Benefits & Risks of Offshore Software Development: All Businesses Should Know

There will always be a positive side and a difficult side to each work or service that requires attention. There is no exception in the case of offshore software development. If your company is accustomed to employing offshore software development as a handy support arm, you are well aware of its characteristics. 

However, if you are just beginning to learn about this kind of thing, for example, as a result of the unforeseen events of digital transformation hitting enterprises, this article will clearly define the pros and hazards of offshore software development that all businesses should be aware of.

Why Choosing Offshore Software Development?

How should offshore software development be briefly understood?

Simply put, partners in offshore development may be located in different parts of the globe, in some instances even continents apart. For example, your business is currently located in the US, and you reach out to a company specializing in providing software solutions in Vietnam or Singapore in Asia, it’s called offshore software development.

When it comes to cost, in the US, onshore is usually the most expensive choice, with nearshore often being in the middle of those two options. In contrast, offshore providers are often located in nations with less developed economies, so the price is also at the lowest level compared to the two options above, partly thanks to the high fertility in developing countries – leading to abundant resources and young labor.

Outsourcing is useful, especially in this day and age when digital transformation is on the rise. When your company needs to complete a software development project but is hesitant to hire and maintain an entire IT department, or when the project is simply a matter of fact. In the short term, without permanent staffing, software outsourcing is unquestionably a good idea!

When should businesses consider outsourcing their software development to an offshore company?

We must always be reminded of the significance of software development in digital transformation optimization. In other words, the COVID-19 pandemic has had an influence on software development as a result of digital transformation. One of the numerous advantages of digital technology in the face of a pandemic is the ability to communicate and connect with citizens in real time. And this has caused a significant blow to “old” enterprises that continue to operate in a conventional manner, fearful of change owing to a cumbersome structure…

They are forced to follow digital transformation trends – something that is often thought of as the job of young startups to win customers’ hearts. And so, the great revolution in digitization is taking place around the globe. 

Benefits & Risks of Offshore Software Development

Risks Benefits
The huge gap between time zones may generate communication issues between you and the developers.
Conflicting cultural and social norms is critical for a company to acknowledge the festivals, religious customs, legislation, and interaction hurdles in the nation. In addition, the political stability or instability in the country of the company you choose also needs to be ensured.
When the project is prolonged, the personnel situation is prone to change when the service provider’s staff has shifted due to the project’s extended duration, a disruption may occur. This change may cause discomfort for project owners, or worse, cause project disruption if their resignation is not carried out thoroughly, or is not handed over properly. 
Cost-effective first and foremost, the factor of price and cost is always the top concern of most businesses. When it comes to hiring new employees, you need to be particularly cautious, especially if your company has a limited budget for software development. Instead, consider outsourcing these technical activities to software development professionals in other locations to finish the project without the need for expensive recruiting, infrastructure investment, training, and maintenance.
Quality GuaranteedNext, output quality should also be considered if businesses really want to win the hearts of end-users. In which, awareness of technology should be a primary concern. To be sure, do thorough research on the case studies that the company has published. In addition, you can simply sign an NDA to proceed to an in-depth technical negotiation, testing the team’s expertise before signing the official service contract.
Abundant options for human resources vast human resource market with a significant number of qualified engineers at a youthful and vibrant age await you. Engineers that specialize in a variety of programming languages, designers with a variety of UX/UI styles, and QA engineers who specialize in a variety of particular industries… Surely, the committed team’s components will be added. quick and reasonable.
The diversity of service vendors and the number of software outsourcing businesses featured in the selection list grows as you widen your search outside your region/country and into other continents or nations. You may simply gain an overview and a larger picture of your software development partners from there. 
Shorten completion time-house development necessitates a thorough search for the finest software development tools and the employment of software professionals. In general, a specialized team may complete a project faster than an in-house team since they don’t have to deal with other duties and business goals.
Quick and easy Customizability Is GuaranteedContractual relationships between companies and offshore development teams are common. Rather than engaging a full-time software developer for a short-term project, this is a more cost-effective option. 

Prominent Companies Specializing in Offshore Software Development in Asia

Asia, known for its low service rates and high product production, has progressively become a prominent ‘tech-hub’ in recent years, with several potential software outsourcing businesses like as:

Saigon Technology Solutions – Vietnam

One of Vietnam’s largest IT companies, Saigon Technology, with its headquarters in Ho Chi Minh City and main branch in Danang City, has more than a decade of experience. If you’re a large corporation looking to outsource software development to another country other than the United States or Ukraine, Saigon Technology is your great option. Having over 400+ combined engineering experience and one of the top 1% of Vietnamese talent, Saigon Technology is the perfect choice for you.

TechTIQ Solutions -Singapore

Famous in Singapore for nearly 10 years in the IT industry, TechTIQ has gradually been sought by many empowered foreign companies and entrusted with great projects. By providing cost-effective digital solutions, TechTIQ Solutions hopes to help companies better connect with their consumers and develop in this digital era. For example, they have professionals in Java, RoR, ASP.NET and PHP, as well as AngularJS, NodeJS and ReactJS who can help you design IoT protocols and software for multiple platforms including iOS, Android and RESTful APIs. 

Experion – Thailand

With over 14 years of experience in IT solutions and services, Experion Technologies is a leading digital technology firm in Thailand. Experian, a prominent mobile, web, analytics, cloud, and digital technology company has more than 300 clients in 32 countries and employs these technologies to unleash the potential of companies of all sizes. They cater to large corporations, independent software vendors (ISVs), and startups in the retail, transportation, healthcare, and financial services industries.

UNO – Malaysia

When it comes to content management systems, e-commerce, and mobile app development (Android/iOS), the UNO team has got you covered in Malaysia. They’ve also got a comprehensive suite of Digital Branding skills. For more than 16 years, they’ve built our company by providing custom online solutions tailored to the specific needs of our clients. 

CDN Solutions Group – India

CDN Solutions Group was founded in 2000 by a group of four people and has since grown to a firm that is now ISO 9001:2015 certified and employs more than 250 people. End-to-end, innovative development services are provided through CDN solutions. This organization uses cutting-edge technology to help its customers address their business problems. In addition, CDN provides free assistance for up to six months after the project’s completion for any non-functional problems.


  • Bilal Akbar

    I am Bilal Akbar, the founder of TechTaalk. I am an expert web designer, graphic designer, SEO, and professional blogger. My specialty is WordPress, and I have spent the past few years in website development, blogging, search engine optimization, and digital marketing.
    I am passionate about helping people learn about technology and how to use it to their advantage. I believe that everyone should have the opportunity to use technology to improve their lives, and I am committed to providing that opportunity through TechTaalk.

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