November 25, 2021

Offshore Software Development: Everything You Need To Know

Hiring remote workers for your business is not a new idea.

Organizations worldwide have been trying to cut costs and maintain the same level of productivity for almost thirty years now.

Also, you probably have heard about customer support representatives and IT departments working from another country.

Offshore Software Development: Everything You Need To Know: eAskme
Offshore Software Development: Everything You Need To Know: eAskme

In essence, this is an example of out-contracted software development!

Of course, in reality, the definition is a little bit more complicated.

Many people might mix up nearshore and offshore types of employment, which are similar but still different.

This article will learn everything you need to know about this type of remote IT department!

What is remote software development?

Organizations can hire an outside party that will be responsible for their IT operations.

When the team of developers is referred to as ‘offshore,’ it is located outside of the country of the leading company.

The term ‘nearshore’ means that the contracted firm is very close to the organization that hired it.

Usually, outcontracted IT departments are also confused with outsourcing when answering the question of what is offshore software development company.

They are the same because the organizations delegate their information technology operations to a third party in both cases.

Because businesses have to be a part of a global economy, hiring a worker or a team from another country is a regular practice today.

Taking an offshore software development company under your employment can be a great way to save some finances on other operations or get to know more people outside of your city and even your country!

Where can you find a team of remote developers?

So, first things first.

When organizations decide that they want to outsource the IT department, there is a question of where to find the best specialists.

You can start with a simple Google search to understand the direction of moving further.

Usually, the best price-efficiency ratio can be received from Eastern-European teams.

It can be a good idea to know the specifics of your future project and then start looking for offshore application development.

There is usually a tight network in the business environment, so you can also ask for recommendations from other organizations.

Just remember that this is not a quick process when you want to achieve the best results!

Benefits of contracting out offshore developers.

Some of the advantages of contracting out your IT department have already been discussed in this article.

Of course, every company owner has to decide if this practice will benefit the organization in the long run.

But, especially since a lot of business is done online today, it is worth looking over the benefits of hiring an offshore IT company.

First and foremost, it is cheaper to have a remote team under your employment.

You don’t have to pay for extra office space for more workers, their equipment, and even insurance.

An offshore team means that business owners most likely will pay for the work done or after the project is completed. It depends on the contract that was signed in the beginning.

Another massive benefit of looking for employers in other countries is that you might not find qualified specialists in your town.

So why limit yourself and hire mediocre workers?

You can find the best IT experts in the world who come with their equipment!

In these cases, business owners might pay a little extra for the expertise, but it will be worth it.

One more point of hiring a company that provides offshore development services is that you will share responsibility for the product.

In other words, when you transfer the authority to an outside team, you are not losing anything.

At the same time, look into the question of ownership.

A lot of specialists want to own the end product that they created.

Risks of hiring a remote development team:


One of the biggest concerns that arise with hiring an offshore IT company is security.

Some organizations are concerned that a third party has access to all of their operations.

There are some examples where the leading company grants only some control, so the remote workers can’t see everything going on.

Of course, they don’t need to know every little thing!


Another risk of employing an offshore outsourcing software development company is that it can oversell itself during the hiring process.

In other words, what if you spent all that money and time on a team that can’t complete the project or does a lousy job?

To avoid these situations, business owners have to look for recommendations or referrals from trusted sources.

Lack of Communication:

The lack of communication can also be a big minus for bosses.

This negative side will be further discussed in this article.

But still, online messaging and not seeing your coworkers daily can be unacceptable for many people.

In this case, business owners can achieve a compromise of hiring half of the staff to work in the office and the other half remotely.

Ways of telling if the chosen company is a right fit for you:

So you decided that hiring an offshore team is suitable for your business.

But how can you understand if these developers will be a match?

After all, you will most likely conduct the interviews online without meeting any of the workers in person.

Here are some tips on tuning your search process!

  • Ask about their mission and vision statements. It’s essential to have the same business and personal values.
  • Learn about the location of the team. Are they all living in the same area? Is their office space strategically based to guarantee the best working process?
  • Has the company completed similar projects in the past? You need to decide if you want to give the workers a challenge or not.
  • What is the payout process? Will you pay for the project or for the time that was spent on it?

How to hire and communicate with your remote team?

Many business owners are worried about hiring an offshore development company because there might be a lack of communication.

Some say that online messaging is not the same as working together in the office.

Others worry that the time differences might limit the working process to only some parts of the day.

Bosses need to find a form of communication that will be suitable for everybody. Usually, a mix of instant and long-term messaging is best for a remote team.

You can discuss more pressing issues in instant chats and set goals for the future on progress boards, emails, and sprints. You can also decide what form of messaging is most appropriate, like Slack.


There are a lot of reasons to employ a remote development team.

For example, there are not enough qualified specialists in your area. In many cases, bosses have an idea but don’t know how to execute it.

Or companies try to save some money on cheaper labor and less office space.

Whatever the reason, every organization has to try everything good for the business!

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