Offshore Software Development: An In-Depth Guide

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6 min read

The decision to choose offshore software development is tricky and tiresome at times. It’s a complex business software development phase that is accepted by many tech giants in today's technical realm. Keeping several factors in mind, you have to make this decision for your business. If the decision turns wrong, it can heavily impact the finances and reputation of your organization.

Offshore software development provides several benefits, like cost-effective strategy, resource savings, and much more. However, these pros are possible only if you choose a reliable offshore development partner.

Here, we will explore in-depth about offshore software development and everything you need to know about it. Let’s dive in!

What is Offshore Development?

The majority of businesses no longer hire in-house employees just completing their business projects. Instead, they find talent from different locations, especially from other countries. The main idea behind this process is finding quality and specialized skills at less cost from across the world.

Offshore software development is a process in which a business outsources its software development work to a reliable partner from a completely new region having a different timezone. For instance, if you are a US-based company, you can hire top talent from Indian companies; and enjoy good services at comparatively lower prices.

In this process, businesses are working with software developers from outside their country. It means you’ll have to trust a team that will be working in different time zones and also completely remote.

It can be used for different tasks that range from primary coding to product design to developing custom software, web, and mobile apps, as well as maintenance and support.

For the majority of firms, hiring offshore teams is an amazing solution for projects that need specific expertise and high-quality deliverables that are hard to find on a local scale.

What services can you outsource from an Offshore Development Company?

If you hire an offshore development company you get various indisputable benefits such as flexible pricing, scalability, large talent pool, and much more.

There’s a huge range of tech-related services that can be outsourced from offshore development companies like web development, app development, UI/UX design, and much more.

  • Outsourcing web development services provides your business with a push over the competitors with a seamlessly working web product. This product will increase your company’s online presence; it’s because offshore software programmers will do their best for modern and flexible website development in no time

  • Offshoring developers for mobile application development is becoming popular since you do not need to hire an in-house development team, pay for them using office resources, bring new hardware and software, or keep an office on rent. They will build cutting-edge software for you, not costing you any extra for working space and gadgets.

  • UI/UX design can also be outsourced from a technical offshore team. Keeping in mind that you have a wide range of preferences, outsourcing this service is also possible. Experienced designers make complex designs simple. Because of this, you will get an intuitive app or site on which navigation becomes easier. Additionally, you can easily focus on different important business issues entrusting your design making to offshore development vendors.

  • Quality Assurance and Testing is also possible by hiring an offshore development team. Developing a system needs strong testing of every app to ensure it works without errors. Even the best offshore software developer can create mistakes at some or the other time. In this situation, hiring an excellent offshore team will help you with cutting-edge QA and testing services.

Other than the services mentioned above, there are other things for which you can hire an offshore team such as product maintenance, data storage, security, support, etc. Outsourcing becomes the optimal alternative to solve all these business tasks, even when facing pandemic restrictions. You can remotely hire developers from offshore companies, and let them help you with these tasks.

What is the role of an Offshore developer?

Offshore developers bring a combination of soft skills and technical expertise along with experience in handling different components like building a system, implementation, maintenance and support, testing, QA, etc.

Offshore software development teams generally work from a remote location with cultural differences. Hiring offshore developers can bring fresh perspectives to the table and a modern set of techniques that provide new ways to make your project more interactive and performant.

An offshore developer generally works with your team jointly and communicates project ideas, the status of development, and much more.

When to hire an Offshore software development team?

Here are certain reasons for when to hire an Offshore software development team:

  • Cost efficiency- Partnering with an offshore team will eliminate the expenses of hiring in-house staff while providing them with similar benefits. Overall, the development cost decreases without interrupting the software development quality.

  • While facing tight deadlines- Acquiring accurate outcomes in the decided time can make your business succeed. Hiring offshore developers can turn your idea into a real system quickly by using their technical capabilities when needed. You get a project manager in the team of offshore software development, he/she will handle your project well and take responsibility for completing the project on time, if not affected by any adverse situations.

  • Lack of experienced professionals- Top-tired developers aren’t available everywhere. So, if you feel that your business project is complex, and will need top global talents, you can hire an offshore team. But remember, hiring top talents can cost you more than hiring local professionals.

There are many other reasons like working on complex projects and, the requirement of specialized professionals, that could lead to hiring offshore development teams.

Pros and Cons of hiring an Offshore Software Development team

Benefits of offshore software development:

  • The primary benefit is cost reduction. No need for in-house team expenses, as they will work remotely without consuming your resources.

  • Access to a global talent pool. So, it increases the chances of working with experienced developers at lower rates

  • Your business can operate 24/7 as an offshore team will keep your business live after your working hours (due to the time zone difference)

  • New ideas to develop different functions of your systems

Challenges Of Offshore Software Development:

  • Time zone difference

  • Interrupted communication

  • If the offshore team isn’t reliable, your data security can be at high risk

The average cost of hiring Offshore teams from different locations

Here’s the average cost of hiring an offshore software development team from different locations across the world:

India: USD10,236 / month

Philippines: USD18,684 / month

China: USD11,174 / month

Nigeria: USD10,560 / month

Vietnam: USD23,736 / month

Brazil: USD42,100 / month

Argentina: USD32,835 / month

Mexico: USD42,379 / month

Singapore: USD50,160 / month

UK: USD50,526 / month

France: USD49,595 / month

Japan: USD 53,900 / month

Poland: USD57,960 / month

Canada: USD 63,571 / month

Finland: USD98,100 / month

Ireland: USD66,490 / month

Australia: USD80,500 / month

Denmark: USD86,924 / month

Switzerland: USD100,000 / month

United States: USD106,275 / month

Reference: Glassdoor

From this list, you can see that the high-cost countries are the US, Finland, Switzerland, and Denmark.

The budget-friendly countries are India, China, the Philippines, Nigeria, etc.

Final Verdict

We hope that this article has given you a basic idea of what offshore development is when to choose it, and its pros and cons. We will bring more information about offshore development in future articles. For that, you can bookmark us. Till then, happy reading!