A Complete Guide on Offshore Software Development and trends in 2020

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A Complete Guide on Offshore Software Development and trends in 2020

When you hear or read the word “Offshore” for the first time, don’t wonder yourself, it simply means outsourcing. The word Outsourcing refers to getting your business operations done remotely, by other people. Although, many people still believe that outsourcing costs less and risky. But, that’s not true. If done with diligence, then outsourcing can prove to be very helpful. In fact, it is one of the leading service types opted by millions of people across the globe. And Vietnam is the source hub of Offshore software development. So, in this article, we’ll provide you with the complete guide on offshore Software Development.


What is Offshore Software Development more preciously?

Offshore software development refers to the development of software by third-party software agency, or by a team of freelance software developers.

Such agencies offer services like software development, web development, mobile app development, and web app development.

However, outsourcing can be done in two different ways: –

  • Lending the project to the induvial developer or an agency.
  • Delegating the whole project or only certain parts.

When it comes to delegating certain parts, then a freelance developer can be a good option. 

But when it comes to lending the whole project, then there is nothing better than handing it over to an agency (third-party software development agency).

This is because a Freelancer might be an expert in a certain field, let it be a UI/UX design, back-end development, front-end development, Unity 3D development, etc. But he can’t be an all-rounder. 

So, providing them with more particular requirements is a good option. 

But when it comes to lending the whole project, then a third-party software development agency is proved to be more stable and a reliable option.

As there will be a lot of experts from different required fields. For instance, in Offshore software development agency, there will be a bunch of UI/UX designers, Front-end developers, Back-end developers, project managers, and quality analysts.

Nearshore, Onshore, and other outsourcing terms

Not to be confused with the different names, all these terms share the same business perspective. 

Nearshore software development agency is as same as the offshore software development agency. The only difference lies in the proximity.   

A nearshore software development agency might be in the same time zone or a neighboring country sharing the same work ethic and culture.  

Whereas, Onshore software development agency means the company is situated in the same country.

Now, there is one more popular term of outsourcing and that is smart sourcing. In smart sourcing approach companies are delegated with the division of tasks, usually non-core operations.

Some Pros & Cons of Offshore outsourcing


  • Cheap – Due to the low cost of living in developing countries other than developed countries. Offshore outsourcing is a fairly cheap option to opt for.
  • No administration cost – Offshore companies take care of their employees very well, as they have to stay competitive and right on top of the slot. So, less operational and administrative costs. Hence, no need to worry much about office space and equipment purchases.
  • Boosted Development – Offshore companies manage and share the risks of working projects. They perform very professionally and precisely, as their results depend on it. Thus, resulting in a development boost.
  • The Benefit of Competent Skills – In most of the cases, offshoring companies have multitalented employs. Most of them have skills in one or two specific areas as well. So, the combination of competent and specific skilled employees results in better and quicker task management.


  • Communication issues – The biggest dis-advantage is having a different time zones. This result in slow and poor communication and mismanagement.
  • Major Cultural gaps – Due to different time zones and different geographical locations. Both the parties have to suffer from major cultural gaps. There might be a scenario where, one party has a national holiday in the country, whereas other has a working day.

How to choose the best outsourcing agency for you (Tips)


As there are thousands of outsourcing companies out there, it becomes extremely essential to choose the best and the reliable one for you.

The best and the oldest way to confirm is to ask for references.

Find out the company’s past clients and ask them about their experience and impressions. It would be even better if you look for current clients, as there will be a bare and raw image of the company in front of you.

But what else? Well, homework is also important.

Deciding on which offshore software development company to opt for, requires time and effort.

A good tip is to contact several other companies and compare what they offer. By this, you’ll get a fair amount of ideas on which one to choose and which not.

Some more important tips on how to conduct offshoring: –

  • Set your own quality standards – It’s extremely important to set your own desired quality standards, before opting for any offshoring agency. This provides you with the best value of your buck. Keeping the record on quality measures you desire help you make the right decision.
  • Negotiate prices and set deadlines – Before proceeding with any offshoring company, it is recommended to negotiate prices with developers and set deadlines, if possible. This will help both the parties to maintain an equal amount of trust and smooth workflow. If pricing is set, then delivering work before deadlines and on-time payments to the agency will surely keep both the parties happy and satisfied.
  • Always Communicate and track progress – This is the most important tip before hiring any offshoring agency. Good communication always results in the best-delivered value. So, it is recommended to opt for daily end of the day or weekly work progress reports.


So, this was all regarding A Complete Guide on Offshore Software Development.

Now, Techvfy has all the resources to meet your offshore software development requirements. We have a team of dedicated developers, who are ready to serve with their best of abilities. Techvfy is one of the leading software development companies in Vietnam.

Make sure to follow this guide before proceeding with any offshoring software development agency.

The people at Techvify continuously strive to attain knowledge and increase their talent to provide the best quality solutions to our valued customers.We keep our self updated with latest Trends so our clients, can take rest and concentrate on business. We had an array of multidisciplinary skilled employees forming the core of our capability.

We have above 500000+ man hour experience in following technologies.
If you want to cooperate with a talented team to produce high quality project, do no hesitate to get in touch with us.

(+84) 834 619 888

(+84) 834 619 888

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