Offshore Software Development: Detailed Guide


In 2023, running a software development company is not an easy task. It is expensive and complicated. Thus, more companies are shifting to offshore software development. In today’s comprehensive guide, we will discuss how to start an offshore company, the cost involved, and many more. 

Offshore software development is becoming popular these days. Businesses are taking a substantial advantage by outsourcing the entire product development or its particular stages to offshore teams. Offshore software development is the ideal possibility for founders as you can find talented people by outsourcing various software work, custom programming, and many more. You will receive the highest-quality software in the shortest amount of time. This eventually cuts down on development time and helps you to concentrate on another part of the business.

In this article, we’ll share the top countries for offshore software developers, how much offshore development costs, and much more.

What is offshore software development?

Offshore software development involves hiring an external software development firm to complete specific tasks. You can select the firm in any part of the country or globally, and this will save time and money. Since 2020, the demand for software developers has doubled, forcing businesses to consider outsourcing their tech needs with more urgency. 

How To select the Best Offshore Software Development Team

Discovering an offshore development team is not easy. But it is possible if you do proper research.

Here’s what you should do:

1. Define Your Goals

Before you look for a potential offshore software development company, you need to determine what services you’re looking for.

a) Are you looking for an outsourced team of developers?

b) Or are you seeking assistance to improve the UX experience?

With proper goals in mind, you will get a better answer, and you can find the best offshore development firm as per your needs and requirements.

2. Choose The Right Partner

The next step involves aiming for a potential partner with experience, who has the skills and capacity to handle such tasks and has an adequate understanding of your business. It will help to guarantee that the partner stays close to your business goals when developing the software.

To hire the best offshore software development partner, you should observe a few things that will help you:

a) Check the company’s Clutch profile and reviews

b) Review client’s testimonials

c) Check their portfolio

d) Examine their expertise

e) Check their pages

3. Select The Best Model Of Work

Most offshore software developers offer these types of collaboration options:

  • dedicated team
  • fixed price
  • time and material

Each model has its pros and cons. The dedicated team system offers strength, and control which is best for long-term projects. Meanwhile, fixed price is excellent for short-term projects as it gives clearly-defined requirements, on the other hand, time and material provide flexibility for projects with insufficient requirements.

4. Pick Communication Tools

Proper communication is the key, and this helps in better collaboration between an offshore IT firm and its client. You can use an array of communication tools, such as Figma, Miro, Zoom, Slack, and Jira to work closely with our clients.

5. Give Feedback

To prevent the outsourced developers from turning off target, it’s necessary to hold periodic check-ins where progress reports are communicated to the client. You’ll need to examine if the developers are heading in the proper direction and deliver actionable feedback consequently.

6. Be Partners and Be One Team

The secret formula to offshoring success is having amazing and dedicated teamwork between the company and the client. You’ll need to work in sync so that both of you work as a team, and that will bring success to your project.

Top 3 countries for offshore software development

These top 3 countries are excellent for offshore software development, because of their IT expertise, and competitive rates.


With over 7,000,000 software developers, India has confirmed itself as the ultimate outsourcing country in Asia. Setting up an offshore software outsourcing company in India is a very promising alternative for your company, given the decreased cost of living there.


There are more than 200,000 IT professionals in Ukraine, and the country’s economy is oriented toward outsourcing. Reputable firms emphasize the country as a suitable location for IT offshore. When you are looking for offshore Eastern European developers, Ukraine is your most suitable choice.


With strong government support and outstanding education, especially in technical disciplines, Argentina is the preferred place for outsourcing business. The country’s lower remuneration rate and cultural relationships with US-based clients further drive the IT outsourcing sector.

Top 3 Advantages of Hiring an Offshore Software Development Company

Outsourcing has multiple benefits, especially since companies in developed countries hire developers from developing countries. This is mutually beneficial and saves money while providing superb services.


A considerable amount of capital goes into innovative and creative software solutions, which is why many are willing to hire people offshore thanks to the cost efficiency. Developing software is a relatively pricey effort in its own right, and if you think about the price of developing software, you would surely want to save up some of that budget. When you decide to delegate a project to a software development company, your primary goal is to get a top-notch product.

Innovative Potential

Involving a wider talent pool is excellent for expanding your creative potential. People from diverse environments can bring their unique mindsets and ideas to your business. Working with a diverse team of experts is always the best idea for you and your business.

Focus on Your Business

Hiring an offshore software development company helps you stay focused on essential aspects of your business from the ideation stage up to the market release. 

Cost to Hire an Offshore Development Team

One significant reason to select offshore development over in-house and freelance software development is cost efficiency. Although the cost of software development depends on various factors like the country, the complexity of the project, the pricing model chosen, and many more.

Here are the prices for offshore software development based on the country:

Country Cost in US Dollars per Hour:

  • India – 20
  • Philippines – 30
  • Vietnam – 25
  • Brazil – 35
  • Switzerland – 40
  • Netherlands – 50+


Consider your company’s needs, management capabilities, and current team skill set as you compare them to standard outsourcing options. Following the ideal process to select an IT firm and adapting to the requirements will help you thrive in the market.

So, what are you waiting for? Make a list of your requirements and needs and then go and hire the software company that can meet your requirement.

Read more: Why is Website Development the First Priority for Business Growth?

Anil Kondla

Anil is an enthusiastic, self-motivated, reliable person who is a Technology evangelist. He's always been fascinated at work especially at innovation that causes benefit to the students, working professionals or the companies. Being unique and thinking Innovative is what he loves the most, supporting his thoughts he will be ahead for any change valuing social responsibility with a reprising innovation. His interest in various fields and the urge to explore, led him to find places to put himself to work and design things than just learning. Follow him on LinkedIn

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