Offshore Software Development: Ultimate Guide

Offshore Software Development: Ultimate Guide

What Is Offshore Software Development?

If you are wondering what exactly is meant by offshore software development, think of outsourcing. The very term “offshore software engineering” means working with an external firm for developing software products outside the client’s nation. The concepts of offshoring and outsourcing are used interchangeably in many occasions. However, offshoring happens to be just a small part of what is called outsourcing software development services.  

When it comes to offshore software development, the outsourcing of projects to a foreign company is usually done by either hiring an individual software developer or partnering with an agency. A company may delegate the entire project or just specific features or parts of the same. Offshore software development services generally involve custom software development, mobile application development, and web development, to name a few. 

Related terms: offshore software company, offshore development company, offshore software development company, offshore development services, offshore software services, offshore software development services.

What is Offshore Software Development?

Although offshore software development has many merits, it does not come as a surprise that this method of project outsourcing also involves many demerits. Hence, you need to have detailed information about all the bells and whistle of offshore software development to decide what would be the best solution for your business needs.    

Here, in this discussion, you can learn about everything you would ever ask or want to know about offshore software engineering.


  1. The Advantages of Offshore Software Development
  2. The Disadvantages Of Offshore Software Development 
  3. Best Practices Of Offshore Software Outsourcing
  4. Offshore Software Models
  5. How To Pick The Right Offshore Software Outsourcing Agency?
  6. The Final Words

The Advantages of Offshore Software Development

  • Less Expensive

Offshore software development helps in saving company capital in the matter of the cost of development. Due to cheaper living costs, countries except those of Western Europe and Northern America charge lower hourly rates. Moreover, many agencies also include additional services, such as support.

  • No Training Or Administration Required

It is a matter of fact that outsourcing software development services eliminate the need for hiring employees, training them, administering their progress, and paying them a salary. Furthermore, investing in the latest tools and equipment required to be used by the hired employees for the project also gets waived off. 

  • Access To Global Talent

Offshore software outsourcing allows companies to access global expertise as they have a well-maintained offshore development team. As a client, you can get international experts to work on your project. Furthermore, these experts would leverage the best-in-class and most advanced tools in your development projects to render you the best solution for your business needs.

  • Increased Time To Market

Offshore software outsourcing facilitates shared responsibility, which in turn leads to a faster development process. The offshore agencies manage the vulnerabilities during software development in a shared manner. This speeds up the overall process, and the client gets increased time for the final testing and marketing of the product.

The Disadvantages Of Offshore Software Development 

  • Cultural Gaps

Hard work may have different implications for the residents of Spain and the UK. Issues related to culture, tradition, gender, work ethics, language, and other sensitive aspects could come up and result in undesirable scenarios if not understood beforehand. Hence, it is essential for both parties to acknowledge and respect the cultural background of each other.

  • Communication Issues

The core communication between both the parties can slow down or not take place at all because of differences in time zone, working hours, language, and bandwidth. Administering and resolving all the things at the right time can be very problematic at times.

  • Data Risks

Data related risks increase to a considerable extent when you outsource your software projects to an offshore agency. When outsourcing your software development project to a foreign company, you need to share sensitive data of your business. Even if you get a non-disclosure contract signed from your outsourcing partner, they can still misuse, abuse, or breach your business data without your knowledge or permission. 

  • Quality Is Not Guaranteed

Generally, many companies end up overlooking the cons of offshore software outsourcing by getting lured by the reduced time and costs. This can sometimes be risky as you may end up hiring a team having less experience or no skills. As a result, it can affect the quality of your project.

Best Practices Of Offshore Software Outsourcing

  • Have a clear idea about your niche and know the marketplace. Communicate with your potential customers and determine what features they want in the product. Learn about the current competition, and check what your competitors are doing, which technologies they are using, and which aspects of their products are being appreciated by the customers.
  • Create a roadmap consisting of step-by-step processes to reach your milestones.
  • Build sketches, wireframes, and blueprints of your prospective product by considering the future users and usage of the product.
  • Analyze what tools, technologies, skills, and capacities you would require for making your idea turn into reality. Research the outsourcing models available and choose the one which best suits your purpose.
  • Finally, prepare an in-depth specification of the project requirements as well as quality standards.

