Offshore Application Development (Ultimate Guide 2021)

Offshore Application Development (Ultimate Guide 2021)

This article will discuss the most important aspects of offshore application development and how you can embrace its power to take your business to new horizons. 


The IT industry is rapidly progressing and more organizations than ever are undergoing a digital revolution, the demand for software developers is growing exponentially. As the need for software developers to manage new ways of working is climbing, competition is getting fiercer, operational costs are rising, and the talent gap is getting wider by the day.


During these challenging times, offshore software development services emerge to the rescue businesses looking to gain an upper hand against their competitors in a saturated market. But, what is an offshore software development and how can you leverage it for your business’s success?

Offshore Application development team

What is Offshore Software Development and Why Is It Important?

Offshore software development is outsourcing software developmental tasks by an organization to a third-party company that resides in a remote location with a different time zone than the organization’s headquarters. 


Fundamentally, offshore application development takes place when large corporations subcontract their digital productions to development centers outside their home country.


Over the years, the world of software engineering has witnessed a sharp rise in offshore development services. Some of the largest global companies hire offshore software development companies to reduce costs and cover up the lack of qualified developers required for software development. 


From website designing and development with rich user interfaces to coding, software testing, and even custom application development, organizations outsource their tasks to a wider range of professionals with expertise beyond the scope of their on-shore software development teams. 


At Powergate, with the initialization of your vision, we offer every kind of IT service there is to bring that vision to life including, but not limited to; mobile app, web, software product, cloud-based solution, SaaS product, and AI Application development and so much more! 


When investing in offshore software development teams for their developmental tasks, not only do businesses avoid the hassles associated with hiring and managing in-house staff, but also improve the efficiency of their operations at a lower cost without any undue stress. With PowerGate Software’s offshore application development solutions, you can take benefit from a massive talent pool to help bring your application to the market faster and with enhanced performance and scalability. 


Advantages of Outsourcing

Outsourcing isn’t limited to just the software industry. Companies regularly outsource many of their business functions such as customer care, data services, marketing, shipping, and logistics for the numerous benefits outsourcing brings to their business. 


In 2019, the global market size of outsourced services amounted to USD 92.5 billion. This illustrates the fact that outsourcing has become an integral model for the global economy. Here are only some of the benefits that outsourcing offers: 


Utilizing the Skills You Don’t Possess 

Your team might be an excellent group of skilled individuals, but nobody is perfect at everything. It’s almost impossible for any business to be an expert in every skill in its industry. The skills that your onshore team lacks can be provided to you by an outsourced team of experts. The qualified and experienced programmers employed by PowerGate are highly skilled professionals within their respective fields and are equipped with the necessary expertise required to handle the needs of companies looking to outsource. 


Reduce Your Risks

Oftentimes, a company is contracted to complete a project that they don’t have any experience in. This is especially true in the case of the software industry which keeps evolving and demanding new skills and expertise with every project. Not having the previous experience of working on an assigned project could pose a potential risk to your project’s success. Outsourcing this project to a company with experience in the project you want to complete can guarantee you better results and reduce the risk of failing. 


Excellent Talent Pool

Outsourcing can give you access to a wider and more talented pool of software developers who are otherwise not accessible or affordable. From this vast pool of experts, you can choose the best professionals according to your business’s or even a project’s specific needs. 


Eliminate the Need for Infrastructure 

Outsourcing supporting processes, businesses can eliminate the need for infrastructure since the outsourced partner takes over the responsibilities of handling your business’s tasks using its infrastructure. This reduces the overall cost of the project, increasing the business’s profit margins.


Work Round-the-Clock

With outsourcing as an option, businesses can hire employees in a completely different time zone than their own. Although this might be an obstacle during the initial stages when trying to communicate with the offloading team, once you overcome it, your business can operate round-the-clock even when you are sleeping. This gets more work done in lesser time and boosts productivity.

Offshore application development in Vietnam

The Downside of Outsourcing 

Despite its countless benefits, the outsourcing model does come with a few challenges and disadvantages that are important to consider if you are thinking of outsourcing your tasks to an offshore contractor.


