5 Tips to Reduce Offshore Software Development Cost

Offshore software development has enabled enterprises across the U.S and Europe to save 65% of development cost. Even though outsourcing provides an enormous low-cost advantage, it must be noted that savings can cost businesses millions if the quality is ignored. If quality is taken lightly, companies may lose significant opportunities in keeping their efforts with market demands. Hence, management of offshore software development costs plus the quality is essential in realizing improved returns of offshore investment.

Below are 5 vital tips of reducing offshore costs

1. Create project development Road-map

If the objective of outsourcing is not clear, it will be suicidal to execute and manage offshore project. Having a clear picture of the project development ensures that the project sails appropriately. All that’s required is documenting project development requirements, methodologies and application’s functionality. This will help offshore service providers to be aware of what is expected of them and save a significant amount of time.

2. Choose the right offshore model

To make the most of offshore software development, you should choose the right offshore software models. Saigon Technology, a top offshore software company, has written a very detailed guide here.

3. Have communication plans across strategic, operation and project levels

When the software development is successful, the scope of communication should be beyond software devilment level. It should span across strategic and operational levels. Effective communication accelerates the project at hand and ensures progress without affecting business objective and quality standards. Also, effective communication bridges the gap between requirements and the application’s actual performance.

4. Manage and monitor development progress

No matter the size of the project, it’s vital to track software development progress. Tracking the project regularly via meetings helps in identifying and removing stumbling blocks that impede the software development process. Various applications in the market can be used to manage projects effectively.

5. Metrics to measure quality

At times it becomes difficult to manage a project if it takes the agile route to development. This is because the project is divided into sprint meetings and backlogs. Managing and monitoring are vital in any development of the software. For effective management, prepare a grant chart monitor based on metrics such as time, team velocity, backlog frequency, individual velocity, and burn-downs. Because of proper analysis and effect variations, this will significantly improve the quality of the project. For quality not to be compromised, client and service provider should plan it to avoid any application failure and quality defects.

Where can you look for offshore developers?

Many companies offer the prescribed services. Firstly, look developers in your country. This is the best alternative due to the insignificance of cultural and time zone differences. Also, you wouldn’t encounter mentality differences and communication with developers will be efficient.

The second alternative is expanding your search criteria beyond your borders but within your continent. Cultural differences may erupt in this option, but the chances are that you will get specific specialist you’re looking for.

Lastly but not least, look for a development company from another continent. You can opt for China, India, Ukraine or Eastern Europe companies. The developers may be cheap but can do a magnificent job. The only negativity with this alternative language barrier becomes an impeding factor.

Why is it advisable to outsource software development?

Outsourcing is similar to delegating. When you lack expertise on something, you pass it to a knowledgeable and skilled fellow.

  • Cost effectiveness – This is the most significant reason why many companies advocate for outsourcing of software development. The Cost of hiring a developer and gathering a team is very high. Employment taxes, annual bonuses, overtimes, health coverage, and work equipment are other expenses that are avoided with outsourcing.
  • Saves time – Outsourcing is like killing three birds with one stone. You receive explicit project estimates from experts in software development, save time that may be needed in interviewing specialists and you avoid hiring mistakes.
  • Minimizes risks of wrong decisions – Technology as a whole is expensive, but the best with it, it is accurate and faster. Business operations will be done on time.
  • Helps to focus on core business activities – Outsourcing companies saves funds and money that can be used on core business activities. Above all, outsourcing partners tend to go extra miles to ensure clients are entirely satisfied.


Reducing the offshore development cost is essential for every business to generate profits and maintain market competition. There should be proper consideration on various aspects to make the whole process effective. Failure to be vigilant, it will make the whole exercise futile. Technology is vital for business when done rightly. For you to be successive, apply the tips all will be well.