Offshore Software Development Best Practices

Software Outsourcing is reshaping the global market and transforming how businesses think about growth, and presenting unmatched prospects. Offshore software development services are getting increasingly popular and play an important part in the growth of any company. Many firms profit greatly from these services. This strategy has the potential to save a lot of money for businesses. Beyond that, it might pave the road for them to expand and profit more. Therefore we need to have a clear-cut idea about how offshore software development works and its best practices that you can follow within your business. So, let’s dive in

1. What is Offshore Software Development?

Offshore Software development is a process where you as a business outsource your software development needs to a third-party outsourcing company that is located Offshore. The term offshore refers to a country that is located off the shore which means far away in a different continent of country. Offshore software development is preferred because of the cost benefit that offshoring countries are able to offer.  Now, the times have changed and thus there are businesses who are leveraging the benefits of offshore software development teams. 

Now many of you have this misconception that offshore and outsourcing are the same. Well, actually they are not! Before proceeding any further, it is extremely crucial to understand the difference between offshore and outsourcing. Outsourcing is one method used by companies to transfer part of their work to external service suppliers rather than internal. The purpose of outsourcing usually involves cutting costs and reducing internal infrastructure. 

Whereas nearshore, offshore and onshore are subsets of Outsourcing. This means outsourcing is not offshore development. For a better perspective you can go through this

Now further below, we would like to mention a few scenarios that justify contacting an offshore software development company.

  • Cost-effectiveness – If an organisation wants to cut down on its software development expenses – This one resembles more of small and medium-sized businesses especially when we know how expensive hiring software developers can be. An Offshore software development acts as a cost-effective alternative where things still get done according to your preference at a low rate. 
  • Global exposure – The technology landscape is growing and expanding. Technologies such as artificial intelligence, ML, AR/VR, blockchain, natural language processing, deep language processing and many more are making a huge impact these days .
  • Business development project Compatibility –  Companies often tend to work with offshore development when they don’t receive flexibility. I mean it would be foolish for one to hire a full-time software developer for less-budget or small projects.

2. Best Practices to Offshore Software Development

Best Practices to Offshore Software Development

You as a business will no  longer have to maintain infrastructure or spend time recruiting in-house development team members, because you have now hired experts to do that. From offshore development experts, these are some of the best practices that you must follow for your business.  We are pretty sure that each one of them will work wonders for you! To start with

2.1 Choose Your Partner Carefully

Now this is something that is extremely important in the process of hiring offshore developers. Clearly not choosing the right offshore software development team for your long term projects can cost you an arm and a leg. It is truly said if you take the first step right then half of the development battle is already won. In other words, choosing the right offshore partner is the stepping stone for your success. The reason behind choosing a right partner is because most of your business functions depend on how your outsourcing partner will take a lead. Considering a right outsourcing partner can bring profit to your business. So carefully explore options.

2.2 Provide Specific Details and Set Clear Goals

One of the offshore development best practices is to provide as much project related information as you can to your offshore team. You should also brief your team about the business goals that you have set and wish to achieve. Apart from that, Make a list of functions and mark their priorities, highlighting the most important ones that must be done on first-come first priority. 

2.3 Clear and Strong Communication

One of the most preferred practices is communication. Since offshore location is far away from your own location, communication is vital between the two parties. Make sure that your team is regularly communicating with your offshore team. Now that we are technologically ahead, we have multiple tools and software that will make the process of communication easier. And you should make certain that the process involves more than written communication. To get virtually connected you can use tools and software like SLock, Asana, skype and similar other communication tools. Other tools can also help you in communication via conference calls and video calls.

Communication is the most important aspect while conducting an offshore project. It’s not just about conveying or receiving a message accurately. It’s about gaining feedback and implementing them successfully.  It is vital for both – the local team and remote team to be on the same page. Experienced businesses have claimed that even 10% lacking in regards to communication can lead to the drop of work productivity by 50%. 

2.4 Solid Project Management

Creating software is not a child’s play – one of the common issues faced while conducting such ventures are managing offshore teams or reaching deadlines, sharing information across teams, keeping team members on the right task at the timely manner, keeping everything organized regarding software, etc. So make sure your offshore development team  possesses solid project management skills.

Ideally one should always look for an offshore team that has a project manager to manage teams. They are no less than a ringmaster for your venture.

2.5 Software Development Methodology

In the process of Software development, the method you choose holds an equally important place in decision making. For day-to-day operations, custom software development firms employ a variety of software development approaches. Each one comes with its own set of benefits and drawbacks. The primary goal of these techniques is to ensure that software is developed in a timely and efficient manner in accordance with project specifications.

