Outsourcing software development has become a popular option for startups looking to build high-quality products while keeping costs under control.

According to GlobeNewswire, The global IT outsourcing market was valued at USD 318.5 billion in 2020, and it is expected to reach USD 425.19 billion by 2026, registering a CAGR of 4.5%, during the forecast period (2021 – 2026).

Many startups have already leveraged the benefits of outsourcing software development to take their businesses to new heights.

For instance, recently, a startup was struggling to find a local software development team that could work within its budget. They decided to explore outsourcing and found an offshore development company with a great portfolio and positive reviews.

Also, they started the project with high hopes, but communication issues quickly arose. The time difference and language barriers made it difficult to stay on the same page, and the team was not providing regular updates.

After a few weeks, the startup decided to address the issues and scheduled a video call to clarify the project requirements. The offshore team was responsive and quickly resolved the misunderstandings. They also suggested a more effective communication method that worked for both parties. From then on, the project ran smoothly, and the final product was delivered on time and within budget.

This story shows that offshore software development can have its challenges, but with effective communication and a collaborative mindset, it can also be a successful solution for startups.

In this ultimate guide to outsourcing software development for startups, we’ll discuss everything you need to know about hiring the best offshore development team.

From the benefits and challenges of offshore software development to the cost components and how to manage your offshore team effectively, we’ll cover it all.

What is Offshore Software Development?

Offshore software development refers to the process of outsourcing software development tasks to a company located in a different country.

This means that businesses can hire a team of developers, designers, and other professionals located in another part of the world to work on their software projects.

This type of development is becoming increasingly popular due to its cost-effectiveness, high-quality work, and quick turnaround times. It allows companies to access a larger pool of talent, take advantage of different time zones, and focus on their core business functions while leaving the development work to the experts.

Who Should Hire Offshore Developers?

Offshore development is not limited to big companies or established businesses only. In fact, it can be a viable option for startups, small businesses, and even individual entrepreneurs who are looking to build their tech products at an affordable cost.

Startups and small businesses that operate on a tight budget can benefit greatly from offshore development. They can hire skilled developers from countries where the cost of living is relatively low, which means that the offshore software developers will charge less than their counterparts in the US or Europe. This way, startups and small businesses can save a significant amount of money on their development costs and allocate more funds towards other crucial aspects of their business.

Individual entrepreneurs can also take advantage of offshore development. If you have a great tech idea but lack the technical expertise to build it, you can hire offshore developers who can bring your idea to life. This way, you can focus on marketing and promoting your product while leaving the technical aspects to the experts.

Ultimately, anyone who needs offshore software development services can consider hiring offshore developers as an option. It’s important to assess your business needs and budget before making the decision to outsource, but if done right, offshore development can be a game-changer for your business.

What Services Can Be Outsourced in Offshore Software Development?

Offshore software development offers businesses a wide range of services that they can outsource to help them achieve their goals. These services can range from simple tasks such as testing and debugging to more complex services like IT consulting, Data entry and processing, Digital marketing and SEO etc. The right offshore software development company can provide businesses with skilled professionals to take on these tasks, freeing up the in-house team to focus on core business functions.

Here’s a list of some of the most commonly outsourced services in offshore software development.

Web development

Offshore software development companies can provide web development services that include front-end development, back-end development, full-stack development, e-commerce development, CMS development, and custom web application development. They can use various technologies and programming languages, such as HTML, CSS, JavaScript, React, Angular, Vue.js, Node.js, Python, Ruby on Rails, PHP, ASP.NET, and Java.

Mobile application development

It can provide mobile app development services for iOS, Android, and cross-platform. They can create native, hybrid, or web apps, depending on the client’s requirements. They can use various mobile app development frameworks and tools, such as Swift, Objective-C, Kotlin, Java, React Native, Xamarin, Ionic, and Flutter.

Quality assurance and testing

It can provide quality assurance and testing services that include functional testing, performance testing, security testing, usability testing, and compatibility testing. They can use various testing tools and frameworks, such as Selenium, Appium, JMeter, LoadRunner, Katalon Studio, TestComplete, and Postman.

