Do you want to know how to outsource software development to an offshore software development services provider? Do you want to know the benefits, challenges, and costs of offshore software development? If yes, this blog is for you! Here, we are going to cover everything you need to know from start to finish about offshore software development so you can clear your doubts and make a fine decision whether you should outsource your project to an offshore development company or not. Let’s start to know.
Offshore software development has become the best way to get scalable & secured software solutions with a global team of experienced and expert developers at low cost. This also enables you to navigate the global tech landscape to get the ultimate software for your business or product. Apart from the offshore model, you can also go for the onshore, and nearshore models according to your project’s needs. If you don’t know the key difference among them, fret not! This blog also helps you to know the difference between all of the three IT outsourcing models.
Let’s dive in depth to know every aspect of the offshore software outsourcing model so that you can know how it helps you to gain an advancement over your competitors, leads you to reduce development time & cost, and get top-notch software solutions.
What is Offshore Software Development?
Offshore development means you outsource a software project to a company that is located in another country and that country is far from your business country. In this process, you can hire offshore developers, a complete development team, or can handover your whole project to an offshore development company. It depends on the business they want to get end-to-end services such as mobile app development, web development, UI/UX design, and quality assurance or want to hire on a task basis. With time the popularity of offshore software development is increasing, and the key reason behind the popularity is quality software development services at lower cost.
To get offshore software development services, India, South America, and Asian countries are the first choices. Because a wide range of offshore software development companies are offering their advanced services here, businesses can easily get skilled developers and other resources to give a perfect shape to your vision.
In short, offshore development is popular due to quality software development services at affordable prices.
What is the Role of an Offshore Developer?
Offshore software developers are known for their technical expertise along with in-depth experience across different industries. That’s why they can handle various aspects of a project such as development, implementation, support, maintenance, testing, deployment, etc. According to your project requirements, you can hire them, and you will get the best software solutions for your project at the best rates.
Offshore developers work from a remote location, and generally, they are part of a large offshore software development team or organization. That’s why, for your idea, they will offer you an innovative perspective, a set of skills, and a new way to complete your project so that you can feature-rich software solutions for your project to create a big difference in the market.
When you opt for an offshore development model then you get resources and developers from different countries, and all that comes with different skill sets, experience, etc., and their problem-solving skills will be advanced. So this way, you ensure to get high-quality products at low rates.
What is the Difference Between Onshore, Nearshore, and Offshore Software Development?
There are three types of IT sourcing Onshore, Nearshore, and offshore. All are categorized based on the vendor’s distance from the outsourcer. Here, we are going to discuss all three in detail so you can know about them, and can choose the best one according to your project requirements. Let’s start to know.
1. Onshore Software Development
In this model, software development is outsourced to a development team that is based in the same country as your business (e.g., US businesses can outsource their project from California to San Fransisco, and London-based British startups can cooperate with onshore companies from Lancaster). It means when you hand over your business project or software development to a company or team that is located in the same region as your business, called Onshore software development.
Here are the key benefits of onshore software development-
Communication becomes so much easier when your development team has the same time zone and cultural background, and efficient communication helps you to get amazing software solutions for your business.
- Easier Project Management
By opting for onshore software development, managing your project becomes easier. Because whenever you face any issues, you can meet face-to-face, and you can get a complete overview of the ongoing development process.
- Alignment with Local Regulations
The onshore development team is familiar with all the rules and regulations of the local area, and by handing over your project to them, you reduce the potential compliance issues. Otherwise, you have to hire a separate team to align your project with local regulations.
The drawback of onshore development is higher development costs, and sometimes you don’t get skilled developers and designers according to your project demands. Before opting for any model, always know the project requirements, and after that take action.
2. Nearshore Software Development
This is another type of IT outsourcing model, in which software development or IT services are outsourced to a team that is based in a neighboring county or region. For example, a Mexican-based business outsources its project to a US-based company.
Let’s start to know the benefits of Nearshore software development-
In this outsourcing model, the biggest advantage is your time zone overlaps with your team, and that’s why, you can communicate with them easily compared to a completely different time zone.
The nearshore software development outsourcing model helps you to reduce the overall development cost of the project while maintaining a high level of quality. It means you get quality services at a low cost.
Your nearshore development team may have some cultural similarities, and all that will benefit your business. Because it will help them to understand your business and objectives easily, and they will execute your project accordingly.
