Quick Summary: Offshoring is an immensely powerful business, it offers many advantages including lower development costs, faster project execution, access to latest technologies and availability of vast talent. But it comes with its own price to pay–high enough that things get tricky sometimes and problems become too complicated to handle. Issues may arise from both the side, from the client company or the offshore software provider company. So one thing is certain, Offshore Development Services is not a piece of cake. 

Offshoring: Obstacles and Solutions 

1. Insufficient knowledge about the vendor- Software engineers are in high demand and there’s a lot of them out there, ready to serve the world. But like in any other field, only a few of them are dedicated and honest professionals, while others might come with issues. Because there are huge stakes involved, companies wanting to outsource their project must perform thorough research and background checks to finalize a vendor. 
2. Risk management- Risks are associated with almost every business. It is one of the most difficult aspects to keep under one’s control. Any company looking to outsource its projects should have a detailed risk management plan in place. This will act as a reference for employees and management both to deal with any unforeseen situations promptly. 
3. Data loss- This can come under risk management, because data loss is uncertain. It may arise due to technical faults or human error. Losing project or app data can be annoying and time consuming. If you are on a tight deadline, this can be devastating for your project. To prevent data loss, the software development outsourcing companies should have a reliable backup service plan that ensures data restoration. 
4. Delayed delivery- Delayed delivery occurs when the offshoring company is dishonest and unprofessional. They may promise an unmatched price and timeline guarantee but keep delaying the project once the deadline is near. Now you may have the money to outsource your project to some other vendor, many companies do not have that privilege. Solution- thorough evaluation of vendors, an extensive interview can be conducted with them and you can review client testimonials to gauge their market reputation. 
5. Unclear exit norms- Offshore software development companies may disagree in the middle of a project, which can become problematic. They may change due to a conflict, or may take another project. They can also refuse to hand over their already developed code which can be time consuming and cause further delays in the project execution. A well-defined exit strategy is essential to ensure the project stays out of problem, irrespective of any mishappenings. 
6. Poor communication- Outsourcing involves dealing with people from varied cultural backgrounds and native languages. Local differences might cause miscommunication and conflicts, due to which a project suffers. The solution to this problem is to hire those companies who offer flexible working hours and english speaking professionals. As far as cultural barriers are concerned, these issues can be considered as a matter of ethics and courtesy by both sides. 

Now that challenges are addressed, we can consider the benefits of offshore software development. 

Advantages of offshore software development

1. Best developers at your disposal- Getting access to a skilled range of professionals who are well-versed with the latest technologies and testing methods becomes a lot easier when you outsource them. Especially from a country like India where there is a huge talent pool, you can scale up your team according to your needs. 
2. Reduced operational costs- When you have a team working remotely for your business, you don’t need to set up any workspace or offer them day-to-day facilities and infrastructure. You are able to reduce operational costs and hiring costs in offshoring. 
3. Lower development cost- Majority of the software development outsourcing companies offer flexible prices for their services. Like in India, the cost of hiring a skilled IT professional would cost you anywhere around $80-$100 per hour.
4. Faster execution of project- The time businesses have to spend on hiring in-house can be reduced by simply collaborating with skilled developers remotely. This way, you can not only save money, but also can launch your project much faster with the help of Resource Augmentation.
5. Access to latest technologies- Most of the offshore companies specialize in skills relevant to your project’s requirements. So while you can hire a developer who is skilled in a specialized technology, you can also hire a team of professionals having a set of tech specializations. 
6. Focus on managerial activities- When majority of your project development and execution is outsourced, your internal team and managers can focus on more important tasks and running the organization smoothly. 

Important questions you must ask to software development outsourcing companies 

1. How many years of experience do you hold working in our industry? Or have you worked in our business domain before? 
2. What skill sets do you have? 
3. Can you show some client testimonials?
4. Which tools do you use to communicate with your clients? 
5. Can you provide a breakdown of your pricing model?
6. What security protocols do you follow in order to safeguard our project’s confidentiality?
7. How do you meet quality standards?
8. How do you manage project changes and bugs?
9. What is your team structure and how do you divide the project within your team? 
10. Do you have access to relevant technologies and softwares? 

Conclusion: Offshore software development has become the best solution and choice amongst companies looking to develop high-quality applications at affordable costs. It allows you to leverage the offshore company’s skills and expertise along with the best resources they have access to. However, there are also some risks and challenges associated while working remotely. Challenges like data loss, delayed delivery, or unclear exit norms may arise due to improper evaluation of a company. So make sure you do your research before hiring software development outsourcing companies.