How to Choose an Offshore Development Company in 2024 – a Comprehensive Guide

Businesses often hire an offshore software development company to get talented individuals from countries abroad to engineer new software for them. It might seem like a bad idea when you might have impressive engineers in your home country. So, let’s first discuss why many businesses nowadays are hiring such companies.

In the past, if you had access to software technologies, people would consider you privileged. However, these days technology is abundant, and almost everyone knows how to make use of it. Not only that, it is progressing at a very fast pace, but it also makes it difficult to keep yourself up-to-date with it. Nonetheless, businesses need to stay up to date with the latest software technologies in the industry to be able to be as effective as other businesses.

However, there is one problem that arises because of investing in software development. It is quite a difficult task to balance the need for new software technology and controlling the increasing expenditure that comes with it. Therefore, while investing in software development and research may sound like a good move for the long term, it may not always be as cost-effective in the short run. It may also result in a cash crunch for your business.

Here is where hiring an offshore software development company can be a solution. Such companies coordinate with businesses that operate in a foreign country and fulfill their needs for software development. Many US and European businesses use such companies to get access to the best developer from developing countries like Vietnam, which often offer their services at a low price.

This way, you can cater to your needs for software development while now hurting your budget too much. While you may not be capable of meeting your employees in person, it is a great way of getting the job done without spending a lot. But if you pick the right offshore software development company, it can turn out to be a great experience that trumps its drawbacks.

This article will brief you about just that – picking the right company.

Lack of effective communication is the most prominent drawback of hiring an offshore company. If you do not have proper communication with the company you hire, the software development process can be a disaster. The reason behind it is that a software program would be of no use if the developer does not understand your requirements properly.

Therefore, you should always make sure that communication is not a problem with the company that would be working for you. For instance, one of the first filters should be the language used by you and the company. If the language is the same, there is likely to be no problem. But otherwise, it may wreak havoc on your business.

Another way is asking whether the company is familiar with the workplace communication application – like TeamViewer, Slack, Skype, Atlassian Cloud, etc. – your business uses. It will let you know how easy it would be to communicate with the business or how much time it may take to get familiar with the system.

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Industry experience

You should always check whether the company has just started to work in the industry or has been working for a while. While the number of years is a good indicator of the quality of work a company may provide, you should also check whether it has experience in the kind of software you need or not.

Having experience in a similar niche makes a company a very strong contender. On the other hand, an individual who has worked in various kinds of industries in the past may also prove to be a better suit for you if you need developers for the long term.

Management capabilities and cultural fit

Peter Drucker, a management pioneer, referred to management as doing things right. Though an offshore software development company may know how to say the right things, they may not be able to do it the right way. It is important as you do not have direct access to the personnel of the companies you may hire remotely.

Therefore, you need to make sure the management of the company has sufficient expertise and resources to be able to fulfill the promises they make. Moreover, organizational culture is also important. Companies may have incredible visions, but execution may be affected by employees being clumsy and unmotivated.

These are some qualitative factors that are pretty tough to judge. One way you can understand whether or not the management capabilities and cultural fit are what you require is by asking for references. If an offshore software development company has been hired by businesses in the past, they are likely to be happy to give you their contact information. You can approach these businesses to get a clear picture of the quality of services the company provides.

Cost-effectiveness and not just low costs

You should realize the difference between cost-effectiveness and low costs. Cost-effectiveness refers to the quality of the product you get in relation to the price you pay for it. On the other hand, low costs only mean smaller bills.

It is essential because even if a company offers you its services at lower prices as compared to others, it may not be effective in providing the kind of quality of the software you are looking for. It is a good idea to ask for a price quotation, how much time it requires to finish the project, and what will be the strategy of the company during a project, etc.


Do consider other factors that you find important in assessing companies at your discretion. After you hire a company, make sure you ask for regular reports, communicate regularly, and keep them posted with your requirements.

If you’re seeking professional software developers, Saigon Technology is a good recommendation. You can visit its website to get to know more about the services they offer and their contact details.