Which are the Top Locations to Set Up an Offshore Development Center?

The trend of moving the business towards offshore operations is gaining momentum.

Hunting down the new opportunities to extend services, cut-down operational costs and gaining exposure is a significant part of a business. And offshore development has the potential to fulfill this purpose.

Why Offshore Development is Best?

  1. It’s a Budget-Friendly Option: When you choose to develop your product offshore, you can bring down your development cost up to 60%. This cost can be saved in terms of overhead salaries, employee benefits, and infrastructure.
  2. Provides Access to a Diverse Talent Pool: Getting access to a large talent pool of developers is one of the most important reasons why companies choose offshore development. Basically, it gives you the freedom to hire world-class developers having years of experience working in your industry.
  3. Innovation & Quality: Offshore teams are focused on developing innovative solutions by taking on new challenges. Moreover, the expertise in working with similar industries around the globe helps your offshore developers to add more value to your idea. Isn’t that great?

Offshore development is undoubtedly a great business strategy. However, to make your outsourcing experience blissful, it’s essential to choose the best team of programmers/developers. Therefore, we have come up the list of top 4 locations that are best for IT offshore outsourcing.

Top Locations to Set Up Your Offshore Development Center:

Which are the Top Locations to Set Up an Offshore Development Center? - YourTeaminIndia


India holds a strong impression as one of the most preferred offshoring destinations in the world. Let’s find out why should you hire offshore developers from India:

  • Growth in Technology Industry: India has seen a drastic growth of business & technology service industry from $4 billion to $58 billion over the past decade.
  • A Huge Talent Pool of Professionals: India has a population of 1.35 billion and 3.1 million graduate, which remains unmatched.
  • Cost-Savings: NASSCOM states that companies outsourcing in India save up to 60% of their cost.
  • Government Policies: The Information and Technology Act, 2000 emphasizes that if there is a breach of the law, it will result in financial penalties and imprisonment.
  • Great Exposure: National Outsourcing Association in the Annual Offshore Outsourcing Conference reflected how International companies got online presence when they chose Indian development teams.

Recommended Read: Why Should You Elect India for Mobile App Technology?


Over 100 top global telecom, e-commerce, software development, and gaming companies have offices in Ukraine. Some of them are Ericsson, Grammarly, Magento & Crytek. As a matter of fact, Ukraine GDP has grown from 0.06% to 3.3% since 2013 and currently stands at 5%. 

  • According to LinkedIn, the highest number of the Ukraine engineer’s specialization in mainstream technologies is C, JavaSCript, .NET, etc.
  • The outsourcing service providers in Ukraine offer competitive pricing. Therefore, you can expect 40% to 60% of expense reduction in the development cost.
  • Ukrainian professionals have deep technical and domain expertise within a broad spectrum of value-added services.
  • In fact, Ukraine has 2 hours time zone difference from the UK, which makes it easy to communicate with your team (in your normal working hours).


Having the highest population in the world, China is one of the best offshore development countries. In today’s business world, outsourcing has gone mainstream in China. Additionally, the market is growing 30% every single year and there are plenty of opportunities for innovations. 

Key Strengths of China:

  • In 2016, service outsourcing created 1.21 million new jobs in China, with a total of 8.6 million people working in the industry.
  • Accounting to 33 percent of the global market, China is the second-largest outsourcing provider in the world.
  • Also, China has 9 of the world’s 20 biggest tech companies. Alibaba, Tencent, Baidu & Xiaomi are few of the top tech companies.
Kleiner Perkins Caufield & Byers Annual Report
Source – Google Images
  • To support the IT outsourcing, the Chinese Government has designated 20 cities, including Beijing, Shanghai, Dalian, Shenzhen, Tianjin, Hangzhou, etc. These cities are home to the top IT outsourcing companies.
  • According to A.T Kearney Global Services Location Index, China is the second-best outsourcing location based on financial attractiveness, people skills, and availability, and business environment scores.


Filipino youth is expected to contribute 72% of the global workforce by 2025. The IT industry is on the rise and the country’s tech firms are capable of competing with many global IT firms. In fact, the Philippines is the 5th largest country in terms of English speaking population.

Here are the reasons why this country should be considered for offshore development:

  • The Philippines is an outsourcing empire that is estimated at $23 billion last year.
  • The literacy rate of the Philippines is 96.5%.
  • In 2016, Manila took second place as the largest outsourcing city globally.
  • According to EF – EPI Stats, the Philippines ranks 3rd in Asia for English proficiency.
  • The Philippines has a deep connection with western culture. Being proficient in English and having cultural compatibility, the Philippines is undoubtedly a good location for IT outsourcing.
  • The country’s IT-related spending is estimated to cross over $7 billion approximately in 2022. 

Checklist to Choose an Offshore Development Center

If you are looking for quality services, here is a checklist that will help you select the right outsourcing service provider:

  • Skills Development: While you are choosing the offshore development service provider, you should have a clear idea of which country offers the best quality services that too at pocket-friendly prices. 
  • Work History: How will you know you are having a partnership with a good company? When deciding on your ODC, it is recommended that you contact previous clients and have a word with them. Reviews from clients are always invaluable. With this, you get more knowledge about the company, understand their working process and discover quality services. This helps in making an informed decision.
  • Good communication: Look for a company where you won’t have to deal with language barriers. Countries like India, Ukraine, Philippines, etc. are well-versed in English. Plus, have a budget-friendly offshore development model. This will help in less miscommunication to occur between client & vendor.
  • Security: You have to be very sure that the company is reliable because you may have to keep some confidential information with them.

Planning to Set Up an Offshore Development Center?

This is the right time to collaborate with an offshore development center no matter what is the size of your company. India is the best offshore development center so making an informed decision will help you get the best value.

Before you finalize to work with an offshore development company, it is very important to have a relevant business case in order to justify the ODC. It is important to have an administrator who manages all the teams. Indeed, having a team from scratch is the best thing. This way you can mold your team to ensure that they comply with the requirements of the clients and deliver desired skills.

There are Basically Two Ways to Move Ahead:

  • One is to find an offshore development company.
  • And the second is to do it yourself.

Offshore Development Companies are like guides who help provide resources while handling administrative details like taxes, office area, resources, and complying law. They understand your business and then start.

On the other hand, doing it yourself involves defining the objective, creating a plan, hire resources for the team and maintain the collaboration. Furthermore, taking an informed decision will help get you the best value.

If you are looking for a reliable outsourcing service provider in India, look no further. Just drop your requirements at info@yourteaminindia.com and our team will get in touch with you shortly.

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