What are the advantages of outsourcing development abroad?

3 min readDec 16, 2022

In recent years, more and more companies choose to develop abroad. Offshore development is a method of outsourcing part of an IT project to an overseas vendor.

There are two main options for offshore development: trust development and lab development.

In this article, the blog editorial department of Rabiloo, a Vietnamese offshore company, will explain the value of outsourced development in offshore development and the value of a small start where projects are developed through outsourced development before incorporating lab-style development.

Advantages of choosing contract development offshore

What are the benefits of entrusted (contracted) development when doing offshore development?

Guaranteed delivery of finished products

In entrusted development (contract development), the receiving side should complete the work, so it must be responsible for quality and delivery.

Easy to manage budget

Contract contracts have the advantage of being easy to budget because compensation is generated for deliverables.

Disadvantages of choosing contract development

So, what are the disadvantages of choosing outsourced development in offshore development?

Difficult to communicate

Language differences are the most significant barrier when outsourcing to overseas companies.

Even for domestic vendors, it is said that it is difficult to communicate requirements.

In offshore development, the bridge SE acts as a bridge between the Japanese side and the overseas engineering team to communicate.

Specifications cannot be changed

Even if you want to change something in the middle of the project, you can’t change the specifications in the middle because the development is based on the terms of the contract.

Adding requirements or changing specifications can cause problems.

For this reason, outsourced development is not suitable for projects that are released once and are completed by repeating version upgrades while observing user reactions.

Offshore projects suitable for outsourced development

Contract development is suitable for projects where you want to make it clear. You can build a schedule for release in a relatively short time by equipping only the necessary functions without adding wasteful processes.

Most offshore development projects have so far been carried out as entrusted (contract) development.

summary

In this article, we have seen what kind of development method is entrusted in offshore development, and its advantages and disadvantages. In recent years, laboratory-type development has become mainstream, but if you do not have experience in offshore development, the theory of offshore development is to first succeed in a small project with outsourced development and then switch to the laboratory type.