To get all kinds of IT software solutions, nearshore is the ultimate way but, in some cases, you will have limited options, and you won’t get required software solutions according to your project demands. In that case, offshore software development will be the right option for you. Let’s start to know that.
However, in this case, you can be geographically limited in your choice, And here offshore comes to help you,
3. Offshore Software Development
This is one of the best IT outsourcing models which refers to outsourcing software development to a development team that is located in a distant country from the business country. With time, the demand for offshore software development is increasing at a rapid pace. Because, in this way, you get an expert team at a low cost. This is the best part of this model.
Here are the key benefits of offshoring software development-
Cost-efficiency
Cost-effective software solutions are one of the key advantages of offshore software development. By using this outsourcing approach, you save a lot of time and cost while getting quality services. Because, in developing countries, you get a low labor rate, and your end product comes at a low price.
Experienced and Expert Development Team
The Offshore IT development model helps you to tap into a great talent pool of experts with a specific set of skills that might be harder to find in your locality, and you don’t need to go elsewhere for a specific developer. Because you can access a whole team in a single place.
Fast Market Entry
Offshore software development teams work 24/7. You can coordinate with them, and they will work according to your time zone so that you can communicate with them easily, and offshore team can also work when you are offline. This way you can ensure your development is in proper order. It will help you to save time and make a fast market entry.
Sometimes, in offshore development, communication issues, and cultural barriers may arise, and you have to focus on data security, and intellectual property rights while working with an offshore team. But, all the issues can be solved when you collaborate with a right offshore partner.
You might also want to look at: How Much Does it Cost To Develop a Mobile Application?
Advantages of Offshore Software Development
Offshore software development has become the demand of time. Everyone wants to get experienced and skilled developers for their project so they can enrich their project with something new and innovative that can help them introduce something that has never been experienced before. To make a project successful, all that is must. Here, we are going to discuss the benefits of offshoring software development so you can make an informed decision for your project to bring it to life.
1. Access to Expert Development Team
When any company goes for offshore software development services then they get access to a great talent pool that is very hard to find in their locality. With offshore development, getting a reliable development team with rich experience in design, development, and testing becomes very easy. This way you can get competent technical experts according to your project requirements and can scale your business.
2. Reduced Operational Cost
When you outsource a project to an offshore software development team then you don’t need to set up a workspace, infrastructure, IT system, etc. all that helps you to reduce the operational costs. And the best thing is you save time and cost because you don’t have to hire anyone. This time and money you can invest somewhere else like marketing. So offshoring your project is the right choice.
3. Low Development Cost
Most of the offshore software development services providers offer flexible prices for their skilled developers and designers. Offshore development agencies in India would charge you for a skilled developer from $25 to $75 per hour. So the outsourcing model offers you exceptional services at a low cost.
4. Fast Development
You can reduce the development time by hiring multiple offshore skilled developers, and all that help you to develop your project on time, and you will be able to make a fast entry in the market.
5. High Scalability
A project’s development time and cost depend on its development process, and according to the project’s complexity, it can take time, and development costs may be increased. But, with the help of an offshore mobile application development company you can easily scale your development team that will increase or decrease the number of developers according to the demands. By scaling the number of developers, you speed up the development, and the project delivers on time.
6. Access to Latest Tech Stacks & Trends
Most of the offshore software development agencies have expertise in the latest tech stacks and trends which are difficult to find in in-house developers. It may be easy to hire a developer with specific expertise, but, hiring a whole team with different skills and expertise is not only a difficult but also costly, and time-consuming process. That will increase the development cost of the project. To overcome all these issues, outsourcing your project to an offshore team is the best solution. This is one of the key benefits of offshoring software development.
7. Low Development Risks
When you build software, you are responsible for the failure and the success. Sometimes, you can go wrong during the development, and all your efforts, money, and costs are wasted. But, when you outsource your project to an offshore software development company, your offshore partner is responsible for all the issues like testing, making it glitch, errors, & bug-free, and deploying it successfully. So, this way, you get successful software for your idea with low development risk.
8. Focus on Core Activities
When you hire an offshore software development team for offshore software development services, you get a lot of free time and that time you can invest in other business activities. This is one of the key advantages you get when you go for offshore software outsourcing.
