Offshoring means moving work to a distant country, usually for a significant labor cost difference.
Companies engage either directly through an entity or through a partner providing the team. The rate difference is large, but part of it is consumed by coordination, review, and the time-zone gap on clarifications. Structured well, with a clear technical owner on the client side, the net saving remains substantial.
When it fits
When it does not
What it costs
Headline savings of 50 to 70 percent on rates typically net out at 25 to 45 percent once coordination and review time are counted honestly.
Not inherently. Outcomes correlate with vetting, technical ownership, and documentation quality far more than with location.
Fix a daily overlap window, write decisions down, and batch questions. Teams that rely on real-time chat across a twelve-hour gap lose a day per question.
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