Communication Issues

Seamless communication is the key to a project’s success. However, when you are miles away from the team appointed to do your tasks, communication becomes difficult to maintain. Fortunately, advanced communication and collaboration tools have made the process of communicating with your hired team much easier. But, even with these advanced tools, challenges continue to persist as issues may still arise due to language barriers or technical difficulties. The difference in time zone also plays a key role in hindering proper communication between your offshore and onshore teams.


Cultural Gap

Cultural differences tend to be an obstacle in ensuring efficacious collaboration between your on-site and off-site teams. As a result, misunderstandings may arise that could lead to inconsistencies in your project. When you are assigning a task over the internet, directions are bound to get lost in translation.


Requires Proper Management 

Outsourcing isn’t as easy as just handing over your tasks to another company to complete. It requires you to consistently work with the offshore team and coordinate your vision and goals regularly. Although you can communicate your objectives to the team, you give up some control over your project when deciding to outsource it and it can be difficult to maintain the level of control you desire.


Things to Do Before Outsourcing 

Before you can outsource your software development tasks, you must do your homework before you go looking for an outsourcing company. Doing your research beforehand can help you reduce risks and maximize the outcomes of your project. Here are 4 steps you should take before deciding to outsource your tasks. 


  • Define Your Goals

You should have well-defined achievable objectives of your project in mind that you can communicate to your offshore team before you can even think of subcontracting your tasks to someone else. Without a clear image of what you want in your mind, you will end up with nothing but a waste of resources and a low-quality product. With an actionable plan that you can convey to your team, on the other hand, your project is destined for success. 


For your and your offshore software development team’s convenience, craft a timeline with milestones you wish to achieve throughout the software development process.


  • Research

It is important to do your research on the market and study consumer demands in the particular niche you are working on. Find out what the customers’ pain points are that you can target with your digital products and how you can market your product offering. 


Gain the upper hand by researching the competition’s services and find out what they are missing. Conduct research to find out the most popular offshore outsourcing locations available for you to choose from.


  • List Your Needs

Different projects require a different technology stack. It is up to you to determine what kind of technologies you need to get the best product while also not exceeding your budget. Go through different services and technologies to see which of them best suits your needs to prepare a detailed specification of all your project’s requirements and the quality you expect to receive. Additionally, you must also have an idea of what level of expertise you require to develop your software. 


  • Document Everything 

Remember to properly document everything you plan to develop. This is of the utmost importance, especially in the case of offshore mobile app development to ensure that your application meets all necessary legal requirements. Apps that use personal data or accept financial payments are required to comply with all legal regulations as per the law before they can be released into the market. 

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Benefits of Offshore Software Development 

Offshore software development in Vietnam serves as a blessing for organizations looking to develop futuristic applications at lower costs, without compromising on their final product. We have already discussed what benefits outsourcing may bring to your company, but here we take an in-depth look at some of the key benefits of hiring an offshore development company for all your software engineering needs. 


Reduced Costs

The primary reason why businesses opt for an offshore software development company to build their digital products is that it comes at a minimal cost compared to the cost of developing their deliverables themselves on-shore. 


Outsourcing app development costs only a fraction of your developmental budget without compromising on the app’s quality. This is because offshore application development services provide more efficient skillsets from experts in the field at a much reduced price without the added cost of IT infrastructure and the recruitment and training of employees. 


Many businesses also turn to third-party software development companies because it eases the process of team scaling. By hiring developers in remote locations, product owners avoid the cost of renting and setting up workspaces for their employees and can thus expand their software development team much faster and cheaper than their in-house team. 


Access to Task-specific Experts

When looking to develop software, companies often require specialists that are at the top of their field to ensure that their application is of top-notch quality. Unfortunately, finding experienced developers with the necessary expertise and infrastructure required to help you stay ahead of your competition can be very difficult. 


Fortunately, offshore application development is a great source for companies looking for developers with expertise on a specific set of tasks for only a certain project. Companies can tap into a much larger pool of talent across the sea for experts to work on only specific projects/tasks without having to commit long-term. These software developers can also help a business streamline its operations and give them better advice during each stage of the software development cycle.


Allows You to Focus on Your Core Operations

Offshoring with the help of an experienced software development partner such as PowerGate Software reduces administrative burdens and the stress of managing and developing software, which allows companies to focus on their business’s core functioning and strategies. 


