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Offshore software development is a type of outsourcing whereby you deploy your software development project to an organization outside your home region, i.e. “off your shores”, usually in pursuit of lower-cost or to find resources that are deficient in your home market.
If offshoring means deploying your software development project overseas, then onshoring means the opposite: deploying your project locally, i.e. partnering with a United States software development company (assuming your organization is US-based, of course).
One more term to add to this vocabulary is “nearshoring” which refers to outsourcing your software project to a company neighboring your home region. In the context of the US, this would mean deploying your development to Canada or Mexico.
Companies usually opt for onshoring for the following reasons:
More and more companies are willing to forgo these advantages of onshoring to be able to achieve these benefits of offshore software development:
Offshore software development services rates differ from region to country to city to company. However, there are some general estimates you can keep in mind that will give you an idea of what development will cost around the world.
For the purpose of this comparison, we also include the average rates by region as a reference.
This is how much software development companies charge in:
Finding a top-rated offshore software development company can be difficult - after all, you are stepping into the unknown (presumably).
But, it doesn’t have to be as difficult as it seems. Here are a few steps you can take to ensure you’ve conducted thorough research and found the best candidates for your business:
Different regions will tend to specialize in different technologies and types of solutions, as well as offer different types of services.
The easiest way to identify the best offshore software development companies for your organization, or at least the most eligible candidates, is to assess the tasks you’ll want to outsource, technologies and other skills you are looking for, and let these guide your search.
As discussed above, geography is a factor in the cost of software development.
This mostly comes as a result of the difference in cost of living.
When compared to the USA, Eastern European countries have a lower cost of living.
The regions we’ve covered -South America, Eastern Europe, Asia and Africa- have different price averages which can be useful in narrowing down your search. This is why setting a budget for your software development project is important; It will serve as a filter for offshoring candidates.
However, do keep the following in mind:
A few key factors to consider when deciding on the right location are:
An Aventure's report on software development places Ukraine, Belarus, Poland and Romania among the best Eastern European software development centers.
The region:
Once you’ve narrowed your search down to a few candidates, you will be conducting interviews with each, including their references, to find the best match for your organization.
Here are the key questions to answer:
We’ve written about the best practices in outsourcing software development projects; Here are a few highlights:
The key to obtaining successful offshore software development services is to manage those projects efficiently. With the right preparation and organization, an offshore development project can drive just as great of results as an onshore project.
By following these simple steps below, you'll be sure to keep your project on track, despite different locations, time zones, and sometimes languages.
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