Offshore Software Development Services: Key Points

2530 Updated 04.04.2023
Yuriy Matviyuk

Development Tech Lead


Table of contents

Offshore Software Development Services: Short overview

With the rise of globalization and widespread isolation due to the pandemic, much of the work has been done by remote specialists from their homes. This isolation has proven the effectiveness of remote development and has increased the credibility of offshore software development services.

What are offshore software development services?

Offshore software development services include moving the software development process to a country where production costs are lower, which reduces the budget costs of the customer’s company.

Offshore software development services may consist of the following services: product design and architecture, development and testing, business analysis and development plan, project management, etc.

Why are offshore software development services so popular?

Why are offshore software development services so popular?

Why are offshore software development services so popular?

Today, offshoring is becoming a common practice that is slowly but surely changing the face of global business. However, it is worth remembering that offshoring is not a magical solution to every problem. A smart approach is essential here. But we will talk about this later.

Let’s look at the advantages of such services that have increased the popularity of offshoring:

  • Cost-effectiveness. This is probably the main reason for software development offshoring and its most significant benefit. Companies accurately plan their technology development funding to maximize their return on investment. By outsourcing, companies can save a lot of money.
  • Focus on core business goals. While developing software and bringing it to market is critical, you must also keep track of key business goals. Finding a balance between these two challenges is not easy. This problem can be solved by outsourcing software development to a trusted third party. Hired specialists will be engaged in product development, and the company will be able to focus on marketing, PR and other vital activities.
  • Access to a huge amount of talent. Using the offshoring model, companies can choose from many technology experts to develop their software. Only professionals can help create a useful solution that, in turn, will help the company stay competitive. Offshoring allows companies to partner with the most famous and strongest IT professionals.
  • Quick start of the project. The world of technology is changing at the speed of light, so it’s important to create and release software as quickly as possible. Offshore software development services are the perfect place to start. Why? Because companies do not need to create infrastructure and spend resources on managing the development process. It remains only to find a supplier with a ready-made infrastructure and an experienced team.
  • Rapid software development. If everything is done right, offshoring is a way to get the job done quickly. IT software offshoring companies with extensive experience and simple development/delivery methods meet deadlines and deliver quality results. In this way, businesses can meet demand on time and, at best, even get ahead of the competition.

Hire Northell team for offshore software development services

Hire Northell team for offshore software development services

Hire Northell team for offshore software development services

Northell is a reliable and reputable company that provides high-quality offshore software development services. We perfectly mix unique talents, broad expertise, deep knowledge and individual approach.

Here are the main offshore software development services we can provide you with:

  • Staff augmentation. We can supplement your team with a single IT expert or a team of IT professionals using our established recruiting techniques, flexible approach, and considerable expertise.
  • Dedicated team. By enlisting the help of our professional software development team, you may relieve yourself of any administrative burdens while simultaneously expanding your on-site technical skills. Aside from the facilities, the dedicated software developers will be provided with the necessary equipment, programs, licenses, office perks, HR, and accounting help.
  • Full process offshoring. You may outsource work on any aspect of software development to us, from business study through delivery. Our team includes all of the expertise and specialists required to produce a highly functional and aesthetically beautiful product properly.

Why should you choose us for offshore software development services? Here are our advantages over other companies offering offshore programming services:

  • Agile methodology. We employ an agile approach to building software, splitting the whole software creation process into short cycles.
  • Domain expertise. To score a home run with our developed solution, we extensively research your industry, whether it’s Real Estate, FinTech, or Healthcare.
  • Constant involvement. Northell is proud to have served as a reliable partner to many of our clients throughout the years. Even successfully deployed software, we believe, may always be enhanced.
  • Newest technologies. Working with our expert software development team ensures that you have a partner that is up to speed on all technical changes and will prevent you from falling behind.
  • Dedicated team. Working with Northell gives you access to a team of extremely motivated and skilled offshore software developers.

If you want your project to be successfully completed, contact us! Our team will help you turn your wildest ideas into reality.

