Offshore software services have emerged to be a substantial part of business models, be it startups or well-established businesses. Most of the organizations turn towards hiring offshore developers for business engagements. The offshore developers are dedicated professionals who work with clients and handle projects as per the requirements of the client. This practice addresses the cost and reliability issue for software projects. The offshore development services provider enhance the bandwidth in terms of skills, expertise, experience, and resources. This article, we are going to talk about 

  • What is offshore development?
  • The methodology of the offshore development center 
  • Pros and cons of ODC 
  • Reasons for failure for the offshore software projects 

Offshore development center

An offshore development company is a team of skilled and expert professionals located in another country than the client company. Often the country has a lower cost of living. Thus offshore services provider cost a reduced price if we compare to the cost of hiring an in-house team of developers. Lately, adopting offshore development models is the current fashion for modeling, development testing of projects.  

The offshore team is a team of a qualified team of professionals which includes developers, testers, designers, copywriters, specialist, and other personnel required for the projects. This prototype is utilized for diverse business models for the creation and management of software solutions, project management, testing and also for customer support services. 

With this model, the requirement of clients is attained swiftly. The limitations of the company such as finite in-house talent, limited infrastructure, budget for projects, development time and need for required skills are fulfilled.

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Methodology for working of an offshore model


Contract Model: This model is well-suited for smaller organizations. In the contract offshore development model, the company engages with clients and deploys a fully operable team of professionals to meet the projected need for the client and perform office activities and functions.

It is a kind of model that is feasible for the varied tasks, such as the writing of new codes, software updates, and relocations to a new platform.


In the contractual model, The client provides all the specifications, and offshore company deploys the whole team to run the task appointed, beforehand coding task.


Client Model: In this approach, the power is in the hands of clients; that is why it is well-fitted for the larger enterprises.  In this model, the client provides skilled developers, and the rest of the staff is made available by the project management.  Here, the offshore developers are mainly responsible for the coding part of the development process. The other teammates, such as research person, analyst, designers, are available from the project management.


Pros and cons of hiring offshore developers 



  • Access to skilled professionals: It is the best possible solution than hiring freelancers or in-house team of software professionals. The offshore company is qualified professionals with a tested set of skills which contribute to fulfilling clients’ project needs.
  • Reduced development cost: Hiring software developers cost less as compared to hiring an in-house team of software professionals. When a new team is engaged, in-house, it takes an extension of the architecture, increased office expenditure and office maintenance cost.
  • Access to the foreign market: With both the teams working together, the client will have undeviating access to the international markets. 



·    Wrong choice for locations: There are chances where the client is mistaken in the selection of location for selecting an offshore team. The small location will be equipped with limited specialist and expert professionals. It will result in a poor choice. It is a possibility that it lacks experts in your required niche.

·    Cultural variation: The client’s office is always associated with the offshore team. There are differences in the cultural environment between the client and the offshore team.  The business values, communication, the problem-addressing skill may differ in both of the companies.

·  Communication hardship: the offshore team is situated in different time zones and the business hours of companies always. There might arises differences in communication between the in-house and offshore team.

·  Lower assistance: The expenditure incurred to hire offshore team may go in vain if the remote team fails to understand the project.

·       Security threat: There is a risk to the data shared with the offshore team of data breach and leakage of project information in the foreign markets. 

·      Management of remote team: The client needs to hire efficient project managers who are capable of managing a team of offshore software developers. The management team is responsible for effective communication. 


 According to a study carried out in the market, a major time offshore project fails. The software industry is on the brim, yet projects fail. 


Here are a few prominent reasons behind the failure of offshore projects.


·       Imprecise specification for the requirement for projects

· Deficient communication between the development team and client team

·     Inefficient planning for the development of projects 

·       Poor quality of the team of professionals