Businesses are increasingly adopting offshore software development services to optimize budgeting and scale effectively. The main difference in onshore vs offshore basics isn't just the cost — it's also the approach to communication. In this article, we’ll explore how to structure workflows to maximize collaboration despite cultural and language challenges.
How to Find the Right Offshore Software Development Company
Freelance platforms let you post job listings and review specialists who apply. These platforms are ideal for finding individual professionals or small teams:
- Upwork
- Toptal
- Freelancer
Take the time to carefully evaluate your options. Check the company’s specialization, ratings, and feedback on independent directories such as Clutch or GoodFirms. To gauge expertise and compatibility, explore their portfolio. If your project is in a complex field like AI or FinTech, look for relevant case studies and judge the quality of their output. It's recommended to schedule a call to understand their principles and English proficiency.
Alternatively, you can contact a staffing agency. They will filter the best candidates and match them with your requirements. These companies specialize in expanding or building large teams, focusing on both technical skills and the ability to work productively in a group.
How to Manage an Offshore Software Development Team
A remote setup requires clear coordination. Digital platforms are the essentials:
- Trello — for task distribution using the Kanban methodology
- Jira — for development management with Agile/Scrum
- Slack — a working messenger with integration capabilities with other services
- Zoom — for video conferencing with screen sharing and interactive whiteboard
- Notion — for documentation management and plan storage
Before starting the cooperation, it's important to discuss the communication format, highlight work ethics, and define your corporate policies. Plan the adaptation of the new team — consider team-building exercises or cross-cultural training sessions.
To ensure that the level of English doesn't affect the quality, use translators and instruments like Grammarly, or LanguageTool to check texts.
Time zone differences can be challenging, but they’re manageable. Use Google Calendar and World Time Buddy to determine when your working hours overlap. For example, employees from the US and Ukraine can collaborate synchronously from 8 AM to 12 in the noon New York time. The remaining hours can be worked by offshore development services on a flexible schedule.
How to Handle Bureaucracy and Secure Your Finances
To manage expenses, determine the optimal payment structure:
- Hourly Rate — for long-term tasks with changing requirements (MVP for a startup)
- Fixed Price — for smaller projects with a clear scope (landing page development)
- Time & Material — for long-term development where it's difficult to estimate the final cost (web platform with continuous updates)
Check the terms of the DTAA (Double Taxation Avoidance Agreement) to prevent excessive tax burdens. Popular outsourcing jurisdictions (Ukraine, India, Poland) offer lower rates and flexible conditions, but consult a lawyer before entering into an agreement.
Formalize the terms of the collaboration with a development contract. The document should include:
- Parties to the agreement
- Deadlines for completion
- Payment model
- Ownership rights
- Jurisdiction
Also, sign an NDA (Non-Disclosure Agreement). This contract ensures confidentiality and sets penalties for breaches. Standard templates are available on websites like LegalZoom and Docracy.
Additionally, request security certificates from the developers, such as GDPR (EU), CCPA (USA), or the international ISO 27001.
Software Development Outsourcing gives you access to a vast pool of unique talent and the opportunity to save money. You just need to learn the essential nuances for a successful collaboration.
