These days, many tech startups turn to offshore software development services to build their apps. You may be wondering, “Why so?” First and foremost, offshoring has proven to be one of the most cost-effective methods out there to meet tight software production deadlines. Secondly, when you outsource software development to an offshore company specializing in it, you can save yourself a lot of headaches, such as how and where to find a certain type of tech specialist, how to run the entire project, and so on. Besides, it’s possible to outsource a part of the project while keeping the rest of it in-house.
Once you have decided that hiring an off-site team is your option, there’s one important thing left. There are quite a few top offshore software development companies, and you need to make sure that you are picking the perfect fit. At Uptech, we have worked with different clients from around the world as a third-party software development partner, so we know all the nuances of this approach and will be happy to assist you with choosing the right candidate.
My name is Stan Burenko, and I am Head of Business Development here at Uptech. In this article, you’ll learn:
- What offshore software development is all about.
- The list of the best offshore software development companies to work with.
- What criteria you must stick to before making any decision..
How to Choose an Offshore Software Development Company: Key Selection Criteria
With thousands of offshore software development companies vying for your attention, you need to be wise when making your choice. Here's a list of criteria, which we have used in our analysis, for you to consider to make an informed decision.
Company and team
- Team size and structure
- Certifications and awards
- Client testimonials and references
- Communication skills
Tech expertise
- Technologies used
- Methodology
- Security practices
- QA process
Cost and value
- Pricing models
- Payment terms
- Value for money
- Project management
Additional considerations
- Cultural fit
- Intellectual property (IP) ownership
- Legal and regulatory compliances
- Support and maintenance
Tools to use
- Clutch
- GoodFirms
- Upwork
- Company website
How to Choose The Best Offshore Software Development Company in 5 Steps
Here're the list of steps we suggest to take if you want to choose the right software development partner but don't know where to start.
1. Review the offshore software development companies' profiles
Take a closer look at each offshore company candidate you are planning to outsource software development. Here, you need to evaluate the industry expertise and the track record with projects that align with your domain and business needs.
Also, find out about the company's team size, the models of cooperation they offer (such as hiring dedicated developers), and their internal processes. You'll need to do your due diligence by inspecting reviews and feedback from their clients. Doing so helps ensure that the companies are trustworthy and entrust them with the project. An excellent way to start is by visiting Clutch, which reviews and ranks IT outsourcing companies.
Since remote communication is inevitable in any offshore relationship, consider the company’s proficiency in English, their compatibility with your time zone, and their preferred channels of communication.
2. Investigate the tech expertise of the offshore development company
Another important step is to check whether the offshore company’s technical capabilities align with the technology stack required for your project. This includes their proficiency in relevant programming languages and frameworks. Say, if you plan to add generative AI capabilities to your software, an offshore product development company ideally must have the GenAI services page with the list of solutions they build and the AI models they work with.
You may check the company’s tech expertise by checking out its delivered projects on the website or going on review platforms like Clutch and developer platforms like GitHub.
Also, put your security first and ensure they follow stringent data security practices and hold relevant compliance certifications. The quality assurance processes they employ, such as testing protocols and bug-tracking systems, should meet your standards.
3. Analyze the cost and value
Here, you must understand the pricing models — whether they operate on an hourly basis, fixed price, or project-based costs — and check if the offshore software development services company you are about to choose is transparent regarding any hidden fees.
When assessing value for money, compare their proposals with their experience, expertise, and the potential ROI they offer. Effective project management capabilities and clear communication about deliverables and timelines lay a solid foundation for collaboration.
4. Search for cultural fit, legal compliance, and work continuity
Cultural compatibility can significantly impact the success of your partnership. Check whether the offshore company’s values and work styles align with your own for smoother cooperation.
Also, clear agreements on intellectual property ownership ensure that rights to the developed code and related materials are unequivocally established. Compliance with legal and regulatory standards specific to your industry is another crucial criterion to take into account.
Finally, consider their support and maintenance offerings, which will be vital after the project's completion for ongoing operation and updates.
5. Protect your interests
When you hire an offshore development team, you'll be sharing confidential information with an external party. It's best to have the contracted vendor sign a non-disclosure agreement (NDA) with your startup to protect your business.
12 Best Offshore Software Development Companies to Consider
There are literally thousands of offshore outsourcing software development companies out there, and covering all of them is impossible. In this section, we compiled a list of 12 companies from around the globe that provide offshore software development services and are worth your attention.
