Offshore Software Development: A Complete Guide

When you hear or read the word “Offshore” for the first time, don’t wonder for yourself, it simply means outsourcing. The word Outsourcing refers to getting your business operations done remotely by other people.

Although, many people still believe that offshore development services cost less and are risky. But that’s not true. If done with diligence, offshore development outsourcing can be very helpful.

In fact, it is one of the leading service types opted for by millions of people across the globe. And Vietnam is the source hub of offshore software development. So, in this article, we’ll provide you with a complete guide on Offshore Software Development following the outline below:

I. What is Offshore Software Development?


Offshore software development refers to the development of software by a third-party offshore development agency or by a team of freelance software developers.

Such agencies offer offshore development services like software development, web development, mobile app development, and web app development.

However, the outsourcing work can be done in two different offshore development models.

  • Lending the project to the individual developer or an agency.
  • Delegating the whole project or only certain parts.

When it comes to delegating certain parts, then a freelance developer can be a good option.

But when it comes to lending the whole project, then there is nothing better than handing it over to an agency (third-party offshore development agency).

This is because a Freelancer might be an expert in a certain field, let it be UI/UX design, back-end development, front-end development, Unity 3D development, etc. But he can’t be an all-rounder.

So, providing them with more particular requirements is a good option.

But when it comes to lending the whole project, then a third-party offshore development agency is proved to be a more stable and reliable option.

As there will be a lot of experts from different required fields. For instance, in an offshore software development agency, there will be a bunch of UI/UX designers, Front-end developers, Back-end developers, project managers, and quality analysts. Besides offshore development let’s join us to discover more about the other terms in the field of outsourcing services.

II. Nearshore vs. Onshore


Not to be confused with the different names, all these terms share the same business perspective.

The nearshore software development agency is as same as the offshore software development agency. The only difference lies in the proximity.

A nearshore software development agency might be in the same time zone or a neighboring country sharing the same work ethic and culture.

An onshore software development agency means the company is situated in the same country.

Now, there is one more popular term for outsourcing: smart sourcing. In smart sourcing, approach companies are delegated with the division of tasks, usually non-core operations.

III. Pros & Cons of Offshore software outsourcing

what are the pros and cons of offshore software outsourcing 1


  • Cheap – Due to the low cost of living in developing countries other than developed countries. Offshore software outsourcing is a cheap option to opt for.
  • No administration cost – Offshore development companies take care of their employees very well, as they must stay competitive and right on top of the slot. So, less operational and administrative costs. Hence, no need to worry much about office space and equipment purchases.
  • Boosted Development – Offshore development companies manage and share the risks of working on projects. They perform very professionally and precisely, as their results depend on it. Thus, resulting in a development boost.
  • The Benefit of Competent Skills – In most cases, offshore development agencies have multitalented employees. Most of them have skills in one or two specific areas as well. So, combining competent and specifically skilled employees results in better and quicker task management.


  • Communication issues – The biggest disadvantage is having a different time zone. This results in slow and poor communication and mismanagement.
  • Major Cultural gaps – Due to different time zones and different geographical locations. Both parties have to suffer from major cultural gaps. There might be a scenario where one party has a national holiday in the country, whereas the other has a working day.

IV. Tips for choosing the right offshore development firm.

As there are thousands of offshore development companies out there, it becomes extremely essential to choose the best and the most reliable one for you.

The best and oldest way to confirm is to ask for references.

Find out the company’s past clients and ask them about their experiences and impressions. It would be even better if you look for current clients, as there will be a bare and raw image of the company in front of you.

But what else? Well, homework is also important.

Deciding on which offshore software development company to opt for, requires time and effort.

A good tip is to contact several other companies and compare what they offer. By this, you’ll get a fair amount of ideas on which one to choose and which not.

V. How to work with an offshore software development partner?

  1. Set your own quality standards – It’s extremely important to set your own desired quality standards, before opting for any offshoring agency. This provides you with the best value for your buck. Keeping the record on quality measures you desire help you make the right decision.
  2. Negotiate prices and set deadlines – Before proceeding with any offshoring development services, it is recommended to negotiate prices with developers and set deadlines, if possible. This will help both parties to maintain an equal amount of trust and smooth workflow. If pricing is set, then delivering work before deadlines and on-time payments to the offshore outsourcing development firm will surely keep both parties happy and satisfied.
  3. Always Communicate and track progress – This is the most important tip before hiring any offshoring agency. Good communication always results in the best-delivered value. So, it is recommended to opt for the daily end-of-the-day or weekly offshore development process reports.

VI. Why do you need Offshore Development for your business?


In recent days, various IT teams still take advantage of offshore development resources due to the fact that they need to enhance their knowledge from the other talents with respect to the working method and the ability to fulfill client requirements (within the small-and-medium enterprise). In terms of big companies that have exceeding financial resources, the offshore development process helps them to reduce the scope of work and more concentrate on their core business goals.

Moreover, the cost is inevitably flexible these days and there are numerous suppliers of offshore development services when it comes to the outsourcing process that is suitable for projects when the internal team has not been established or does not want to spend much money to research and improve their talents.

In general, this was all regarding A Complete Guide on Offshore Development.

At TECHVIFY – an offshore software development Vietnam, we build all the resources to meet your offshore development project requirements. We have a team of dedicated developers, who are ready to pursue perfection to the best of their abilities. Make sure to follow this guide before proceeding with any offshoring software development company.

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