What is Offshore Software Development?

Table of Contents:

  • Introduction
  • What is Offshore Software Development?
  • Difference Between Offshore, Nearshore and Onshore Development
  • How Offshore Development Works?
  • Pros and Cons of Offshore Development
  • Final Words / Conclusion


Organizations all over the world are constantly pursuing ways to increase productivity while minimizing expenses. However, there aren’t many things that can fulfill this criterion.

What if we tell you when it comes to software development, there is a way to accomplish the aforementioned objective.

In this blog, we’ll introduce you to the most efficient and cost-effective approach to software development – offshore software development.

Stick here for a while to know whether outsourcing of software development projects is suitable for your business, and what are its advantages as well as disadvantages.

The formal definition of offshore development would be, ‘the process of developing digital solutions where the parent organization outsources all or some development-related tasks from a third-party company which is based out of a different country.’

By outsourcing a wide range of software development tasks to an offshore software development center, you can save a lot of time, effort and money on hiring, managing, and maintaining a software development team.

There are three ideal scenarios when you should consider contacting an offshore software development firm.

  1. If you want to minimize expenses for software development.
  2. If you want to expand your organization’s global exposure.
  3. If the local resources are not compatible with your development projects.

The main reason organizations use this approach is cost reduction. As the labor rate and no. of resources available are different for different countries, some countries can offer high-quality development solutions at much lower costs.

India, Hungary, China, and the Philippines are some of the most preferred offshore software development countries.

Difference Between Offshore, Nearshore and Onshore Development

We now know what offshore development is, but now let’s dive a little deep into its counterparts to make its meaning clearer.

To outsource development services, there are two more options available other than offshore considering the geographical standpoint.

Offshore – In offshore development, your outsourcing partner company is situated in a distant country, which often leads to a substantial gap in the time zones.

Nearshore – In nearshore development, your outsourcing partner company is situated fairly near your country. So, both companies are in the same time zone and enjoy a cultural & work ethic similarity.

Onshore – In onshore development, your outsourcing partner company is situated within your country. This is the most convenient and approachable way of outsourcing.

How Offshore Software Development Works?

When you hire an offshore development firm, the first thing that happens is your in-house team and the offshore development team get in touch with each other. Their team understands your project requirements and offers solutions, roadmap, and strategies.

Leveraging agile methodology and project management tools for communication, the offshore development team keeps you updated with the progress of the project.

When the project is completed, they hand over the source code to you (which you own, off course) and also train your in-house teams, if needed.

Pros and Cons of Offshore Development

The most important benefits of setting up an offshore development center are: 
  • Cost Efficiency
  • Improved Productivity
  • No Infrastructure Cost
  • Accessibility to a Wide Talent Pool
  • Enhanced Flexibility
The disadvantages of using offshore development services can be:
  • Lack of Better Communication
  • Cultural Gap
  • Security Concerns
What is Offshore Software Development?

Final Words / Conclusion

IT organizations all over the world are constantly finding ways to acquire expert resources at reasonable prices. And offshore software development stands as an answer to that exact requirement.

According to Statista, the global market size of outsourced services has reached 92.5 billion US dollars in 2019 from 45.6 billion US dollars in 2000.

With the Covid-19 pandemic, 2020 is also going to be a huge year for offshore development.

Being one of the best offshore software development companies in India, Mindpool helps you effectively extend your development center without any compromises. Our expert offshore software development team focuses on your core business functions and significantly enhances your agility.

As a top offshore software development company in India, Mindpool provides extensive offshore development services covering multiple technologies and industries.

Based on your industrial area and specific requirements, we offer state of the art offshore software development services that not only boost your productivity but also bring down software development cost.