We also suggest that you read our detailed blog post about the best countries to outsource your software development.
1. Uptech
Let's start with ourselves – after all, if we don't champion our own cause, who will? And frankly, we believe we've earned this spotlight. Here’s why.
Uptech is an international app design and development company that transforms innovative ideas and expert knowledge into exceptional software solutions. In our work, we focus on assisting startups and small to medium-sized businesses (SMBs), including members of the Fortune 500 and Inc. 5000 lists, offering team extension and complete software development services.
With over seven years in the market, Uptech has delivered more than 150 products worldwide and established itself as a reliable offshore development company.
Clutch recognizes us as one of the top 100 app development companies. We've also gotten a design award from a leading publication for a real-estate app. Our reputation grew with consistent, high-quality results, and more clients reached out to us via referrals.
Services provided:
- UX/UI Design
- Mobile app development (iOS, Android, cross-platform)
- Web app development (custom, modernization, API integration)
- Discovery
- Software product development
- IT staff augmentation
- Generative AI development
Industries:
- Fintech
- Proptech
- Healthcare
- Retail & eCommerce
- Logistics
Geography. Founded and headquartered in Ukraine, Uptech operates globally with offices in Poland, Estonia, Cyprus, and the USA.
Price. Uptech provides high-quality services at competitive rates of $25-$49 per hour and tailors pricing to match the specific needs and project scopes of its clients.
When collaborating with Uptech, you'll benefit from our prior experiences with numerous startups. We're aware of what contributes to the success or failure of an app. Besides technicalities, our team aligns the development process with user needs and your business value.
We believe in simplicity and break down complicated concepts into simple modules. While coding is important, we believe that we can do much more with a synergized multi-discipline team. Our team actively adds value to the app and ensures it stays true to achieving product/market fit.
2. STX Next
STX Next, based in Poland, is a global IT consulting company that delivers customer-focused software services. It utilizes a broad array of the latest technologies, including AI-powered solutions. With expertise in data engineering, artificial intelligence, machine learning, and cloud solutions, STX Next has completed over 800 projects.
Services provided:
- Product design
- Web development
- Mobile development
- DevOps
- Consulting
- Cloud solutions
- Artificial intelligence
- Machine learning
- Data engineering
Industries:
- FinTech
- AdTech
- EdTech
- eCommerce
- Transport & Logistics
Geography. STX Next operates primarily out of Poland and serves clients globally.
Price. The company sets its service rates between $50 to $99 per hour.
3. Knowit
Knowit is a consultancy firm that supports companies and organizations with their digital transformations. One of the Nordic leaders in creating digital solutions, Knowit provides offshore programming services. Knowit’s vision focuses on fostering a sustainable and humane society through digitalization and innovation.
Services provided:
- Management consulting
- System and software development
- Product development and engineering
- Cloud solutions
- Cybersecurity and law
- AI and data
- Brand and marketing
- Design and UX
Industries:
- Schools
- Healthcare
- Government authorities
- eCommerce
- Transportation
- Banking and finance
Geography. Knowit operates primarily in the Nordic countries, but also in Poland and Germany.
Price. The company does not disclose its pricing publicly.
4. Avenga
Avenga operates as a global IT engineering and consulting platform, delivering custom software solutions that add value to its clients. With over 20 years of experience, Avenga has successfully provided software solutions to more than 410 clients, including well-known names like IQVIA, Intel, SwissLife, GSK, and Mazda.
Services provided:
- Strategy
- Solution engineering
- Maintenance and support
- Staffing services
Industries:
- Pharma and life sciences
- Insurance
- Financial services and banking
- Automotive
Geography. Avenga has a global presence with offices in Germany, Ukraine, Poland, Portugal, Malta, the USA, Argentina, and Malaysia.
Price. The company's services are priced between $50 to $99 per hour.
5. Netguru
Netguru is a digital acceleration consultancy that specializes in building digital products that enable new ways of doing things. The company serves a diverse range of businesses and delivers well-designed digital products with a strong emphasis on outstanding user experience.
Services provided:
- Web development
- Mobile development
- Cloud strategy
- Product design
- UI/UX design
- Data engineering
- Rapid prototyping
- AI solutions
- Quality assurance
- Agile project management
Industries:
- Finance
- Retail
- Healthcare
- Education
- Proptech
- Greentech
Geography. Netguru operates globally with the main offices in Poland.
