What Is Offshore Software Development?

Offshore software development is a practice of hiring an external company or team to build software outside of the customer’s country.

The leading destinations in offshore software development are some of the Eastern European countries as well as India and China.

There are different ways to outsource software development:

  • Outsource all of the activities that are related to development and maintenance, so the offshore company will take over the building, implementation, testing and support of the application.
  • Outsource only specific modules or parts of the application.
  • Hire a dedicated team of developers and manage them.

No matter what you decide for eventually, it is important to make sure you have planned your due-diligence process properly. It may seem time-consuming and of low priority, but the truth is that if you skip this foundational step, you will face difficulties with implementing the remaining measures.


Benefits of Outsourcing Software Development

Why outsource software development? Here are some “pro” arguments:

  • Reasonable costs. If you outsource a remote team, be aware that the cost of living in their home country can be much lower than the cost of living in your home country. Therefore, a local developer would cost $100 to $150 whereas a developer in another country would cost 1/3 or 1/4 the cost of the local developer. According to our estimations, you can save up to 34 % when outsourcing than hiring in-house staff. 
  • Greater flexibility and lower operating expenses. You do not need to purchase equipment or other supplies that are required for software development. Besides, there is no need to rent office space in order to house your software development team.
  • Saved time. While the offshore company will be taking over the development, business owners will have more time to concentrate on marketing, design, content, new ideas, and other business-related activities. Besides, you do not need to spend time and resources on hiring and training new employees.
  • Covered lack of in-house experience. Outsourcing software development is profitable for countries which experience the lack of companies that work with the same technologies as you do.
  • New talents. Offshore software development provides you with access to a wide marketplace of talents all around the world.
  • Fewer risks. You can avoid risks by choosing an offshore company that has a high-quality project management system and a time-tested application development process. Also, it is extremely important to quality guarantees in advance and save the outsourced development cost.  

Offshore software development obviously requires working with a remote team, which may seem difficult in terms of management. However, the benefits definitely outweigh potential drawbacks and can bring your software development to the new level in a short-term perspective.


Following some basic rules on how to avoid confusion while working with remote developers will help you structure the outsourcing process and make it less complicated.

In the age of globalization and technological progress, offshore software development has become a key to success for many companies. If you want to increase your profits within a small amount of time, outsourcing software development can become the best option for you.

We at YouTeam make it easy and safe to find a perfectly matching team of engineers for any type of project. Over 300 vetted dev teams from 32 countries. All available to start next week.

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YouTeam Editorial Team

YouTeam Editorial Team

We love featuring verified solutions to outsourcing problems and coverage of remote work trends. We want our blog to be a source of inspiration for tech entrepreneurs and product people who are looking to build distributed development teams across continents.

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