Offshore Software Development Guide For Business Owners

This outsourcing method is only possible in the way we know it today because of advancements in technology. It expands the talent pool that your company can access while reducing the total costs to complete a software development project. Many companies also choose “nearshore” outsourcing, which can offer similar benefits while reducing the risk of some common issues.

how offshore software development works?

Identify the problem you hope to solve with your MVP or your latest software product. Identify the primary solution and goal the product is to fulfill.

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“The level of personal attention was impressive. Project management was good. Great communication and updates. Prompt service. We feel that to be considered nearshore the time difference should be no greater than 3-5 hours and in many cases, there will be no timezone difference at all. This enables them to save time and money while tapping into a virtually endless stream of experienced IT talent. Since your partner will be responsible for all the HR activities, it is natural to check its reputation among its employees and gauge if it is truly a great place to work, as professed by them. The high reputation of your partner will allow it to hire more professionals quicker, enabling you to scale at the required pace.

  • However, cultural realities in Eastern Europe and its other sections are very similar to those in the United States, Canada, Australia, and other areas of the world.
  • Then, you can schedule 1-2 hours to have daily meetings and overlap time.
  • The hourly rates for Indian developers are about $25 — it’s 5 times cheaper than in North America.
  • Hiring software developers on your own could require a lot of research.
  • On top of technical skills, remember to scrutinize your candidates well to verify that they have the key soft skills necessary to work collaboratively on a project.

Decide which outsourcing model fit best to your project, define your values (if you haven’t already) and see how it would match the values and services on the other side. To optimize your software development project with offshore teams, you will have to consider numerous factors carefully. The technology landscape is developing quite rapidly with technologies such as artificial intelligence, blockchain, natural language processing and many more changing how industries operate. For developers, multiple resources also exist in offshore development, which enhances the developing experience and their ability to create powerful software that leverages disruptive technologies. The offshore software outsourcing IT sphere offers businesses a range of opportunities, according to which they are able to save their efforts, time and money.

Qualified Talents

It’s also worth mentioning that offshore software development is a long-term commitment. It’s not something you can decide to do in one second and end in the next one.

how offshore software development works?

Use effective tracking tools that fit your project right from the planning stage, assign work, and track progress closely. The market for e-learning platforms is thriving and constantly evolving. Team members should sign NDAs and/or non-compete agreements, that’s a rule. Intellectual property rights and confidentiality terms should be known and clear to everybody. Also, make sure that what you’re going to build meets legal regulations, especially in cases where apps use personal data or/and money payments. By submitting my form, I agree to share my contacts with 5 development companies. To add, countries that would fall under nearshore outsourcing from the perspective of the United States tend to prioritize English fluency within their borders.

Onshore And Onsite Development

You may have an initial set of requirements, but as real users begin using your website or app new requirements will surface. That’s why we say finding the right development partner is more like a marriage than just paying to have a job done. Going into a development project with the idea that you are finding a long-term partner to work with will help you avoid mistakes made by thinking purely about the short term. However, if you can’t find the ideal solution between these two models, there’s a third option that might just do the trick. Even if your development partner speaks English, it will not be their first language and heavy accents can complicate communication flow. Ensuring nothing is lost in translation is a time consuming process, as you must be extra diligent in giving instructions to avoid misunderstandings.

This kind of offshoring focuses more on the relationship between the client and the software development company to execute a long-term business relation. Deep knowledge about the work culture of any offshore team can help a company execute their projects effectively. Work culture comprehends a team’s ability to cope up with deadlines, manage communications and understand the meaning of different words in different languages.

Advantages Of Offshore Software Development

But if this is your first startup, it’s worth asking an experienced development agency for help. That’s why software development outsourcers usually have several recruiters working with the team full time and getting paid for their expertise. Without them, it would be impossible to assemble a qualified team so fast and integrate into the clients’ projects smoothly. Every client has unique needs, and when it comes to gathering development teams, it’s always a process with multiple stages. From figuring out how many specialists the client needs to conducting multiple levels of interviews, there has to be someone to take care of it all. In this article, we’re going to explain what factors make up the offshore software development cost . You’ll see why your invoice might not be as small as you expect and why it’s still worth it.

However, the advantages of offshore hiring outweigh the disadvantages — and most issues can be resolved with a bit of thought. You spend less on onboarding because these workers are contractors, and you don’t pay for benefits or screening.

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If your offshore software development company is based in Asia, this is especially true. However, cultural realities in Eastern Europe and its other sections are very similar to those in the United States, Requirements engineering Canada, Australia, and other areas of the world. One of the most significant advantages of establishing an offshore development team is the ability to tap into vast talent pools in rising tech nations.

how offshore software development works?

Thus, the cultural gap is inevitably almost always an issue, at least to a certain extent. At the SPD Group, offshore development best practices for instance, we have local representatives in the USA, the UK, and Israel to enable smoother communication.

What Are Offshore Software Development Services?

Unfortunately, some companies aren’t mature enough to offer offshore development services. They have cheap hourly rates, which seems beneficial for the first time. Most U.S. nearshoring includes Canada, Mexico, and Latin America — particularly Brazil, Argentina, and Panama. South America has been performing its due diligence and is building a high-quality talent base that makes it ideal for offshoring. Recently, software development projects are being carried out by remote teams using emerging automation technologies instead of always outsourcing software development. These technologies even allow the tech teams to actually negate the source code without affecting the user experience. This is a strategy of intelligent offshoring which basically helps software developers match the expectations of the client and from the software development project.

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However, other emerging destinations have proven effective and may suit your unique preferences. For instance, Vietnam and several countries in Eastern Europe, including the Czech Republic, Romania, Belarus, Ukraine and Moldova, also seem to have a desirable reputation. It’s a mental health app called Nedley Lifestyle Scorecard designed for customers struggling with depression. Using NLS, people can enhance their mental state during a particular time.


And even though some of them are super motivated to work tirelessly 365 days per year, it’s not a healthy story. The developers are working with the clients overseas, but they are treated like regular full-time employees with all the perks and days off. Development of the Binomix.connect integration platform that enables automated analysis of medical images based on artificial intelligence. The platform was built on offshore development center proposal and implements continuous improvement of diagnostic parameters through machine learning.

You should check hourly rates divided by areas and find the region you consider more appropriate. Also, spend some time researching the information about offshore development services, how it is implemented, and get more information about the process of communication. As most offshore outsourcing software development companies are located overseas, for many of them, English isn’t a native language. This factor may lead to a language barrier and poor communication. Clients don’t need to spend time recruiting specialists, software and hardware purchase, etc. They find the software development team, and then their project can be implemented on a turnkey basis. Consider that the Latin American countries to our south are in the same or similar time zones as the U.S.

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