offshore software development

Offshore software development is when a company outsources its software development to another country. Outsourcing has been popular for over two decades, but the trend has recently shifted toward software development.

Such a development process can help companies save money on labor costs and improve their bottom line. With a strong plan and seamless functioning, you can ensure that your business gets the most out of offshore development. 

This blog covers offshore outsourcing software development and how it can benefit your business. 

What is Offshore Software Development?

offshore software development

Offshore software development is an approach to software engineering. In this process, the work of writing and maintaining the source code, testing and bug fixing, documentation, and other tasks involved in the development of a software product or service are performed at one or more locations outside a company’s headquarters.

Offshoring software development is not new; companies have used it since the 1980s to reduce costs. However, in recent years it has become more common as companies look for ways to reduce costs without sacrificing quality. Click To Tweet

It is a cost-effective way to get your project done. Using offshore software developers, you can save money and get your product or service up and running sooner. But many factors can affect the success of your project. Thus, you need to consider everything before choosing an offshore company.

The offshore software development industry is predicted to be a $397 billion global market by 2025. Companies are constantly looking for ways to reduce costs and increase efficiency. Outsourcing software development is one of the most effective ways.

Offshoring has undergone several phases since it first gained popularity in the early 1990s:

  • At first, offshore outsourcing was done primarily by large corporations with vast resources like Intel and GE. These companies used offshore outsourcing to reduce costs while maintaining quality control over their products and services.
  • In 2000, more than half of all Fortune 500 companies had operations in India alone.
  • By 2005, that number had increased to 95 percent of Fortune 500 companies. They have some presence in India or China for their IT services needs.
  • In recent years, however, there has been an increasing focus on small and medium-sized businesses using offshore software development as part of their business models. 

How Does Offshore Software Development Work?

In offshore ousourcing, the client company decides on the project requirements and specifications. It then develops a detailed plan for how the project will be implemented. The client company also sets up an account with the offshore developer through which payments are made. Along with this, progress reports are received. Developers do the actual work at one of many international locations where an ample supply of educated workers is available at an affordable cost.

Here are five steps that you should follow when outsourcing your software development needs:

how does offshore software development work

1. Find the right offshore development partner

You must find a company that offers offshore outsourcing services with high-quality work and competitive prices. You can do this by researching different companies and checking their portfolios and reviews posted by customers on their websites.

2. Define the scope, timeline, and budget for the project

The scope is simply what you want to achieve with this project. It should be defined in terms of specific features that you want to have in your product or service or any other requirements.

Define the timeline. It can be anything from a couple of months to years depending on the complexity of your requirements and the number of developers involved in the project.

Next, the budget is about how much money it will cost for you to develop this software application or website. Again, this depends on many factors. These include complexity and scale of your requirements, number of developers involved in this offshore development project etc. 

3. Create detailed specifications for your product or service

This is the most crucial step in the offshore development process. You must provide an exhaustive list of features you want your product or service to have. This document will serve as a blueprint for developers. It should include everything from the minor details to the most significant aspects of your project.

You can create this document yourself or hire someone else to do it for you. If you choose to write this document yourself, make sure that it is written clearly and concisely so that developers have no trouble understanding it.

4. Receive regular updates on ongoing projects

The most important thing about offshore software development is that it’s not a one-time project. You’re working with a company in another country, and you need to understand what they’re doing every step.

If you don’t receive regular updates, you could end up with a product that doesn’t work as well as it should, or even worse, one that doesn’t work at all!

To keep everything running smoothly and ensure your offshore app and software development company is delivering what it promised, it’s essential to provide them a communication channel that eases the process of sharing project updates.

5. Create a dedicated project manager

A dedicated project manager is essential to manage the offshore development project. This person is responsible for the entire project, not just one aspect of it. The project manager must be able to communicate effectively with all parties involved in the process and have a strong background in project management.

They usually report directly to the client or a senior member of the client’s staff. The manager will have authority over other members of the team and should have access to all resources required to complete the task at hand.

6. Clear and Regular Communication

The offshore outsourcing process can often be lengthy and complicated, especially if multiple people are involved. This can make it difficult for everyone involved to know exactly what is happening or when something should be completed. 

