Top 6 Challenges Businesses Face Working With Offshore Software Developers


Software Outsourcing saves money and time, leaving plenty of space for you to do what you do best - business. However, we do realize that not everything is so smooth and clean with tech-contractors. When working with a software company outside of your country, you should be ready that you may face challenges that come along with another culture, another timezone, another legal background, and distance. And the more inexperienced a software outsourcer is - the more apparent these challenges may be.

Informed means prepared, so here we gathered some of the most prevalent challenges that you may face working with software outsourcing companies.

1. Tech-oriented mindset 

It is not the most apparent challenge, but it is the first one you should be ready to face. When you entrust a software development company with your idea, you should be ready that the company may completely disregard business aspects of the project, and be focused solely on creating a reliable piece of software. 

What’s wrong with that? 

The possible issue with such an absolutely tech-oriented approach is that reliable product is not necessarily a competitive one. In order to create a product that will be relevant to the market, a thorough business analysis is required. 

There are two ways of ensuring your product will be not only reliable but also viable. The first one is to conduct business analysis and polish an idea yourself and provide a software company with a detailed description of the future product. However, such an approach requires the presence of sufficient business expertise and a lot of time and resources.

The second option is to find a software outsourcing company that also provides a business analysis expertise and will not only develop a reliable product but will conduct the analysis, polish your idea, and create for you not only a reliable but also viable product.  

2. Cultural Mismatch/Communication Issues

Our world is a melting pot. Earth cultures are legion, and it is wonderful. However, as we wrote in our Hitchhiker’s Guide to Ukrainian Outsourcing Market, “Each of these cultures has its peculiarities and cultivates unique mentalities. Sometimes, it can be an obstacle to a productive partnership as struggling over cultural differences is what Earthlings do exceptionally well.”

An experienced software company, with experienced employees and Project Managers, will do its best so you would not notice any challenges that arise from a cultural mismatch. 

However, not every company is experienced and not every cultural challenge is possible to handle with experience. The complex nature of human relations, including business relations, requires open-mindedness, patience, and empathy from both sides for a successful result. Cultural challenges are inevitable, but they are just proof of humanity’s beautiful diversity.

3. Security Concerns

Cybersecurity and security of the office, both are equally important. When the deal gets to the security standards of the software outsourcing company, there is no real way for you to know for sure the company’s security expertise immediately. In the worst case scenario, you have to trust their word. 

However, there is always a possibility to make some digging. First of all, nothing is as vocal about a company’s security approach as their portfolio. Check the portfolio for some security-heavy apps (eCommerce, Finance). If there are any and they work as they should without reported security breaches, it is the first call that the company has sufficient security expertise.

Furthermore, you can always ask whether a company has a Cyber Security Policy and Disaster Recovery Plan. These documents demonstrate that the company knows how to act in case of emergency, has a plan to follow. 

4. Legal stuff

If you are working with a software outsourcer from another country, most likely they don’t really know the legal background of your Motherland or other countries within the legal spheres of which the future app will operate. A decent software outsourcer will ask for some time to make their research on the legal background to make accurate estimates or create a viable product. 

GDPR, a document that targets all software that operates on the territory of the EU countries, is a bright example. Developing a GDPR-compliant software requires from a software company understanding of its specifics and key points. Otherwise, your company could fall victim to significant fines. 

5. Scaling

Scaling is a delicate process. When a time to scale comes, you want to be sure that the software outsourcing company will be in harmony with the growth of your product. The issue is that an offshore software developer may not fully realize the scale of scaling (no pun intended), and as a result, underperform or overperform. The inability to keep up with scaling may result in unnecessary losses or competition may bite off a chunk of your market. The solution to this issue is proper communication and constant monitoring of the scaling processes. 

6. Different time zone 

The title speaks for itself, Different time zones - different working hours. However, most software outsourcing companies do their best to adjust their working hours so the communication with a client is smooth and efficient and the client does not notice any inconveniences. 


Of course, the number of possible challenges you may face, working with software outsourcing companies is not limited to the mentioned above. We just underlined points, that in our opinion, are pivotal to the successful partnerships. 

Overall, regardless of whether a software company ticks all the boxes or not, there is a simple, final recipe for success: a software development company should understand your goals and root for them. An outsourcing company may lag behind the competition in some aspects or be simply better, but, if the company does not really care about the future of your product, then, the outcome of such a partnership is likely to be mediocre at its best.

There should be chemistry, the passion between you and your contractor as the best projects are born from it. 

This is what KindGeek’s experience has demonstrated: parties who are both genuinely interested in a product are capable of creating successful products