Offshore software development services: Northell approach

Offshore software development services: Northell approach

Offshore software development services: Northell approach

In order for you to understand how offshoring should work properly, we suggest you take a look at our approach to providing offshore software development services. Our approach consists of the following steps:

Technical documentation

We always begin the software development process by gathering requirements and other relevant information about the upcoming product. We evaluate the project’s cost, establish dates, and create a broad work plan for the project.

Technology standards, chosen technical stacks, and tools for future development are all part of the technical documentation we create.

UI/UX design

At Northell, we have a dedicated design team that creates product logic, architecture, and user flows. To analyze the visual look of future applications, our team creates high-fidelity wireframes and prototypes.

UI designers build a design system, often known as a UI kit, that includes all aspects and components for future applications. The design team may build branding components if such a request is made. The QA team uses our in-house UX lab to examine online product navigation, logic, and all product aspects.


We assign both front-end and back-end developers to each project. Developers build code for all software components using pre-prepared technical documentation.

Our developers create high-quality, scalable applications using modern technologies and technological stacks. Our QA experts do numerous sorts of testing on all created components.

Deployment & Integration

The software is then sent to users for beta testing. We make changes and enhancements to the program in response to customer input. At this step, our primary aim is to ensure that the software operates without any bugs or errors.


After our customer receives the finished software, our cooperation does not end there. We guarantee complete software if any issues arise or something needs to be fixed in the future. Our team is always in touch and ready to maintain the product anytime!

When to apply to an offshore software outsourcing company?

When is the moment when you can apply to an offshore software outsourcing company? Let’s look at a few options:

When you are on a budget

For businesses with limited resources, hiring in-house software engineers is prohibitively expensive. Recruiting skilled employees is often expensive. The offshore development strategy is a cost-effective way to work on your project with professional software developers while staying within your budget.

When you require flexibility

Working with offshore software developers gives you the right to wait for contractual duties to be fulfilled, which may be amended with the consent of both parties. This makes much more sense than hiring a full-time software development professional for a short-term project. When cooperating with an offshore software development team, your commitment to them ends after the project is over.

When you need your services to be improved

A company’s core values should be quality and innovation. They give excellent value for money to clients, assist the firm stay ahead of the competition, and help it win the market. If you see a decline in the quality of your services and products, now is the best moment to consider employing offshore software developers.

When you lack specific talents

If your project requires a specific specialist who is not on your team, offshore software development services are just what you need. Thanks to this kind of service, you can perfectly complement your team with experienced, expert and skillful specialists.

5 steps to hiring an offshore software development services vendor

5 steps to hiring an offshore software development services vendor

5 steps to hiring an offshore software development services vendor

Our team has prepared a step-by-step guide to help you find a good offshore software outsourcing company. Let’s look at each step of this process in more detail:

Step 1: Research your audience, identify your needs, and define business goals

Before you start looking for offshore software developers, you need to form an idea for your future project. To do this, you need to study your audience in detail, understand what they like and what they don’t, what they lack, and what they expect to receive from such a product as you plan to create.

Determine your personal needs. Make a list of requirements for both your future project and the offshore software outsourcing company. You should clearly understand what product you want to get as a result of cooperation and what team you would be comfortable working with.

And lastly, define your business goals. Think about the main goals you want to achieve in the future with your new product. This preparation stage will give you a clear understanding of what kind of specialists you need.

Step 2: Make a list of 5-7 offshore software outsourcing companies

We do not recommend starting with the first offshore software outsourcing company you see. Make a list of 5-7 companies that you find attractive. The selection criteria can be completely different for each company. We advise you to focus on the country in which the company is located, its website and social networks, as well as reviews of previous clients.

Step 3: Check companies’ rankings, portfolio, testimonials and experience

Next, analyze each company. Pay attention to what positions each company is in the ratings. The higher the rating, the more credibility it inspires. View portfolios of previous projects to see if the team suits your taste, style and quality of work.

We also recommend that you be sure to read reviews about the company and analyze its experience. If you have a large complex project with a lot of processes and tasks, then it is unlikely that a start-up offshore software outsourcing company will be able to cope with it.

