Top Reasons to Consider Offshore Software Development for your Next Project

Offshore outsourcing companies are a new rage, especially in developing countries such as India. In fact, during the COVID crisis, I guess software development was the only sector that kept on going resulting in maintaining the economy. As a result, now more and more companies are found trending toward the concept of offshore outsourcing due to several benefits such as reduced or lower labor costs, attracting foreign direct investments, skilled labor or offshore team, you get to focus on core business operations and whatnot.

Though offshore outsourcing is not a new term, still many of you didn’t get the basics right. It means conducting development in different countries, especially developing countries due to low labor costs and a wide pool of skilled labor. The following post highly focuses on the benefits of offshoring or why one must consider conducting their software development project from an offshore location.

The notion of offshore software development is not going to slow down anytime soon and to keep up with the strong and quick growth of development, you need to ride the way or you may be lagging back.

Introducing the Offshore Software Development Space

The terms offshore and outsourcing are used quite interchangeably. By choosing an offshore software development company, one means working outside with tech partners to develop custom software products like never before. Whereas an outsourcing company can be considered as employing people within the overseas locations to undertake all the development tasks for your existing business. Precisely speaking,

The offshore team is said when you can relocate your work to a different country in order to reduce labor costs. Here you need to simply hand over your needs and requirements to your offshore teams

An outsourcing company is said when you hire someone to manage specific business operations again due to cost-effectiveness. Outsourcing is generally an external team that works for you on your behalf.

And an offshore outsourcing partner acts as a third party in another country.

Some of the common advantages of offshore outsourcing company include:

  • Receive customized solutions
  • Cost-effective and efficient procedures
  • Innovation is the key here
  • Access to a wide talent when opting for services offshoring
  • 24/7 services can be expected from an offshore company

So here’s the big question – when one must opt for an offshoring company? Well, earlier projects were being outsourced when there was no other option left. Yes, hiring an outsourcing company was always considered an afterthought. Fortunately, not anymore! With the changing scenarios, outsourcing your business to foreign companies by hiring a team of software developers or partnering with them is the best bet today!

Benefits of offshoring

Further, I would like to mention certain benefits of offshoring or advantages of conducting software development by hiring an offshoring company or offshoring services.

#1 Lower Labor costs

Lower costs are one of the main concerns why more and more businesses irrespective of their sizes and industry verticals tend to hire offshore teams to conduct business operations. Given the fact that developed countries incorporate the high cost of living, you might not be able to find a skilled candidate within your predetermined budget. Instead heading towards top outsourcing destinations such as India, China, Philippines, and Malaysia, can provide you with a wide range of professionals and that too within your budget or maybe less.

Recruiting software developers from these countries means hiring at lower labor costs and freeing yourself from the hassle of recruiting new in-house team members. After all, you are not going to choose an offshore development company that carries immense expertise, and human resources and is well-known for offering the best possible solutions from their space.

#2 Gain High Financial incentives

Other offshoring advantages include financial incentives. As mentioned earlier, hiring an offshore company from a developing country is considered the most cost-effective venture than hiring one from a developed country. Again there is no need to appoint in-house staffing members. So yes by any means you are bound to save money. Now, what about these financial incentives?

Well, let’s say you own a company incorporating 5 people in India and you own the same brand in London. Now if you compare the two, you will find a huge salary gap between India and the UK. Even if both teams comprise professionals with the same rank, experience, and expertise, you are bound to pay different salaries. In simple words, India will be more cost-effective than the UK. Apart from salaries, the total cost of conducting business is also different. And that’s the reason why most of the Western European countries located in the USA have offshore development spaces in developing countries like India. The differences in the cost of living cannot be ignored at any rate.

#3 Access to a wide talent pool

This kind of offshoring benefits, in particular, is pretty obvious. I mean of course, when you tend to opt for local help you might not get skilled labor at a reasonable cost. So yes, one should never resist exploring different options. And with such access to a wide talent pool also that too at a reasonable price, you shouldn’t miss this opportunity by any means.

You will come across several offshore software developers across the world who carry expertise not just in their fields but also ensure to solve all your issues via remote work. With the rise in offshore teams, colleges are found pushing IT and engineering fields pretty hard. Also, if we see from the candidate’s point of view, if you are good enough you will get the liberty to choose your partner and of course at crazy wages. voila! What else one can ask for! So yes, offshoring advantages work both ways.

#4 Enhances productivity

Other offshoring advantages include an increase in productivity. Now imagine you are a working woman and you have to handle house chores all by yourself, tell me won’t this be difficult for you? Of course, it will be. However, by any means you happen to divide the work, for example, you do the cooking and let the cleaning, and laundry be done by other members won’t it be easy for you and others to manage. Also, your overall productivity will increase in regard to the specific tasks.

Similarly, when conducting a software development project, I am sure this is not the only thing that you will be doing. So outsourcing services is good for business growth and also increases productivity. You can focus more on core competencies and let your service provider do their jobs seamlessly. Not to mention your offshore team will be working under different time zones so yes there is the possibility of receiving round the clock solutions and reducing the time to market. As a result, you can gain a competitive edge.

#5 Reduce time to Market

With time, the demand for customers is increasing at a fanatic pace. As a result, businesses and software development companies are expected to innovate intensely. Also, the joy of being the first one to introduce something to the market cannot be expressed with words.

By choosing an offshore development partner, you can have full control over your project and increase or decrease your overseas team to attain the best possible results. Not to mention that reducing time to market definitely gives you a competitive edge.

When choosing offshore teams or employees overseas, certain aspects must be kept in mind.

  • Time-zone
  • Work Culture
  • Flexibility
  • Language
  • Cost-effective
  • Best infrastructure
  • Efficient Tech-stack
  • Reviews and Ratings


So that’s all for now! I hope I have achieved the objective of the following post, if you are planning to hire foreign employees from other countries or an offshore partner to streamline business processes, just ensure it will be a winning move for your venture.

If you still have any doubts or queries, feel free to mention that in the comment section below.

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