eXtendCode has observed the following as some of the key challenges in offshore software delivery model.

Establishing Expertise of Offshore Partner
The challenge is not only about spotting right location but also examining individual skills within the offshore company. The wrong selection of offshore partner can lead to disastrous results.

Limited Scrutiny and Status Reporting
Timely and accurate reporting of work status is crucial for retaining managerial control and gaining operational efficiency in software development. Different time-zones also pose a challenge in terms of feasible communication windows.

Meeting Project Deadlines
When team in execution or its individuals fail to take personal responsibility topped by inadequate managerial leash, that’s when deadlines fail.

Ensuring the Use of Best Practices
Distributed work environment in offshore software development poses a big challenge, where different participating entities may be following different development standards.

Security
In the current economic environment, information assets of a company are the key differentiators in the marketplace. In order to maintain its leading edge, customer’s information and IP (Intellectual Property) must be protected.