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The biggest difficulties in offshore software development

Author: Innotech Vietnam
Date: 31/03/2021

The offshore software market has had rapid growth in recent years. Many companies around the world choose offshore software development to expand their business. However, it’s not easy to have an offshore project that made us satisfied.


Difficulties in offshore software development


Lack of required skills


In 2021, quality may take over from price as the first priority. Despite all the benefits of outsourcing, it is only a good thing if you’re receiving the quality you expect. A lot of offshore development centers (ODCs) around the world hire low-level talents to work or don’t have enough experience in the client’s industry.

Apparently, you can’t control all the processes of works when you outsource. Everything you can do is providing directions, then wait for the result from the service provider.


offshore software development

Some ODCs hire low-level talents to work in offshore software development


Difficulties in communicating


This problem doesn’t always happen, but it could be one of the most annoying problems in offshore software development. Outsourcing can come into problems if there is a cultural barrier between clients and service providers. In terms of corporate culture, the client and service provider may have different norms in terms of speed, style, decision making and organizational structure.

Time-zone difference, the preferred method of communication… also bring difficulties in discussing or causes slow responses to urgent tasks.


Impact on in-house employees


The vast majority of the time, outsourcing is not designed to replace in-house employees but is used in parallel with ramping up headcount internally. However, offshore development usually confuses employees who don’t understand why you are outsourcing particular tasks. Therefore, some of them may view outsourcing as a threat to their role within the organization, which can lead to a decrease in productivity and reluctance to integrate an outsourced partner into the team.


offshore software development

Employees may view outsourcing as a threat to their works


How to overcome the problems


Choosing the professional teams


It’s important that offshore software companies provide a high-quality workforce. Those people make sure that have a certificate to can provide quality product and be well versed in all the aspects for a fintech company. They should have a firm grasp of coding knowledge to write clear and error-free codes to power your platform.


Finding the suitable offshore location


Getting work done remotely from any part of the world is the most high-end advantage that you can enjoy when outsourcing your software development needs. But while doing the same, which company to choose, there are a few things that may continuously hit your mind, such as which location is ideal for offshore software development.

For this, you need to understand that every country has its own advantages and disadvantages. Taking into account the pitfalls and benefits of a particular destination can be a smart move to select the country boundaries where you would find a perfect partner.


offshore software development

The clients should find suitable outsourcing providers




Clear internal communication


The vast majority of the time, outsourcing is not designed to replace in-house employees but is used in parallel with ramping up headcount internally. Clear communication from leadership and management is essential in outlining the role outsourcing will play and how it will impact individual team members.

Outsourcing doesn’t always have a negative impact on company culture, but you need to protect against this before you ever take a step in offshore software development.


Innotech Vietnam always strives to meet the needs of customers with the highest quality products and services. So we have received the trust from big companies such as ACB, Tyme Bank, Unifimoney, Manulife, Commonwealth Bank, … to use products created by Innotech Vietnam.

If you are looking for a Fintech Outsourcing company to provide solutions for your company. Contact experts at Innotech Vietnam for any questions about Offshore software development.

Email: [email protected]


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