Why More and More Businesses are Opting for Offshore Development

The existence of offshore development has been quite prevalent in the last decade or so. The rising labor costs in western countries might be the most significant reason for the upsurge in organizations opting for offshore development route. But that’s not the only reason.

There are myriads of amazing benefits that come along with outsourcing software development. Primarily by outsourcing a wide range of software development tasks to an offshore software development company, businesses can save a lot of time and money on hiring, managing, and maintaining a software development team.

And with the modern, unpredictable challenges like Covid-19 pandemic, businesses are now more aware of the risks involved in infrastructure-dependent workforce. So, with the changing times its imperative for the organizations to evolve at a higher pace. Offshore development seems like the perfect solution for this kind of problems.

Now, before delving into all the reasons for choosing offshore development, let’s start from the basics.

What is Offshore Development?

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.’

There are three ideal scenarios when organizations should consider contacting an offshore development company.

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

Every organization comes across any one of the three aforementioned conditions once in their running time. However, those are not the only reasons businesses are opting for offshore development.

Top 5 Reasons Businesses are Opting for Offshore Development

top 5 reasons businesses are opting for offshore development

Cost Efficiency

The first benefit businesses who are opting for offshore development observe is cost efficiency. Offshoring software development services will decrease direct and indirect costs, such as recruitment, supervision, and compensation.

While working with an offshore development company, organization don’t have to worry about infrastructure, HR team, and other recruiting-related tasks. They pay only when the project assignment is under development. That sure makes the development process smooth and cost-effective.

Enhanced Productivity

If an organization is not a complete IT-based organization and only requires the completion of a few development-related projects, then to handle their own IT department takes large operational costs and isn’t that necessary. Leaving these complex IT tasks to an offshore software development company cut out major complications and frees up time that they can spend on more tasks for the core business.

Accessibility to a Wide Talent Pool

Innovation and quality work are the best things organizations can get when they opt for offshore development. According to the custom business requirements, they can get highly skilled professionals following the highest standards in software development.

Opting for offshore development partners is also an excellent way of testing out the available resources that will help the organization before making any huge commitment. Ultimately, the organization will realize that the outsourcing partner adds value in the long run.

Enhanced Flexibility

Failing to measure the success of products, can be disastrous for businesses. In such a scenario, most organizations prefer to hire developers and leave project management duties to their offshore software development partner. 

Once the organizations have finalized an offshore development company, they will get a chance to select developers, designers, and a project manager. Furthermore, they can add or remove any of the programmer or designer at any moment for valid reasons.

Risk Management

Businesses can not underestimate the risk factors involved in software development. when opting for offshore development, both parties agree on the terms and conditions, and the impact and risk management are shared among them while outsourcing.

Offshore development moderates risk exposure as the outsourcing service provider will share the responsibility with the hiring organization. It provides support on overall risk management as it helps them adapt to changing market conditions.

Read More: How to Choose the Right Offshore Development Partner


With organizations striving to stay ahead in this ruthless digital landscape, offshore software development has gained significant momentum. By opting for offshore development partners, companies in the developed countries get access to highly skilled developers in emerging technology countries like India and Malaysia at affordable costs. Besides this one, there are myriads of other lucrative benefits of working with an offshore development partner.

Once you decide to work with an offshore software development company, your work is only half done. Because you can’t just hire an offshore development partner without preparing for it. But don’t worry too much. We’re here to help you with just that.

Being one of the best offshore software development service providers, Mindpool helps you effectively extend your development center without any compromises. As an expert offshore development company, our team focuses on your core business functions and significantly enhances your agility.