Agile software development methodology

The most commonly used term to describe development methodologies is agile. It’s typically used as a catch-all word for any agile technique. We can define Agile as an iterative process that minimises the efforts and maximises efficiency. This is because in Agile processes work simultaneously one after another. Most businesses prefer this because this process guarantees efficiency, rapid results and easier alterations.

Waterfall methodology

The waterfall technique is a classic software development process that is no longer widely used. The waterfall model was the most popular methodology for many years, but its strict approach couldn’t keep up with the changing business needs of software design.Here in this method,  the project managers gather all required information at the start of a project and utilise it to develop an informed plan of action. This strategy is usually a step-by-step and a linear procedure, where the output of one is the input of next.

DevOps deployment methodology

As we know that DevOps is a deployment process that combines Dev (software development) with Ops (operations). They come up with a set of techniques to increase communication and collaboration amongst the departments involved in product development.

It’s a never-ending communication loop between product developers and operations teams (IT operations.) It, like many other agile procedures, focuses on continuous feedback to help teams save time, improve customer happiness, and improve productivity.

Scrum software development methodology

Scrum is another name in software development that is widely used. Scrum is just like agile, and other software development approaches which have its prime focus on deriving values from the method. The outcomes derived from the steps is the foundation of the Scrum process.

A sprint is a specified amount of time during which a Scrum takes place. The sprint usually lasts two to four weeks, and the Scrum happens at the start of the sprint. Each sprint’s has a purpose to deliver advancing version of product to stakeholders. You will then receive feedback which can be incorporated into the next sprint right away.

2.6 BOT(Build-Operate-Transfer) Model 

Implementing a Build-Operate-Transfer model is the next big thing in the world of software outsourcing. In simple words, a contract or an agreement is done between two-parties where the service provider not just sets things up for the organisation but also assists in optimising financing projects for them. Have you ever come across the term co-sourcing or staff leasing to conduct precise offshore operations, yes this is what BOT model is all about. What makes such a model an ideal best practice in the world of outsourcing? 

  • Cost – effective –  This model saves time, money and energy for both the parties. For example, let us assume that you are a non-techie and you are asked to develop a mobile app. Since you have no technical knowledge, you are compelled to waste time in understanding the basics. By outsourcing with the BOT model, you have saved yourself from spending unnecessary time figuring such things since they are your experts here. 
  • Prior Experience matters – Of course, knowledge and experience are two such aspects that makes someone a cut above and your tech partners are no exception. Make sure to check your clients past project performances from references and carefully study their communication model as well. Also, choosing offshore developers who exactly know how to set up and manage operations with minimal risk is a win-win move. And since the BOT model itself integrates the scope of launching the product faster nothing can stop you from succeeding in a short span of time. 
  • Ready-made resources – Last but not the least, here you get everything ready-made, right from offshore team members to the resources. All the members are well-trained, highly-skilled and experienced so there is least scope for any mistakes. In other words, you have ample time to focus on your core competencies.

2.7 Always Stay in Loop

When you are working with an offshore development company businesses often tend to get off the radar and focus on their core aspects. This can affect in both ways positively as well as adversely. Positive side is you get to focus on what you love about your core business and the negative side is that you go off the track. You have no clue what is happening among the offshore development companies. Are they working as per your specifications or not. 

So how can this situation be tackled? Simple, keep asking for regular updates, do stay in the loop whether you like it or not. This is your project and they are professionals whom you have hired for the time being, you better get value for the money you will be putting in. Also, issues won’t pile up, they will be resolved right then and there. 

3. Conclusion

Finally, in the end, we think some of these best practices will help your business in choosing the right software partner and get best outcomes for your business. When you search about offshore mobile app development services, you may end up encountering several myths. We hope through this blog, we have stated the facts and the best practices from  will help you manage your offshore partner efficiently and eliminate all the loopholes to make the process hassle-free. 

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


  • Leave a message...

    1. Roger

      I must say you are correct there are some risks too as mentioned by you in offshoring the software development requirements. But if planned correctly you can avoid them. And the offshore development best practices shared by you really helped me a lot in planning my next offshore software development project. Thanks!

    2. Nathaniel James

      I was looking for the practices that I must adept to avoid any risks while offshoring development requirements and I stumbled upon your post. You have provided each and every offshore development best practices with precision and in detail. It completely cleared all the doubts and hesitations I was having regarding offshoring. Thanks for sharing this article.

    3. Elle

      In the covid times, even the small companies and startups are forced to go for offshore-related services. Thus it is quite essential for them to follow best practices while conducting offshore software development. Thanks for sharing the offshore development best practices, it will guide the small firms like us to know how to conduct software development offshore.