Cloud solutions

Offshore software development companies can provide cloud solutions that include cloud consulting, cloud migration, cloud deployment, cloud management, and cloud security. They can use various cloud platforms and services, such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), IBM Cloud, Salesforce, and Oracle Cloud.

UI/UX and website design

Offshore designers can create intuitive and engaging user interfaces and experiences for websites and mobile applications. They can provide services such as wireframing, prototyping, and user testing to ensure a high-quality user experience.

Looking for a reliable and experienced partner for your software development needs?

How to Hire the Best Offshore Software Development Partner?

When it comes to outsourcing software development, hiring the right offshore software development company is crucial. A reputable company will have a team of skilled developers, a proven track record, and a strong reputation in the industry. They will also be familiar with the latest technologies, tools, and methodologies required to develop high-quality software solutions.

However, finding the right offshore software development company can be a daunting task, especially if you’re not familiar with the process. In this section, we’ll provide you with a step-by-step guide on how to hire the best software development company for offshore software outsourcing.

  1. Define your project requirements and business goals.
  2. Search for a reputable offshore software development company that has experience in your business domain.
  3. Check the company’s portfolio and read client reviews to ensure their quality of work. Evaluate the company’s communication skills,
  4. technical expertise, and project management processes.
  5. Schedule a meeting or interview with the shortlisted company to discuss project details and get a quote.
  6. Clarify the contract details, including project scope, timelines, payment terms, and intellectual property rights.
  7. Set up regular communication channels and establish a project management process to ensure smooth collaboration and timely delivery.

How to Hire the Best Offshore Software Development Partner

Cost to Hire Offshore Development Team

When considering offshore software development, it’s important to understand the cost components of hiring an offshore development team.

In this section, we’ll break down the various factors that contribute to the cost of hiring an offshore team, such as the hourly rates of developers, the size and experience of the team, the project scope and complexity, and more.

We’ll also provide some tips on how to manage your budget effectively and find a balance between cost and quality when hiring an offshore development team.

Country Web Development Mobile App Development Quality Assurance and Testing UI/UX Design Cloud Solutions
India $15 – $50/hr $20 – $60/hr $10 – $30/hr $15 – $50/hr $20 – $60/hr
Philippines $20 – $50/hr $25 – $60/hr $15 – $35/hr $20 – $50/hr $25 – $60/hr
Eastern Europe $30 – $80/hr $40 – $90/hr $20 – $50/hr $30 – $80/hr $40 – $90/hr
Latin America $35 – $100/hr $45 – $110/hr $25 – $60/hr $35 – $100/hr $45 – $110/hr
North America $60 – $150/hr $75 – $200/hr $40 – $100/hr $60 – $150/hr $75 – $200/hr
Western Europe $80 – $200/hr $100 – $250/hr $50 – $150/hr $80 – $200/hr $100 – $250/hr

Please note that these rates are approximate and can vary depending on factors such as the experience and skills of the developers, the complexity of the project, and the size of the team. It’s essential to evaluate all of these factors before deciding on an offshore development team.

Our offshore development team is here to help you succeed.

10 Tips: How to Manage Your Budget When Hiring Offshore Developers

Here are some tips for effectively managing your budget and finding a balance between cost and quality when hiring an offshore development team.

  1. Define your project requirements clearly and communicate them effectively to the offshore team.
  2. Choose a reputable offshore development company with a track record of delivering quality work within a reasonable budget.
  3. Consider the cost of living in the offshore team’s country and factor that into your budget.
  4. Don’t compromise on quality for cost savings; prioritize the skills and experience of the offshore team.
  5. Use project management tools to ensure effective communication and collaboration between your team and the offshore development team.
  6. Consider outsourcing non-core tasks to free up resources for core tasks that require your team’s expertise.
  7. Be flexible with your project timeline and requirements to allow for any unforeseen delays or challenges that may arise.
  8. Monitor the progress of the offshore team regularly and provide feedback to ensure the project is on track and meets your expectations.
  9. Maintain open and transparent communication with the offshore team to build trust and ensure success.
  10. Plan for contingencies and have a backup plan in case the offshore team is unable to deliver as expected.

