going to rule the market and in case you are thinking why do you need them and what are the costs and benefits? Plus, what is the difference between offshore, nearshore, and onshore?

Then bookmark ⭐ this blog and read till the end because this is your ultimate guide to hiring offshore developers at less cost with superior services, and top-notch quality assurance and maintenance.

So, let’s get started!!

What is Offshore Software Development?

Offshore software development services mean outsourcing or transferring a software development project to a company that is located outside your local region. There is a long distance between you and a third-party software vendor with lower labor costs. In the offshore development team, there is a diverse talent pool containing individuals with different seniority levels and backgrounds.

As the CEO, director, or decision-maker of your company, you can also go for offshore software outsourcing to add an extra set of hands. It is especially valuable for businesses looking to expand their technical team efficiently without high costs.

Cut costs by 40% & boost efficiency with our top offshore software development services.

For instance, if your business is situated in the UK and you hire a company from an Asian region, you have hired an offshore software outsourcing company. Mostly, the cost of developers in South Asian regions is $20- $70 per hour. In contrast to US developers who can cost $30-$140.

With offshore development terms like onshore, and nearshore, are used interchangeably but they have different meanings.

What is the difference between Onshore, Nearshore & Offshore Development?

Our experts at Devace Technologies have prepared a table for you to help you understand the difference between offshore, nearshore, and onshore development.

Aspects Onshore Nearshore Offshore
Development work Development work done within the same country as the client. Development work done in nearby country. Development work done in distant country.
Cost High Moderate Low
Proximity level Same country. Neighboring country. The team is located across the continent.
Communication Easy Moderate but more difficult than onshore. Easy if you use tools like Slack, Microsoft Teams, etc.
Quality Control Easier to manage & supervise. Difficult than onshore but easier with the help of tools. With the help of strong management, a project can be deployed in no time within less cost.
Speed High (but depends upon expertise and punctuality. Sometimes communication barriers can hinder progress. You need tools like Jira, Trello, and Slack to monitor performance. Challenges in communication can hinder progress. You need tools like Jira, Trello, and Slack to note the performance.

Now you know the difference between these terms so let us give you the criteria based on which you can assess whether you need the offshore team or not.

Evaluation Criteria: When Do You Need Offshore Development?

It is not necessary that you need an offshore development team so let us tell you the situations where offshore is more than necessary!

  • Tech Talent Gap

The lack of tech talent can be a perfect reason to hire offshore developers who are hard to find locally. Here, the best strategy is to onboard developers from another region from different background & vast experience.

  • Tight Deadlines

When you are working on tight deadlines and need an extra set of hands then the best solution you have here is to get a dedicated development team.

Also, offshore development companies offer flexible engagement models to help businesses hire as per their project needs. Check out our flexible dedicated engagement models.

engagement models

Another reason why offshore software development outsourcing can be useful is cost.

  • Low Budget

Offshore software development can be useful when you are low on budget. This can significantly decrease your overall project costs. Also, reducing operational costs like office space & utilities.

  • Swift MVP Development

If you are looking to develop a Minimum Viable Product (MVP) to prove the validity of your idea. Then offshore developers can be the best as they are trained in the efficient development of MVP at a low cost.

Tell us your idea & get your MVP developed! From wireframing to prototyping we have got you covered.

  • Specialized Technical Roles

Many projects require super technical roles or temporary positions that are not attractive for top-notch developers such as quality assurance professionals and project managers. Here the remote teams can be quite effective in temporarily filling these roles and fulfilling all the project needs.

  • Complex Projects

Handling difficult projects can require a lot of knowledge and technical expertise. Developers with such skills can be expensive and you can hire them on contract, saving you costs.

What are the Offshore Software Development Benefits?

The offshore software development team can offer multiple advantages to the budding as well as big companies.

offshore software development benefits

1. Direct Access to top Developers

When you are outsourcing, it is easy to find experts because you broaden your horizons towards seeking the best for your project instead of finding someone onsite.

2. Low Operational Cost

The offshore software outsourcing company costs less than the onsite and this is one of the main reasons the offshore teams are preferred. Other than this, you don’t need infrastructure or IT equipment because offshore developers come with all this stuff.

