How To Identify If Your Business Needs To Offshore Its Software Development

Discover the Benefits of Software Development Offshoring. Learn how offshoring can enhance efficiency and cut costs. Read more in this blog.

Being in the 21st century, it’s obvious to have heard about the term called software development offshoring. With the pace in technology expansion, the benefits of offshoring are not uncommon. More and more businesses are considering offshoring as their primary method to successfully and timely execute software projects. In a recent report, the IT offshoring industry was estimated to be worth $66.5 billion. Therefore, the software offshoring sector cannot be left unattended, for businesses of all types, it’s an ocean of opportunities.

We are at Yukti Solutions - an offshore software development company. With an experience of more than 10 years in developing best-in-class software products for hundreds of international clients located in Europe, India and the United States, we can help you understand most about offshore software development, how it works, and whether or not you should have it for your business.

In this article, we’ve compiled almost everything that surrounds offshoring, its benefits and things to keep in mind, and also gathered information on how to get the most out of offshoring for your business.

Table of Contents

What is offshore software development?

Why should you offshore software development?

Early access to strong technical expertise.

Access to a wide range of tech talent pool.

Reduced development time and cost.

Reduce the hiring mistakes.

Raise or reduce your offshore team size at any time.

When you want to focus on your core business.


What is offshore software development?

In the simplest terms, offshoring is a method by which businesses assign a certain type of operations to an external service provider who has years of experience in the particular domain of work. If we talk about only IT businesses, this method has now become a common practice for the majority of software companies as it allows them to work on a variety of projects without even expanding their present in-house resources. As per statista, software product development is the most commonly offshored IT process in the technology industry.

Why should you offshore software development?

Outsourcing or offshoring allows you to delegate your business processes, allowing you to focus better on your core business activities such as marketing, sales, and customer service. Moreover, offshoring lets you avoid the extra expenses on infrastructure and team expansion to accommodate a certain client project. Regardless of how big or small your project is, an offshoring software development company will have the right fit of team and resources for it.



Working with an offshore software development firm will help you in following ways:

  • Reducing fixed costs
  • Instant scaling of the development team
  • Quick access to skilled developers

You may conclude software development offshoring as an external service provider with strong technical expertise, affordable pricing, and uncompromised quality standards that helps you grow the technology that supports your organization.

Early access to strong technical expertise

It isn’t left unnoticed that offshoring software development brings in the knowledge and experience from highly skilled professionals. In this way, offshore development acts as a great medium to fill the technical gaps present in your in-house development team. But that’s not everything, offshore product development allows you to have a complete package of technical consulting services, aid in analytical and market research through minimum viable products (MVP), and also in design and development of highly complex architectures. When we talk about MVPs, an ideal offshore development company can provide you the most optimal MVP gaining valuable market response, allowing you to bring the most effective customer-centric marketing strategy.

From project planning to cost estimation, and from UX/UI design to complete software development - offshoring software development companies can do it all. And they do it ontime with an uncompromised quality.

Access to a wide range of tech talent pool

When you and your team decide to outsource your product development processes, for instance, your product lifecycle management software development process, you are not confined by geographical limitations. Your key focus can be on team skills and professionalism, unaffected by the fact that they are located off-site.

When examining ways to collaborate with a team that is on the other side of the world or distributed across different regions, we would suggest you emphasize more on cultural adaptability. In other words, your offshore team must be able to understand your requirements and should hold strong communication skills.

Reduced development time and cost

Have you ever wondered, how much is the true employee cost? As per the research studies conducted by Joe Hadzima, a senior professor at MIT, the actual cost of a newly recruited in-house developer could reach upto 2.7 times of the base salary. This cost entails all of employment taxes, HR Allowances, office equipment, and all other non-billable hours such as training, meetings, knowledge transfer, idle time to settle, business trips etc. 

Reduce the hiring mistakes

It’s extremely important yet hard to find the right talent for your organization, even for well experienced recruiters or employers. Being an employer, even though your HR department gets the job of finding the right candidates for your organization, you would still be required to pay some time to interview the candidate or review their candidature. Even if hiring new talents doesn’t occupy your work time, it’ll still have the same impact on your entire organization.

As per the study report from DevKillers, it roughly takes around 40 days to find a good developer and their notice period for the present organization adds more days to the waiting time. Overall, to accommodate resources for a new IT project, it’s never advised to hire an additional group of professionals. Hiring new employees is not only time consuming and expensive, it also poses huge risks on project’s execution.

Raise or reduce your offshore team size at any time

Offshoring allows you to upscale or downsize your off-site team. The biggest difference comes with availability of options. All of these professionals are full-time employees at service providers (offshore development companies). Such companies have enough experienced employees to choose from, you may add or remove any amount of members, at any time during the project. Since you best know about the project costs for the developers or any other professional required, you get the freedom to arrange and construct a team of specialists. For instance, if you require more more frontend developers at any time during the project, you can do it easily with an offshore development service provider.

That’s why, next time if you want to onboard a new developer in your in-house team, be sure if you really need one. If not, then hiring an offshore development team is always a better option.

When you want to focus on your core business

What processes you should outsource is something that clearly depends on your specific business needs. Some firms may require a helping hand for an IT project, while others might require to get the work done for an entire project demanding a specific technical expertise. The requirements and expectations will vary depending on the type of business you are in and technology required for your IT project. However, one common thing that offshoring software development provides to organizations of all kinds is the freedom to work on their core business activities. Now, some of these core business activities can be classified as:

  • Product research and development
  • Advertising and marketing strategies
  • Leads and sales plan
  • Customer support
  • After sales support
  • Market feedback analysis