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A Complete Guide to Offshore Software Development
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Offshore services, outsourcing, and third-party strategic partners are different terms for the same concept. Over the years, outsourcing became the choice for organizations whenever they wanted a project completed in less time, that too, for a lesser cost. 

These days companies outsource almost any business function including software development services to the managed service/solution providers who work at the same location or remotely. India is one of the best offshore software development countries with a vast talent pool that delivers the promised results. That said, it is crucial for business establishments to understand the nuances of outsourcing or hiring an offshore company to work on their projects. 

Making the wrong decision usually affects the project delivery and the brand name of the organization. Making the right choice will bring profits and success. Let’s look at ways to choose an offshore software development partner by overcoming the challenges. 

What are the Benefits of Offshore Development Services?

Why do small, medium, and large-scale businesses hire the services of an offshore custom software development company? Let’s take a look. 

  • You gain access to the top IT talent in the industry without hiring them on the payroll. Geographical restrictions won’t be a problem either. In short, nothing comes between you and the best software engineers. 
  • A software development project adds a lot of work pressure on existing employees, especially if you don’t have a dedicated in-house team. Outsourcing the task ensures that your current project’s timelines run smoothly. 
  • There is no denying that you sometimes need an expert to handle a software project. Hiring offshore app development services is a cost-effective way to achieve this. The leading offshore software development companies have senior developers with domain expertise. 
  • Your existing teams may not be able to take up any more work within the given deadline. Outsourcing is the solution to this. It saves time, money, and effort without compromising quality. 
  • The size and complexity of the software project don’t matter when you outsource it. The biggest benefits of outsourcing software development are flexibility and scalability. The offshore company can add more members on-demand to the team if/when necessary. 

Tips to Choose IT Outsourcing Company

Choosing the right offshore software development company is vital for organizational success. Here, we’ve got some simple yet effective tips to sieve the prospective managed IT service providers and choose the best offshore IT company for your requirements. 

  • Look for an offshore company that is good at communication. The team should be able to respond to your emails/messages and provide answers on time. 
  • What kind of data security does the company offer? After all, you can’t risk the details of your software project getting leaked. 
  • What kind of software development talent does the offshore company have? How many IT professionals can they provide for your project based on the scope and delivery timeline? 
  • What other services does the company offer? It’s cost-effective to choose a service provider with a range of managed IT solutions including attrition management, time-zone alignment, dedicated POC, training, etc. 
  • Read the testimonials by previous clients to get their reviews for more information. 

Software Development Outsourcing Models

Outsourcing software development requires planning and understanding. You need to determine the best model for the project, depending on your requirements and specifications.  

Time and Material Model

As the name suggests, this outsourcing model depends on the amount of time the offshore development company spends on your project. It is an effortless way to hire offshore services for long-term projects. You pay the company every month for the time and effort. It is flexible, scalable, and works well for small companies. 

Fixed-price Contract Model 

This model is where you hire an offshore IT development team for a fixed price. There won’t be endless budgeting or extended payments. However, this model is suitable for shorter durations and small to mid-sized projects. It helps when you have a fixed budget, though the pressure is on the developers to ensure they don’t overshoot the upper limit. Moreover, you can’t be an active participant in the project. 

Dedicated Development Team Model

A dedicated IT team is the best offshore software development model for long-term projects with changing requirements. A specialized IT team is built exclusively to work on your project. You pay the team every month as per the terms agreed upon in the contract. While the overall cost is high, this model guarantees quality services and continuous communication between you and the offshore team. 

Key Challenges of Software Development Outsourcing

The following are some key challenges when choosing an offshore software development services outsourcing provider. 

  • Can you trust the service provider? Reviews and testimonials are not enough when you hire a company for an in-house IT project.
  • Contracts can be tricky. You might have missed a loophole. Such losses are expensive. 
  • Inconsistency and ambiguity are risky when you are not in constant touch with the developers
  • Quality can be an issue sometimes. Finding an offshore software company that delivers quality for cost-effective pricing is a time-consuming task. 

How to Manage IT Offshore Development  

How you manage offshore IT development services also determines the extent of your success. 

  • Define your goals clearly. The software development team should know the purpose of the project and the expected result. 
  • Build a roadmap to streamline the various aspects of the project. Work with the offshore team to prioritize your requirements.
  • Make a detailed list of requirements and specifications. Talk to every member on the team and get their input. 
  • Documentation is essential for quality and process control in software development. It ensures consent and expectations with the necessary information to make changes, updates, etc., to the software development phases. 


VLink has been offering digital transformation and custom offshore software development services since 2006. We work with organizations of all sizes around the globe and have a vast client base in the U.S.and APAC countries. Many SMBs, start-ups, and Fortune-500 companies are among our trusted and happy clients. VLink teams believe in providing transparent, reliable, affordable, and high-quality offshore software development services to Startups, SMBs, and large enterprises through our corporate value system- ‘The VLink Way’. Get in touch today for us to work with you on your IT team challenges.

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    About The Author
    Nitin Nijhawan, CDO
    Nitin’s passion is creating and driving transformation and innovation for clients. He leads the delivery of VLink’s technology solutions, primarily through developing the firm’s Centers of Excellence around the globe.

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