Why and How to Hire Offshore Software Development Company


Is cost the only reason for hiring offshore software companies? What other benefits do you get while hiring offshore company? Are you thinking of hiring freelancers but feel they can be unreliable as compared to companies? Or do you think companies can be as unreliable as freelancers but still need to hire an offshore software company and want to know how to choose a reliable one? Here we discuss the possibility when and why to hire offshore software development company:

  1. Testing and Validating Ideas: You have an idea that you think is worth testing but can’t leave your core business functions to do so? Hire an offshore company that has a culture of respecting contracts(NDAs, IP) to create an MVP for you. 
  2. Cost: This is the biggest reason you should hire an offshore software company. You save 50% to 80% of cost when you hire an offshore software company. This saving can increase your company’s profits and help startups and mid-size companies save expenses of thousands of dollars in the form of salaries, benefits and operational expenses.
  3. Save time: If your core business isn’t software, you  don’t have to go through the whole process of hiring people and then managing them when you hire an offshore software team. It saves a lot of time which can be better invested in what you do best i.e. your core business and serving your customers.
  4. Availability of Talent in Abundance: There is no lack of talented people for most technologies in countries like India, Philippines, etc. and the hiring process isn’t long either. This can be crucial in saving time when there is need of additional people. 
  5. Scaling your business: If your core business is software, you have a lot of work coming in and you can not hire these additional people because of reasons(short-term projects, not the technology you want to work on, lack of time, etc), you can always outsource these to an offshore software company. Hiring an offshore company also reduces risks that come with scaling, it can be a great short-term solution.
  6. Automating your time-consuming tasks: If you are a small business owner or a startup spending a lot of time doing manual tasks which can be automated, why not hire an offshore company to do so. You can save a lot of time which can be invested in growth of your business.


To choose a reliable offshore software company from so many available options, you should know what challenges offshore companies face when competing with companies from your home country. These are: Language, Timezone, Culture, Ethics(Respect for Contracts and IPs from not just the company but their employees too), Software Development Methodologies, Quality and Proper Documentation. Some of these are faced by companies from your home country too. A good start to find a reliable offshore software company is to talk to them on these things and ask how they overcome these challenges. 

You can find a reliable offshore software development firm by knowing the following:

  1. Past Work and Testimonials: Past work and the feedback from clients on it is a good way to short-list companies. It can also be a way to test if they respect past contracts like NDAs, IP. If they divulge too much information(of past work that could be under NDA) rather than just a high-level go-through of how and what they are capable of, it is a red flag.
  2. Being Requirement and End-Goal Focused: Focus on what you need and what your end goal is, document it properly. You should be as specific as possible when documenting your requirements. Have in-depth discussion of various facets of requirements and make them aware of context i.e. your business and its intricacies.  They should be asking a lot of questions about your requirements and if you for some reason haven’t documented them, they should be eager to work on a document and discuss it. Use of phrases like “Trust us” or “No problem” without eagerness for in-depth understanding is a red flag. 
  3. Being Available: If you want to find a reliable offshore partner, you should ask them for daily or weekly progress reports. If for some reason it is okay to let go of this requirement, you should still ask them to keep you in the loop with what’s going on. It could be a call every week if you are too busy with tasks at your hand.
  4. Process: Process is the best way to judge if requirements go through proper feedback loops. If they promise to go through wireframes, mockups, prototypes, design, development and testing without explicitly asking for your feedback in every phase, it is a red flag. 
  5. Know if they are over-promising: If you are a technical person, it is fairly easy to spot someone over-promising on your requirements. It could be them promising to finish the work in days rather than months without even having a proper discussion, or if they promise to do the work for too cheap. These type of companies often end up wasting your time and money. Always avoid such companies as odds are they would end up under-delivering and thus aren’t reliable .