Across the U.S., businesses —ranging from lean startups to leading tech enterprises —face a common challenge: scaling IT operations without draining their budgets or time. It’s no surprise that more companies are turning to global talent by offshoring IT roles to expand efficiently while keeping overhead costs in check.

But success with offshoring doesn’t happen by accident!

To choose the right offshore team, you need to define your goals clearly, screen for communication skills, test technical expertise, and select a partner that offers more than just coding muscle. Look for a team with proven experience, a collaborative mindset, robust data security practices, and strong cultural alignment with your business values.

When done right, offshoring can:

• Cut operational costs by up to 70%
• Unlock 24/7 productivity
• Free up internal teams to focus on innovation and growth.

In this guide, we’ll walk you through practical tips and frameworks—drawn from real-world experience and industry best practices—to help you choose the best offshore IT partner for your business.

1. Clarify Your IT Needs Before You Search

A Deloitte report claims that 63% of businesses fail in offshoring due to unclear expectations from the remote team. Remember, offshoring is not a magic wand that may immediately cut down costs and boost revenue.

You need to clarify whether you are building a mobile app, migrating your infrastructure to the cloud, or simply looking for round-the-clock maintenance support, and then hire the correct team with the appropriate experience, skills, and staff size.

Start by identifying:

• What roles do you need (e.g., front-end developers, DevOps engineers, QA testers)
• What skills are non-negotiable (e.g., React, Python, AWS)
• Your time zone and communication preferences
• Your budget range and project timeline (short-term contract or long-term partnership)
• Your budget: monthly, bi-annual, and annual.

Before offshoring, Salesforce redefined its IT needs—from generic backend support to specialized expertise in Apex, Lightning, and GDPR compliance.

Instead of issuing a generic RFP for “Java backend support,” Salesforce narrowed the requirement to:

• Developers with Java + Apex experience
• Familiarity with Salesforce Lightning architecture
• Proven protocols for GDPR-compliant data handling

This clarity led them to a niche offshore partner, which improved alignment and resulted in a 42% cost reduction in six months. Defining exact requirements avoids mismatches and ensures outsourcing success.

2. Choose a Country That Aligns With Your Business Goals

Numerous offshore destinations may seem lucrative, but each offers a unique combination of expertise, skills, and costs. For instance, Eastern Europe tends to be slightly more costly than South Asian destinations. In contrast, the former excels in cybersecurity, while the latter boasts excellence in project management and web development.

The location of your offshoring team matters because some countries excel in specific areas of IT. Nearly 59% of companies in the U.S. lack offshore access capabilities unavailable in-house, not just for cost savings.

Here are a few popular offshore destinations for IT roles:

• India: Massive talent pool in software engineering, strong English communication, and competitive rates.
• Philippines: Known for BPO and customer support, plus high English proficiency.
• Nepal: Strong English command, budget-friendly fees, and widely accepted for time zone alignment with U.S. clients.

Nepal and India are widely chosen as the preferred offshore destinations by most American, European, and Australian companies due to their diligence, variety of expertise and skills, cost-friendly plans, and availability across any time zone.

3. Vet for Technical Skills and Cultural Compatibility

It is not just about whether your potential outsourcing partner can code impeccably or troubleshoot IT problems swiftly - it is about how you two perceive and collaborate to reach a common goal.

A truly great offshore team will align with your technical expectations and your company culture to deliver optimal results.

Here are tips for selecting an appropriate offshore partner.

• Look beyond resumes. See how they solve problems, handle feedback, and stay proactive.
• Review portfolios and case studies, especially those in your industry.
• Ask for live coding tests or technical interviews.
• Evaluate communication style and responsiveness during initial calls.
• Request references from past clients or check for testimonials.

When Spotify expanded its R&D operations offshore, it didn’t just evaluate coding skills; it also assessed the cultural fit. The company ran live coding assessments alongside culture-fit interviews that mimicked real cross-functional team meetings.

One top-performing agency failed, not due to technical gaps but because its team struggled with asynchronous communication and cross-time zone handoffs. Instead, Spotify chose a firm with slightly fewer certifications but strong collaborative practices, agile maturity, and a culture that mirrored their “think it, build it, ship it” mindset.

4. Prioritize Communication and Time Zone Overlap

A 2024 Business Review study revealed that 72% of failed projects stem from poor communication rather than a lack of skill.

Communication is the key to a successful collaboration. Even the most skilled team will struggle to achieve the best results without clear, consistent communication with the other side.

Moreover, time zone differences can be beneficial if used wisely. For instance, three to four hours of daily shift overlap with your core team ensures clear work completion.

Here are a few things to remember.

• Is the offshore team fluent in your preferred language?
• Do they offer flexible working hours, day or night shifts?
• Will they assign a project manager or a liaison for your time zone?
• Do they utilize asynchronous and synchronous communication tools, such as Slack, Zoom, Jira, and Trello, to stay synced?
• Are they responsive and reply within the time of need?

5. Check Legal, Security, and IP Protection Protocols

Offshoring can be risky when it comes to sharing business data and access to internal servers. A report stated that a single data breach can cost over $4 million (IBM, 2024).

You are handing over code, data, and other sensitive information; therefore, protecting your intellectual property (IP), user data, and source code becomes non-negotiable.

Look for vendors with previous clients in regulated industries, such as healthcare, finance, or legal technology, who have a proven track record of handling data and implementing necessary firewall and cybersecurity measures.

Ensure your offshoring partner:

• Signs a Non-Disclosure Agreement (NDA).
• Has experience with data protection regulations (like GDPR, HIPAA, etc.).
• Uses secure development environments (encryption, secure logins).
• You can transfer the source code and repositories to your control at any time.

Most offshoring partners today employ AI/ML-based security measures to enhance their internal team's security. This could become a key selection criterion when choosing an offshoring partner.

6. Start with a Sellable MVP Before Scaling

Think of your first engagement as a trial run, not a lifelong commitment. A well-structured pilot helps you test the waters before committing fully, thereby reducing risk.

For example, instead of hiring a team for a 6-month app build, start with a 2-week sprint to develop a minimum viable product (MVP) with core features and test it in the market for feedback.

This may become a key to assessing your offshoring team. Here are a few key points to consider.

• How well do they follow instructions?
• Do they meet deadlines?
• Is the code maintainable and well-documented?
• Are they proactive or reactive?

Final Thoughts

The right offshoring team can help your business avoid costly mistakes, scale smarter, ship faster, and compete globally.

Remember, choosing the right offshoring team can make others break your project. Take the time to define your needs, research your options, and test before committing.

It may be time to become one of the US-based companies hiring offshore tech teams now! Read more about the five key areas to implement Applied AI to boost your brand.