This ultimately helps product owners and allows them to work towards growing their business by planning and applying their business’s strategies, interacting with potential clients, and providing a better experience to their clients while the offshore development company takes care of your software development projects. 


Shorter Development Times

Offshore application development companies consist of dedicated professional teams that work round-the-clock to ensure that they deliver the best quality applications on time. This significantly reduces the application’s development time and makes way for your application to reach the end-user much faster. This way, not only does your product end up in the market much quicker, but you also gain an edge over your competitors.


Software Outsourcing Companies in Vietnam

How to Embrace Offshore Software Development Best Practices

Hiring an offshore software development service is just the first step. To truly leverage the power of offshore development, product owners have to coordinate with their offshore employees and communicate their expectations properly. Additionally, they must manage the whole software development process to ensure that it goes smoothly. Here are some of the best practices to consider when offshoring your digital productions. 


Communicate Effectively 

It is vital to the success of your project that you properly convey your ideas and the needs of your business to your offshore development team so that they know what to deliver. At the crux of a successful outsourced project lies active communication, an aspect several companies choose to overlook. At PowerGate Software, we encourage positive communication between our clients and our team. Team members are encouraged to directly communicate with the clients they are working for instead of having to go through a manager first. This simplifies the process and helps developers get a better understanding of the project.


Establish definitive goals, milestones, and document everything in detail. Build a strong partnership and maintain constant communication with your offshore software development team to ensure that the work is progressing as per your requirements. Visit your team frequently and provide them with feedback on how to improve their services at every stage of the software development cycle. 


Appoint a Team Lead

A team lead will not only facilitate your communication with large development teams but will also help the developers solve any technical issues that may arise during the process. The team lead will serve as a mentor to train the offshore teams if the need arises and will perform quality checks to ensure that your desired standards of development are being met. 


Build Smaller Teams

Employing smaller teams of remote developers instead of one large offshore application development team will allow for better and more efficient communication between the teams and with you. Additionally, smaller teams working on different tasks of the project will be able to complete tasks much faster and more productively and will be easier to monitor. 


Use Collaboration Tools

Make use of software development tracking tools to delegate, track, and report tasks and to ensure smooth communication with the teams. Tools such as Jira, Asana, and Basecamp can help you plan and prioritize tasks and delegate them amongst teams. Video conferencing applications such as Zoom or Skype can be used to address issues and to enhance communication between onshore and offshore teams.


Document and Track Tasks 

Even when you are outsourcing your tasks to a third party, it is necessary to document and track their operations for your company. Milestones and progress should be continuously tracked and documented for future analysis that can be used to improve your business’s workflows and to identify potential inefficiencies in your work cycle. 


Choose the Right Outsourcing Partner

With thousands of outsourcing options to choose from around the world, it is imperative that you choose the service that is best for you. For this purpose, you should have a well-defined understanding of your project goals and what you require from a software development team.


Ideally, you should choose an outsourcing partner that is based in a location with the necessary talent required in your technological niche to meet your standards and where potential contractors can comprehend your language. 


Choosing a company in a location with a small difference in time zones and similar cultural traits can help make the process significantly easier. Furthermore, make sure that the offshore outsourcing company you choose has the ability to safeguard your data with the necessary protocols in place. 


Understanding the Latest Trends in Offshore Software Development 

In order to stay ahead of the competition that is getting fiercer by the day, software development companies have to consistently adopt new trends and technologies in the rapidly developing IT industry. Here are some of the latest trends in offshore application development in Vietnam.  



As we head into a new digital age, automation has become a part of almost every major industry and the software industry is no exception. Software automation is being adopted by several offshore development companies to eliminate the need for human intervention and to automate many tasks that were being carried out manually by developers and end-users. 


Automation serves as a powerful tool that can help outsourcing companies deliver more consistent, quicker, and secure services. With the modern digital landscape growing and becoming more complex, automation is an indispensable strategy that helps IT teams cut down on costs and replace time-consuming processes, allowing them to focus on more strategic tasks and projects.


AI and Machine Learning

Artificial intelligence and machine learning have taken over the software industry by storm by creating more productive and scalable workflows to drive efficiency and growth. AI algorithms allow offshore teams to make better data-driven decisions by collecting and analyzing data from a wide range of sources. 


