Offshore Software Development Frequently Asked Questions

Offshore software development has numerous benefits to list down. But apart from traversing through the various advantages that it offers to the company that opts for outsourcing, there are multiple questions that haunt their mind while opting for outsourcing services.

So, here we list down a few questions that may creep up in your mind regarding offshore software development: 


Q1. What is software development outsourcing?

A1. Software development outsourcing can be thought of as hiring an offshore software company that handles all development chores. In such a case, the company that needs to develop software for their business considers hiring an external team for software development rather than hiring in-house software developers in their company.

Q2. How much does it cost to outsource software development?

A2. The cost of developing software may vary depending on the type of software you need and the features you wish to be equipped in it. However, it may also vary depending on the developers you are hiring and their place of residence. On average, you can expect the cost to fluctuate anywhere between 20 to 50 dollars per hour.

Q3. Why do companies do outsource?

A3. Companies prefer outsourcing their software development needs to lower down their labor and operational costs. Further, by option for the offshore development services, companies can focus on the other essential chores of the business rather than focusing on the software development needs. Besides this, there are multiple other reasons why companies prefer outsourcing. Ranging from time and cost savior aspects, lowered risks, quick scaling, network security, and similar factors, there are numerous reasons why businesses seek software development outsourcing.

Q4. Why is outsourcing bad?

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A4. Communication is a major issue that most companies face during outsourcing. As a result, the developers sometimes misunderstand the requirements and fail to meet the deadlines. Moreover, there are risks of losing confidential information, which may hamper a company’s business.

Sometimes companies may also feel management difficulties, but again all this may vary depending on the efficiency and caliber of the outsourcing team you are choosing. Though there are a few disadvantages to the same, picking on the right outsourcing company can work wonders.

Q5. What are the different types of outsourcing?

A5. Software outsourcing can be further classified as local outsourcing, nearshore outsourcing, and offshore outsourcing. Local outsourcing is the case when you offshore a project to a company in your own country. In contrast, offshore outsourcing is finding a team somewhere else in your continent or another country. On the other hand, nearshore outsourcing is finding a company in a country that is situated somewhere nearby your country.

Q6. Who benefits from outsourcing?

A6. The company that outsources the project and the outsourcing company that accepts the project, both the parties achieve the benefits of outsourcing. The latter gain monetary benefits and earn projects for their daily operations. The former experiences multitude of advantages, ranging from cost and development advantages to getting the work done from trained professionals, saving infrastructure and tech requirements, achieving quick services, etc.

Q7. How can outsourcing improve quality?

A7. When you hand over your software development needs to an offshore software development company, you gain access to a talent pool that is highly skilled and expertise in their field. Thus, you can be assured of the quality constraints in such a case where you get your software developed by experts and can also demand changes or alterations as and when a need arises.  

Q8. Can I hire monthly resources or an annual contract is mandatory?

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A8. Well, the answer to this question is based on the perspectives and terms of the offshore software development vendor you are outsourcing your project. The process of signing a monthly or annual contract may vary depending on the company’s discretion, whom you are hiring for handling your software development needs. 

Q9. What is the difference between contract programming and outsourcing?

A9. Project outsourcing has become a buzzword in today’s time and is on the verge of attaining a top spot today, especially when the world is moving ahead towards globalization.

In the case of outsourcing projects, the company that needs software development outsources its requirements to another organization that has expertise in handling such requisites. However, the company that is hiring need not be a stakeholder in the outsourcing company. They hire an outsourcing company that can do justice to their software development needs.

On the contrary, in contract programming, the party that is taking the contract has its own complete infrastructure. In other words, you can say that the company that is outsourcing the project has its shares in the outsourcing company but decides to seek the services by signing a contract.

Q10. What kind of projects are ideal for offshore software development?

A10. When you have a continuous workflow of software development, you may need to hire dedicated employees who can cater to your software development needs. In such a case, hiring an offshore team can prove to be beneficial. Offshore development team set up at a place where the cost of living is lower than the place where the company exists can serve to be a boon and search for huge benefits for the company.


We hope that this guide clears all your doubts and questions that may be popping up in your minds regarding offshore outsourcing. So what are you waiting for? Hire an offshore software development team now and see how they can help you in achieving your business goals.

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About the Author: Nathaniel Marrow

Explorer. Entrepreneur. Devoted coffee enthusiast. Avid bacon geek. Lifelong internet nerd.

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