Price. The company's services are priced between $50 to $99 per hour.
6. NEORIS
NEORIS, based in Spain with a global headquarters in Miami, USA, provides an array of offshore software development services, including custom software development, mobile application development, eCommerce development, and web development. The company employs teams proficient in various methodologies, including Scrum, DevOps, and Lean, allowing them to develop solutions across various industries.
Services provided:
- Digital strategy
- Digital architecture
- Digital enterprise solutions
- Legacy transformation
- Data analytics and AI
- Cloud services
- Smart eCommerce
- Interactive UX
Industries:
- Telecommunications and media
- Financial services
- Manufacturing
- Health
- Education
- Energy
- Agribusiness
Geography. NEORIS has operations in multiple countries, including the United States, Argentina, Brazil, Chile, Colombia, Mexico, Peru, the Czech Republic, and Hungary.
Price. The company's service rates range from $50 to $99 per hour.
7. QBurst
QBurst, headquartered in India, is a product development and consulting company with a strong emphasis on new-generation technology platforms. With a global presence, QBurst primarily works with mid-size and small businesses.
Services provided:
- Cloud services
- Data and AI
- Web development
- Internet of Things
- Blockchain
- Intelligent document processing
- Microservice architecture
- UX/UI design
- DevOps
- QA automation
- Cybersecurity
- Performance monitoring
- SEO and marketing
- SaaS services
Industries:
- Healthcare
- Retail
- Manufacturing
- Automotive
- Engineering
- Financial services
- Insurance
- Education
- Renewables
- Hospitality
- Life insurance
- Real estate
Geography. QBurst has offices spread across the globe, with the main office in India.
Price. Based on the info from Clutch, the company offers services at rates ranging from $25 to $49 per hour.
8. Sigma Software
Sigma Software, a prominent Ukrainian offshore software development company, employs over 2,000 specialists and has more than two decades of experience in delivering innovative solutions to its clients. As part of a leading Scandinavian technology consulting group and recognized as one of the world’s top 100 outsourcing companies, Sigma Software provides various services in software product development, support, and consulting.
Services provided:
- Business Intelligence (BI) and Big Data
- Advertising solutions
- Aftermarket solutions
- Gaming solutions
- E-learning
- Internet of Things (IoT) development & integration
- eCommerce
- Mobile solutions
- Software as a Service (SaaS - Cloud)
- Web and Intranet portals
- Business systems
- AI services
- Digital banking & FinTech
Industries:
- Automotive
- Aviation
- Construction/Real Estate
- Gambling/Gaming
- Telecom
- Blockchain
- Media/Advertising
- Finance and Banking
- Logistics/Transportation
- Information Technology
- Healthcare
- Energy
Geography. Sigma Software operates globally with offices in Sweden, the US, Poland, Ukraine, Hungary, Bulgaria, the Czech Republic, Portugal, Canada, Brazil, and Colombia.
Price. The company offers services priced between $50 to $99 per hour, reflecting their extensive expertise and international reach.
9. Ciklum
Ciklum is an offshore IT company with delivery centers in Ukraine, Poland, and several other countries. With over 3,500 employees worldwide, Ciklum provides custom software development for a variety of industries.
Services provided:
- Custom software development
- eCommerce development
- Business Intelligence and Big Data consulting
- Application testing
Industries:
- Retail
- Financial services
- Hospitality and leisure
- Telecommunications
Geography. Ciklum is headquartered in the UK and has a strong presence in Western Europe, the US, and Israel.
Price. The company offers its services at rates ranging from $25 to $49 per hour, according to Clutch.
10. EPAM Systems
EPAM Systems, Inc., based in Newtown, Pennsylvania, is one of the biggest offshore outsourcing software development companies on the list. The company specializes in software engineering services, digital platform engineering, and digital product design. Its global team of over 10,000 professionals supports a broad range of industries with technical expertise and innovative solutions.
Services provided:
- Digital strategy and consulting
- Platform and product development
- DevOps and Agile methods
- Quality engineering and testing
- Data and analytics
- Artificial intelligence and AI security
- Cloud strategies and migration
- Cybersecurity solutions
- Customer experience design
- Digital transformation
Industries:
- Consumer packaged goods
- Travel and hospitality
- Retail and eCommerce
- Financial services
- Telecommunications, media, and entertainment
- Life sciences and healthcare
- Software and Hi-Tech
- Energy and resources
- Industrial and manufacturing
- Insurance
Geography. EPAM operates in numerous countries across the Americas, EMEA, and APAC regions.
