What is offshore software development

Why offshore teams work better than IT outsourcing

Posted on Feb 09, 2020 Daxx

We are often asked, "Can you develop a website?" or "Can you deliver this app to me for a fixed price?"


As a company that specializes in setting up offshore teams, we are often asked such questions. However, there are several striking differences between our business model and IT outsourcing.

In order to shed some light on the darkness of the various models and to make it clear when it makes sense for you to use our business model in development, we have identified 6 core areas in which we differ from the competition.

Your guide to nearshore software development in Eastern Europe

The software development market in 8 of the top target countries in Eastern Europe - Poland, Ukraine, Romania, the Czech Republic, Hungary, Bulgaria, Belarus and Croatia.

Our modelIT outsourcing
1. Developer

You will work directly with the software developers you selected yourself in interviews. You can be sure that your team has the necessary qualifications.

You choose the service provider, but you have no control over who develops your software or website. You will never know whether the A-Team or the B-Team will develop for you.

2. Communication

You communicate directly with your nearshore software developers without the interference of a third party. This means fewer misunderstandings and greater effectiveness.

You communicate with the team that works for you through an account manager, a project manager or a team lead. The indirect communication extends the project duration and can end in a telephone trip to Jerusalem.

3. Project management

You manage the project using your preferred tools and methods. We take care of all labor law matters, retention of the workforce, HR and administration.

You hand over the entire control of your project to a third party.

4. Exclusivity

The remote software developers you employ with us are like full-time employees. You dedicate yourself 100% to your company, so that you are motivated to do a good job and think your tasks through from start to finish.

The nearshore developers work for the service provider you hire, not you. Therefore, they are less interested in the success of your company and may be working on several projects for different clients at the same time. This means less commitment and poorer quality work results.

5. Qualifications

Exclusive recruitment means that you work with nearshore software developers whose qualifications match your projects, no matter how exotic the technology used is.

Outsourcing service providers are often limited to certain qualifications, so you are limited to the qualifications of the developers who work for the service provider of your choice.

6. Conditions

At the end of the month, you'll know exactly what you're spending. You pay a monthly total price, consisting of the gross salary of a developer and a fixed service fee.

You can never know exactly what you will be spending on the project. Developer hours and project management are paid for. Every change comes with a fee.

To be honest, it is probably better for you to work with an IT outsourcing provider if your company is not very technology-oriented or if you lack the in-house staff to carry out project management. Outsourcing advantages also arise if you only want to develop a simple website or application.

Would you like to find out more about setting up an extended development team with us?

Learn more

However, if you want to keep control of the software development process and build relationships with employees who will work for you over the long term, setting up your own development center or a remote team is the best solution.

As you now know, the answer to the question of whether we are developing your website or an application for you is no. But we will introduce you to highly qualified developer talent, take care of everything related to labor law, IT infrastructure, and office furnishings in Ukraine, and advise you and your team on how to set up effective working relationships. Find out more about our services.

Do you want to employ developers with Daxx? Contact us or view profiles of available developers.

Daxx team

Daxx Team is a team of passionate creative writers, content marketers, designers who vigorously research internet as well as cooperate with developers and Managing Director at Daxx to provide you with the top-notch material about tech, salary trends, development team hiring and management tips as well as up-to-date information about Ukrainian IT outsourcing market.