9. Support & Consulting
IT services outsourcing companies offer software support and maintenance services for ongoing and existing projects so that you can complete your project on time, and enrich it with exceptional services to make it one step ahead of others. One of the key benefits of offshore software development services is they have rich experience working across different industries, and in different countries. That’s why, they are aware of all the rules and regulations governing IT services, and that experience will help you to give a perfect shape to your business.
10. Time Zone Advantage
Offshore IT development helps you to get advantages from different time zones. Just imagine your in-house team finishes their workday, the offshore team begins them, and this way, you enable continuous software development. Time zones help you to increase productivity and you complete the project on time.
Now, you know how offshoring software development services is fruitful. Let’s start to know which kinds of businesses and companies get the most benefits from offshore development.
Who Should Hire Offshore Software Developers?
After knowing the benefits of offshore development, one question that comes to mind is when to hire offshore developers, and who should hire offshore developers. There are many situations when offshoring becomes the most suitable option for business. Let’s have a look at them.
1. Startups With a Limited Budget
Startups come up with the best ideas that can create a big difference in the world but, most ideas don’t get a shape or lack in getting a perfect shape due to low budget. More than 70,000 startups are operating alone in the USA. When a startup tries to enter the digital world, they are stuck with minimal viable products, or they get a development partner with fewer skills due to budget constraints. To overcome all these issues, offshore development is the best solution, and by outsourcing their project to an offshore software development company, they will be able to take professional services at a low cost, and create a big difference in the digital world.
2. Businesses Without Technical Expertise
Businesses that are lacking in technical expertise should approach offshore software developers or offshore software development companies. By this, you can hire a company that has relevant technical expertise, and experience to build the app or site for your business. This model helps you to hire the best offshore software development team that enriches your team with exceptional features and functions to take it to the next level of success.
3. Businesses that Want to Make a Fast Market Entry
In the digital realm, time matters a lot. If your software development stages are consuming too much time then there are chances that your competitors will launch something similar or more advanced, and your idea, efforts, time, and money will be a total waste. To overcome this issue, you can choose offshore developers or according to the project size or requirements, you can hire an offshore web application development company that will help you to launch your business faster by eliminating the hiring and training time. The best part of offshore development is you get the best professionals for your project from day one.
Offshore Software Development Challenges
Here, we are going to discuss the key challenges that you face when you opt for an offshore outsourcing software development company for your project. Sometimes businesses face various issues, and their all time, and money total wasted because of this outsourcing model. Let’s start to know the some challenges that you face while opting for offshore software development services. These aspects will help you to make a wise decision.
1. Time Zone Differences
When you take the help of an offshore development company, the difference in time zone is a crucial factor that you have to face. Due to different geographical locations, sometimes efficient communication may not be possible, and whenever any aspect of development requires your permission or response, it may take a little longer time, and all that delays in product development and deployment.
Being a leading offshore outsourcing software development company, we, at Amplework, take care of all such aspects, and to reduce possible time lags, we schedule all meetings in advance, and ensure a proper communication channel so that you can get our amazing services on time.
2. Security Issues
Data privacy and security are the biggest concerns at present, and when you collaborate with an offshore web application development company always pay special attention to it. Sometimes, without verification, you hire an offshore development company, and where security issues arise. There are many cases where development partner shares the app idea with their competitors, and hand over them codes, and other aspects.
As a leading offshore application development company, we, Amplework, always give high priority to data security and share an NDA ( Non-disclosure agreement) with you. This is to ensure all your intellectual property (IP) rights are protected. We follow all the standard set of rules and regulations to offer a secure platform, and we also handover you all the codes when we hand over our project to you.
3. Quality Assurance
Quality assurance is another challenge when partnering with an offshore software development services provider for your project. Always ensure that they are following a full-cycle software testing process; for that, they have the best team of testers who excel in all testing tools and software. It will help you to ensure your project is going in the right direction.
At Amplework, we update clients daily, weekly, and monthly about the progress of the project, and whenever any discussion is required, we schedule an appointment in advance so that all the work can be done on time. We use all the latest tools to test your software and keep you in the loop so that you can get the best services from us. Quality services on time is our USP.
How to Hire the Best Team of Offshore Software Developers?
