Offshore Software Development Outsourcing. What Are the Advantages?

Oksana Zabolotna
HBD at Qubit Labs

Offshore outsourcing is one of the types of outsourcing, which involves transferring non-critical business processes to companies located in remote geographic areas. In other words, this is mutually beneficial cooperation between companies,

in which the physical location of the offices of each of them does not matter. The most significant in this case is savings due to different levels of wages. One of the main tasks, which depends on the conceived enterprise’s success, is choosing the country in which the offshore development center will be located.

Offshore programming is usually used to develop complicated and time-consuming projects, and a specialized firm is a contractor. The contact is made through an intermediary firm that acts as a guarantor of the integrity of the cooperation between the parties. Qubit Labs specializes in constructing offshore development teams, so we have decided to conduct research on this topic and explain why offshore outsourcing has gone viral and which of the following is an advantage of offshore outsourcing. Thus, let’s proceed and go through several peculiarities of the mentioned form of programming, as well as define outsourcing software development pros and cons.

The Main Advantages of Offshore Software Development Outsourcing 

Any company that cares about its development seeks to minimize its costs in order to increase profits in this way. Most often, tasks are divided into those that the company can solve freely and into those that can be transferred to an offshore software development center. For example, the company can handover certain production functions and business processes for servicing another company specializing in this area. Basically, this is the use of third-party performers, when one side keeps up its business coherent, while the other does a particular job and gets paid for it.

It is an exceptional opportunity for CEOs to save their time and money because they can stop worrying about retention, onboarding, payment calculations, and other managerial tasks. The offshore development company takes these responsibilities and performs all the recruitment-related activities on its own, keeping the client informed. There are numerous gains for companies that decide to use outsourcing services, and they all depend on the firm’s values and targets. We can highlight some of the most noteworthy perks that often become the catalysts of a certain choice.

Advantages Of Offshore Software Development Outsourcing

Cost reduction

Usually, it is cheaper to find a company from the country with lower average wages and pay them for services rather than hire an in-house team of developers that will entail multiple expenditures and employment processes. Apart from saving money, you also don’t have to spend a lot of time recruiting and HR tasks. Many companies believe that outsourcing software development is the most transparent, reliable, and understandable way of receiving computer programming services if they are not your expertise.

Many startups also prefer to transfer their projects to offshore outsourcing because it allows them to rely on the professionals and avoid making mistakes inherent in newbies. Moreover, it is more efficient for the startups to focus on the market and targeted audience and adapt the developed product to the clients’ needs and beat the competitors.

Moreover, when building a team, you have to think about numerous details like renting an office, buying equipment, regularly finding time for meetings, or managing the recruiters. When it comes to software development outsourcing, the company that provides such services finds potential employees and offers them decent working places, benefits, and is in charge of making sure the developers are satisfied with their working conditions. Although you still need to pay other people for their services, you can be confident it would pay off in top-notch performance and employees’ motivation.

Improving the efficiency of the company

It is often when you hire a new person to the team, he/she needs a certain amount of time to get used to the team and understand one’s main tasks and responsibilities. Although it is great in a long-term view, it might be relatively ineffective at a specific moment or for a particular project. When hiring offshore developers, you can be sure they won’t need warm-up time because they have already been working together or in a similar area for a long time.

Furthermore, there is increased attention to the company’s strategy and its main features. Rather than being burdened by contrasting tasks like advertising campaigns and mobile app development, you can concentrate on a more vital assignment. Software development outsourcing companies handle your tasks while applying individual approaches to deliver the uppermost products. Also, your work won’t be interrupted by the need to control every process because the outsourced team takes the responsibility to meet deadlines and guarantee high-quality results.

Access to more modern services and pool of professionals

It is almost impossible to build in-house teams where each member will specialize in ever-changing trends in IT. Such developers need to devote time to become experts in new frameworks or other technologies. Unfortunately, that might become a shortcoming because your competitors will have time to offer such kinds of solutions first. To prevent that from happening, you can always outsource software development because you will undoubtedly find a desired specialist in the pool of developers from different countries and with contrasting experiences. Besides, that’s an excellent choice if you are not sure the specific technology will remain sought-after and don’t want to risk and hire a person for full-time employment.

Additionally, you might have a developer on your team who has more than ten years of experience. However, one’s knowledge might have turned less valuable within years, and there is a more talented programmer at an outsourcing development company who will perfectly meet your needs. Thus, it comes down to the company’s needs and vision. It is essential to develop your business strategy in advance to understand whether your team will need a particular expert for long-term projects and make it clear for the IT outsourcing company which specialist it has to find.

What Are the Most Popular Offshore Outsourcing Destinations?

Nowadays, the countries’ borders are of low importance when it comes to business because why hire local developers that will request large amounts of money if you can apply software development outsourcing and receive equal results for a lower price? One of the most attractive countries for IT outsourcing is Ukraine because there are thousands of companies that specialize in this area. Local developers are well-educated and follow global IT trends, and the country is located in a convenient time zone and understandable mentality. Most of the programmers are fluent in English and have considerable experience in working with several programming languages and technologies.

Another destination is India because this country has millions of programmers who demand low wages for their services since their country’s economic status is much lower than in the US. However, they have contrasting mentality and approach to work, so it might be challenging to find common ground and explain your expectations. Although India is quite attractive when it comes to expenses, it is necessary to keep in mind that local programmers usually specialize only in the most popular frameworks and languages. Therefore, if you aim to develop some cutting-edge products, consider outsourcing to other countries.

Argentina is the closest to North America, so the time zone difference is minimal, yet some developers might be excellent professionals but have contrasting views on your project. The human factor plays a great role here as well, so be ready for compromises. This country also doesn’t have high salaries, and local IT specialists usually receive more money than employees in other areas. Thus, apart from hiring a skilled professional whom you will pay much less than in the US, you will have a motivated and determined person in your team. Also, don’t be afraid of language barriers because Argentinian developers are bilingual.

best offshore outsourcing destination worldwide

Closing Out

Now you have a grasp of offshore outsourcing software development pros and cons and understand what factors might become game-changers when it comes to choosing a reliable vendor. There are numerous locations to outsource to, like Europe, Asia, and Latin America, yet everything depends on your expectations and requirements. In case you want to use offshore outsourcing services but don’t know where to start from, you can contact Qubit Labs, and we will gladly assist in finding a perfect solution.

Related Articles:

Main Reasons to Hire Offshore Development Team

Things You Should Know Before Hiring Developers In Ukraine

Where is Better to Outsource: India or Ukraine?

What Is ODC — Offshore Software Development Center?

Where To Outsource Software Development: Talent pool, Prices, Countries

Average Hourly Rates for Offshore Development Services: Software Development Costs Guide

Top Offshore Software Development Companies in Eastern Europe

What Is Outsourcing? How Does IT Outsourcing Work?


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Oksana Zabolotna
HBD at Qubit Labs
Oksana is a team leader of sales and marketing team at Qubit Labs.