Software companies outsource developers from a different location to reduce infrastructure, hardware, software, internet, hosting, maintenance, support, legal costs, plus some mandatory taxes. They also prevent the costs for dedicated salaries, benefits, payroll taxes, training, and recruitment. Companies simultaneously access global talent, increasing operational efficiency. The reduced overhead, offering faster time-to-market to generate revenue sooner, and enabling access to specialized, high-skilled global talent for higher-quality apps. It allows internal teams to focus on core business functions, enhances flexibility and scalability to adapt to changing needs, and mitigates risks by leveraging the expertise of outsourcing firms in project management, technology, and security.
That was a clear and concise introduction to the problem.
It comes in three different models – onshore, nearshore, or hybrid models, owing to the project budget and requirements. Most importantly, such teams are temporary and are not a part of permanent payroll. They might be continued or discontinued based on shifts in policies, requirements, budget, marketing conditions, and competitive choice of business.
What should you do to confirm success?
Communication between the company and the hired developers is paramount. The requirements need to be discussed several times a day, on agreed-upon times, in accordance to the time zones. Also the goals should be clear from the very beginning, what you expect from them, which technologies you want them to use, features and functionalities in the app or the website being built, when do you require an MVP, what all testing types you want them to furnish before escalating the project to the deployment stage, plus, whether the app is in accordance with the local people (target audience), and legal obligations of the country where it will be used. The software needs to be made after understanding the audience, adding insight and shaping the message to solve real problems. It should not look like a technology jargon, and must be easy for everyone to comprehend. It should be built with confidence and not just digital skills.
Why is offshore software development used?
We discussed this throughout, but also it brings the software before anyone else does. Companies often “follow the sun” model to enable continuous development and significantly accelerate project timelines. This way the app can be scaled up with demand without the administrative burden of local hiring, providing unmatched flexibility. Outsourcing non-core software development tasks allows internal teams to focus on strategic business activities such as sales, marketing, and customer engagement.
Alternatives to offshore software development
While a paragraph in this context will make you get confused and looking out for more, let me break it down into three important points for these offshore development types:
| Description | Benefits | Drawbacks and Shortcomings | |
| Onshore development | Hiring developers from within the same country as the company. | Communication, high cultural alignment, easier in-person meetings, full control. | High cost due to local labor rates and limits on the availability of talent. |
| Nearshore development | Collaborating within a similar time zone. | Communication and collaboration, good cultural alignment, cost-effectiveness. | No cost saving and access to the pool of talent is not so easy, or is less. |
| Hybrid models | Use an onshore team for strategy and core development while nearshore or offshore teams handle supporting tasks. | Balances cost, control, and access to specialized skills. | It can create complex management and communication challenges. |
| Staff augmentation and freelance platforms | Use a service to augment an existing team with specialized talent. | Access to a wide range of skills for short-term projects | Can lead to lower integration with the core team, quality control issues, and potential lack of commitment. |
Every app/hiring development team has a price tag, what is it in this case?
While basic factors remain the same, the cost varies with geographical locations.
1. Eastern Europe: $30 to $60.
2. South Asia: $15 and $40 per hour.
3. Latin America: $25 and $65.
4. Southeast Asia: $20 to $50.
5. Western Europe and North America: $75 to $150 per hour or more.
Potential challenges and possible solutions while implementing offshore software development
Problems may occur in case of lack of communication, lack of cultural misalignment, time zone differences, meeting schedules, post-development reviews, if the stages of development are not followed. Do anything but don’t let it become unsustainable. Do something about the working style, communication preferences, coding standards, testing procedures. Define clear quality control metrics and KPIs.
Security standards, rules, policies must be followed, as a lot of information is shared across the internet. Implement strict non-disclosure agreements and intellectual property clauses in the contract. Ensure that the offshore software development company complies with global security standards, including GDPR or HIPAA, depending on your industry.
If I have left anything above, here’s more to ponder
- How should this way of doing projects bring success?
- Hiring offshore developers can be extremely rewarding if both teams in house and off shore align their capabilities and follow rules set by the organization, in accordance to the project requirements. This will not lead to any delays in submission, and misunderstandings.
- How do offshore developers communicate with clients?
- There is no set procedure but an email, phone call, chat messengers, or phone messages can work.
- How can I reduce the risks of offshore software development?
Mitigate risks by carefully vetting your offshore partner, maintaining an active role in project oversight, defining clear contractual agreements, and using secure communication and data-sharing practices.
4. Is it worth it to hire an offshore app development agency?
Yes, if managed properly. Offshore app development agencies can offer substantial cost savings, faster time-to-market, and access to specialized expertise. But also, effective communication, cultural alignment, and security measures must be there to ensure crisp collaboration.
Conclusive
While we believe there is a different way in which every organization processes their internal tasks. Their target audience and technologies differ. Their way of handling people, processes, tools, and timing differ. While some might be more comfortable with written communication, others might do wonders over video calls or phone calls. A combination of these approaches can also lead to success of the process. Choose wisely.
