Offshore Software Development: Profit or New Risk for the Company

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The necessity of the application development is not the topic for discussions nowadays. Due to the mobile Internet activity’s statistics, it is the guarantee for communication with the target audience. Of course, this depends on the product specification and detailed characteristic of the market segment, but mobile application requirement comes to be a new business successful rule.

The offshore software application development practice becomes more and more popular day by day. This operation has pros and cons that would be mentioned below. These points could have different and even unpredictable influence for the business process so it should be the well-thought decision.

Pros of working with offshore software application development company

First of all the work with offshore companies gets the economy of costs and time. The economy reasons are:

  • no necessity for new employees means no salary
  • no taxes and spendings for the workplace
  • cooperation with offshore software application development company means fixed price for the whole project with no connection to work hours
  • no necessity to spend time for employee’s education

The other benefit of working with offshore software application development company is speed and quality of the project realization. It is really profitable to work with the high-quality and experienced workers. They know all innovations and specifications of their professional area that could be an additional bonus for the result.

Of course one of the features of outsourcing is risk minimizations for the customer company. And here is the point of speed. The offshore software application development company assumes the amount of responsibility for itself.


Software development planning is just as impactful as the development itself. Read our step by step instructions for writing a Software Development Project Plan.

Cons of cooperation with the offshore software application development company

There are two main points that make a business a bit panic – a possible weakness of the security system and lack of the control of the workers.

The first point is rather important because it could cause real damage to the company being. The term “commercial secret” is not a joke because could cost the reputation or even market position for the company. The key to preventing this problem is the strong specifications of the work contract. There could be all detailed information including fees for the premature project termination and fines for the contraventions of the contract points. There should be written all the forbidden, rights, and obligations of the both cooperation sides.

The point of the quality question could also have some variants for preventing by using technic devices. It is not a problem to organize online-meeting using, e.g. Skype. This could save the time for the transportation and tends to be concentrate on the work process. Also, offshore software application development company pay attention for the company reputation at the sphere. Often it is the important part of the chief work or even of the marketing department. And the quality of the work is not something not meaningful.

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