And in many cases, you will get neither direct communication with your team nor the opportunity to scale the team. The recent data shows that the software engineer hourly rate of African hubs is significantly lower than in any other outsourcing region. But for this, you will pay higher risks as this region has the worst stability index. In the Philippines, Cebu City is the country’s fastest-growing IT industry with over 200 offshore companies and 95,000 tech positions to fill. The Philippines ranks 59th among the top digital nations in the Global Innovation Index 2022, with the capital Manila being the world’s second super city. The second and third offshore development countries of the region that we want to mention here are Argentina and Panama.

There exist 3 common models for you to choose from based on your requirement, time frame and other factors. Please check out the above section on offshore development models for further insights. This is one of the most common software offshore development problems, which can be traced back to various factors. Your communication, for example, may degrade as a result of your vendor’s poor command of the English language.


In any case, remember not to underestimate the language and cultural behaviors aspects to steer clear of potential misleading, inefficiency or poor final work results. Poor coordination has always been one of the major offshore software development challenges, which often results from cultural and timezone differences. With the T&M model, the clients pay the bill based on the hourly wage and material costs used for the project. This model brings lots of flexibility to the clients and allows them to adjust the plan according to real-time changes and demands.

They are also used to working with a popular collaboration tool that connects local but remote and offshore teams and helps them work better together. There is a significant shortage of talent in the IT sector that has been going on for a while, making position filling a real struggle. Not only do offshore software development teams solve this problem, but organizations can source them almost instantly (as already mentioned above). Consequently, offshore teams enable companies to start their software development faster, reduce mistakes, and deliver a quality product. Such a difference is caused by the lower cost of living in offshore countries. In many cases, you would get the same quality as from local developers, but still, you must be careful when choosing a region to outsource software development services.

What Is An Offshore Software Development Company?

Engaging in-house software developers is high-priced for SMBs or startups with limited funds. Recruiting skilled staff usually costs a lot of money; thus, the financial problem is critical when deciding whether to outsource software creation or not. The offshore development process is an economically rational option that allows you to work on your project with experienced software developers while remaining within your budget. If you expect talent to learn on the job, this may affect the quality of your entire product, and you can’t let that happen. Companies often work with offshore development teams on a contractual basis.

offshore software

For developers, multiple resources also exist in offshore development, which enhances the developing experience and their ability to create powerful software that leverages disruptive technologies. One of the most important reasons for offshoring software development to
Ukraine is cultural proximity and an insignificant difference in time zones. You can be sure of efficient communication and a streamlined development
process by outsourcing here. Finally, always hire a software development company, setting aside an extra
budget for contingencies. If you spend all the money on your vendor’s
services, such things as taxes, commissions, etc., will be beyond your
financial capabilities.

Who should hire offshore developers?

Nearshore outsourcing is, therefore, the middle ground between offshore and onshore outsourcing. Check if your outsource partner is willing to have certain team members adapt to your work hours. Software design and development is complicated and often requires nuanced communication to bring your company’s vision to life. Choosing a team packed with people who don’t speak your native language can result in delays, rework, and projects that run over budget.

Even though offshore software development may pose several challenges, in some cases, it is essential to count on an offshore development team. The dedicated model refers to the case that the vendor provides the client with an exclusive offshore development team. The team then works under the client’s management like a remote in-house team and can be given multiple tasks on multiple projects. Cleveroad is a professional offshore software development outsourcing company from Estonia.

Reasonable development costs

ValueCoders’ commitment to delivering high-quality software solutions has made them our go-to partner for all our software needs. Suitable for every scale of business and project, team augmentation helps add required talent to you team to fill the talent gap. The augmented team members work as part of your local or distributed team, attending your regular daily meetings and reporting directly to your managers. As a leading offshore software company, we have worked with some amazing clients across the globe.

offshore software

Get a free consultation and let us know your project idea to turn it into an amazing digital product. Contact our experts to get a free consultation and time&budget estimate for your project. The world seems to be recovering from the devastating effects of the COVID-19 pandemic. While everything will soon return to normal, organizations have realized that remote work can be both effective and productive. As a consequence, a major related shift in the mindset of a massive number of business leaders has taken place.

What is Offshore Software Development?

By outsourcing software development, you can leverage the latest and greatest technologies to create more effective business solutions. In the U.S. and Canada, it’s not uncommon to see business goals getting pushed aside in favor of quick profits. Imagine how complex it can get to manage a team of offshore developers! In fact, reasons around team management majorly make up the list of top offshore software development challenges.

  • The offshore software development model is attractive for a lot of companies due to its set of undeniable advantages.
  • Choosing an appropriate offshore location will impact your offshore project in terms of costs and stability in the long term.
  • But for professionals who can’t afford to try out any of these services, outsourcing is a safe bet.
  • With this remarkable partnership lasting for over a decade, we have managed to organize the work of 200+ experts based in 4 countries, interacting with them 24/7.

Only in
China, the overall revenue in the software development industry is expected to
grow by 6.7% in the upcoming five years, reaching $1.3 trillion. On the other hand, if you’re looking to stretch your budget without compromising quality, a thoroughly-vetted offshore development firm can help. Thoroughly vet your offshore outsource partner with detailed, live conversations. Get to know your prospective project manager(s) and ensure the conversation flows smoothly. When choosing an outsource partner within the same country, state, or province, you’re far more likely to deal with someone subject to the same labor, taxation, and intellectual property laws. Working with an outsource partner within the same time zone can offer more opportunities for real-time collaboration since the time difference is never that big.

Investigate the infrastructure and workflow of your potential partner

Using NLS, people can enhance their mental state during a particular time. ValueCoders’ innovative approach to software engineering has significantly improved our business operations. ValueCoders delivered a software solution that perfectly aligns with our business needs. When project specifications, scope, deliverables and acceptance criteria are clearly defined, we can evaluate and offer a fixed quote for the project. This is mostly suitable for small-mid scale projects with well documented specifications.