A complete guide to offshoring software development

In our post-pandemic world, customer-focused digital transformation has become even more of a
non-negotiable for businesses that want not just to survive but thrive. In the IT industry, offshore refers to the practice of contracting a software development team located in a different country to build software products for a company. This practice is often employed to access specialized expertise, reduce costs, and improve efficiency. Companies like Code Ninja Consulting offer offshore software development services with transparent pricing and no hidden charges. They provide flexible pricing models that suit various business requirements, including time and material, fixed cost, and dedicated team models. Company B is a small business that provides a mobile app for tracking and managing inventory.

  • Moreover, for such positions as project manager or business analysis specialist, a high level of business English is a de-facto standard of professionalism, regardless of the country.
  • This can be assessed through initial conversations, email exchanges, and any available references or testimonials.
  • Show the MVP to your investors, get funding, and hire an in-house team if that is what you need.
  • We mean technologies to use, and specialists to hire (e.g., designer, developer, etc.).
  • Offshoring development ensures that your product reaches the market faster and on time.
  • The average rate per hour is $25-46 with a time difference of 7 hours from the US.

As a top-tier enterprise mobile app development company, we’ve
worked with many leading technologies since their inception. That means
you get a superior level of experience, talent, and skill sets devising
and deploying your mobile app (iOs, Android, cross-platform) for
optimized UX, performance, connection, and conversion. Offshore software development refers to the practice of hiring a software development team located in a different country to build software products for your company.

Offshore Web App Development in Smart Cities

In popular offshoring locations, processing centers are often pitted against one another in the war for talent—a battle that often results in higher wage and recruitment costs for delivery centers. A diversified location portfolio acts as a buffer against talent shortages while expanding access to a broader range of business, technical, functional and domain skills, languages, and other competencies. India, for instance, remains a top offshoring destination because of its reputation for low-cost, high-quality talent. Yet markets such as Egypt, South America, and Southeast Asia have been on the map for some time as viable offshoring locations. For scale-oriented delivery services, their comparable cost and risk structures make them attractive alternatives to heavily penetrated countries like India (Exhibit 2). By tapping into nontraditional destinations, companies may succeed in achieving a comparative cost advantage versus the competition.

offshoring application development

Depending on the requirements, engagement, and pricing models, the above charges may vary. To find out the actual outsourcing rates, you need to directly communicate with the vendor. Andy is a technology & marketing leader who has delivered award-winning and world-first experiences. You can choose the location best suited for your budget and project requirements using the pricing guide above.

How to Outsource App Development Properly in 2023

Figuring out where you should look for offshore development companies can be confusing. Offshoring usually means you have an offshore team working in a different country and time zone. By offshoring the web development process, you can ensure your site is always functioning at its peak. You can take further advantage of time zone differences to take care of any user-reported bugs during off times.

Clarifying the key cost, performance, and location drivers at the outset helps these companies reduce the risk of offshoring and improve their sourcing choices. Companies that plan carefully put themselves in the best position to maximize the return on their offshoring investment. So if you find yourself spending offshore software development benefits more than you would be for an in-house team, maybe you need to relook the entire pipeline. You can gain this insight into your offshore project by using software like Time Doctor. It’s a time tracking and employee productivity tool that helps visualize how much time each team member spends on a single task.


Compared to other offshoring locations, European countries promise a high level of English fluency. Additionally, most countries have experience in offshoring, which can help you, especially if you’re new to the practice. Now that you know how to manage the relationship with your offshore partner, let’s look at some possible locations you can establish one. For instance, the number of IT specialists and developers in Germany is 837,000, more than those in California (628,414) – the biggest IT hub in the States.

offshoring application development

Whatever approach you take to QA, it’s important to establish clear rules for feedback, bug fixes, improvements, and testing. Choosing the right App development partner is not a decision you should take lightly. If you need to figure out how much to budget for your project, you can chat with different vendors and get price estimates based on your requirements. When creating your project brief, include this data and get input from all key stakeholders. Issuing an RFP through referral networks or to companies you find through an online search can guide you in selecting a partner.

Management challenges:

As a result, development time is not only faster but more focused and high-quality. You can learn more about the benefits of hiring a development company in the Idea Maker guide to finding the perfect app developer. If you’re considering outsourcing a development team, this article is for you. Keep reading to discover how to outsource app development properly in 2022, and join the 68% of US businesses already doing so.

offshoring application development

Nearshore, in contrast, denotes the practice of delegating software development tasks to a neighboring country, typically within the same time zone. Experts predict that by 2027, this market will skyrocket to over $300 billion. Asian software development outsourcing hotspots include India and the Philippines due to the low cost of living and the growing software engineer population.

How Does Offshore Custom Software Development Work?

Consolidating core operating functions eased the oversight burden, allowing management to focus its attention on high-level issues, while enabling individual centers to cooperate on day-to-day matters more directly. Meanwhile, the decentralized spokes (the company’s network of specialized development labs) focused on developing specialist skills to enhance innovation speed and superior project delivery for high-end IT projects. As a result, it becomes important for companies to diversify on the microlevel as well. Once you have zeroed in on the right offshore software development company, you’ll be able to enjoy the many benefits of offshoring. The offshore IT development sphere offers businesses a range of opportunities, according to which they are able to save their efforts, time, and money. If you also want to save your resources and achieve good results, you can also apply to offshore IT professionals in order to obtain a completely new product, flexible and thriving on the market.

offshoring application development

Offshore software development outsourcing is advisable most of the times, but it’s always necessary to have a complete overview of the project at hand before deciding on this option. Take into consideration your desired delivery dates and how the software outsourcing company will boost efficiency in this process. At BairesDev, we are able to provide best offshore development services that only outsources to the top 1% of Tech Talent. Additionally, maintaining open and transparent communication with your offshore team can help minimize delays and ensure that everyone stays informed and on track. Begin by researching potential offshoring partners and creating a shortlist of companies that meet your criteria.

Custom Healthcare Software Development – Ultimate Guide!

We help you align your organization with the right people, skills, and services to
transform your business outcomes. The average rate per hour is $25-46 with a time difference of 7 hours from the US. But recently Ukraine is gaining an edge, especially in C++ and Unity 3D development. Large corporations may already have an in-house team but may require additional resources or expertise to complete a particular project or to meet a deadline. This deliberate choice has enabled businesses to accelerate their product launch, enhance operational effectiveness, and cultivate an environment of innovation that drives their progress. According to Accelerance Global Software Outsourcing Report 2023, in 2022, the global software outsourcing revenue reached a whopping $116 billion, representing a significant 6.3% increase compared to the previous year.

Leave a Comment

Your email address will not be published. Required fields are marked *