Price. Services are priced between $150 to $199 per hour.
11. Luxoft
Luxoft is a global IT service provider that offers innovative technology solutions for businesses of different sizes and domains. As one of the largest offshore software development companies, Luxoft provides strategic consulting, custom software development services, and digital solution engineering.
Services provided:
- Cloud solutions
- Engineering
- Intelligent automation
- Machine learning
- Data analytics
- Front-end development
- Legacy modernization
- QA automation
- Design
- Innovation strategy
Industries:
- Automotive
- Healthcare and life sciences
- Oil and gas
- Banking
- Insurance
- Retail and eCommerce
- Manufacturing
- Telecommunications
- Consumer goods
- Media
- Travel and hospitality
- Energy and utilities
- Networking and technology
- Transportation and logistics
Geography. Luxoft has many offices across the Americas, Asia Pacific, Southern and Western Europe, Central and Eastern Europe, Middle East, and Africa regions.
Price. The company's services are priced between $100 to $149 per hour.
12. Tata Consultancy Services (TCS)
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company. Known for its extensive partnerships with many of the world’s largest businesses, TCS offers a wide range of IT services, consulting, and business solutions.
Services provided:
- Artificial intelligence
- Cloud services
- Cognitive business operations
- Consulting
- Cybersecurity
- Data and analytics
- Enterprise solutions
- IoT and digital engineering
- Network solutions and services
- TCS Interactive
- Sustainability services
Industries:
- Banking
- Capital markets
- Consumer goods and distribution
- Education
- Energy, resources, and utilities
- Healthcare
- High tech
- Insurance
- Life sciences
- Manufacturing
- Public services
- Retail
- Travel and logistics
Geography. TCS operates globally with headquarters in Mumbai, India.
Price. Pricing information is undisclosed.
With all these offshore web development companies and not only those specializing in the web, we can move to the discussion regarding what potential benefits you get with this sort of cooperation.
Choosing Offshore Software Development Services: Pros and Cons for Startups
Offshore software development services refer to outsourcing activities performed by an app development company based in a foreign country. The term “offshore” means that the destination country is far away from your location. Typically, offshoring involves two countries with a time difference of 8 hours and above.
For the past decades, offshore development companies have grown in numbers. As a result, there is a growing demand where tech startups who want to augment their IT capacity by engaging the services of offshore development teams.
Let’s single out the advantages and disadvantages of working with offshore outsourcing software development companies.
It isn't hard to imagine why offshore software development companies have become a popular trend amongst startups. Several factors make offshoring appealing and grow to be today's global trend.
Advantages of Offshore Software Development
Lower cost
One of the main reasons startups opt to work with an offshore software development service company is the lower professional fees. Offshore outsourcing countries usually have a lower cost of living. Software developers in countries like Ukraine, China, and India earn a fraction of their counterparts in the US and UK. Yet, there are quite a few companies from developed countries that also provide offshore product development services.
For example, you'll need to pay an average of $129,566 per year for a software developer in the US. Meanwhile, a Ukrainian developer earns a $3,000 monthly salary on average. Therefore, it is a sound business judgment to opt for more affordable services that provide similar or better deliverables.
Access to diverse talent
US and Canadian startups are well known for their innovative ideas. However, they are in the midst of a persistent tech talent shortage. By choosing to offshore your app development needs, you'll have access to a large pool of software developers.
Not only would you not face competition from tech giants, but you can also be assured that offshore development service teams are armed with skill sets that may be rare amongst local candidates.
Proven experience
It takes more than putting together a team of developers to build a functional app. As a co-founder, you may not have the technical ability or time to lead a team of IT experts.
Rather than shifting your focus from the business, working with experienced offshore software developers is better. Offshore developers might have taken similar projects like yours, and the experience helps avoid rookie mistakes.
Scalability
Startups need to maintain an agile structure, and an in-house development team may create an unnecessary financial burden. By engaging offshore software development services, you can choose to collaborate in a model that you're comfortable with. For example, you can pay the vendor for the time and material involved instead of committing to a fixed cost during the early stage.
