Detailed Breakdown for Offshore Software Development

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Relia Software

Cong Dinh

Relia Software

Software Development

Offshore software development is an enterprise processes outsourcing strategy where a corporation outsources software development to foreign developers.

Offshore software development guide

Table of Contents

More companies use offshore software development to address the IT service sector supply-demand gap. Most importantly, this strategy saves time, money, and effort. This makes offshore beneficial for startups and small firms. However, it also attracts companies who prefer hiring a remote software development team over maintaining an in-house department.  

This article will describe offshore software development outsourcing, highlight its potential benefits for your organization, and explain how to avoid pitfalls while choosing and working with a company.

what is offshore software development
What is Offshore Software Development? (Source: Internet)

What Is Offshore Software Development?

Offshore software development is an enterprise processes outsourcing strategy where a corporation outsources software development to foreign developers. Offshore software development allows you to scale swiftly without hiring and training personnel for a project or continuing basis.

Since offshore developers are engaged to meet IT needs, software creation offshore is a subset of outsourcing. Services may involve software creation, testing, maintenance, porting, upgrading, and more. One must decide on outsourcing: freelance developers or an IT agency with top-notch developers.

Freelance developers usually specialize in one task, hence numerous freelancers are needed to construct an app or website. Product development involves choosing between in-house, freelance, and offshore staffing. A corporation requires a single provider with responsibility, flexible pricing, and the greatest resources. Here, offshore tech firms help.

Statistics confirm that. GlobeNewswire estimates that the worldwide IT outsourcing industry would rise 4.5% to $425.19 billion by 2026 from $318.5 billion in 2020. They also note that IT outsourcing has moved beyond cost-cutting as cloud migrations and services increase.

Why Is Offshore Software Development Important?

Offshore software development is beneficial in today's fast-changing global industry. It allows organizations to recruit offshore software developers from anywhere in the world, balancing resource demand and supply. It allows enterprises of all sizes to easily access specialists and produce high-quality products.

Offshore software development is essential in the competitive industry because:

Cost Reduction

Many North American and Western European organizations can save money on hiring by outsourcing to offshore development teams.

Saving money is possible since most offshore programming companies are in nations with lower living costs and better currency exchange rates. Outsourcing this function saves organizations money on recruiting, benefits, and holiday time. 

Affordable Worldwide Talent Pool

Western hemisphere IT expertise is scarce, and the industry's economic downturn means there isn't enough money to hire local specialists. Offshore programming companies have a global talent pool of devoted workers from countries investing in technical education.

Scaling Up (and Down) Is Easier

Tech success depends on scaling swiftly to satisfy client needs. Traditional employment procedures can hinder this.

However, working with an offshore software development business allows companies to quickly build a team of professionals who are used to working together and start a project. The squad is very easy to dismantle after the job.

More Time to Focus On Your Strengths

Companies can focus on their core competencies and be more strategic by outsourcing a project or function to an overseas team. This lets you focus on product roadmap development rather than operations.

>> Read more: IT Staff Augmentation: Effective Way to Expand Your Development Team in 2023

Offshore software development process
Process of Offshore Software Development (Source: Internet)

Process of Offshore Software Development

In IT, offshore processes are equivalent to nearshore or onshore ones. The same steps apply: gathering requirements and analysis, architecture design, coding and implementation, quality and security assurance, deployment, post-release maintenance, and others.

Offshore developers work full-time, document projects, and engage with clients like in-house teams. Offshore processes are distinguished by remote cooperation and unique challenges. 

For startups and established organizations, finding a competent offshore development provider involves a unique methodology. To do so, take these steps:

Prepare Services and Budget

Provide a complete report on business software development needs. It can be started by stating the project idea and objectives for the future with IT solutions, identifying the technology stack services and discrepancies, and setting a budget for the job. You must carefully communicate the requirements to the IT firm while outsourcing.

Choose Location

You must extensively evaluate the organization to choose the best IT partner. Start by choosing the world's best resource location. India, the Philippines, Vietnam, Brazil, etc. are popular. Their price and stability depend on geography.

>> Read more:

Check References

Check websites, help, and past projects to choose the best IT firms. Virtual meetings can also reveal their service quality and development team. Choose the correct one by checking their skills, trustworthiness, and suitability.

>> Read more: Top 10 Leading Enterprise App Development Companies in Vietnam

Ensure NDA Signature

To protect your business idea, initiative, or vision, your IT firm must sign a non-disclosure agreement. You can also contact IT firm clients for assurance that they would secure your idea when you join their team. Check for their hiring process.

IT vendors may have a lengthy, complicated hiring process that delays your tasks. Check the procurements before choosing an IT firm.

Resources for interviews

After narrowing down your list of potential offshore development organizations, you must interview each one and maybe its developers to ensure they have the abilities and background to complete your IT assignment.

Create A Contract

After choosing the best firm and developers for your IT solution, you must prepare a contract that clearly states the project's scope, timetable, payment terms, and other important details. This ensures everyone is on the same page and the project is finished.

Coordination With Team

Discuss the project with the team often and agree on tools. Request project-related updates and adjustments. Communication with the outsourced team should be smooth. You can track the project with tools.

There is no set process for outsourcing software development. Development may be affected by various variables. This process is the general approach with all the necessary steps.

Best Practices for Offshore Software Development

Sometimes goals or goods change. A major change may require rework, which is normal. Businesses can't do it every time since the product vision and software development team don't match. Best practices for offshore software development must be followed.

