Outsource Web Development: Types, Benefits, Guide, Tips & Costs

Onshore Outsourcing

When you hand over your web development project into the hands of web developers located domestically, it means you are using the onshore web development services.

Onshore outsourcing has the following characteristics:

• No linguistic barrier or communication difficulties
• Matching cultural similarities
• Greater time zone alignment
• Easier legal and regulatory compliance
• Face-to-face meetings and interaction

Nearshore Outsourcing

This is a type of web app development service when you use resources from an outsourced team from neighboring countries that have the same time zone as your business.

Nearshore outsourcing has the following characteristics:

• Little to no time-zone variation
• Linguistic and cultural compatibility
• Better project streamlined
• Cost-effectiveness
• Face-to-face meeting and interaction possibilities

Offshore Outsourcing

Offshore outsourcing web development services are the most popular type today, offering significant cost-effective advantages. In this arrangement, a business hires an outsourcing vendor based in another country and time zone to manage web development tasks.

Offshore outsourcing has the following characteristics:

• Largest global talent pool
• Highly cost-effectiveness
• Time zone and cultural differences
• Language barriers
• Time saving and flexibility

Step 1: Brainstorm a Web Development Idea on Your Own

Before starting your outsourcing partnership, there is an important distinction we all need to clarify. The client should initiate the web development idea, as they own the business vision, while the outsourcing vendor is responsible for making the idea happen through their technical development.

Obviously, the software development company may provide some technical advice or suggest improvements to the client, but they will not directly dictate what the product should be.

That is why, before deciding to cooperate with any third party, make sure you have an idea of what you want your future web application to look like instead of relying entirely on the partner’s opinion. Conducting in-depth market analysis and UX research is recommended at this stage to find out user needs and pain points and once again validate your business idea.

Step 2: Define Clear Project Requirements and Business Goals

To help your web development services representative better understand your expectations for the software product, be sure to be more specific about your project requirements and business goals. For example, don’t just say “I want a website.”, but be more specific about who it’s for and what it must do. You may find this process time-consuming in the initial stages. Yes, it is. However, it is not only valuable, but it can also speed up the next steps of the project.

Before contacting any vendor, create a detailed brief that includes:

• Project scope (e.g., website type: e-commerce, SaaS dashboard, portal)
• Key features (e.g., login system, payment integration, CMS)
• Technical preferences (e.g., React + Node.js, WordPress, Shopify)
• Non-functional needs (e.g., SEO-readiness, mobile responsiveness, GDPR compliance)
• Business objectives (e.g., lead generation, user retention, brand positioning)

Step 3: Choose a Vendor with Relevant Field and Stack Experience

The outsourcing market is extensive, offering a wide range of third-party vendor options. While some outsourcing companies specialize in one area, others find their strengths in other niches. There is nothing wrong with partnering with a web development team that specializes in a different field than yours. However, choosing a vendor with a relevant field is still a better option that leads to faster delivery and smarter collaboration.

Based on the previous projects that the outsourcing web development company has listed on its portfolio or website, you can get an idea of what their focus areas are. If that is not enough for you, ask the vendor more specific questions like “What challenges did you solve in this similar project?” or “How do you handle API integration/security in web apps?” Their answers are the best basis for finding common ground.

Specifically, look for outsourcing partners who:

• Have case studies in your domain (e.g., healthcare, finance, e-commerce)
• Know your preferred tech stack
• Can show working demos or live sites they’ve built
• Offer dedicated teams or flexible engagement models

Step 4: Start with a Pilot Phase or Proof of Concept

To further solidify your decision when choosing any web development vendor, don’t be afraid to discuss your trial intentions with a third party. Instead of starting the partnership with a full-scope project, start small by asking the vendor to run a small milestone or module of your project, such as the landing page, login flow, and API setup.

The process and results of this “little task” will help you see more aspects of the future partner than you think. These can be the code quality, delivery timelines, and vendor’s communication habits, or the way the vendor handles documentation, testing, and feedback.

If after a pilot phase you realize this is not the right piece? What is next? Let the web development company know and politely terminate the contract according to the agreement and look for another more appropriate partner. Note that no outsourcing vendor is perfect. Instead, keep things relative to shorten the search.

Step 5: Establish Clear Communication and Project Management Tools

Communication is key to a successful outsourcing partnership, especially if you are hiring website developers from offshore development companies. However, language barriers and quality control will be less of an issue if you have the right tools to support your project.

While working with a third party, or even before, be clear about the importance of transparency in the partnership. No progress should live on a developer’s laptop only. To avoid miscommunication and better streamline the workflow, you can:

• Use Collaboration Tools: Use Jira (tasks), Slack (daily chat), GitHub (versioning), Figma (designs)
• Hold Cadence Meetings: Daily standups or weekly reviews
• Control Deliverables: Use sprint-based milestones (e.g., every 2 weeks) with demo-ready builds
• Define Specific Roles: Define who approves what — especially on your side

Reputation

Considering the reputation of a third-party vendor will help businesses access highly specialized resources and increase the chances of web project success.

We are not saying that outsourcing companies that are new to the industry are untrustworthy when they clearly still possess some potential strengths. However, partnering with reputable ones is still a better idea when they are much safer choices. The choice between a popular web development outsourcing company or a lesser-known company depends on your project requirements, as any third party requires close supervision and management of your business.

