Selecting a software development firm can seem to be a gruelling process. But, to be honest, it
is not. The main objective of selecting such a firm is to find the perfect team for your project.
This post is specially designed to reflect on the pros and cons of onshore and offshore software
development firms.

Onshore development firms

Onshore firms are companies or agencies where the entire project is completed in the country
that you live and work in. These firms are recognized for their higher quality along with better
customer service and higher costs. The firm assigns the client one dedicated project manager
who meets with the core software team to understand and execute the project. Here’s what you
need to know about onshore development firms:

They understand local designs and user experience

Consumer attitudes are often determined by their regional and cultural heritage. A user’s
expectation of someone in America will be different from that of someone in Asia.
Onshore development firms understand regional user issues better. Thus, knowing your
target audience is useful in developing a better product.


Clear and real-time communication in one of the main benefits. Communication is directly proportional to a better quality product. As the onshore teams have the same
working hours as your company, communication becomes more effective.


If you consider service on an hourly basis, onshore firms are more expensive. You can
easily estimate that the onshore rate will is thrice more costly than offshore rates. So, in
case you are considering a cost-effective option, onshore companies are the wrong
place for your business.

Offshore development firms

Offshore firms are those agencies or companies where the entire project development gets
outsourced to a team in a completely different country. The offshore teams handle all your project requirements and accurately manage your project. In fact, some of the world’s best
development agencies are software development firms in India. A thorough analysis will
assist you in finding the right team for your project.


Offshore firms are much more economical than onshore ones. One can find some really
good coding and engineering talents in these offshore firms, especially in India. Many
firms are making offshore development much smoother by offering guarantees and
insurance. Offshore development has become more lucrative as it is the most cost-
effective option available to tech companies.

Project start timeline

Offshore firms can complete projects in a really short time as they have the resources of
a large workforce. Most offshore firms hire many engineers depending on the quantity of
work as hiring a workforce is more economical here than in other countries. This ensures
that projects start and finish on time.


Offshore firms in India communicate effectively. They follow a flexible work schedule,
which helps real-time communication and discussions, even in different timezones.
These firms encourage the frequent and transparent exchange of ideas, thus, ensuring
the smooth development of the project in hand.

Design and UX

Offshore firms are also brilliant design partners. These firms are fully aware of the end-
user issues that the parent company faces. Offshore firms are also well trained to
effectively solve the issues and ensure quick resolution during the development stage
itself. This not only ensures great customer service but also great user experience.

This expertise in designing the right kind of software as per the needs of the end user
makes an offshore firm more capable and reliable in this outsourcing landscape.