An experienced and expert team of developers can help you to implement and introduce your idea to real life. So choosing the right offshore software outsourcing company is a must, and for that, keep these below-given factors in mind when selecting the right offshore development partner.
1. Know Your Business Requirements
Identifying your business requirements is the first step to a successful to hire the best offshore software development outsourcing company. In this, make a list of your project goals, desired features & functions, target audience, tech stacks, platform compatibility, and project budget. By clearly defining your requirements to an offshore vendor, you will be able to know whether your possible development partner has the expertise and resources to deliver software solutions that align with your business objectives or not.
2. Effective Communication
Effective communication and workflow are the most important aspects when you hire an offshore development team. Your development team should be proficient in English or the language you want to communicate so that you can easily maintain the workflow, and get the best software solutions for your project.
3. Data Security
Security is the prime concern when it comes to hiring an offshore IT company. Always make sure that the offshore development company follows all the security protocols to keep all the data and software safe. No matter which model you opt for, always give priority to security. If you lack in security, you lack in everything.
4. Experienced and Expert Development Team
Offshore software development outsourcing company should offer you the best team of skilled and expert developers to give a perfect shape to your dream project. Always give priority to an offshore company that has the best team of developers. To bring your idea to life, an experienced team plays a vital role.
5. Flexibility
Always give priority to an offshore software development company that offers you a full range of services. Because, in the IT world, with time a lot of things change, and your requirements may change with time. That’s why, your offshore development partner should have a specialized team for different fields, and you should also have the option to scale your team according to your project demand. The best outsourcing companies are the ones who offer you everything according to your demands.
We hope to make an informed decision these factors will help you to make a fine choice for your project.
Also Read: Software Development Life Cycles: Stages, Models & More
How to Manage Your Offshore Software Development Team & Project Effectively
Managing an in-house development team and project is a challenging task. You can imagine how complex it will be to manage an offshore development team. Offshore product development is a great way to save money, time, and effort. But, to make your product successful, you have to manage your project wisely otherwise it can lead to increased development costs and time.
1. Define Clear Roles and Responsibilities
Everyone who is involved in the project should understand their roles and responsibilities. This will help them to complete their tasks correctly, and there will be no confusion regarding the work. This way you get your project on time.
A project management tool helps you to track the progress of the project, and managing all the tasks becomes so much easier. These tools also help you to make an effective communication. There is a wide range of tools, and you can choose according to your project requirements.
3. Communication is Key to Success
Effective and regular communication helps you to get the best software solutions for your idea. Regular communication becomes so much more important when you work with an offshore team. Communicate with your team in both verbal and written mediums, and try to schedule meetings every week.
4. Give Regular Feedback
You should give your feedback to your offshore developer’s team so that they can make necessary changes according to the demand of the project. Always try to give constructive feedback.
5. Be Flexible
Sometimes things don’t work out as we plan, so it is important to be adaptable and flexible when managing an offshore software development team for your dream project. Always try to give your valuable feedback whenever necessary so the team can make changes accordingly.
6. Risk Management
You have to face a lot of challenges like communication, time zone differences, cultural differences, etc. when you opt for offshore software development. It is important to identify all these issues, and professionally manage them.
7. Progress Monitoring
Always try to be with the offshore software development team so that you can monitor the progress easily, and whenever required give your suggestions, and try to incorporate these suggestions in your project. This way you ensure your project is on the right track, and you will be able to meet your expectations easily.
Additional tips to Manage Your Offshore Software Developers effectively-
- Always hire an experienced and reliable offshore software development company, and before hiring do proper research so you can select the best one.
- When you hire an offshore development company always sign a clear and concise contract with them. The contract mentions the project, its timeline, budget, tech stacks, quality standards, trends, etc. This contract will help you resolve all the disputes.
- Use escrow, and it helps you to protect financially if your offshore development team does not offer you what you mentioned in the contract.
- Always have a plan B. If your offshore software development project is not going in the right direction, you should have alternate options like transferring your project to another offshore software development services provider, or in-house.