Disadvantages of Offshore Software Development
With all the benefits that offshore software development services bring, there are a few disadvantages to be aware of. Here are the main ones to keep in mind:
Communicational gap
Despite the new normal of remote work worldwide, the communication gap can still be a problem. The language barrier and differences in time zones are the elements that contribute to this gap. Yet, this barrier can also be tackled with the right team and transparent communication processes.
For example, for Uptech team members, an excellent command of English is a must-have for any candidate for the job in the company. We always make sure that Uptech members can communicate directly with the client.
Also, transparency is one of our fundamental values as a company. We stand for transparent communication with our clients, involving them in all the ongoing processes of the project: from the beginning to the end.
Cultural differences
Another issue that may come up is cultural differences. It takes years to build strong corporate cultures. Of course, you must expect your offshore software development team to be something other than an integral part of your corporate culture. However, you can find an offshore software developer, with its unique corporate culture and values, that would appeal to you the most.
For example, Uptech has a solid product-oriented culture that stands on values.
Besides the transparency mentioned above, product mindset is also important to us. At Uptech, it is not about the code (though quality code is the basis). Instead, we always choose approaches and make decisions that will benefit the product (or business) in the first place.
For example, we always offer our clients solutions that fit their budgets without compromising the product’s quality.
We also validate our decisions so we do not blindly implement ideas. Instead, we make hypotheses, run tests, talk to users, and research the market to ensure this solution will contribute to product development.
When to Hire Offshore Developers
The advantages of offshore software development services are indeed appealing, but how do you know if you're in the right position to outsource? If you relate to any of the following conditions, you'll want to consider collaborating with an offshore software development company.
You're working on a tight budget
A positive cash flow is crucial to sustaining your startup, particularly when you're tight on funding. Hiring local developers can rack up hefty monthly expenses and may disrupt other parts of your business.
Collaborating with offshore developers is a more economical solution. Instead of committing to expensive monthly salaries, you'll benefit from top tech talent without exceeding your budget.
You want to cut development time
For the inexperienced, app development may take way longer than necessary. Not only you'll need to hire the right developers, but you'll also need to ensure they work as a team.
If you're hard-pressed by deadlines, your best bet is to work with offshore developers. They have worked on numerous projects, and those experiences will propel you to the finish line.
You require specific tech skills
Perhaps you're building an app that incorporates cutting-edge technologies like artificial intelligence, machine learning, or blockchain. Unfortunately, talents adept with new technologies are hard to find in some regions.
Offshoring connects you to talents at the forefront of technology. For example, Ukrainian developers quickly master new technologies and apply them to their projects.
5 Steps to Take Before Getting Offshoring Software Development Services
It takes some preparations to ensure successful collaboration with offshore software companies. Before starting your search, you'll want to keep the following in mind.
Step 1. Conduct market research
A successful app offers value and engages the target audience. You need to understand your audience's pain points. By doing so, you'll have a better vision of the app you will build.
List down the important features of the app or potential improvements on an existing one.
Step 2. Define your goals
While offshore development companies are equipped with various skills, they'll still need clear requirements from you. Therefore, you need to ascertain what you're trying to achieve by engaging their services.
If you plan to build an MVP to gather market feedback, you'll need to convey your intention to the developers. Similarly, the offshore IT team needs to know if you're planning to add new features to an existing app.
Step 3. Determine compliance requirements
You'll need to comply with existing regulations and laws in certain industries and regions. For example, the HIPAA law applies if you build a healthcare app for the US market. Likewise, startups targeting the European market need to ensure that their apps are GDPR compliant.
Step 4. Decide on the collaboration model
Most offshore software companies work in a few collaboration models: fixed cost, time and material, or dedicated team. Each of them has its pros and cons. If you're building up a vague idea, you'll want to go with time and material. Meanwhile, the fixed cost model ensures better clarity on potential expenses.
Step 5. Establish communication platforms
Given that real-time communication is hard with an offshore app development company, you'll need to decide how both parties could streamline information. Leverage tools like Slack and Jira to communicate and track progress. Allocate a specific schedule for reports and feedback to ensure the app development proceeds smoothly.
Outsourcing to an offshore software development company greatly benefits startups in developed countries. Besides cheaper costs, working with offshore developers gives you access to a vast talent pool. It's also the best bet to launch your app in the shortest time.
Now that we've shown you how and when to hire an offshore software development company, the ball is now in your court.
Talk to our team and turn your ideas into a successful app. If you have any questions, feel free to contact us.