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Overseas Software Development

28 February 2024


The software development world is becoming increasingly globally integrated as companies realize tangible cost and resource benefits from outsourcing part or all of their software projects. The concept of overseas software collaboration has evolved from simple labor cost arbitrage to strategic partnerships enabling access to talent, efficiencies and even innovation advantages. The global hunt for technical skills and price points to fuel digital transformation will likely intensify in coming years as development models adjust. What lies ahead and how can organizations best leverage overseas software options? First let's examine current global development trends.

What Does Overseas Software Development Mean?

Overseas software development refers to the practice of hiring software application development, coding, testing, and related services to third-party providers located in foreign countries. It involves collaborating remotely with teams of developers and testers across the world through various digital platforms and tools.

The term «overseas software development» broadly encompasses the outsourcing of any software project - whether it be for web, mobile, enterprise, or other applications - to vendors based abroad, outside of the client's own country. It leverages cost efficiencies and skill advantages found in emerging tech regions like Eastern Europe, Latin America, and Southeast Asia.
Overseas developers

Why Is Overseas Software Development Beneficial?

There are numerous valuable benefits to be gained from outsourcing software projects overseas.

#1 Reduced Costs

The cost savings of overseas development can prove substantial. Average hourly rates for skilled software developers in India, Eastern Europe, Latin America and Southeast Asia can range from $20 to $50 per hour - dramatic savings of 40% to 65% compared to domestic talent. For context, an equivalent senior JavaScript developer in the United States may charge up to $150 per hour. The wage arbitrage confers major budget advantages, especially for larger projects involving multiple developers. Moreover, operational overheads like office space and hardware costs are comparatively lower abroad. Foreign companies also receive various tax advantages and grants from governments supporting technology sectors.

#2 Focus on Core Priorities

Handing off more basic application development, testing and maintenance tasks to competent overseas teams allows domestic employees to focus their efforts up the value chain on proprietary intellectual property, innovations and specialized technical talent only available locally. Rather than expend scarce local coding resources on routine user interface development or scalability testing, they can dedicate time towards data science, solution architecture, machine learning and other differentiating capabilities integral to competitiveness and market leadership.

#3 Access to Innovation

Engaging with overseas talent based in emerging regional tech hubs exposes companies to fresh design perspectives, alternative technology approaches and leading-edge advancements overseas. For example, European teams possess deep specialization in multi-tenant SaaS solutions and data visualization while Latin American partners spearhead adoption of mobile-first paradigms. Tapping into these competencies and mindsets sparks valuable innovation domestically as best practices transfer across global delivery teams.

#4 Improved Time-to-Market

Having an overseas provider handle more basic application coding, lab testing, QA validation, and post-deployment issue resolution frees up availability of domestic developers. Rather than get bogged down managing outsourced tasks, local teams can thus accelerate innovation cycles focusing on complex solution architecture, high-value feature development and user experience testing - the areas where proximity to the business proves vital. Combining round-the-clock development with optimized resource allocation reduces lead times and speeds up deployment.

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How to Choose an Overseas Software Development Company?

Industry reputation should rank highly when evaluating potential offshore collaborators. Specifically, probing past client lists, case studies and independent reviews helps verify consistent delivery of high-quality, secure solutions delivered on time and on budget across prior engagements. Resources meeting scope, timeline and budgetary milestones through demonstrated coding proficiency as well as meticulous testing uphold confidence in meeting project KPIs when considering the level of effort required.

Equally vital is confirming cultural and process fit through initial interactions, discovery sessions and work simulations. Teams exhibiting transparency, communicativeness, accountability and synergistic rhythms matching internal software development norms enable seamless collaboration. Mismatched workflows and vague expectations exacerbate friction when collaborating remotely across continents.
Overseas developers
Carefully validating technical expertise should confirm resources assigned to envisioned applications possess specialty skills tailored to required components. For web projects, this encompasses specific programming languages like React, Node.js, PHP based on use case complexity. For data-heavy mobile apps, competencies around machine learning libraries, real-time databases and mapping APIs prove vital. Enterprise solutions demand architects with experience selecting optimal SaaS platforms, cloud hosting providers and DevOps automation toolchains suited to the organization’s size and Agile maturity.

For applications handling valuable IP, sensitive user data or requiring regulatory compliance, investigating security provisions and external audits remains imperative during offshore partner selection. Vetting data encryption levels for source code, data in transit and data at rest ensures adherence to norms like HIPAA and GDPR based on assessed risk severity. Reviewing availability of security testing tools, access control policies and vulnerability scanning provides insight on defenses against threats like SQL injections, DDoS attacks and insider data leaks.

Rigorously evaluating solutions quality, specialized competencies, infrastructure security and communication flows using the guidelines above helps match promising offshore collaborators to project requirements. This in turn allows leaving nothing to chance during vital software delivery cycles.
Overseas developers

Reasons for Hiring Overseas Programmers

There are several reasons why companies are increasingly hiring overseas developers.

#1 Adoption of Agile Methods

Offshore providers are extensively implementing flexible agile development with constant iterative releases instead of rigid, ‘waterfall’ stage-gated projects for greater adaptability.

#2 Dedicated Offshore Development Centers

More companies are establishing fully owned subsidiaries abroad housing sizable, dedicated development teams tailored to internal technologies, tools and processes while achieving overseas cost optimization.

#3 Heightened Cybersecurity Needs

Clients are pressuring offshore vendors to implement hardened cloud architectures, end-to-end encryption, strict access controls and aggressive vulnerability testing consideration of rising data breach risks.

#4 Increased Usage of Hybrid Teams

Rather than completely outsourced development, projects are increasingly handled by integrated onshore and offshore resources working symbiotically to maximize expertise.
Overseas developers

Overseas Software Development Trends

This industry has experienced rapid growth over the past decade. Developing nations like India, China, Eastern Europe, Philippines, and Latin American countries have invested heavily in IT infrastructure, engineering and computer science education programs resulting in a large, skilled talent pool that offers cost savings to Western companies.


In closing, overseas software development continues gaining momentum across enterprises seeking to simultaneously achieve cost reductions and technology innovation through global collaborations. Identifying aligned overseas technology partners, mitigating associated risks, and integrating internal stakeholder support helps ensure offshore engagements confer full strategic advantages.

Frequently Asked Questions

  • Question:
    What are the risks or downsides to overseas software development?
    Communication barriers, project management challenges, data privacy regulations, intellectual property protection and quality control issues are risks that must be addressed proactively. Travel costs also need to be considered.
  • Question:
    Which countries are currently most popular for overseas software outsourcing?
    India remains dominant due to its huge pool of developers, followed by Eastern European countries such as Poland, Ukraine, and Latin American countries such as Mexico, Brazil.
  • Question:
    What technologies or languages should I look for in an overseas partner?
    Seek broad capabilities in Java, JavaScript, .NET, PHP for standard application development. Emerging expertise in cloud platforms like AWS and niche skills like AI/ML are also valuable.
  • Question:
    How can companies mitigate risks with overseas software partnerships?
    Invest in travel/tools supporting reliable communication, aligned project management disciplines, strong QA automation testing and data security controls. Start small to test collaboration effectiveness before increasing scope.
Sergio Art is the entrepreneurial mind behind the Offshore Development Center (ODC), which he launched in 2010 to support U.S. businesses in their digital transformation efforts through access to skilled software engineers.

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