6 Things To Lookout For In An Offshore Product Development Company

Updated On: January 24, 2023

Updated By: AppsRhino



 In today's world, technology completely dominates our lives, providing quick, simple solutions to even the tiniest problems. We can observe a rush of businesses and companies trying to secure their positions in today's competitive IT market. Most businesses have depended on outsourcing companies for talent in the past. In recent years, however, more and more companies have realized the benefits of setting up an offshore development center in a country that offers outsourcing services. The fierce competition in the software development market is causing Western enterprises to turn to offshore software development centers. The journey to building a tech startup is fraught with challenges, especially with rising costs, dynamically evolving software technologies, and tighter competition. In this context, it isn't surprising that both startups and corporations are turning to offshore software development. Are you looking for the top 6 factors to consider before offshoring? Your search is over!

In this blog, we shall describe offshoring, list the features to consider before setting up an offshore development center, and the benefits and drawbacks of doing so in India.

What is Offshore Software Development?

What is Offshore Software Development?

 Offshore software development, commonly known as "offshoring," is the process of hiring a third-party vendor in another country to develop software or applications. The word "offshore" describes a circumstance where there is a significant time zone difference between the customer's premises and the location of the offshore developers. These businesses set up a new office and recruit a specialized software development team to work abroad. For example, R&D centers for IT giants like Google, Apple, and Microsoft are based in Bangalore, the Silicon Valley of Asia! Startups benefit from offshore software development in numerous ways, including lower costs and increased efficiency. The range of offshore software development services goes beyond developing an app from scratch. Developers generally offer specialized services like app development, UI/UX design, or back-end programming. 

What to Look For When Choosing An offshore Product Development Company? 

#1. Experience There is no denying that it's essential to validate the experience of the offshore software development firm. This validation can be accomplished by carefully evaluating prior work and customer reviews.

#2. Technological Advancement 

Technological Advancement

While working with a generalist firm with experience in different technologies is acceptable, finding a partner with expertise in a specific technology is advised. In this manner, one may ensure that the workforce is committed to helping them with offshore software development. 

#3. Cost of Development Choosing a partner for offshore software development that offers a reasonable price is essential. Even if hiring the top developers on the market could appeal to someone, their budget may not permit it. Hiring a team that requests a very cheap price proposal, on the other hand, may appear to be a profitable proposition, but it may compromise quality. 

#4. Flexibility One should collaborate with an offshore software development company that offers headcount and time allocation flexibility. This makes it simpler for everyone to work collaboratively on every project. 

#5. Time and Process The method of developing software can be arduous. But the reality is that one needs that software to dominate the market. In order to do so, they should be aware of the project's development schedule. They would also require a team with a system to get them there quickly without compromising quality.

 #6. Communication Fluency and time are two ways to look at how communication functions in offshore software development services. The development business needs to provide the project update accurately. They should also be accessible simultaneously during the user's time frame or when their team is working.

Advantages & Disadvantages Of Setting Up An Offshore Development Center In India

Advantages & Disadvantages Of Setting Up An Offshore Development Center In India


 India is the ideal location for an offshore software development center. On a global scale, the Indian IT industry is known for its competitive pricing and superior software solutions. India holds a market share of 56% in the global outsourcing services market, the highest ever measured. Before outsourcing to India, one should be aware of the various benefits and drawbacks of setting up an offshore development center in India.


A Vast Range of Talent Indian outsourcing is renowned for its vast talent pool, which is also the main reason for the country's dominance in custom software development. Each year, almost 200,000 college graduates are hired by the IT sector. With this large skill pool, India's offshore software development center can accurately tackle any development challenge.

No Communication Barrier In today's linked world, English is the only language effective for communicating. Almost 125 million Indians speak English, making it the second largest English-speaking country in the world. In this way, an offshore development center in India automatically removes barriers to communication.

Lower Expenses There is no doubt that India has lower software development costs than the rest of the world. The reason for the affordability of development expenses in India is the low salaries compared to the U.S. or Europe. Blended development partly contributes to it. In addition to reducing costs, outsourcing software development to India gives businesses a competitive edge through economies of scale. 

Exceptional Product Quality Low development costs may attract businesses, but excellent software quality keeps them. Currently, India holds 55% of the outsourcing stake in the IT sector, making it one of the world's leading investment destinations. Despite fierce competition at home and abroad, an offshore development center in India always delivers top-quality services. 


Time Zone Differences Employee productivity is negatively affected by time zone differences. Assigning assignments to software developers should be done keeping the time zone in mind. 

Cultural Barriers It is impossible to overstate the importance of cultural factors in collaboration. As a result of their different backgrounds, people develop varying attitudes and mindsets toward responsibilities and labor. This might result in unforeseen conflicts or unwanted aggravations.

Security Hazards When offshore development services are used, information leakage is a potential concern that can compromise security. Data, code, and workflows that contain sensitive information are necessary for developers to comprehend the complete system and adopt new initiatives. In the past, security hazards involving this data and information have been reported.

Cost Of Offshore Software Development 

While offshore software development generally leads to cost savings, the resources used vary based on the type of project. Therefore, it is hard to determine the cost of developing a given piece of software. However, the average cost of a decent software developer in India is $60-190 per hour. The following factors should be taken into account to determine the cost of the app: Complexity and type of application Compatibility with platforms Requirements for UI/UX Back-end processing


 Globalization and technological advancement have paved the way for many companies to succeed through offshore software development. Due to the continuous advancements in the IT sector, it has become increasingly difficult for businesses to find developers with the necessary expertise to work on their development projects. Consequently, many tech companies feel compelled to set up offshore development centers. In today's market, offshore software development is considered an upgraded solution for IT businesses, as it offers far more benefits than traditional outsourcing. The estimated market revenue for worldwide IT outsourcing by 2023 is $413.7billion. This suggests a rising need for offshore software developers as businesses try to control costs while maximizing this well-liked cooperation mode. Offshore Development Centers in India, however, are a great way to reduce research and development costs. Are you looking for a team to make your project idea a reality? Would you like a team of developers to assist you with your project? AppsRhino is here to help!

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