Offshore IT Outsourcing: Definition, Advantages And Disadvantages

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Chi Vo

2022-06-14 02:39:01

gct solution offshore software development outsourcing

Continuing the series of Offshore, Nearshore and Offshore IT Outsourcing, we take a deep dive into Offshore Software Development Outsourcing in this article. We mention 3 aspects: definition, advantages and disadvantages. 


1. The definition of offshore IT outsourcing 


Offshoring software development outsourcing means assigning software-related tasks to a third-party partner based in a different country with different time zones (at least 5–6 hours). For example, a digital marketing agency in Vietnam partnered with an US software development firm. 


2. The advantages of offshore IT outsourcing 

  • Reduced expenses due to lower production costs, salaries, cost of living of personnel, etc. 

  • Uninterrupted workflow achieved thanks to the time difference between the in-house and offshore teams 

  • Access to a global talent pool which makes finding professionals with the skills you need a lot easier than trying to find them at home 


3. The disadvantages of offshore IT outsourcing 

  • Significant time difference.  

  • Communication can get very tricky if you’re normally asleep while the offshore team is working. 

  • Different work habits stemming from different cultural norms and attitudes about work can get in the way of your established business processes and will definitely require adjustments on both sides. 

  • Language barriers can cause misunderstandings and wasted effort unless you and the company you work with have at least one language in common. 

  • Long distances between you and the offshore vendor could make business trips a costly and cumbersome experience, especially if you need to visit your partner’s offices regularly. 


This analysis is totally based on our experience. We want to listen to your sharing and viewpoint! 




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