Additionally, these algorithms are designed to help speed the decision-making process by analyzing the performance of existing software using key performance metrics and prioritizing certain valuable features for future developments. PowerGate is ranked as one of the top AI Application development companies that offer AI-driven solutions to their clients to optimize their functioning.


AI algorithms and machine learning solutions have also made way for the automation of cumbersome coding processes, eliminating human error and enhancing efficiency. Additionally, AI algorithms even help developers better predict costs and improve their project timelines, ensuring that they complete their tasks within delivered deadlines. From the automation of software designing to the streamlining of software testing, AI-based programming tools have revolutionized the software industry.


Enhanced Data Security

The most valuable asset to a business is its data, which is why data security is one of the biggest concerns for almost every company. This is why offshore software development companies pay detailed attention to establishing security mechanisms and identifying any vulnerabilities in their existing protocols. From individual messages to entire databases, organizations of all sizes are implementing robust security strategies to protect every piece of data within their company.


Cloud Computing Technologies 

Traditional software development jobs are changing as more advanced technology is being introduced. One of the major advancements that have caused a shift in the IT industry is the introduction of cloud computing technologies. As organizations understand the advantages of cloud computing technologies, more and more companies are increasingly investing in their integration into their business model. 


Not only does the use of cloud systems help software developers make their systems more secure, but they also save developers a significant amount of money by eliminating the need for hardware or servers. Offshore software development companies who have not embraced cloud systems are more likely to face difficulty when trying to meet the needs of their clients and to make better quality software. 


PowerGate, for example, is equipped with the latest cloud computing technologies to deliver cloud-based products and services to global enterprises and well-funded startups.

Best Software Companies in Vietnam

Frequently Asked Questions

  • What is an offshore software development company?

An offshore software development company is an organization that consists of a team of experts in a remote location who develop software for clients who are based in another country. Clients typically hire offshore software development companies to outsource their work to save time and more importantly, financial resources. The offshore software development company is usually responsible for:

  • Software development 
  • Software testing 
  • Software maintenance 
  • Website designing
  • Custom application development 


  • Why is there an offshore development?

Offshore development exists because of a lack of talented developers with the required skills in the home country of where a company is located. With local engineers costing around three times more, offshore development is a cost-effective solution that allows businesses to access exceptional talent and scale their business at reduced costs, allowing them to devote their time and resources to their core business functions. This significantly cuts down on development costs and reduces the time-to-market cycle of the business’s product.


  • How do offshore developers work?

Offshore developers typically work full-time with the utmost dedication to ensure that your digital product reaches you before the deadline. They help you deal with routine tasks and accomplish your project goals while also working with you in tandem to ensure that the product owners retain control over the project vision and deliverables. 


PowerGate’s software engineers use the most advanced software applications such as Java, Python, DevOps, AWS, Angular, .NET & C#, PHP, Node JS, and more to build robust and secure solutions. The developers’ work is completely transparent as they give you 360-degree visibility into their entire process. Product owners have direct control over the resources and receive regular updates on the progress of their outsourced tasks.


  • How do you outsource app development?

When outsourcing app development, you can choose to either partner with a software development company, hire an offshore development team, or delegate the app development to an independent developer. If you hire a development team, you will be responsible for managing the complete development process as you take ownership and control over the complete project. 


If you employ the services of a software development company, on the other hand, the company will be responsible for managing the operations of the development team and solving any potential issues that may occur during the process. 


Bottom Line

As businesses look to streamline their workflows and optimize their business processes, the demand for offshore development companies only continues to rise. With the right approach, offshore software outsourcing can be the key to bringing your software ideas to life at a minimal cost. With offshore software development, product owners can engage remote developers from all across the globe and use their valuable expertise.


Hire Remote Developers from PowerGate

Ready to outsource your software development tasks? 


Our offshore application development services offer the perfect combination of talent and experience needed to fulfill the needs of your business. At PowerGate, we have been helping top companies and start-ups to innovate and implement digital transformations into their business model since 2011.


Our dedicated team of specialists and developers use state-of-the-art technology to build a superior, bug-free winning product that is perfectly tailored to your specific requirements. To get your project underway, get in touch with PowerGate today and one of our experts will contact you as soon as possible.


Contact us today to begin exploring to we can help you.

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