Step 4: Prepare questions and conduct interviews with offshore software developers

And now, it’s time to prepare and conduct interviews with each of the companies. Here is an example of a list of questions that you can ask candidates during an interview:

  1. What is your experience in offshore software development services?
  2. What projects have you worked on the most?
  3. What results have you managed to achieve during your work as an offshore software outsourcing company?
  4. Have you had unsuccessful projects and what is the reason for the failures?
  5. What technologies do you use in development?
  6. Are you ready to work on long-term projects?
  7. What technical stacks do your offshore software developers prefer?
  8. Is there a project that your team is proud of?
  9. What cooperation models do you offer?
  10. Is there a project manager on your team?
  11. Do you guarantee the security of personal data?

Of course, the list of questions can be extended or narrowed. When you make a list of requirements for your future team, you will understand the best questions to ask in an interview.

Step 5: Sign up a contract

When you decide on the choice of an offshore software outsourcing company with which you will work on your project, proceed to sign the contract. The contract must specify the terms of work, cooperation conditions and guarantees for the security of your data (NDA). Check everything carefully and start developing your future software!

Top success factors of offshore software developers

Let’s now check the main factors that determine the success of offshore software developers:

Skilled and knowledgeable team

A successful company providing offshore custom programming services should be composed of experienced, skilled and knowledgeable professionals. Developers need to be tech-savvy and flexible. A good team always includes talents of varying levels but with in-depth knowledge of how to develop high-performing software.

Well-planned strategy

An experienced and qualified team always has a clear and well-planned work strategy. Thanks to this strategy, offshore software developers work in an organized manner and develop software according to all requirements and deadlines.

Groundwork preparation

This point is to prepare a solid foundation for further work. For example, the Northell team always holds several introductory meetings with customers in order to find out all the necessary details and nuances of their project. In this way, we manage to create products that fully meet customers’ expectations.

Detailed performance analysis

An offshore software outsourcing company should study each and every part of the performance assessment to determine the prospective results after creating an outline structure of the process development.

The best part about offshoring is that a professional organization will handle every aspect of your project and create a high-quality end-product by using the most recent technology, automation, and tools involved with the software development process.

The main offshore software outsourcing services challenges

Like any other services, offshore software development services have their own difficulties. Let’s look at them in details so that you are as prepared as possible for them:

Time zone differences

Working with an offshore software outsourcing company makes the time difference a quite big difficulty. Communication becomes difficult due to geographical differences, which may occasionally result in product development delays.

Northell arranges pre-scheduled calls with your company while being accessible in your time zone to ensure total alignment between us and your business.

Communication challenges

This difficulty is a consequence of the previous one. Due to the difference in time, it isn’t easy to always be in touch with offshore software developers. At Northell, we use advanced task management and communication tools that our customers also have access to. Also, for each project, we assign a project manager who is always in touch with the client.

Security issues

Working with an offshore software outsourcing company you haven’t vetted might raise security worries about them exploiting private data after the software has been turned over. Worse, they may discuss your software concept with another customer.

Before we ever begin working with you, the Northell team signs an NDA. In this manner, you can be certain that your concept will not be revealed. Furthermore, at the handover stage, we provide you with all of the codes as well as the IP rights.

Quality assurance

Cooperating with offshore software developers would need you to be a part of their workflow, particularly if you are anxious to stay on top of the quality checks they are doing.

At Northell, we have weekly customer updates to keep them up to speed on the project’s status. We also keep them updated on every build, ensuring that the project is progressing as planned.

Things to consider before hiring offshore software outsourcing services vendor

Before hiring an offshore software outsourcing company, you need to do the following things:

Come up with software idea

Any software starts with a well-defined idea. Before ordering offshore software development services, make sure that your idea is detailed so that you can easily convey it to your future team.

Prepare detailed requirements

Earlier, we mentioned the importance of making a list of requirements for both your product and the future team you will be collaborating with. The list of product requirements should include design specifications and technical requirements. The list of requirements for a future team should include the necessary hard and soft skills.

