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As a business owner or manager, the decision to opt for offshore software development can be difficult. As anyone who has experience knows, there are advantages and disadvantages to outsourcing software development. How then, do you balance the risks and rewards and come out on top? Here are five tips to ensure that you receive an excellent return on investment:

1. Complex project management experience. When selecting an offshore software development company, ensure that they have extensive experience in complex project management. The company's internal team should run like a well-oiled machine, and they should have longstanding relationships with their own subcontractors. 

2. Specialized knowledge and expertise. The most agile software development companies have an extensive network of specialists. These specialists may not be on the company payroll (which is why the company can offer you significant cost savings), but they can be depended upon to complete the necessary tasks on time and within the budget. 

3. Knowledge of your industry. In theory, offshore software development companies should be able to perform custom software development for any type of business. There will be less of a learning curve, though, and greater chances for success, if the company has knowledge of your industry or a related industry. For this reason, ask for referrals and determine if the projects the company has managed are similar to or in alignment with the goals of your project.

4. Delineate areas of responsibility. Chances are, you're considering hiring an offshore software development company because you don't have the in-house expertise to get the job done and know that it is more cost-effective to outsource the project. Nonetheless, you will need to actively participate in a needs assessment and at various benchmarks throughout the life of the project. By creating a clear delineation of areas of responsibility, you will have a clear understanding of the number of staff hours you need to devote to the project, and plan accordingly.

 5. High standards. Both you and the offshore software development company you choose should adhere to high standards. Aside from the talent of the technical experts involved, successful custom software development depends upon rigorous testing. The most dependable companies use the highest industry standards in testing each aspect of the products they create so that you receive a product that is ready to implement. 

Essentially, the most successful offshore software development companies are competent and flexible, and see their role as an information technology partner who solves your software problems, supports your team, and manages your projects from beginning to end. When you choose such a company, you can rest assured that you will receive an excellent return on investment.

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