To avoid problems arising from miscommunication, you must communicate clearly and regularly with all parties involved in your project. This means keeping them informed of progress and ensuring they understand precisely what they need to do before any new tasks are assigned.

Why Should You Consider Offshore Development?

Offshore software development is a powerful tool for companies to leverage the benefits of outsourcing. It allows you to focus on your core business. Simultaneously, you are letting experts overseas handle the repetitive tasks that are not part of the company’s core competencies.

Here are its six benefits:

why should you consider offshore software development

1. Cost and time-efficient 

The primary benefit of offshore outsourcing is its cost-efficiency. Compared with local in-house developers, offshore developers are less expensive due to lower wages and living costs in developing countries like India and China. This cost advantage enables clients to save up to 30% on their expenses when hiring offshore developers over local ones.

Time efficiency is another significant benefit of such development. Since most offshore developers are well versed in english language skills and technical expertise, they can complete projects within stipulated deadlines without any delays or complications. In addition, their flexible working hours enable them to work around your schedule so that you never miss out on any critical deadlines associated with your project completion requirements.

2. Access to global talent

The world’s best developers are not located in one country or region; some may be available right next door but don’t know yet. The process allows you to tap into this global talent pool and find the right fit for your project — no matter where they live!

Outsourcing your software development means you have access to a much wider talent pool than you would if you were only hiring locally. This is especially true in emerging markets like India, with abundant talented developers at affordable prices.

3. Access to International Market 

When working with an offshore team, you can have a product on the market in weeks or months. That’s unheard of with an in-house team, and even with co-located teams, it’s not easy to get a product out that quickly.

Whenever a new technology or device comes out, it’s necessary to stay up-to-date with all the latest trends and developments to stay ahead of the pack. While it would be great if everyone could spend their time focused on their core business, this isn’t possible in today’s fast-paced world. 

The only way for many companies to keep up with these changes is by outsourcing work to another company that can dedicate more time and resources towards specialized tasks such as app development or website maintenance while focusing on improving their core products or services.

4. Scalability 

You can have an entire team of developers working on your project without worrying about one location’s physical limitations. This gives you more flexibility in choosing a place for your business and ensures that you can take advantage of cheaper labor costs in other countries.

If your business is growing fast, moving some of your operations overseas may make sense to keep up with demand. Outsourcing your software development will make this possible if you need more resources or additional staff members. 

You’ll also be able to control costs better by using an offshore development team rather than hiring local employees who will require salaries, benefits, and other expenses that could increase overhead costs significantly.

5. Expand your reach

If you have an international client base, developing your software in a foreign country is a great way to get it into their hands faster and cheaper than if you were to outsource it to a domestic developer.

Additionally, outsourcing your development can give you an edge over the competition if you’re trying to grow your business in a new market. You might not have the resources to hire someone locally who knows the language and culture of your target market. But, if you find an offshoring company, they can build something that fits into the local community better than anything produced internally.

6. Shared Responsibility

In onshore software development, you’re responsible for every aspect of your project from start to finish — from initial planning through implementation and maintenance. With an offshore team, however, you can delegate some responsibilities to them so that you only have partial responsibility for certain aspects of your project. 

For example, if you choose a DBA team to handle database management for you instead of doing it yourself, then this frees up time for you to focus on other areas of your project such as design or development. This can be especially beneficial if your team has limited resources or funding; outsourcing some tasks may be necessary in order for them to get everything done properly without sacrificing quality or spending too much time working on things like database administration when they could

Common Challenges in Offshore Development

The offshore development process is complex, and it can be challenging to keep track of all the different aspects involved.

Here are some of the most common challenges that companies face when outsourcing their development projects:

1. Time zone differences

Time zone differences can make it difficult for teams in different parts of the world to stay in sync during work hours. Managers need to set clear expectations about when they expect specific tasks will be completed so everyone knows what to expect from each other — even if that means working outside regular business hours for some team members.

2. Cultural differences

Another challenge is cultural differences between teams from different countries. This can lead to different problem-solving approaches, which can negatively affect productivity levels.