3. Less Hiring time

You can hire developers from the offshore development company and get them deployed on your project efficiently. All you have to do is just tell the company experts your needs.

Hire Devace technologies developers in just 48 hours to boost your team or kickstart your project!

4. High Scalability

Another benefit is that you can decrease or increase your team based on your project needs. Because you don’t need to do long-term contracts!

5. Increased Focus on Core Activities

You don’t have to pay attention to technical activities which means you can put all your focus on doing other important tasks. Such as running marketing campaigns or concentrating on other core activities.

What are the Major Challenges in Offshore Software Development?

Of course, there are perks as well as some problems associated with offshore software development. So, some of the common challenges and how you can fix them efficiently are given below:

Problem The Fix
High chances of data loss You can maintain the backup or ask the offshore company to schedule regular backups.
Intellectual Property Ownership Generate a clear contract that outlines the terms of retainership and data protection.
Risk Management Create a solid risk management protocol so both parties can deal effectively in case of emergency.
Communication Gap Best and the most effective solution is to partner with an English-speaking company that has developers trained to work in any time zone and leverage the power of the tools present.

Let’s see some of the best practices that can help you hire the best offshore development company!

Offshore Development Outsourcing Best Practices

The selection of the best offshore development partner is mandatory, and this is how you can do it:

Initiate the process by checking the technical skills of the company by looking at their portfolio to assess their skills.

Secondly, you must check their reputation and the sites that can help you here are Clutch & Upwork which give their ratings and reviews.

Thirdly, if these two things satisfy you then set up a consultation with them. Most of the companies charge whereas some offer free consultations too. Make sure to ask below things in the discovery call:

  • Are they adept at dealing with any project like yours?
  • What type of communication tools do they use?
  • What type of project management tools do they use?
  • Are their developers’ time zones aligned?
  • Do they use the tools and tech stacks you require?
  • Do they have flexible hiring models?

You can book a free consultation with Devace technologies experts right here ☎️ to get the best possible advice.

Steps to Hire an Offshore Software Development Company

If the offshore company can answer all the questions as expected, then before you assess them, request them to present the CV of the developers. After selecting appropriate CVs make sure to talk to developers and give them small test assignments. This method is suitable for hiring developers on an hourly, permanent, or part-time basis.

choose offshore software development company

Tools to Increase Offshore Software Development Efficiency

In software development outsourcing you need four things that are useful in the effective management of projects. Such as efficient communication, swift collaboration on code, and productivity tracking. And for all these things luckily there are tools present.

Project Management Tools
Trello It is a popular project management tool that helps teams plan, track, and manage their work across different time zones.
JIRA It is a project management tool that uses boards to organize tasks.

Assuredly you might know about communication tools like Gmail, Skype, and Zoom. But for quick delivery of messages, you can use the tools below:

Communication Tools
Slack This tool is best for facilitating real-time communication and with different channels, it helps in the efficient management of projects or teams.
Microsoft teams Integrating seamlessly with other Microsoft Office apps, it facilitates flawless communication & best video conferencing features.

You can now even collaborate seamlessly with your remote developers on code and give feedback.

Version Code & Code Collaboration
Git & GitHub/GitLab/
Bitbucket
It is a distributed version control system that enables the developers to communicate & collaborate on code seamlessly.
Crucible, Gerrit Both tools offer features for code review, collaboration & feedback.

If you are concerned about the productivity of your offshore team then several productivity and time-tracking tools can give you the overall picture. We are mentioning some of the best tools present on the market.

Productivity & Time Tracking Tools
Toggle It is a time-tracking tool with a user-friendly interface to help you gain insights into team productivity-generating reports.
RescueTime This tool automatically traces the time spent on various apps and websites to track the productivity of employees to optimize workflows.
Tahometer This time tracking tool gives a proven worklog including screenshots and provides productivity via mouse clicking & keyword typing.

Due to these tools, there is an increase in hiring of offshore development teams. Let’s see some of the trends so that you can stay on top of everything!

Offshore Software Development Trends

Some of the trends in offshore custom software development are given below:

offshore software development trends

  • High Demand for Cost Efficiency

With the increase in demand for cost efficiency companies are outsourcing to minimize the costs associated with software development.

