In case you are not familiar with the term offshore software development, here is the explanation. Offshore software development is a type of outsourcing in which a company hires a third-party software provider from a distant country. For instance, a US-based company might hire a software development company in Zimbabwe to handle their project because of lower labor costs in Zimbabwe.

The company outsourcing labour this way will choose a properly qualified foreign company that charges less than hiring local developers. Done properly, this can save the company lots of time and money without sacrificing the quality of the project.

Its an interesting and attractive solution for company with limited budget and lacking human resources. Besides budget constraints, there are lots of stressful things when creating a product from scratch:

  • deadlines
  • staff management,
  • etc

The stress is usually relieved by hiring an offshore software development company.

Offshore software development companies, in Eastern Europe or Asia are usually the most popular, due to their cheap labour costs. However, there are some expected drawbacks due to the geographic, cultural and language barriers between you and your offshore software development vendor.

Which IT services are commonly outsourced in 2021?

There are lots of IT related services that can be outsourced and the most common are:

  • mobile app development services
  • QA services
  • web development
  • UI/UX design etc.

Sometimes it is easier and cost effective to outsource some services to a qualified offshore company than to hire an in-house team, put them on payroll and equip them with with the hardware and software required. Offshore software developers will build a quality product for you without you incurring extra expenses on equipment and working space.

Advantages of Offshore Software Development

Lower the costs

The lower the operating cost of building a software project, the higher the projected profit margin. Therefore, many US-based companies hire offshore developers from countries like India, China, Ukraine, Vietnam where labour costs are lower.

Offshore software companies in those countries charge less for the the same service than US-based companies. This allows the US-based company to spend less on the project without sacrificing the project quality.

Widens the expertise workforce base

In many countries there is a shortage of IT experts, especially in fields like data science, big data, artificial intelligence, etc. This usually makes it difficult to find the properly qualified IT specialists for the project.

In such instances, a company ends up resorting to offshore development teams for the required expertise.


Saves time

Most offshore software companies have years of experience in working on various projects under various deadlines. This experience can speed up the development processes enough to finish the project on schedule.

Shared responsibility

Whether the project will fail or succeed, all responsibility will be shared. There are thousands of offshore software companies in the world and the more quality products they produce the more their reputation increases.

This puts the responsibility of producing a quality product in their hands. And so, just like every other business, offshore software development companies always desire to provide the best quality services to the clients. This means that if you hire an offshore software development company, you are not only the one who concerned about the quality of the product.

No new infrastructure is required

Working with an offshore software development company means there is need to create and manage a development team along with expensive infrastructure.

Improves project scalability

The offshore software development model gives you the ability to scale up and down easily. This means that you can expand your team if your project is behind schedule or reduce the number the team when the need arises.

Access to advanced latest technologies

Most offshore software development companies are specialists in certain fields and therefore have specialised technology stacks that are too costly for you to provide an in-house team. So this will allow your to access the services of latest technologies without having to upgrade your infrastructure.


Sydney Chako

Mathematics, Chemistry and Physics teacher at Sytech Learning Academy. From Junior Secondary School to Tertiary Level Engineering Mathematics and Engineering Science.

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