3. Communication issues

When you have a team working remotely from one another, it can be challenging to keep them on the same page. Miscommunication is an issue many companies face when outsourcing their projects, and this issue can be made worse by cultural and time zone differences.

How to Overcome the Challenges of Offshore Development?

In the world of offshore software development, there are many challenges to overcome. The most important thing is to know what to look for when choosing an outsourced development partner.

If you’re looking for an offshore software development company, you need to ensure that it’s capable of providing you with the quality product and services you want. An excellent way to test this is by asking about their industry experience and how they handle specific situations like crisis management, security issues, and more.

Below are some other things to consider when looking for an offshore development partner:

1. Be upfront about your requirements

Before starting any offshore development project, you must clearly know what you want from it. This means defining your requirements in detail so that there are no misunderstandings later down the line. If possible, try using wireframes or mockups so that both parties know exactly what they are working towards (see our blog post on wireframes here).

2. Use a dedicated project manager

Using a dedicated project manager who understands both sides of the fence is important and can help you make decisions quickly. This person should also be able to communicate effectively with your team members, so they can understand what’s being requested of them and why it’s necessary.

3. Choose an experienced provider

When choosing an offshore provider, look for one with experience working with companies like yours. The more experience they have, the better they will be able to understand your business and ensure that your project will be successful.

4. Have an open line of communication

You need to be able to speak freely with your team and know you’ll get an answer right away if you have questions or concerns. That’s why choosing a company with offices in the U.S. is important, so they can respond quickly when you need them to and understand what you want from the project.

5. Get references from previous clients

Before hiring a company for your project, make sure they have worked with companies similar to yours in size and scale. This way, you’ll be able to get a better idea of how they will handle your project and if they will be able to meet your needs.

How Can Idea Usher Help You in Offshore Software Development?

Idea Usher is one of the leading offshore software development companies in India. We have worked with all ranges of businesses for the last ten years and have helped them succeed in their ventures.

We are a team of 250+ dedicated professionals who can help you develop your ideas into successful products. Our team has experience in developing web & mobile applications, e-commerce portals, custom software development, blockchain development, and other software solutions for different business domains.

Idea Usher has years of experience in various domains and technologies. The offshore software developers are highly skilled and are proficient in building custom software applications using the latest technologies to meet your business needs. They can also help you with project management, product development, application maintenance, and more.

We have been working with a wide range of clients from different industries such as e-commerce, healthcare, travel & tourism, education etc., helping them in building mission critical applications that are scalable, secure and full-featured.

We follow Agile methodology for project management, which helps us deliver projects on time and within budget. Our skilled developers follow best coding practices with the latest techniques to deliver high-quality software within a stipulated time frame.

Idea Usher’s offshore services include:

  • Software Development and Testing Services
  • Software Maintenance and Support Services
  • Mobile Applications Development Services
  • Custom Web Development Services

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Wrapping Up

Offshore software development can be a beneficial option for small businesses, particularly startups. It has the power to streamline and grow your business, and it brings you closer to markets in other countries, which is always a good thing. 

With offshore software development, you can access a wide range of technical skill sets that would be difficult for any organization to acquire on its own. You don’t need well-established teams with years of experience in developing certain types of applications or technologies; instead, all you need are individuals with specific technical skill sets. 

And that’s precisely what we are offering you here at Idea Usher!


Q. What is an offshore software development company?

A. An offshore software development company is a company that provides services to other businesses and organizations. The term “offshore” refers to the location of the business. It may be outside of the country where the customer is located.

Q. What is an offshore project?

A. An offshore project is a project that is located outside of the United States. The term is generally used in business and IT projects, but it can also apply to any work or endeavor (such as an art project or a concert tour).

Q. What is offshore engineering?

A. Offshore engineering uses offshore structures to create a platform for businesses, jobs, and economic growth.

Q. Where can I find an offshore development team?

A. When you want to hire an offshore development team, it can be not easy to find the right fit. There are many factors to consider, including your developers’ location, experience, and cost.

Here are some questions to ask when looking for an offshore partner:

  • What is your background?
  • How long have you been in business?
  • Who will be working on my project?
  • What languages do you know?
  • What is your rate?
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