Top 10 software development offshoring risks and how to mitigate them

Software development offshoring is not a new concept. In fact, it has become more of a standard factor in the software industry. Nowadays, most companies from across the globe tend to hire people with the right potential, regardless of their location. 

Initially, it was done to bring down the operational cost, but now, companies have understood that software development offshoring is a great way to enhance work quality and productivity. Though several good things come with software development outsourcing, there are few risks of outsourcing your software development project. 

Here we will discuss the risks involved in hiring an offshore software development company and how you can mitigate them. So, let’s get started.

Risks of software development offshoring & How to tackle them:

Performance of the team 

When it comes to software development offshoring, you must choose a team of developers that can handle your project needs efficiently. Any small mistake can take a lot of time to rectify as both parties are not in the same place. As a result, even a simple software development project can take a lot of time to reach its final results. 

So, while you fix an offshore software development company, go through the company’s records and its relationship with other firms from your area. It will help you to know about the performance of the team.

Governmental risks

Different places have different rules, which is most applicable when you have a business going on in different countries. Each government has different rules for data protection and privacy. 

Because of this, the agreement that you have with your offshore vendor may differ, which may result in a lot of legal issues. So, it is wise for both parties to decide the terms and conditions of their work agreement and make sure they are all within the law. 

Vendor destination

The country you choose for software development offshoring plays a vital role in the effectiveness of the agreement. Some countries may have a completely different structure than yours & it may cause some trouble down the line. So, make sure you choose your vendor from a country that you know will be your best option and a country that you trust the most.


Like all mishaps, communication is a major drawback of offshore development. Since there is a vast difference in time, language, and culture of each country, it is easy to misunderstand things. As a result, there are a lot of risks down the line. 

Hence, communication between both parties must be prioritized and properly documented. Most software development offshoring companies concentrate on communication as a primary goal as this can reduce the chances of errors and save a lot of time.

Value over cost

A lot of the time, a software development company outsources its project to a random offshore company to reduce the operations and production cost. As a result, there is a chance that you might lose the quality of the world that your clients expect from you. 

To avoid this, choose a vendor who is well equipped and provides the best quality of work. And if a reputed offshore company costs you a few extra bucks than hiring a new company or unprofessional firm, do not hesitate because the quality of work repays you those few extra bucks. 


Documentation is a key part of any business, but at the same time, most companies tend to neglect it. Whenever you get into a deal with an offshore company, get all your terms and conditions documented. This way, you can ensure that you get what you paid for and what you were promised. 

Be a part of the process

If you are looking to hire an offshore software development team, ensure that you are part of the process. It will reduce the back-and-forth communication. 

For instance, you or anyone from your team can brief the project requirements to create the software wireframe. It will help the development team to understand your projects in a better way. Your expectations and deliverables are much more streamlined when you are part of the process. 

Manage the project 

Project Management is one of the crucial parts of offshore development. Hence, it is necessary to pay attention to detail. Micro-management is a great way to add more value to the project, especially if you are an upcoming business. 

The efforts you put in to ensure that the vendor company has acknowledged all your suggestions and complaints can help you enhance your business productivity and profit.

Be a team & not just a company

Companies tend to hire a lot more brands and people with whom they are emotionally connected. So, it is vital to develop trust with the company. This relationship that you build with your offshore software development team will boost their mortals & they will work better for your company. 

Data risk 

When you go for software development offshoring, one of the major risks will be data security. If you are not sure about a company or choose a firm with a bad track record, you may lose your data, which can severely affect your business. 

So, always ensure that you are approaching the right vendor and do a background verification before sharing your data with them. 


There is no business in this world that is free of risks, including software development. Hence, every business owner must learn how to cope with risks and mitigate them. Some precautions and several efforts can tackle anything that may come your way to software development offshoring. 

However, at the end, it all depends on how you maintain the relationship with the offshore vendors. They are going to be crucial for your business. Do not consider the offshore team as a project vendor. Make a call and choose the team that can travel with your business in the long-run.

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