How Offshore Development Works – X Proven Tips For IT Companies

Offshoring is becoming one of the most popular business strategies. Many companies start offshoring for a variety of reasons. The lower costs are only one of them. Offshoring allows you to get in touch with qualified professionals, without having to go through expensive recruitment and retaining processes.

So companies or startups from mainly Western Europe and North America employ the services of subcontracting offshoring software development companies that are based in India, South America or Eastern Europe. This is very advantageous for both sides and has brought success and thriving to many companies. Let’s see how offshore development works in practice.

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But What Is Exactly Offshore Development?

Offshoring Software Development is delegating a project, a product, or a process to an external company based in another land. For example, a company or business needs to integrate a mobile app for their services but they cannot afford to have a full-fledged software development team in-house. This is why they are delegating the production of this app to an outside company. This is just an example but it can be applied to hundreds of different scenarios.

Whether you have a small company and you need to launch fast, or you have a big company and you need to grow and develop, offshoring software development can help you fulfill your purposes. You are going to save a lot of internal resources that you can use to develop more essential company functions such as the ideation of the product, the customer experience, and the promotion.

How To Prepare Yourself For Offshoring Software Development?

Offshoring is great but you should not take it lightheartedly. There is a process that you need to get yourself and your company ready for this step. This will make sure you are doing things in a way that will work out well.

You Need A Clear Vision Of Your Product

If you go into offshoring you need to have a very clear idea of what you need to bring out to the world. The picture in your mind should be so pristine that you are able to transmit it through precise instructions to your offshoring team. This is why you need to work in advance to think about essential business aspects such as what are your target customers? What is their pain and what is the solution you are bringing to them? who are your competitors? What technologies and strategies are they using? How you will stand out?

Having clarity on these aspects will enable you to set precise milestones and make sure your offshoring team members are also very clear on what is their task and your role in your company’s project. Lack of clarity leads to miscommunication and eventually failure.

What Skills Do You Require?

When you are clear on your vision and product then you need to discover to actually make it happen. What are the skill sets that you need? What tools will be necessary? What software and hardware? What security policies are needed? Planning about all these conditions will ensure you choose a software development company that actually has the right specialists and tools for the fulfillment of your project.

Once you are well-prepared for these steps, it is time for you to find the best offshoring software development company that is the most suitable for your needs.

Which Offshoring Software Development Company Is The Best For You?

There are several ways you can find an offshoring software development agency that is suitable for your company’s needs. You can choose which one you prefer.

Get Referrals From Friends Or Trusted Sources

This is the way that works best in most cases. If you know friends that are already doing offshoring successfully – they can advise you or refer good agencies to you. Another way is to read about the experiences or case studies of other companies that have ongoing offshoring operations or successfully completed projects. The best is if you can actually visit their company and talk with them personally so you can get a clearer idea.

Get In Touch With The Agencies

After you have selected some companies, this is the time to get in touch. Have a discussion about the processes they use and how they are going to help you fulfill your project. Do not feel obliged to get involved huge times right from the start. You might even start a very small project, just to test the ground and see how it is going to work out. Sometimes while speaking with the agency or doing a small project together you already understand if you are on the same vibe as you or not.

You will see that each company has a different style. There are even new trends within offshoring, for example, Yourshoring, which was first started by the innovators in the field of the offshoring development company – Turnkey.

How To Start The Actual Offshoring Software Development Relationship?

Let’s imagine that you have selected some trusted offshoring companies, you have tested the ground and you have chosen the one for you. How to proceed?

Set Your Expectations Clearly

As with any relationship, it is very important to set our expectations and standards right from the beginning. Wishing that all will work out and holding our fingers crossed is not a very useful strategy. Make sure you are clear about your quality requirements and the standards by which you wish your contractor to abide. Having a written document with these standards and signing it by both contractors is a very good practice. It sets a common ground on which you can build your collaboration.

Set Clear Rates, Deadlines, And NDA

You should also include in the contract clear indications about the deadlines and rates. You should negotiate them with your offshore software development contractor and focus not so much on lowering further the price that is already very low but on building a quality product and making the best out of their skills and competencies. The deadlines are also very important if you want your company to run smoothly. You need to first agree on them with your contractor company and then make sure they stick to them.

Right from the beginning, you must ask your offshoring agency to sign a Non Disclosure Agreement in order to protect your confidential projects and information.


Offshoring is a very modern and innovative way to collaborate with a worldwide team. It has many advantages, but also, you need to step into it gradually and carefully. By doing all the things in the right way, you will have time to adapt to the process. You will also discover what is the best way for you and your company. These are just a few useful tips to start you on your offshoring journey.

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