Technical Expertise

Because of the diverse nature of each project, each outsourced team often offers its own strengths with different collections of technologies, programming languages, frameworks, and tools. For example, if you want to develop a fully functional banking app that uses PHP language, a company specializing in that programming language will be the right choice for you.

Even some outsourced web development companies now provide extensive tech stacks to adapt to the increasing project requirements of their clients. The project manager’s job is to understand the needs of the web project, from which to find the appropriate outsourcing web development services.

Same-field Experience

An outsourced web development company could do a lot of projects in the past. However, the one with real experience in the same niche as your business is a huge plus. Why? Outsourcing web development projects to a company with same-field experience means they already understand your industry workflows, customer expectations, and terminology. You won’t have to spend weeks explaining how your business works, as they will get your points much faster. This is everything that can lead to faster onboarding, higher-quality output, lower risk, and smarter collaboration.

Portfolio

Regularly, a portfolio from web development provider would contain information such as services offered details, case studies, technology expertise, industry experience, etc. Taking a close look at the partner’s portfolio on the website will help you better understand the development outsourcing company, thereby creating a premise for a sustainable partnership.

When checking out the portfolio of the outsourcing vendor, in addition to the internal content, you need to pay attention to the external appearance, i.e., its presentation, as it shows their dedication to detail in work. Leaving the contents of the portfolio in a cluttered and unsystematic manner does not in any way indicate vendor carelessness. On the other hand, a well-formed portfolio can be an important factor in proving the trustworthiness of an outsourced web development company.

Reviews & Feedback

If a portfolio is a place where a third party describes itself as a business, reviews are the objective views of others, specifically previous clients, about such an outsourcing company. So, it can be said that client testimonials are even more informative than portfolios as they provide valuable insights into the vendor’s reliability, quality of work, and customer service. Businesses can gather reviews and feedback from a variety of sources, such as social media, word-of-mouth recommendations, and online review platforms (e.g., Clutch, GoodFirms).

Location

The location of an outsourcing vendor is not merely a place; it also directly influences many other aspects of web development projects, including time zone, cultural, language, and legal considerations.

• For Time Zone Differences: There may be delays in response times, which can slow down project progress and delivery.
• For Cultural Differences: It may be hard to cooperate with global web developers since there are differences in work styles, business practices, and communication norms.
• For Legal Consideration: This may present challenges in terms of compliance and liability.

However, there are no rules for choosing web development services. If you accept the difference in time zone and culture in return for compatible costs, you can completely choose offshore outsourcing. In contrast, if you have high language requirements as well as immediate support needs, onshore outsourcing is a better solution.

Cost/Pricing Model

All business activities revolve around the business’s allowed budget. That is why you need to carefully consider which web development company to cooperate with because each vendor offers corresponding service packages with different prices.

Remember, price goes hand in hand with quality. Choosing a vendor with lower prices may result in lower output quality, whereas choosing a vendor with higher prices may lead to better outcomes.

Besides, knowing the price of outsourcing web development helps you avoid hidden costs incurred in the development process and be more proactive in creating a realistic budget plan.

Development Process

Don’t forget to learn about the outsourcing company’s development process, as it deeply influences the way they develop your web solutions. However, it can be challenging for clients to determine whether outsourcing vendors have a transparent working process or not, as this is an internal matter.

While some companies are afraid to share this, of course, there is no shortage of companies willing to provide a detailed explanation of their development process and how they ensure transparency throughout such a process. For outsourcing companies that are not comfortable providing a specific process, you can request access to project management tools or ask for regular reports on project progress.

Orient Software

Orient Software is one of the leading software development companies in Vietnam. With two decades of experience, the company has been empowering all-sized businesses across industries and making hundreds of projects successful throughout its operations.

• Founded in: 2005
• Locations: Ho Chi Minh City, Hanoi, Da Nang City (Vietnam), and Singapore.
• Core Services: custom software development services, dedicated software team, IT staff augmentation, UI/UX design, and QA testing.
• Price Range: $25-$49 per hour
• Employees: 250 - 999

FPT Software

FPT Software is a subsidiary of FPT Corporation, headquartered in Vietnam. Not only does the company provide diverse services, but it also has web development teams located in 26 countries to serve the IT outsourcing needs across the globe.

• Founded in: 1999
• Locations: El Segundo, CA (United States), Hanoi (Vietnam), Minato (Japan), Cebu City (Philippines), and Richardson (Texas)
• Core Services: AI development, application testing, blockchain, cloud consulting, cybersecurity, IoT development.
• Price Range: $25 per hour
• Employees: 10,000+

BairesDev

One of the largest nearshore outsourcing firms in Latin America, BairesDev supports clients across sectors with full-stack software development. It often works on projects ranging from mid-size to large enterprises and is known for rapid talent deployment and end-to-end delivery.

• Founded in: 2009
• Locations: United States, Argentina, Brazil, Canada, Colombia, Spain, and Mexico
• Core Services: QA and testing, AI and data science, custom software development, UX/UI design
• Price Range: $50 to $99 per hour
• Employees: 4,000+