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Outsourced web development: an offshore team, a local developer or an agency?

Outsourced web development means paying an outside team to design, build or look after your website instead of employing developers yourself. It works when three things are true: the job is written down clearly, someone on your side owns the decisions and checks the work, and the contract gives you the code, the accounts and a clean way out. Where the team sits matters less than those three.

Anthony Keal Published · 6 min read

That holds whether you're a business replacing a tired website or an agency with more work than people. The country and the hourly rate get most of the attention. The brief, the ownership and the exit decide whether it works.

Outsourced projects go wrong around the code, not in it

Most developers, offshore or local, can build what's in the brief. The trouble starts in the gaps around it:

  • The brief says "a modern, mobile-friendly website", so every quote prices a different job.
  • Nobody on your side has the time or the background to answer questions, approve designs and test what's delivered.
  • The hosting, code repository and domain sit in the developer's accounts, so you can't leave without their help.
  • The contract covers launch day, but not what happens after it, or if the work ends early.

A cheaper or dearer team doesn't fix any of these. They're fixed before anyone is hired.

Three ways to outsource web development

OptionSuitsWatch for
Offshore team or marketplace freelancer, such as Upwork or ToptalClearly specified builds and repeatable tasks, with someone on your side to manage themYou vet the developer, write the brief and check the work yourself. Time zones slow every question down
Local agencyLarge builds that need designers, developers and a project manager every dayThe people who pitch aren't always the people who build. Ask who runs your project day to day
Independent senior developer or consultantTakeovers, most builds and ongoing care, with one accountable personOne person's capacity. Ask who they bring in for bigger jobs, and who stays accountable for that work

There's a second choice inside the first: buy a project, or buy people. A project has a fixed scope and price, and suits a rebuild or a migration where the requirements are known up front. Staff augmentation, where outside developers join your team by the hour or the month, suits a product that keeps changing, but your business carries the management, the priorities and the quality control. If nobody in your business can do that, a fixed-price project with a clear brief is the safer buy.

Write the brief before you shop for a team

A developer quoting on a vague brief is guessing, and the cheapest guess usually describes the least work. A brief that teams can quote on covers why you're building the site, who it's for, what it has to do, what's out of scope, a budget range, a date, and how you'll decide. The website brief and agency selection page has the full checklist.

Still working out what the new site needs? That's a scoping job, not a build job. Website redesign scoping turns it into a reverse brief and a technical specification that any team, local or offshore, can quote on.

Eight things to settle before anyone writes code

  1. Every account in your name. The code repository, hosting, domain, DNS, CMS admin, analytics and any paid licences. The developer gets access. Your business holds the keys.
  2. Ownership of the work, in writing. IP Australia says IP created by a contractor is the contractor's property unless the contract says otherwise. Have your lawyer put an assignment of the code, designs and content into the contract, covering anything subcontractors produce too.
  3. The named people. Who will design, build and test your project, and who you'll speak to each week. Not the sales team.
  4. Milestones you can test. Pay against working, accepted deliverables, and agree what "accepted" means up front: browsers and devices, page speed, content loaded, documentation handed over.
  5. How changes are handled. Who can ask for a change, how it's priced and who approves it. This is where most budget arguments start.
  6. Working hours. The Philippines is two to three hours behind Melbourne, depending on daylight saving, India four and a half to five and a half, and Eastern Europe seven to nine. Agree which hours overlap, who answers questions in them, and how quickly.
  7. Personal data. If the Privacy Act covers your business (generally organisations with an annual turnover of more than $3 million, plus some smaller ones), giving an overseas developer access to customer data is usually a disclosure under Australian Privacy Principle 8. You must take reasonable steps to make sure they handle it properly, and you can be held accountable if they don't. Wherever you can, give them test data, not your live CRM.
  8. The exit. What gets handed over at launch or if the work ends early: the source code, credentials, documentation, and help moving to the next team.

If you're an agency outsourcing overflow

Agencies outsource for a different reason: they've won more work than the team can carry, and the client must never notice. The eight points above still apply, with two more. The developer works under your brand, in your tools and your process, and never contacts your client unless you ask. And you need a number before you quote the client, so you know your margin.

An offshore team can cost less per hour on a build that's fully specified. It's the work around the build that's harder from another time zone: a client who changes their mind, a deadline in Australian business hours, a producer who needs an answer before the client meeting. That's where a local senior person earns the rate. White label web design and development covers how I work with agencies.

What I've seen from both sides

I spent ten years agency side, six of them as a senior digital producer and then digital production lead. As production lead at a Melbourne agency, I set up the ClickUp workspace and the deployment pipeline for a production team that grew from 3 to 9, running more than 20 client projects at once. Every change went through a request and a review before it was deployed. That discipline is what makes outside developers safe to use, wherever they sit.

In my last in-house role, as Head of Digital at a large residential home builder, I sourced and mentored specialists through Upwork to turn architectural PDF floorplans into interactive, branded SVGs. The specialists did the specialist work. The brief, the review and the standard stayed with us.

Where I fit

I'm an independent digital consultant in Melbourne, working with businesses and agencies across Australia. On an outsourced web project I can:

You deal with me from the first call to the finished work.

I don't publish prices, because the job decides them. It starts with a free 20-minute call. When the scope is clear, I can usually send a ballpark by email afterwards. If the work means learning your internal systems, such as a CRM or ERP integration, it starts with paid scoping, credited against the build. Nothing starts until you've agreed the price.

Tell me what you're outsourcing and what's already been decided, and I'll tell you what to settle first.

Book a 20-minute call →

Written by Anthony Keal Independent digital consultant, Melbourne. Book a 20-minute call or send me a message. I answer both myself. More about me

Common questions

What is outsourced web development?

Hiring an outside team or person to design, build or maintain a website instead of employing developers. That might be an offshore team, a marketplace freelancer, a local agency or an independent developer. For agencies, it usually means white label work delivered under the agency's brand.

Is it cheaper to outsource web development offshore?

Per hour, often. Per project, not always. A loose brief, slow answers across time zones and rework can use up the difference. Compare quotes on the same written brief, and count the hours your own team will spend managing the work.

Who owns the code if I outsource web development?

The contractor, unless the contract says otherwise. IP Australia is clear on this. Make sure the contract assigns the code, designs and content to your business, including anything subcontractors produce, and keep the repository, hosting and domain in your own accounts from day one.

Do I pay GST on web development from an overseas developer?

According to the ATO, a GST-registered business that gives the supplier its ABN and says it's registered shouldn't be charged GST on imported services. In some cases, such as a purchase that's partly private or relates to input-taxed supplies, you pay the GST yourself under the reverse charge. Your accountant can tell you which applies.

Can an offshore developer work on our live customer data?

They can, but if the Privacy Act covers your business, giving them access is usually a disclosure under APP 8, and you stay accountable for how they handle it. Most development work can be done on test data, so start there.

Should we outsource web development or hire a developer?

Outsource a defined job, such as a rebuild, a migration or a takeover. Hire when the work is continuous and someone in the business can lead it day to day. Between the two, a part-time senior lead can manage outside developers until a full-time hire makes sense.

How much does it cost to have you manage or build an outsourced project?

It depends on the size of the job and the systems around it. After a free 20-minute call I can usually send a ballpark by email. Work that means learning your internal systems, such as integrations, starts with paid scoping, credited against the build.

Anthony Keal

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Book a 20-minute call or send me a message. I answer both myself.

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