What is offshore software development?

June 18, 2021

Tags: Managed Teams



By now, we have talked about outsourcing multiple times. What it is, and why companies choose to hire a third party to manage certain specific tasks or projects instead of doing that themselves.


If you think about outsourcing, and the many things companies can outsource, you’ll eventually land upon offshore software development, one of the most popular types of outsourcing.


In simple words, software development outsourcing is just that: Outsourcing the task to create, develop and deliver software to a third company or provider, since your own enterprise can’t or doesn’t want to take on the project by itself.




As statistics show, software development outsourcing is one of the most common types of outsourcing, with over 64% of companies choosing to outsource their software application development processes, according to statista.


This statistics shows two very important things: One, more and more enterprises are looking to outsource their software processes, and two, there are more and more outsourcing software development companies competing amongst each other everyday.


Keeping that in mind, if you’re an enterprise that is interested in contacting an outsourcing software development company, you might want to sit down and take some time to understand what exactly offshore software development is, and how it can benefit you.


What is offshore software development?


We know developing a software isn’t an easy tasks. It takes time, effort, money and a lot of people to deliver a great software application. So, when faced with the need to create such a project, companies can choose between outsourcing, or ding the job in-house style.


Now, in house refers to the typical way of contracting a team of software developers that will work with you, in your own company, and will become a regular part of your workforce.




But, if you choose to outsource your software development process, you can go for either nearshore solutions or for offshore software development. Trust us, they might seem similar, but they are different types of outsourcing.


Nearshore software development is based on the concept of working with a nearshore company that is relatively close to yours. Meaning the provider isn’t necessarily on your country, but close enough.


Meanwhile, offshore software development is based on the concept of working with an offshore company. Meaning a software provider that could be located pretty much any country in the world.


As you can see, these two types of software development outsourcing are very similar, but yet different, specially when you consider the many benefits working with an outsourcing software development company can bring to you.




Factors to consider about offshore software development


There’s no denying software development outsourcing, specially offshore outsourcing is a great option for many companies, but there are very important factors you must consider for this to work out!


1: Don’t look to far away from home


Although it is true offshore software development opens up a world of possibilities since you can pretty much work with any company in the world, we recommend you going for an outsourcing software development company that isn’t that much far away from you.


Ideally, you would want to look for Latin america outsourcing companies. Think about countries like Panama, Mexico, Colombia and such, even Europe if you want to, just try to find an outsourcing software provider that is close enough to you so that timezones don’t become too much of a problem.




2: Consider each country’s talent pool


Offshore software development is great because there are thousands of qualified companies out there, however, be wise when picking your next software provider. Again, you’d want to look at each country’s talent pool and background.


Strive for regions like Latin and central America, which have a high percentage of IT and software companies, great education levels and overall great background for enterprises that are looking for outsourcing software development companies.


3: Don’t go for the cheapest option


This is why most people choose to outsource their software development process, because offshore is “cheap”, but that doesn’t mean you have to go for the cheapest option available. Remember, most times cheap doesn’t equal quality.




Instead, look for companies that offer great software development outsourcing solutions with reasonable and accessible prices. Compare their experience with their background and compare it to their prices and choose the best one for you.


Trus us, a great software development projects cost money, and even when we are able to offer a great price, software development isn’t a cheap process, but it is completely worth it.


If you’re a CEO or CTO on the look an outsourcing software development company to work with, just keep these factors in mind, and we guarantee you, your software development outsourcing experience will be great.


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