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Challenges business might face when use offshore software developer

Author: Innotech Vietnam
Date: 19/08/2021

Using offshore software development centers now is a tendency in software development due to the advantage of Internet connection among counties and the reasonable budget when using labors in developing countries instead of using internal staff in big cities or advanced countries.

But there’re some issues a business needs to notice when using an offshore software development center. Let see what we may face and how to handle it to have the best performance.


1. Communication problems


The different languages, locations and different mindsets between different countries can make some miscommunication and cause problems if we don’t handle it at the right time.

In this case, we can set up daily and weekly meetings. Adopting an Agile software methodology, daily stand-up would be organized by default. These meetings can help all team members meet for working efficiently. Once the meetings become a routine, and the process is followed in a structured way, communication issues and problems will start to solve themselves because it offers team members to discuss and align behavior.


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2. Cost-efficient


Cost-efficient is one of the main reason businesses chooses offshore development. Currently, more firms choose to outsource the development and to maintain their project as the awareness of outsourcing is rising. Cost-efficient doesn’t mean that low-price is better than high one, cost-efficient means the benefits that the cost helps you to get. Therefore, businesses should focus on cost-effectiveness instead of the only cost while outsourcing.


3. Lack of information about software engineers at the offshore center


A resume can’t tell all of the information of the candidates, such as their technology stack, experience, projects’ portfolio, education, etc. And offshore companies may not provide their clients with all necessary info, so there may have risks that it will lead to misunderstandings and the client’s requirements might not be met.

In this case, an interview is very important for clients to have their best developer as well as the best team in the offshore center that they choose.


4. What if a developer decided to leave a project when it hasn’t been done yet?


offshore software


Sometimes a software developer can unexpectedly leave the project. So what if a developer decided to leave a project when it hasn’t been done yet or even if it has just started? How to find a replacement in this case ASAP? It can be devastating for the project since lots of time and resources will be spent on looking for a new team member and training them again.

The clients should make a commitment with offshore center about this replacement as a backup plan and mention clearly the deadline that the offshore center should fill in the new developer for the project.


5. Risk of money transfer


Money transfers between the head office and offshore company can pose certain risks that are related to the security and transparency of the process. For instance, invoices from offshore countries may not be recognized by all tax authorities. This is because there is a risk of issuing a falsified invoice with the purpose to avoid taxes, as Tax Free Today reports.

The business will need to carefully check all of the legal documentation and ensure the transparency of transactions between the two companies, with proven and revealed identities.


We’re here to help and answer any question you might have. We look forward to hearing from you.