How to Get Maximum Profit from Offshore Software Development team?

According to a survey of tech executives, 57% consider finding qualified employees as the biggest challenge for their business. Nearly 25% of executives outsource software development. Deloitte’s study found that 70% of companies choose to outsource software development to reduce costs.

How to Get Maximum Profit from Offshore Software Development team?

The experts from Belitsoft provide tips on how to find and benefit from software development contractors. 

Where to find a software development provider?

Eastern Europe

Poland and other Eastern European countries have gained recognition in the IT outsourcing sector thanks to their skilled workforce, cost-effectiveness, and favorable time zones. Cultural and linguistic similarities are also great advantages. While Eastern European developers may not be as inexpensive as their Asian counterparts, they compensate for it with their superior quality work, dependable communication, and punctual delivery.

South America

Brazil, Argentina, Chile, Colombia, and Mexico have emerged as key contributors to the IT outsourcing industry. The main reason is their proximity to US startups. These countries boast a large pool of over 500,000 skilled IT professionals in various fields, and this number is projected to rise in the future. Additionally, developers in these regions have excellent English language proficiency, and the IT sector benefits from strong government backing.


The Asia region is a favored choice for outsourcing app development because it has a wealth of over 4 million proficient IT professionals. Cost is often the primary consideration that drives outsourcing to Asian countries. For example, with an average of $20,000 annually, developers in India typically earn lower salaries than software engineers in the US. Nevertheless, clients should be aware of potential language and cultural obstacles when outsourcing to countries such as India, Pakistan, China, or Vietnam.

Ways to evaluate the quality of an Offshore Development Team

  • Portfolio. That involves analyzing the projects the team completed, the industries they have served, the results they have achieved, and other pertinent factors.
  • Client Feedback. To gather feedback on the team's previous work, look for reviews from past clients on trustworthy sources such as and 
  • References. When choosing a team, take into account recommendations. Ask about the team's strengths and weaknesses, and the quality of their work. Inquire about their ability to meet deadlines and any other factors that are relevant to the decision-making process.
  • Project Complexity. Evaluate the level and complexity of the team's previous projects. It's also important to assess the success of these projects and whether they met the client's goals. It can provide valuable insights into a contractor’s capabilities.
  • Team Composition. Take note of the structure of the team, ensuring that there are enough specialists to complete the project. Ensure that each team member has the necessary hard and soft skills in their respective field.
  • Workflow. Evaluating the team's workflow for effectiveness and accuracy is crucial to the success of the project. The workflow should incorporate a well-designed Software Development Life Cycle (SDLC). Make sure to follow the 7 steps of SDLC to ensure it's done correctly.

The budget for hiring an Offshore Software Development Team

The cost of hiring an outsourcing software development team depends on several core factors:

  • Location. Where a business is situated can have a major impact due to factors like the cost of living, business taxes and regulations, market demand, and currency value. These elements can impact how much employees are paid in a specific location, leading to changes in overall development expenses.
  • Employment model. The cost range for freelance work, staff augmentation, and outsourcing dedicated teams can vary based on the services offered. In-house hiring may seem less expensive at first glance since salary data usually only reflects base salaries without factoring in taxes, benefits, vacation time, office expenses, and other costs. 
  • Tech stack or combination of skills for a project can affect the cost, particularly in terms of compensation. If a project calls for a rare tech stack or a specific set of skills or requires more than 5 years of experience, it may be difficult to find the right match and result in higher compensation.
  • Professional level. Developers’ rates tend to increase with greater experience, with senior developers who possess leadership skills and a proven track record of completing projects often charging higher fees. It's important to keep an eye on the development market, as even junior developers may demand high rates today.
  • Language proficiency. That can have a significant impact on their pay rate. For your business, having a good command of English ensures smooth communication.

In conclusion

The survey of tech executives indicates that finding qualified employees remains a major challenge for 57% of companies, leading almost a quarter of them to outsource software development. Deloitte's study found that 70% of companies opt for outsourcing as a cost-saving measure.

As a result, South America, Asia, and Eastern Europe have emerged as popular offshore destinations. When evaluating offshore development teams, it is important to consider portfolio, client feedback, references, project complexity, team composition, and workflow.

The cost of hiring an offshore software development team depends on location, employment model, tech stack, professional level, and language proficiency.

By considering these factors, businesses can benefit from the expertise of software development contractors.