Offshore Software Models?

  • OSDC Classic

This engagement model is the most common and it includes the provision of a fully dedicated team which is headed by a project manager. Team members are selected in such a way that the overall team will have the required set of skills needed to address both the technical and business needs of your business and ensure that you get value for your offshore software development outsourcing investment. The offshore software development team will work closely with you to ensure that their design and product would be in line with your wishes and business needs. Working with such an offshore team is beneficial because it means that you can access them at any time and request for adjustments to be made to the software and also seek the team’s help in resolving any technical issues encountered during the development of the software.

  • OSDC Branded

This engagement model is ideal for the business which wants to establish and control its own development organization. There are offshore software development centers that can help with creating this structure in an efficient manner and ensure that you are shielded from operational risks. Thing of this engagement in this way, the OSDC offers a branded presence for your business and ensures that you are located in a prestigious address in the country of the OSDC’s operation. The OSDC will take care of all operational issues which will include taking care of infrastructure, addressing legal and regulatory requirements as well as dealing with human resource issues.

  • OSDC Trust

This offshore development outsourcing model is designed to address the needs of clients who require the highest levels of security or confidentiality in their offshore software outsourcing undertakings. This model is ideal for those who own sensitive projects that need to be developed in top secret facilities. If you have a proprietary software that you need to have developed, then maybe you should consider choosing the OSDC trust model. Most OSDCs offering this model of engagements often ensure that the team assigned to a customer who has chosen this model work exclusively for the customer and work from a confidential location away from the offshore software development center. The team working under this model are contractually forbidden from exposing the details of the project to any member who is not part of the offshore software development team.

As a rule of thumb, you are highly advised to choose the offshore software outsourcing model that fits your project specification and budget. As would be expected, OSDC classic is the most common and also the most affordable of the three offshore software models followed by OSDC branded and finally the OSDC trust.

How To Pick The Right Offshore Software Outsourcing Agency?

As there is a host of offshore software development agencies across the globe, choosing the right one can be a challenge. Here are some simple yet useful tips for picking the offshore outsourcing company that suits your purpose:

  • Ask For Reference

Never feel shy to ask for suggestions and references. You can’t even imagine how advice and recommendations given by others can help you in your search process. So, consult your peers and associates who have already outsourced their software development projects to offshore companies.   

  • Contact Multiple Companies

Determining which offshore outsourcing company to choose takes effort and time. One of the best tips is contacting multiple agencies and comparing what they offer. Check which outsourcing agency suits your requirements and objectives and take an informed decision. 

  • Do Not Take Decisions In A Rush

It is effortless to get lured by the polished portfolios of the outsourcing companies and make a decision hurriedly. Avoid doing this. Do some research about your prospective offshore outsourcing companies. Check their website and social media profiles and verify credibility. You may also go through the reviews and ratings posted by their past clients.

  • Check For Experience, Expertise, And Certifications

It is essential to check the experience of your prospective offshore outsourcing company. You should also find out the technologies it specializes in and the tools used by it. In addition to this, you should also consider checking for relevant certifications before taking your final decision.

The Final Words

In this era of technological advancement and globalization, offshore software development outsourcing has become one of the core business choices of many firms. However, there has always been a debate regarding the actual relevance of offshore outsourcing. According to many experts, the vulnerabilities related to different time zones and languages tend to be too large to entrust critical business responsibilities.

Moreover, facing a massive bill with hidden costs is no shock when outsourcing software projects to a top offshore software development company. Overall, the actual cost of offshore software development outsourcing often tends to be higher than the hourly rates. Hence, you should choose your offshoring agency wisely to prevent pitfalls and yield a good profit from the deal.

Saigon Technology, with more than 10 years offering offshore software development services to clients worldwide, definitely an ideal candidate for your offshore software projects.

As a Leading Vietnam Software Development Outsourcing Company, we dedicate to your success by following our philosophy:


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