Offshore software development companies make it big by working for overseas clients and providing cost-effective software development solutions. Hire a full stack developer from a reputable company to get the job done.

Offshore Software Development or Outsourcing?

Are you confused with the two terms offshore and outsourcing? You are not just the only one. Many people confuse which word they should use – offshore or outsourcing. Thus, let’s look at the usages. Offshore software development is outsourcing tasks to a third party software agency or developers. Therefore, both can be used interchangeably.

When one chooses an offshore agency, one is sending their business operations to be handled remotely. The most significant advantage of outsourcing is that it is less costly. However, the return on investment may vary. When you choose the right offshore software development company, you may significantly benefit from this remote system.

The Challenges

Building a new digital product, be it an app or chatbot, is indeed a daunting task. The whole process requires time, resources, budget, people, coordination, effort, and more. If you don’t want to run into all these, you may want to hire an expert team and leave it. On the other hand, how will you choose the right team? What are the pros and cons? What are the best practices for offshore development? Let’s look at those.

What is Offshore Software Development?

Offshore software development is a practice of outsourcing tasks to a third party software agency or developers. Whether you need web development or mobile app development services, you may consider outsourcing your project to a third party. It can also refer to a party company providing services from a foreign country.

Considering your budget or requirement, you may choose to outsource your project to an individual developer or an agency. You may also delegate the whole system if you desire. However, if you want to outsource only certain parts or features, that is an option. Many businesses hire a dedicated team of developers to work on their projects.

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Nearshore, Onshore, or Other Terms

Don’t be scared of terminology. However, having a fundamental idea of the options can be helpful. Nearshore software development is the same thing as offshore outsourcing, with the only difference being proximity. Thus, when you hire a nearshore development company, you will be working in roughly the same time zone. One of the advantages of this method is cultural and work ethic similarity.

Onshore Software Development

Onshore software development is the business practice in which you work with a company located within your country. This approach means you may approach them any time you want. No matter which state you are in, you can hire the service from other states.

Dedicated Team Model

There are some other methods with which you may want to be familiar. One such model is a dedicated model. In this situation. the vendor or the company hires a team of all kinds of engineers required and exercises full control over it during the project.

Smart Sourcing

Smart sourcing is the next evolution in outsourcing. It advocates using partners who can help a company focus on its core, whereas engaging a third party to perform non-core operations. Usually, this practice is performed by companies with enough experience with outsourcing projects. Build-Operate-Transfer, or BOT, which is most common in the engineering and construction industries, is hiring a provider to install the facility and then handle it back after a specific time.

Advantages of Offshore Sourcing

  • Less Costly – One of the biggest reasons companies use the outsourcing method is the cost-effective service. Due to immense competition, many companies offer extra services and support.
  • Competent/Specific Skills – Having experts with excellent communication and skill set is another most prominent reason to opt for outsourcing. Most of them possess skills and knowledge in more than one or two areas.
  • No Training, No Administration – To stay competitive in the market, outsourcing companies train their employees. The client doesn’t have to take the trouble to prepare them. Also, less operational and administrative costs are among the significant factors leading to the popularity of outsourcing. More so, there’s no need to worry about office space, recruiting, equipment, etc.

So, don’t waste time. Hire a remote full stack developer from a reputable company and delegate your task.

Rob Broadhead

Rob is a founder of, and frequent contributor to, Develpreneur. This includes the Building Better Developers podcast. He is also a longtime student of technology as a developer, designer, and manager of software solutions. Rob is a founder and principle of RB Consulting and has managed to author a book about his family experiences. In his free time, he stays busy raising five children (although a few have grown into adults). When he has a chance to breathe, he is on the ice playing hockey to relax.

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