Offshore Software Development Services 2020: best firms to hire — how to find them

To get to the bottom of the question about how to start offshore development let’s start from the very beginning and clarify what offshore programming is. Offshore software development is a practice of hiring an external company or team to build software outside of the customer’s country. Hiring a team of software developers for your project is a challenging task, especially for businesses from the United States or Western Europe. It usually takes a lot of resources to find a perfect candidate for a reasonable price. However, to speed up the process and avoid unexpected expenses, you can hire an offshore software development company.

Outsourcing and offshoring concepts are often used interchangeably. However, offshoring is rather a part of outsourcing. Offshoring involves partial relocation of a business to a distant country. The business can also be transferred to a nearby country – this is called nearshoring.

The leading destinations for offshore software development services are some of the Eastern European countries as well as India and China. Some of the benefits you can get from the top outsourcing software development companies are deep industry expertise, a proven track record of effective and innovative work, and most importantly, cost-effective offshore software development services.

Read more: The overview of the outsourcing industry in Ukraine, and the best software development firms to hire.

There are different approaches to outsourcing software development companies: 

  • Outsource all of the activities that are related to development and maintenance, so the offshore software development 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 in your offshore application development.


Advantages of Outsourcing Software Development

So what are the benefits of hiring an offshore software development companyHere are some “pro” arguments:

  • Reasonable costs. If you deal with the offshore software development company, be aware that the cost of living for the employees in their home country can be much lower than the cost of living in the country where your company is based. 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. However, the average cost of offshore software development services still greatly varies from country to country. Additionally, the rates may depend on the offshore development company itself.
  • 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 software 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, with offshore software outsourcing, you will not need to spend time and resources on hiring and training new employees.
  • Covered lack of in-house experience. Offshore development outsourcing is profitable for countries that experience the lack of companies that work with the same technologies as you do. Offshore software development firms can offer the expertise that is absent in your region. 
  • New talents. Outsourcing software development companies provide you with access to a wide marketplace of talents all around the world.
  • Fewer risks. You can avoid risks by choosing an offshore development 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.  

Working with offshore development company means you will need to deal with remote working, which may seem difficult in terms of management. However, the benefits definitely outweigh potential offshore software development risks and can bring your software development to the new level from a short-term perspective.


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

Outsourcing Software Development Companies: Important Points to Consider

Consider these key factors when working with outsourcing software development companies: technology stack, skillset, and roles. Make sure that your software outsource team can demonstrate the tech skills that you need for your project. It can sometimes happen that the team claims to be able to do everything but in the end, you get low-quality code.

  1. Track record and rankings. Before you start working with your offshore developers, you need to collect as much information about them as possible. This includes their past projects and client reviews.
  2. A country where the offshore development team is located. The location where an offshore software development company is based is important because of time zone differences, cultural differences, and price/quality ratio.

In the age of globalization and technological progress, offshore software development services have become a key to success for many companies. If you want to increase your profits within a small amount of time, hiring an offshore development company 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. Only a trusted offshore software development company can become our partner, and only vetted developers get to our talent pool. All available to start next week.

Browse the best offshore software development firms now!

Perfert team, we verify skills
Written by
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.

View all articles