What Is Offshore Software Development?

When it comes to offshore software development, the key idea you need to understand is the notion of 3rd party development and anonymity. These are the fundamental keys to offshore software development, and once you get your head around how they intertwine, the world becomes your oyster.

So what actually is Offshore Software Development?

Offshore software development is the development of software, often web apps, mobile apps and websites, developed by companies or free lancers from countries outside of the employing company. Offshore software development can allow for a higher diversity rate, and in some senses can improve productivity due to time zone differences, allowing teams at all given times to be working on a project.

Benefits of Offshore Software Development :

– Often work, especially from freelancers, can be sourced at a cheaper rate when compared to the U.S or U.K, resulting in a higher profit margin for the software’s purpose.

– It can be a great way to source the best programmers in the world, as onshore software development may not allow for the best of the best to be sourced.

– Freelancers can be sourced for a specific task, and once the task is done, there is no need to continue with them, or on the contrary you can keep working with them, and language barrier is almost eliminated due to many live translation chat tools that can be found online.

What is Onshore Software Development:

As you may have guessed, onshore software development is when software is developed by a team, company or freelancers from within the same country that your company is based in. hence the name onshore.

Onshore software development is used mainly due to its ease of connectivity, as companies can usually employ their software developers or even just meet up with them as travel will cost little to no money. Onshore software development means that teams can talk to each other and brainstorm ideas without having to worry about the distance.

Offshore, Onshore, which one do i use?

Well it really depends on your needs. If as a company you value the physical connectivity, as in being able to talk to your software developers without distance being an issue, then Onshore software development is the way to go, however this comes with usually a higher price, and sometimes the quality can actually be worse than if you were to go for offshore software development.

However, if your company values maximum efficiency, the highest possible profit margins and (in general) cheaper labor, offshore is definitely the better option, as many countries offer cheap, high quality offshore software development such as Ukraine, India and China. The offshore model ensures that you can have a team of highly trained programmers from around the world, ready to program for you, at almost any given time.

Varix Software Development, a company, made a YouTube video, explaining Offshore, Onshore and nearshore software development and can be found here:

The video does an amazing job at explaining the differences between both of the models, and even introducing a new model, the nearshore software development model.

Author: Jon Dixon