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A complete guide to offshore software development

Gain an understanding of what offshore development entails, how it works, its benefits and drawbacks, the countries that are commonly used for offshore software development, and the associated costs.

Talk to Jeroen, our Accounts director, to see if our offshore ready-to-code dev teams are a fit for you.

Looking for guidance to offshore software development
Offshore software development is a valuable resource for companies looking to expand their technical team or launch new development projects. In 2021, the market for offshore software development reached $526.6 billion and is expected to continue growing in the future.

To give you a better sense of what offshore software development is, we have put together a comprehensive guide. 

What is Offshore Software Development?

Offshore software development is a business process outsourcing method where a company outsources some or all of its software development to developers located in another country.

For this, companies either hire individual freelance developers or an entire development team through a dedicated company. Offshore software development companies typically have teams of software engineers and developers that can serve as an extension of a business.

Whether for a specific project or on an ongoing basis, offshore software development is an efficient way to quickly scale without the need of hiring and training employees.

How is Offshore Software Development different from Onshore Development?

The difference between onshore and offshore development is quite simple: 

Onshore software development refers to the practice of hiring contractors that are based in the same country as the hiring company. This results in similar business practices, hiring costs, and data policies. 

Offshore software development companies are based in a different country, which is often what enables them to offer lower costs. 

For a more detailed overview, read our blog post on onshore versus offshore development.

The benefits of Offshore Software Development

There are a number of proven benefits to offshore software development:

The challenges of Offshore Software Development

Offshore development is a common practice among software companies, but it can also come with certain challenges:

Time zone differences

When working with teams located in different time zones, you may need to rely on asynchronous communication, which can take some time to adjust to. However, once a good rhythm is established, the process should feel smooth.

Cultural influences

Another aspect to consider is that different countries may have different working and communication styles, which you’ll need to adjust to, depending on where you choose to outsource your software development.

Less control over hiring

Some offshore providers may try to increase their profit margin by hiring lower-priced engineers, which can negatively impact the quality of their work. It is important to find a provider that can be trusted.

To learn more, you can visit the article on these challenges of outsourcing software development offshore and how to tackle them.

When is the best time to get Offshore Software Development?

The best time to hire an offshore software developer depends on your business needs and requirements. However, it may be beneficial to consider hiring an outside team if:

  • Your projects need specific expertise that you don’t have in-house, consider hiring offshore talents.
  • Your startup needs to quickly scale its technical capabilities.
  • You want to add new features to your software without disrupting the current tasks of your in-house developers.
  • You have a limited budget but still want to compete in the market, by hiring teams from countries like Nepal and India, where you can access top-notch resources at a low cost.

Different steps involved in Offshore Software Development

Here are the basics steps to follow when starting with offshore software development teams: 

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The best countries for outsourcing Software Development

There are various countries worldwide that offer offshore software development services at competitive rates. Five of the 10 most popular countries for this type of work are:

Nepal 🇳🇵

Nepal has a comparatively low cost of labor, making outsourced software development relatively inexpensive at an average rate of $25 to $40 per hour.

The country also recently revitalized its education systems to prioritize digital skill sets. More than 5,000 university graduates go into the tech and business process outsourcing sectors every year. 

5 tips for hiring Offshore Software Developers

Here are 5 top tips for making sure you get it right when working with offshore software developers:

The cost of Offshore Software Development

The cost of offshore software development can range from approximately $25 to $200 per hour. However, rates will vary depending on several factors such as 

  • the location of the company
  • their technical expertise
  • the type of support they provide
  • the risk level associated with a particular project

Companies considering hiring offshore developers should review and compare rates while keeping in mind the services that are included in each offer. Check out our guide to offshore software development rates by country and technology.

Offshore Software Development by Proshore

Proshore is a leading provider of remote software development teams based in Nepal (south-east Asia), with over a decade of experience in the field. The company delivers cost-efficient solutions by utilizing the skills of its highly skilled employees.

These employees are well-versed in popular frameworks and methodologies such as Scrum and Kanban, which enables them to smoothly integrate into DevOps environments and multidisciplinary teams.

Proshore offers a unique ‘ready-to-code dev teams’ model, which starts with understanding the client’s needs. This approach allows us to take ownership in managing developers, processes, and outputs such as milestones and deliverables.

This approach enables clients to concentrate on their business strategies while Proshore ensures a smooth development process and the final deliverables meet high-quality standards.

Babish & Jeroen
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