Cost to Hire Offshore Software Development Team
The cost of offshore application development varies on a lot of factors such as project idea, development team’s location, experience & expertise of offshore development team, features & functions, tech stacks, platform compatibility, etc. Here, we offer you hourly rates of experts in the most popular outsourcing countries or regions so that according to that you can make your budget.
| Experts | Central/Northern Europe | United States | Latin America | Asia/India |
| Business Analyst | $50-$65/h | $100-$200/h | $40-$60/h | $25-$40/h |
| Solution Architect | $50-$75/h | $180-$290/h | $50-$70/h | $30-$50/h |
| UX/UI Designer | $50-$75/h | $80-$160/h | $30-$55/h | $20-$35/h |
| Offshore Software Developer | $50-$60/h | $100-$160/h | $30-$50/h | $15-$40/h |
| Quality Engineer | $40-$60/h | $120-$230/h | $30-$65/h | $15-$35/h |
| Project Manager | $40-$65/h | $125-$220/h | $40-$65/h | $25-$50/h |
| DevOps Engineer | $50-$80/h | $130-$250/h | $35-$65/h | $18-$35/h |
What are the Cost-affecting Factors of Hiring the Best Offshore Software Development Team?
There are a lot of cost-effective factors that affect offshore software development costs. Let’s have a look at the elements that affect the overall cost of offshore development.
- Training and hiring
- Development cost
- Project management
- Quality assurance
- Auxiliary costs
- Service costs
- Infrastructure cost
Why Choose Amplework As Your Offshore Software Development Company?
Amplework is a leading offshore outsourcing software development company that has rich working experience across different industries. The best part of Amplework is they have the best development team of experienced and expert professionals with different skill sets that make suitable them for all kinds of projects. They use all the latest tech stacks, and tools to offer your quality services on time. To tell you about the project’s progress, they update you daily/weekly/monthly, or according to the specific tasks, it all depends on you. Till now, they have developed several projects and all of them are working well. Within a short period, they have earned a big reputation by offering quality services. Feature-packed software solutions, experienced development teams, cost-effective solutions, on-time delivery, etc. make them the first choice for offshore software development.
If you have an idea and want to bring it to life with the help of an offshore development service provider, share your idea with Amplework.
Frequently Asked Questions ( FAQs)
Q.1 What are the Key Factors That Should Be Considered to Choosing the Best Offshore Software Development Partner?
Ans. There are numerous offshore software development companies but, choosing one of them is not an easy task. Because we have to take care of various aspects before finalizing the right one for our project. One wrong decision can increase the development cost and time. To achieve all your business objectives it is important to hire the best team of offshore developers. That’s why, we are going to discuss here how to hire the best offshore software development services provider.
Let’s start by discussing the key factors that should be considered when choosing an offshore software development company.
1. Experience
2. Tech Stacks
3. Development cost
4. Flexibility
5. Commitment
6. Development time and process
7. Effective communication
8. Testing tools and automated tools
9. Ratings and reviews
10. Check their developed projects
Ans. There are various tools and tech stacks for offshore software development so that you can communicate with the team, and track the progress of your project.
- Project management tools ( Asana, Trello, Jira)
- Communication tools ( Slack, Zoom, Microsoft Teams)
- Version control system ( Git, or GitHub)
- Cloud storage platforms (Google Drive, Dropbox, Microsoft One Drive)
- Bug tracking tools ( Bugzilla, Jira assist)
Q.3 What is the Offshore Software Development Process?
Ans. Here is the step-by-step process of offshore software development-
- Research & analysis for requirement gathering
- Know your objectives
- Planning and Estimation
- Make your budget
- Hire an offshore development partner
- Coding and development
- Testing and Quality Assurance (QA)
- Deployment and Maintenance
Q.4 What are the Future Trends in Offshore Software Development?
Ans. Here is the list of future trends in offshore product development-
- Artificial intelligence (AI) and machine learning (ML)
- Augmented Reality (AR) and Virtual Reality (VR)
- Remote Collaboration Tools
- Cloud-Native Development
- Focus on Cybersecurity
- DevOps Practices
- Emphasis on quality assurance (QA)
- Blockchain Development
- Remote Work Culture
- Focus on Sustainability
Q.5 What are the Key Steps to Take Before Working with An Offshore Development Company?
Ans. When you are going to take the help of an offshore application development company to bring your vision to life, by working on the below-given aspects, you will be able to reduce the risks and maximize the results.
- Know your objectives that you want to achieve.
- Set your priorities and act accordingly.
- Make a proper wireframe and sketch of your project.
- Know the needs of a project like tech stacks, features, functionality, etc.
- Make a proper documentation of your project.
