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Top Benefits and Drawbacks of Offshore Software Development

Running a software project is not the most effortless process. A company needs a team of trained specialists to develop a high-quality product. With the current market’s talent shortages, searching for experts is time-consuming and high-priced. Moreover, the International Monetary Fund predicts that the worldwide lack of tech talents will reach more than 85 million. Businesses will have to search for alternatives to hiring in-house developers.

Many organizations have already opted for outsourcing software development projects. However, there are so many positive and negative reviews that one may find it hard to assess such an option properly. This article will tap into the meaning of offshoring, its advantages, and disadvantages, and recommend how to choose an offshore software development service provider.

Author: CodeLions
Date: 29 June, 2022
Time: 5 min read

The basics of offshore software development

Offshore outsourcing refers to delegating a project or particular tasks to a third-party service provider. Software development vendors’ headquarters are usually located in another country and usually another timezone.


For example, a company from the USA is transferring its project to a software development service provider in Ukraine.

Key pros and cons of choosing an offshore software development

Most common benefits of offshoring

Offshore software development enables outsourcing to any location across the globe. A company can choose its best fit according to its business needs. Let’s take a closer look at the most common reasons for organizations to turn offshore:


Cost-cutting. Companies can eliminate all the operational expenses related to the hiring process (hiring an internal recruiter, advertising, training costs, etc) and minimize such additional expenses as office rent, insurance payments, etc. Moreover, specialists in developing countries usually have lower pay rates than in American or Western European regions and offer high-quality services.


The pool of tech talents. With the ability to hire people from around the world, companies receive access to a wide talent pool. What's more, experienced specialists can not only tackle certain products, services, and activities, they can help your in-house team to learn and adopt practices.


Better scalability. Offshoring helps to scale resources due to one’s needs. For example, if the workloads are getting bigger you can ask the offshore vendors to involve more specialists.


Availability of the latest technologies. Small companies do not usually make large investments in the newest technologies due to the high costs. However, offshore service providers always stay up-to-date with the latest innovation to ensure the quality of services. Thus, a company that hires offshore software vendors ends up with the polished procedures, finest strategies, and trendiest technologies.

Top drawbacks of offshoring

Apart from numerous benefits, offshore software development has a few drawbacks. Here are some of them:


Time zones. The difference between time zones can streamline the non-stop working process. For example, an in-house team works on a task and then leaves it for an external team to test and fix the bugs. On the other hand, when working hours are not overlaying, it is hard to have a meeting with both teams which leads to misunderstandings and an increased amount of reworks.


Regulation differences and data security. The laws on data security may differ in the country of your offshore service provider. And even if all the security-related issues are settled, no company can guarantee 100% protection against cyberattacks.


Cultural differences. It is hard to maintain effective cooperation with people with different values. Thus, before hiring a team have an interview with them to make sure they have a like-minded culture and similar work ethic.

Searching for an offshore development partner

As described above, working with offshore software development companies has its advantages and disadvantages. So what are the main things to consider before turning to an offshore services provider?


Lay out all your requirements, consider what is the goal of your project, what type of specialists you will need, and define your budget. After you have a clear understanding of what you need, start looking for an offshore development partner. Get to know your potential partner, look for case studies, reviews from previous customers, rankings on specialized websites, including Clutch and GoodFirms, etc.

Key takeaways

Companies turn to offshore software development for many reasons such as lack of talent in their country, decreased costs of offshoring offers, improved scalability, and more. However, with all the benefits there are still some disadvantages to this outsourcing type.


Have some questions about offshore software developers? Want to hire top-notch developers? Contact us today and we will gladly help you!

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