The ultimate guide to offshore software development for CTOs

Today’s CTOs can take use of offshore IT services as a clever method to shorten project timeframes, save expenses, and access worldwide talent. However, among the multitude of options, choosing the ideal partner and maintaining seamless collaboration are just as important to the success of the project as simply employing a staff in another nation. 

This is why the focus of Touchlane’s guide today is on all you need to know to make the most of offshore development and position your team for success.

In-house, freelance, or outsourcing: which model is the best?

Before we concentrate on outsourcing in general and offshoring in particular, let’s talk about the multiple ways companies can bring programmers on board.

In-house development

The easiest way to have all the goals of your project covered and control every aspect of it is by assembling an in-house software development team. Unfortunately, cost-wise, there is a huge downside due to higher salaries, taxes, management, office expenses, and ultimately holding full responsibility over the final result. Furthermore, finding experienced developers can be difficult – and retaining them even more so. 

Freelance

Hiring a freelancer or a freelance team is often a more affordable option, especially for smaller projects. However, this agility can sometimes result in less consistent quality, and reliability. It is not uncommon for a freelancer to step away from a project mid-development and cause disruptions, and the reasons for this may remain unclear. You need to acknowledge this as a risk you are willing to take. 

Outsourcing

The outsourcing model provides a good medium between having your own team and having to hire a freelance one. Outsourcing companies have a lot of gifted individuals and are able to bring in necessary skills without delay. An expert offshore software development company will also assign a project manager and make sure the engineers are accountable for the code they write. Nevertheless, this model has its shortcomings as well, and we will look at some of them more closely in the upcoming sections. 

Key characteristics of offshore software development 

The offshore model remains popular and is anticipated to grow in numbers. In 2023, the size of the worldwide offshore software development market was valued at around $120 billion, and the projections for 2033 see the valuation triple and reach $389.7 billion.  

The following factors explain why the model is so popular. 

Economic effectiveness

One of the biggest pros of offshoring is the cost of services. Compared to hiring in-house or onshore staffing, offshore programmers in such regions as Eastern Europe and Asia frequently deliver superior software services at far lower prices. And lowering the development expenses makes it possible to allocate these resources to other critical areas of business. As a CTO, you will not need to worry about running out of budget.   

Accelerated time to market

Utilizing various time zones allows businesses to operate around the clock, which speeds up product development and makes them more resilient. This results in a faster MVP, a greater opportunity to be the first-of-a-kind in the market and not letting down your investors. 

Attracting global workforce

Offshore outsourcing permits companies to gain access to a pool of programmers proficient in popular technologies like Java and Android, as well as more niche ones, covering every specific need of the development process. For CTOs, this means being able to carefully choose their development team. They can make sure their candidates are not only proficient in their respective technologies, but also self-sufficient, do not require constant overseeing, have great interpersonal skills, and are able to work in a team.  

Flexibility 

Development teams can easily be scaled up or down depending on the project’s needs, which helps CTOs manage resources efficiently and concentrate more heavily on their core tasks. 

How to select an offshore software outsourcing company

What makes a trustworthy offshore software development services provider stand out among myriads of competitors? At Touchlane, we suggest considering these essential elements:

• Global availability. Look at the global presence of your selected company. It is better to entrust your project to an organization that has experience working across multiple time zones. As a CTO, you might find this useful if you are planning to have your team work in several shifts. Otherwise, you might want to skip to the next point.
• Cultural match. Comprehending cultural subtleties is essential for fruitful collaborations. Examine the company’s customer map for a proven track record of partnering with clients from your region.   
• Data confidentiality. Verify that the offshore development business has agreements like NDAs in place to protect your intellectual property and complies with global data protection criteria.
• Tech skills and track record. Carefully study the company’s website to see if it specializes in the technologies needed for your project, e.g. Swift or React. Check the case studies section to look for related projects or features. 

Biggest challenges of offshore development and how CTOs can solve them 

Despite having multiple benefits, offshore development has its challenges, too. At Touchlane, we advise taking them into consideration – and from our side, we recommend our experience-based solutions.

Language and cultural barriers

Challenge: Communication breakdowns from language and cultural gaps

Solution: Guarantee language proficiency by conducting thorough interviews, hold frequent meetings, and promote cultural awareness. 

Quality management

Challenge: Upholding quality standards across remote teams

Solution: Enforce strict quality control measures, employ automated solutions, and conduct regular training sessions with the offshore team.

Legal requirements and safety concerns

Challenge: Possible legal challenges and data security threats

Solution: Cover all legal aspects in contracts, protect your intellectual property, and implement effective security practices.

Different time zones

Challenge: Coordinating development team schedules 

Solution: Use project management tools and schedule regular team meetings for timely communication. 

5 things to do before partnering with an offshore development company

To set the stage for a thriving collaboration with an offshore outsourcing company, it is important to take certain preparatory actions.

Outline a clear vision for your project

Well-executed project management requires a clear project brief. Express your goals, expectations, and intended results – along with the features, functionalities, and technical limitations – clearly. 

Assess your internal procedures

Do you have all the tools for enabling smooth communication across time zones? Set up task managers like Jira or Asana, agree on your platform for messaging, e.g. Slack or Google Chat, and make sure the offshore team can have all necessary access to corporate resources.  

Take into account the legal implications

Write thorough contracts that protect your intellectual assets and precisely outline the conditions of payment and delivery. 

Start with a pilot project

Begin with a modest trial project to assess the skills and overall fit of the offshore crew with your organization prior to committing to a more significant job.

Having all the information above in mind, you will be ready to employ the offshore model for your operation and create impactful solutions with an offshore development team. And if you require guidance from a seasoned development squad with vast offshore model experience, our accomplished engineers at Touchlane can help you with enrich your development efforts.

Conclusion

For businesses trying to save expenses, reach a larger talent pool, and grow swiftly, offshore software development presents a compelling option. By evaluating best offshore software development companies in detail and finding the right offshore partner, CTOs can achieve desirable project outcomes without sacrificing quality.

FAQ

1. What is an offshore development center (ODC)?

A group of programmers situated abroad who are employed on projects for an organization is known as an offshore development center, aka ODC. It offers the perks of an internal staff at a lesser cost due to its remote location.

2. How long will it take a CTO to assemble an offshore team?

Most offshore outsourcing companies start their staffing processes based on rigorous selections via interviews. The timelines of those are hard to predict as they depend on the availability of both parties. When a CTO approves the team members, it is not uncommon for a project to start immediately. 

From our experience, the whole process usually takes from 10 to 20 days. 

3. What are the main benefits of offshoring engineering?

The biggest ones are for sure cost savings and reaching a pool of experts around the globe. You should be able to locate specialists for both widespread and niche software services, from offshore Java development and offshore Android development to remote Dart engineers.