A Beginner’s Guide to Offshoring Software Development

Last Updated on 2025-03-19

Offshoring software development can dramatically cut operational costs and open up incredible opportunities for a business to scale. However, offshoring itself is a tricky process to navigate, especially if you’ve never done it before. That’s why it’s important to study the process beforehand.

In this entry, we’ve created a guide for business owners on how to offshore software development safely and correctly. We will weigh the pros and cons of offshore software development, how to get started with it, and what to prepare beforehand. We’ve compiled some helpful tips so you can successfully venture into offshoring.

Why Offshore Software Development?

Each business is unique in its productivity, functionality, performance, goals, and approach. With such individuality comes specific challenges requiring specific solutions. And more often than not, creating and using custom-made software is one way to combat internal problems. Likewise, building software to sell is also a highly profitable venture.

Of course, with something as complicated as creating new software comes a hefty price tag. Depending on the project’s scope and the tools necessary to use, software development costs can go as high as $250,000. And traditionally, one of the major expenses with each project is your software development team itself.

If your company is still growing and lacking specialists and resources, offshore software development is the best option to consider. It not only cuts down costs but also lets you access a wider talent pool. For years and years and years, companies have been using offshoring to lighten their workload and cut down on expenses.

Here are some reasons why companies offshore software development:

1. Cost Reduction

Compared to the home country, the cost of producing goods and services offshore is considerably lower. The lower cost applies to both labor salary structure and infrastructural costs.

2. Access to A Wider Talent Pool

Throughout recent years, the US has struggled with a skills gap in software development. There is a severe lack of high-level expertise and abilities among developers. Plus, there’s also a hiring fee if a company discovers a qualified candidate through recruiters. These are just some of the reasons business owners look to offshore outsourcing to offset their local talent shortage.

3. Redirection of Resources

By offshoring secondary business operations, a business can concentrate on key operations like planning, product development, and business strategy implementation. With more focus on the core operations, a business can significantly increase productivity and improve operational efficiency.

The Basics of Offshore Software Development

Now that we understand the purpose of offshoring software development, let’s further discuss how to make it happen.

Offshore software development is the process of outsourcing the software development process to a company or individual located in another country. But before choosing the right offshore partner, entrepreneurs must fulfill their end of the bargain. Here are some tips on how to do that:

1. Define your project scope and requirements from the start. This will help you weed out companies that aren’t a good fit for your project.

2. Do your research. Make sure you understand the culture and business practices of potential offshore partners before signing any contracts.

3. Have realistic expectations. Offshore software development is not a magic solution to all your development needs.

4. Communicate frequently and effectively with your offshore team. This will help ensure that everyone is on the same page and prevent misunderstandings.

5. Be prepared to be flexible. Offshore software development can be unpredictable, so it’s wise to be flexible in your timeline and expectations.

Drawbacks of Offshoring Software Development

With all its benefits, offshoring also comes with as many challenges. Here are some potential problems that you should anticipate and prepare for.

1. Language Barriers. One of the main drawbacks of offshore software development is that there can be language barriers. If you’re not working with a partner who speaks your language fluently, it can be challenging to communicate effectively. This can lead to misunderstandings and delays in your project.

2. Time Zone Differences. Another drawback of offshore software development is that time zone differences can make it difficult to schedule meetings and stay on top of your project. When you’re working with a team in another country, you’ll need to take time zone differences into account when scheduling meetings and calls.

3. Cultural Differences. Another potential drawback of offshore software development is the cultural differences. If you’re not familiar with the culture of your offshore partner, it will be challenging to understand their business practices and expectations. This can lead to misunderstandings and delays in your project.

Tips for Successfully Offshoring Software Development

1. Assess your company’s capability

Before you venture into offshoring software development, truly evaluate your business needs. Software development in itself is already a costly project. So, you must carefully assess if offshore software development is what you really need.

Another thing to consider is if you can follow through with the dynamics of offshore development. Managing an offshore development team entails a whole different process and requires different protocols. It’s best to enlist the help of experienced offshoring experts to ensure everything runs smoothly.

So beforehand, answer the following items:

• What software development services should you offshore?
• Where to offshore your services?
• When to offshore?
• Who to partner with in offshoring?

2. Do the technical research

If you’re a non-technical founder, this will be a crucial step. Software development is a highly complex field, and you’ll need specialists to guide you. It helps to consult or hire tech professionals first to draw your software development plan. This way, you’ll know what kind of programming experts you’ll need, the tools you’ll use, and the overall scope of the project.

3. Partner with experts

Make sure you understand the culture and business practices of potential offshore partners before signing any contracts. There are major risks involved in overseas transactions. Accordingly, be cautious! If you’re not confident in your connections or unsure of the offshoring process, your safest bet is to reevaluate and ensure you’re working with seasoned offshoring experts.

Offshore your Software Development with Full Scale

If you need an offshore software development partner, look no further than Full Scale. We offer a wide range of services to support your software development needs. We’ve helped dozens of companies build their team and scale their operations. Contact us today to learn about our services and how we can help you with your next project.

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