
Remote development
How to set up an offshore software development team
An offshore software development team is a cost-effective extension of your in-house team – discover how to set one up for success.
- Resources
- Remote development
- How to set up an offshore software development team
An offshore software development team is a group of software developers and IT professionals who work outside their client’s home country. Companies usually hire offshore teams to work on specific projects, tasks, or ongoing support and maintenance activities.
An offshore team works exclusively for one client. Because they don’t work for multiple clients at the same time, they can focus their attention and commit to one client’s needs. On top of that, their client gains all the usual benefits associated with hiring offshore software development teams.
Offshore teams are often engaged in long-term projects. They become an extension of your in-house team and work closely with you to meet project goals and objectives. If that sounds like something you could benefit from, here’s what you need to know about hiring an offshore team.
Why consider an offshore software dev team?
There are many reasons to choose an offshore development team. Here are some of the main reasons to take this approach to software development:
Specialist skills
Specialist skills
Cost efficiency
Cost efficiency
Scalability
Scalability
Faster time-to-market
Faster time-to-market
Focus on core competencies
Focus on core competencies
Reduced recruitment burden
Reduced recruitment burden
24/7 development cycle
24/7 development cycle
Risk mitigation
Risk mitigation
Predictable cost
Predictable cost
Quality Assurance
Quality Assurance
Reduced overheads
Reduced overheads
Compliance and legal obligations
Compliance and legal obligations
Global expansion
Global expansion
How do you set up an offshore software dev team?
At Proshore, we take a 3-phase approach to setting up your offshore team. Here’s how it works:

Get a customized plan that addresses your challenges
Jeroen and the team analyse your challenges to come up with a customized plan and proposal based on what you need.

Meet your new team
Your plan covers setting up team roles and tasks. Babish, our CTO, assembles the best team available from our talent pool and shares it with you for approval.

2-month trial period
Test your team’s output during a 60-day trial period. Not happy with someone? We work with you to replace them at no extra cost.

Expand or scale down
Add new talent to your team or scale down based on your goals and roadmap. No recruiting, hiring or HR paperwork.
Best practices for collaborating with an offshore software development team
For a number of reasons – including different time zones, language barriers, and cultural differences – collaborating with an offshore team can be challenging.
Here’s a table of best practices and advice for getting collaboration right:
Keep communication clear
Keep communication clear
Set clear expectations
Set clear expectations
Have cultural sensitivity
Have cultural sensitivity
Schedule regular check-ins
Schedule regular check-ins
Use collaboration tools
Use collaboration tools
Maintain documentation
Maintain documentation
Empower the team
Empower the team
Provide access to resources
Provide access to resources
Have a single point of contact
Have a single point of contact
Foster a collaborative culture
Foster a collaborative culture
Give feedback and recognition
Give feedback and recognition
Address issues promptly
Address issues promptly
Quality Assurance and testing
Quality Assurance and testing
Data security and compliance
Data security and compliance
Continuous improvement
Continuous improvement
The challenges of working with offshore software development teams
There are challenges with any type of offshore software development. These also apply to hiring offshore software development teams.
Here are some common issues to consider:
Communication barriers due to time zones and language differences.
A lack of face-to-face interaction hinders relationships and trust.
Misconceptions arising from different work cultures and expectations.
Quality Assurance difficulties lead to inconsistencies in coding quality.
Concerns about data security, intellectual property protection, and compliance.
Limited visibility of offshore team activities and progress.
Integration challenges in merging offshore and onshore teams effectively.
Turnover of developers in offshore locations, impacting project continuity.
Risks of misalignment in goals and expectations.
Legal and compliance issues – and possible disputes – around contracts.
The good news is that by hiring an offshore software development team from Proshore – a trusted and experienced provider of ready-to-code tech talent based in the Netherlands and Nepal – you can avoid these pitfalls and overcome potential issues.
FAQs
When should you get an offshore software development team?
Companies typically consider using an offshore team when they require specialized skills not readily available in their local talent pool; they need to reduce development costs whilst maintaining quality; they need scalability for fluctuating project demands, or aim to accelerate project timelines by adding capacity via a remote workforce.
An offshore software development team can be beneficial for long-term collaboration, allowing you to focus on core business activities while entrusting technical development work to experts. This can be an advantage when you are looking for specific software development skills at a competitive price.
What’s the cost of hiring an offshore software development team?
The cost of hiring an offshore software development team depends on a number of factors. The following table shows the main factors impacting cost:
- Location
Different roles within the offshore team – such as developers, project managers, and Quality Assurance engineers – have different hourly rates. - Expertise and skill level
Rates vary based on the expertise and skill level required for the project, with more experienced professionals commanding higher rates. - Technology stack
Specific technologies or programming languages may require specialized skills, impacting the cost of hiring developers with expertise in those areas. - Role and responsibility
Different roles within the offshore team – such as developers, project managers, Quality Assurance engineers – have different hourly rates. - Contract type
Pricing models can include hourly rates, monthly retainers, or project-based fees, affecting the overall cost structure. - Additional expenses
Costs beyond hourly rates – such as setup, infrastructure, software licenses, and ongoing operational expenses – also need to be considered. - Cost Savings vs Quality
Balancing cost savings with the need for a highly skilled team is essential to ensure project success and value for investment.