Read More: Best Countries to Outsource Software Development Projects

Common Challenges to Overcome in Offshore Software Development

Offshore software development can offer numerous benefits but comes with several challenges. These challenges can arise due to differences in culture, language barriers, time zone differences, communication issues, and quality assurance. In this section, we will discuss some of the common challenges that companies may face when outsourcing their software development needs offshore.

  1. Communication barriers: Differences in language, time zones, and culture can lead to miscommunication and misunderstandings.
  2. Quality control: Ensuring the quality of the code and the end product can be difficult when you are working with a remote team.
  3. Security concerns: Sharing sensitive information with an offshore team can lead to security risks if proper security protocols are not followed.
  4. Project management: Managing a project remotely can be challenging, particularly when you are working with a team that is located in a different time zone.
  5. Lack of control: When you outsource work, you may have less control over the process and the final product, which can be frustrating.
  6. Infrastructure issues: The lack of infrastructure or differences in infrastructure between your company and the offshore team can create challenges.

Read More: 7 Reasons for Outsourcing IT Project to India

When to Outsource Software Development?

Outsourcing software development can provide many benefits, including cost savings, access to specialized expertise, and more flexibility. However, it may not always be the best choice for every company or project. In this section, we will discuss some of the situations where outsourcing may be a good option, as well as some scenarios where it may be better to keep development in-house.

  1. Lack of in-house expertise: If your company lacks the in-house expertise to complete a particular software development project, outsourcing to a team with the necessary skills can be a cost-effective and efficient solution.
  2. Tight deadlines: Outsourcing can help you meet tight project deadlines, especially if you have a limited in-house team and need to ramp up quickly.
  3. Cost savings: Outsourcing can often be more cost-effective than hiring a full-time, in-house team for a specific project, especially if you have a limited budget.
  4. Focus on core competencies: Outsourcing allows you to focus on your core competencies and leave non-core functions, such as software development, to outside experts.
  5. Access to new technologies: Outsourcing to a team with specialized skills and access to the latest technologies can help you stay competitive and deliver innovative solutions to your customers.

If you’ve decided to hire an offshore software development team, it’s important to know how to manage them effectively to ensure successful collaboration and achieve your business goals.

Check out our blog post on ‘How to Manage Your Offshore Developers?‘ for best practices and tools to help you streamline communication, establish clear expectations, track progress, and resolve issues in a timely and efficient manner.

Why Choose Excellent Webworld for Your Offshore Software Development Needs?

Excellent Webworld is a full-service offshore software development company that specializes in delivering innovative software solutions to clients worldwide. The team of highly skilled and experienced developers, designers, and quality assurance specialists can help you develop software solutions that meet your unique business requirements.

  • Experienced team of developers with expertise in various technologies and domains
  • Flexible engagement models to suit different business needs and budget constraints
  • Quality assurance and testing services to ensure high-quality software deliverables
  • Transparent communication and project management processes for regular updates and progress tracking
  • Proven track record of delivering successful software projects for clients across various industries
  • Cost-effective pricing and competitive rates compared to other offshore software development providers
  • Dedicated support and maintenance services to ensure smooth operations and quick issue resolution

Our team follows agile development methodologies, ensuring the timely delivery of high-quality software solutions that exceed our client’s expectations.

Whether you’re a startup, SME, or enterprise, we can help you achieve your business objectives with our custom software development services. Get in touch with us today to discuss your offshore software development needs.

Mayur Panchal

Article By

Mayur Panchal

Mayur is the CTO of Excellent WebWorld and a Web & Mobile App Development Company. He is updated with all the latest trends in the mobile app technology field. He writes blogs which are helpful for businesses to implement technology in the operations. You will find him swimming whenever he is free.