We cover this interesting topic in more detail in our recent article How To Write The Design Specification? [Quick Guide]

Research available outsourcing models

In total, there are three available models of cooperation with offshore software developers: Dedicated team, Time & Material and Fixed Price.

You should study in detail the advantages and disadvantages of each of them and choose the one that best suits your company and project.

We will talk about this in details later. However, it will be useful to read our article Fixed Cost vs. Time and Materials. What is the Difference?

Prepare an effective knowledge transfer plan

Since you will be working with a team that is based in another country or maybe on another continent, you will need to come up with a knowledge transfer plan. What does it mean? This means that you will need to create some kind of system through which you and your team can easily share project progress, skills, knowledge and experience.

How to embrace offshore software outsourcing services best practices?

In order to use the benefits and best practices of offshore programming services to the maximum, you should know the following rules:

Get introduced to all offshore software developers

Before you start working with offshore software developers, you should get to know them. This is necessary for a closer connection between your company and the team that will work on your product. The better you know the developer, the better the result will be. At Northell, we always set up several online calls with future customers and tell them all the details about our team, terms of cooperation, etc.

Have a full-time onshore and offshore team lead

In order to control and monitor progress on each stage of project development and manage a team, you will need to have an onshore and offshore team lead. A person from your team most likely knows all the company’s employees for a long time, and it will be faster and easier for them to solve the necessary issues.

An offshore team lead is required for the quality control of offshore software developers. And in fact, it will be a person with whom you can always keep in touch and learn about the project’s status at a certain point of time.

Arrange for daily and weekly meetings with offshore software developers

Keeping abreast of the progress and status of your project is essential to its success. In order to control these things, we recommend that you arrange daily and weekly meetings with offshore software developers. This will add organization to your work and speed up the project.

Use modern software development tracking tools

We also advise using modern and advanced task management/tracking tools to control your project. At Northell, for example, we use Jira and ClickUp so that our customers are always aware of their project’s stage and what tasks need to be completed to implement it.

Top pricing models of offshore software outsourcing services

As we said earlier, there are three cooperation models with an offshore software outsourcing company. Let’s look at them in details:

Dedicated team

The dedicated team cooperation model is the best pricing model for long-term projects. It involves the work of selected specialists only on specially assigned projects. This model provides maximum flexibility in the scope of work and tasks, as well as fixed predefined costs.

For more information about dedicated development teams, check our article How to Hire a Dedicated Software Development Team?

Time & material

The T&M contract assumes payment upon completion of work. Working according to the Time and Material model, the business is interested in delivering you with high-quality output in the shortest possible time, which ensures future fruitful collaboration.

The disadvantages of the T&M model include the need for additional communication with the company. However, this can be an advantage – by discussing the details, you always understand at what stage your project is and where it is moving, and you can make improvements or changes right in the course of your work.

Fixed price

The Fixed Price model presupposes that the budget for the whole project is authorized prior to the commencement of work and stays constant. Also, the precise timeline for project completion is agreed upon before beginning work. The contractor carries the risk of work being completed late. On the one hand, as a client, you may find this approach handy since you know precisely how much your project will cost and when you will get it.

How much do offshore programming services cost?

Offshore programming services price depends on many factors, such as the complexity and size of the project, the complexity of the functionality and design, the level of the design and development team, etc. Knowing in advance the approximate price for the project, you will be able to allocate your budget properly.

There are specific hourly rates for offshore custom programming services in different countries. Look at the average costs of offshore programming services by region and project stage.

How long do offshore programming services last?

Here, in principle, the same as with the price. The duration of offshore programming services depends on the size of the project to be worked on, the complexity of the idea, the complexity of the design, the number of functions, etc. The Northell team always works fast without sacrificing quality.

Speaking of estimating project timelines, let’s take a look at the table we’ve calculated below.

Offshore software development services: Summing up

Offshore programming services are gaining popularity daily and offer more features and benefits. We hope our article will become a kind of guide to the world of offshore custom programming services and you will be able to find an excellent team for your project. Using the information and recommendations we have described in this article, you can successfully delegate your project to a team of professionals and get the result you expect.

If you have any questions or would like to discuss your project with our team, contact us!

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