Your Mission and Vision

Before starting, they must explain their firm vision and goals to their IT partner. Teams often focus on details and miss the overall picture. Once they understand the long-term intentions, they may take charge and reassure product owners.

Sharing the vision and objective helps firms connect with offshore software development centers. The more they bond with the in-house staff, the better they perform. 


Give the new team clear priority when outlining jobs and tasks. In a crisis or time pressure, if they spend too much time on inappropriate criteria, you pay.

Clear roles and responsibilities foster ownership. The dev team may plan better by setting smaller targets and checking quality and timelines once they know what is expected.

Increasing your approval speed is also important. Stuck items at your end may slow the project. Use project managers to move things forward.  

Clarify Communication Channels and Protocols

Developers give incorrect specs when they don't comprehend needs. Language hurdles, time zone variances, or communication gaps between the team and product owners or management cause such scenarios. 

Set protocols to resolve concerns swiftly and effectively to avoid miscommunications. Establish clear communication routes to track progress and reduce iterations. These are tangible results. Clear communication channels and protocols will establish trust if you work with the team long-term.

You must realize this is not your in-house team. Micromanagement is difficult since it delays product development. Using an effective communication channel to track the process lets you only contact your team when necessary. 

Set Achievable Project Goals

US corporations outsource 43% of their software needs and 57% have expanded their partnerships. The numbers rise. Offshore teams offer technological experience, abilities, skill sets, and more. However, they have limits. Companies can set unrealistic deadlines to increase project margins, affecting productivity and quality.

Businesses must understand their work practices and set reasonable goals for a successful cooperation. Joint brainstorming sessions might assist plan projects effectively. 

Prioritize Security

31% of PwC study respondents reported security risks while outsourcing software. However, several procedures can alleviate such concerns. Companies should first establish a rigorous NDA with the offshore developing team. Then they should check their networking monitoring systems for allowed system and project data access. Businesses should not share crucial off-site client data. 

Use Agile

Agile software development uses short, repeating cycles. Adopting it boosts productivity and reliability. This strategy can be difficult with overseas teams due to communication concerns.

These issues can be avoided with excellent teamwork and communication. Also, offshore helps. In-house and offshore teams might work 24/7 to complete assignments faster due to the timetable difference. If the in-house team goes home after work, the offshore crew can continue work.

>> Read more: Top Agile Frameworks In Software Engineering 2023

Ensure Knowledge Transfer Works

Even the finest product engineers must learn the system, technology, and product before delivering. But if they take too long, software development may be delayed.

Tech businesses can mitigate this difficulty using a knowledge-sharing platform. Understanding the project's goals, expectations, and the company's culture and practices is essential for onboarding new employees. A knowledge transfer platform should assure it and teach on the company's software development methodologies, techniques, and tech stacks.

Offshore Software Development Services

IT services vendors can succeed in offshore development of software outsourcing by ensuring high-quality work and regular customer communication. Collaboration and communication between faraway organizations are key to outsourcing success. The development team can outsource almost any software services if they have enough experience. Let's examine the most popular outsourcing services.

Development of Websites

Web development is complicated, but offshore developers can handle it. An experienced team can produce a high-quality website at an affordable cost despite long-distance issues.

According to customer needs, most offshore software development businesses can complete the development process or give selected web development services. This is usually needed when a customer has hired a team but needs more specialists.  

Mobile Development Service

The creation of mobile apps is another popular offshore software development service. Mobile software development, like web development, involves expertise, experience, and teamwork. 

Modern trends include mobile apps' popularity and importance in improving all kinds of enterprises. That's why many offshore software development outsourcing companies only provide mobile development. Like web development, such organizations can design native or hybrid mobile apps from scratch or provide specific services.

>> Read more:

UI/UX Design Service

Customer choice to outsource the entire development process or just select parts is one of the most beneficial aspects of offshore software development outsourcing. This manner, a customer can hire a team or an expert for one service. 

IT companies struggle to recruit talented UI/UX designers. They are crucial when adapting apps to multiple screen resolutions and aspect ratios. Because businesses need software with functional and attractive user interfaces, UI/UX services are always in demand.

Testing and QA Service

Quality assurance is crucial to software development. Software designers must ensure that every portion, module, and component works in diverse contexts. Comprehensive testing is laborious and time-consuming, thus it is generally outsourced to a dedicated team. This allows the primary development team to focus on other duties and finish the project faster.

Two testing teams may work together to cover multiple platforms and usage scenarios of a future software product. This strategy is used to speed up cross-platform or hybrid mobile development but requires additional cooperation. One team can verify Android device quality and performance, while the other does the same for iOS. 

>> Read more:

Support for Customers

Even the biggest firms outsource customer assistance to overseas companies. Due to increasing demand, some countries focus their IT industries on such services and build many call centers and other infrastructure. Thus, corporations save a lot and foreign customer support service providers profit.

IT consultancy, product post-release maintenance, and other software-related services can be outsourced. In many nations, offshore software outsourcing boosts economies and benefits clients and IT service providers.


This in-depth guide on offshore software development gives you a general idea of offshore growth and helps you decide how to get the most out of outsourcing in 2023. 

If you have a good offshore software development organization that works with your in-house team and shares your goal for the product, it will be easy to meet your tech needs. But it might take some digging to find the right one to work with. Tech companies need to know all the pros and cons in order to do it right. 

Hope this blog finds you well!

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