  • Technology Advancement

The advancement in cloud computing tools, AI, and automation is improving and increasing the collaboration capabilities of offshore teams.

  • Core Competencies

Companies are now more concentrated on outsourcing the non-core function to focus more on strategic areas.

  • Talent Shortages

In onshore markets the talent is either expensive or not available so it’s better to find offshore teams at a lower price.

  • Time Zone Alignment

The offshore developers are now time zone aligned which means they are trained to work in any time zone at low cost as compared to onsite.

  • Market Expansion

Businesses are entering new markets, and offshore companies can be useful in understanding the trends & scaling their operations efficiently.

In addition to all these advantages, another thing that is contributing significantly to the increase in offshore hiring trend is the cost.

How Much Do Offshore Developers Cost?

The software development cost is less in comparison to onsite, so we are giving you the hourly cost detail. However, this cost can increase or decrease depending on the project’s scope and complexity.

Region Rates (per hour)
Eastern Europe $30-$120
Western Europe $60-$70
Latin America $30-$50
Asia $15-$40
Africa $30-$40

Hiring an offshore company can be a huge decision so it is potent that you look for the required things and assess their work ethics before you hire them.

How Do I Choose an Offshore Software Development Company?

It is difficult to select the offshore team that can elevate your project and meet all your expectations. But at the end of this blog let us give you just a few pointers that can help you choose the best company that matches your need!!

  • Experience & Expertise

Always select a company that has proven experience in the required technology stack and specific industry.

  • Communication

Make sure that the company has clear channels of communication and prioritizes collaboration.

  • Quality Assurance & Standards

You must verify their standards in terms of quality assurance & adherence to industry standards. Also, make sure to check out relevant certifications to ensure high-quality deliverables.

  • References & Reviews

Don’t forget to seek feedback from their previous clients to ensure their reliability.

  • Cultural Fit

Before you align any company with your team make sure that they understand your values to facilitate efficient collaboration.

Wrapping Up

In a nutshell, offshore software development will be the face of the future, and startups as well as enterprises can benefit from this setting because of less operational cost and increased efficiency. This is one of the main reasons that big companies have offshore teams that have contributed exponentially to their success.

For instance, the founders of WhatsApp in the start outsourced a chunk of the development of their platform for a fraction of the cost.

Looking for Offshore Software Development? Let Devace Help!

If you are looking for offshore software development, then Devace Technologies can be your ultimate partner with its flexible models. We have worked with big companies like JIMMY CHOO and Pandora, and we can also help you. Here’s why big companies have chosen us!

  • Hire on a part-time, monthly & permanent basis.
  • Developers trained to work in any time zone.
  • Staffing in just 48 hours!
  • Market-friendly rates.
  • Swift MVP development.
  • No overhead charges.

Frequently Asked Questions

How can I maximize the efforts of outsourced programmers in your company?

To increase the efforts of outsourced programmers you must establish clear communication channels and implement regular check-ins. You can also utilize project management tools that can track progress and offer ongoing feedback.

How to hire an expert offshore developer?

If you are looking to hire offshore developers, then your first focus should be on candidates with a strong portfolio. But this can be risky as there are huge chances that you might get scammed. So, the best solution for you here is to approach a company and hire developers from them. Because, in this way, the company will be responsible for meeting all the deadlines, and you can hold the management accountable if things go south.

All you have to do is to tell them your project needs and they will send you CVs of developers matching your requirements. After interviewing and testing them you can get them deployed on your project!!

What is an offshore software development company?

An offshore company is one situated in a different country than the client and is proficient in offering software development services. These companies have expertise in various technologies and programming languages, often at less cost in comparison to onshore alternatives.

How can I measure the success of an offshore development project?

If you are looking to hire an offshore software development company, then you must know how to gauge their performance. So, the first thing you can do is evaluate the KPIs (Key Performance Indicators) such as project delivery on time, functionality, performance, and adherence to requirements.

What are the responsibilities of offshore developers?

The offshore developers are responsible for coding, testing, and maintaining the software application as per client needs. They collaborate remotely with the onshore teams to ensure the fulfillment of project requirements.

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