5 Most Common Offshore Software Development Challenges

The selection of offshore software development company plays an important role in the success of your project. Read the article to know about the most common offshore software development challenges that are faced by businesses globally.

Offshore software development challenges

Modern technologies such as Cloud Computing, Machine Learning, Robotic Process Automation, and even Big Data are outsourced to software development companies across the globe by major businesses. If we analyze the current trends in the software outsourcing market, the majority of their projects are outsourced to offshore companies which are mainly based in Asian countries. They outsource their project as a business strategy to save cost, delivery time and high ROI(Return on Investment). However, the criteria that encourage businesses to choose an Offshore Software Development Company in India for their project include flexibility, skilled resources, client testimonials, and prior experience with vendors.
Offshore software development will not always be a "bed of roses" as we mentioned. there are many challenges associated with it. Even the selection of offshore software development partner plays an important role in the success of your project. In this article, we will list out the most common offshore software development challenges that are faced by businesses globally.

List of Offshore Software Development Challenges

1. Lack of proper communication

This point may sound simple, but the lack of maintaining proper communication is one of the main challenges that have been reported in the offshore outsourcing business. Developing an efficient and clear communication strategy will deeply affect the quality of the project.
Offshore development companies should maintain transparent communication with their clients. An offshore development having transparent project management will help businesses to effectively collaborate, organize, and track everything related to their project.

Impact of poor communication on project management:

  1. Poor communication within the team and poor transparency with the customer can hamper the smooth running of offshore projects.

  2. It can affect the quality of the product or service of an offshore software development company.

  3. Lack of clear communication within the project life cycle keeps out the development team from meeting deadlines and the quality of the project deliverables.

How can Offshore Software Companies Alleviate this challenge?

By rewiring your hiring strategy: Since communication skill is one of the top skills that an employer could get from an employee, your hiring policy must be aligned in such a way that the hired developers should possess at least above average communication. They must be provided with effective soft skills and communication training, which equips developers to face the daily standup meetings and scrum calls with customers confidently. Moreover, most of the Software Outsourcing Companies in India have been achieved excellent results by implementing this strategy.

2. Fear of Losing Intellectual Property

All businesses in the U.S keep their customer data, company secrets, employee information, and financial information confidential. They are unwilling to outsource their projects to offshore vendors because of their belief that their trade secret would be in danger since it is available to a foreign company whose employees are not subjected to U.S laws.

How can Offshore Software Companies Alleviate this challenge?

By signing a Confidentiality Agreement with your client: Signing a confidentiality agreement will ensure the protection of your client's business information and trade secrets at all times. Enforcing a Non-Disclosure Agreement (NDA) with your client can mitigate this offshore software development challenges.
By ensuring high data-security: Intensifying data security in offshore software development facilities can mitigate the risk of intellectual property theft.

offshore challenges

3. Employee Turnover

The recent boom in the global IT industry has led to an increased demand for outsourcing companies, especially in Asian countries such as India and China. Software outsourcing companies are flourishing at a rapid rate in these countries, which benefits software professionals to grow their careers. This vast choice of opportunities could drain talented professionals from vendors. This drain of professionals from a company, also known as "Vendor Attrition" will have a damaging effect on the businesses. Long term projects that are outsourced will have a negative impact if there is an unstable workforce in your company. It can also create poor quality and delivery delays.

How can Offshore Software Companies Alleviate this challenge?

Developing a backup strategy: To overcome this challenge software development companies should take a backup strategy by lining up backup resources. This should be done before the minimum guaranteed time accepted by the current resources. Software development companies can avoid resource dependencies by rotating the resource with a certain time span of two years.

By providing employees with high-quality training: The ultimate aim of a good employee is to advance his career by increasing their skills and knowledge. Software companies should give them a career path so that they won't get a feel of staying in one position for long.

4. Vendor Lock-in

Vendor lock-in is one of the important offshore development challenges that businesses across the world face these days. Businesses will be unable to switch another vendor since they can't back out from their alliance with the current vendor. Vendor Lock-in restricts customers to use an alternate solution, technology or service other than their vendor partner.

How can businesses avoid this challenge?

By proper documentation of the SLA: When drafting the Service-Level Agreement (SLA), ensure to enter a clause that mentions the complete cooperation of the vendor in case of a deconversion with both companies.

5. Time Zone Difference

Most of the businesses across the globe are skeptical about the time zone difference that they potentially face when outsourcing their project to an offshore software development company. Time zone difference between the business and vendor is one of the major challenges that can cause delays in your project and significant downtime issues.

How can Offshore Software Companies Alleviate this challenge?

Luckily companies can alleviate this offshore software development challenges by exploiting the difference in the timezone. They can do it by implementing a 24X7 development cycle. This ensures uninterrupted work and reduced development time for your software development project.


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