How to Hire Offshore Software Developers for Your Company

Business owners are increasingly turning to offshore software providers. This area of outsourcing is chosen because of the many advantages, such as diversity of talent and technology. In this article, we have gathered some tips on how and where to look for offshore developers and some nuances to consider.

Why Hire an Offshore Team

Offshoring software development implies delegating some tasks to a geographically distant IT provider. Many businesses use this model because of its practical benefits, including faster recruitment. Let’s explore the advantages of offshoring.

Reduced costs

Offshoring is an excellent choice for companies with a tight budget since it requires payments only for working hours, not including rent, hardware, etc. 

Diverse Expertise

Offshore outsourcing can avoid experts shortage since it provides access to a large talent pool with experience in various sectors such as healthcare, logistics, retail, etc.

Better scalability

Offshoring enables you to scale the team up and down, considering your current needs. 


Offshore companies spend a lot of time developing and learning new technologies so they are ready to provide the highest quality services.

Top Offshoring Regions

To hire dedicated development team, start examining the most popular outsourcing regions and comparing hourly rates. Let’s consider some areas:

Eastern Europe. This area is prevalent due to its many experienced professionals and relatively low prices. On average, hourly rates here vary between $40-$60.

Western Europe. Many Western European companies choose this region due to low taxes and favorable conditions for IT firms.

Latin America. Many companies choose South America since it is close to the USA and has similar time zones. Moreover, prices here are quite reasonable.

Asia. Prices in this region are relatively low and vary from $20 to $45 per hour. However, has considerable time zone contrasts and a distinct mentality.

Steps Before Hiring Offshore Developers

It is vital to go through these steps to bypass errors and simplify cooperation:

1. Clarify your purposes

To start development faster, think ahead about the requirements for offshore developers and expectations for the project. Also, think about workflow organization and the tasks that need to be delegated.

2. Specify the necessary expertise 

Thinking through the necessary technology stack or consulting with an expert is critical to effective project development. 

3. Research offshore market

To choose the best vendor, you should pay attention to some crucial factors: 

  • Firm size. More prominent companies can offer you more developers and technologies. However, large companies can’t provide the same flexibility as smaller ones.
  • Hourly rates. Find out what the hourly rate of the selected vendor is and ask them to give you a rough estimate to calculate your budget.
  • Customer reviews. Examine the software vendor’s profiles on platforms like Clutch and GoodFirms.
  • Portfolios. Examine the company’s expertise by studying its cases.

Cooperation Models

After deciding on an offshore software vendor, choose a cooperation model and sign a contract. The are three most widespread options:

Time and materials 

This contract allows you to start development as quickly as possible. Each sprint is planned after completing the previous one and considers your feedback and wishes. This option is the best choice for long-term projects with changing requirements.

Dedicated team 

Such a contract helps to expand your in-house capabilities with offshore developers, QA engineers, DevOps, etc. Its undoubted pluses include your complete control over all processes and the high team flexibility and scalability.

Fixed workscope 

This contract is a good choice for projects with well-defined requirements and deadlines. If you want to create an MVP, this option suits you best.

Potential Challenges of Offshore Software Development

You should be aware of potential difficulties for your collaboration with a software vendor to be as productive as possible.

Schedule mismatch. It can be challenging to agree on joint working hours because of different time zones. To avoid misunderstandings, discuss this point in advance.

Limited communication. Since it is impossible to communicate with all the employees personally, difficulties in management may arise. However, video conferencing solves this problem.

Risks of data leakage. Control of offshore developers is more challenging, so data leaks are risky. To avoid it, select vendors that work under NDAs.

English proficiency. English language proficiency has an important impact on communication. Therefore, a high level of English proficiency in a team will improve communication.


Offshoring software development allows companies to access a wide range of talent and technology, optimize costs and hide the time it takes to create an application and website. So choose an experienced software vendor to bring your projects to life. 

Author bio

Yuliya Melnik is a technical writer at Cleveroad. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions.