By Kingsley Mitchell | Updated on June 21, 2023

In recent times, the practice of outsourcing app development to overseas companies has gained considerable attention. With the advent of easily accessible communication tools like Skype, WhatsApp, and Viber, the allure of outsourcing software projects to offshore companies may seem appealing. However, it is essential to delve into the various aspects of this approach, weighing the good, and the bad of such outsourcing endeavors.

True Story Below:

A previous customer had engaged with two other developers before approaching our company. Unfortunately, the first developer, a software company from India engaged in fraudulent behavior leaving the customer with no code and a substantial $100 000 AUD financial loss. The second developer provided a non-configurable platform that did not align with the specific business requirements of the customer, another $100 000 AUD loss.

Upon the customer’s arrival at our company, we had to deliver the unfortunate truth that a complete rewrite of the web application and mobile app was necessary. Prior to approaching us, the customer had already incurred expenses of $200,000 AUD. In order for us to develop the required web application and mobile app, an estimated cost of $150,000 AUD was provided.

We successfully developed the web application and mobile app for the customer. However, had the customer approached us initially, the arduous three-year journey could have been transformed into a seamless six-month project, devoid of any complications, resulting in a significant advantage for both her business and herself.


In certain cases, customers have experienced delays of up to two years for the development of a fundamental web application or mobile application, which could have been efficiently completed within a six-month timeframe for an equivalent cost. Unfortunately, these customers faced several challenges upon project completion, such as non-scalable functionality and a lack of comprehensive support from the company, which failed to address their concerns adequately.

The complexities surrounding code, code documentation, hardware, and APIs can often present considerable obstacles, necessitating significant time and effort to unravel. Consequently, offshore companies may find it more convenient to disregard customer inquiries rather than confront the demanding intricacies of the development process.


A prevalent issue encountered when engaging with overseas-based companies is their tendency to claim Australian origins while having only one local team member with a false LinkedIn profile. Often, this misleading practice involves employing an agent who acts as an intermediary to forward projects to an overseas company. In some cases, these companies may not even be registered in Australia, thereby forfeiting the ability to issue Australian tax invoices. Consequently, partnering with such companies can lead to the loss of potential tax benefits associated with working with a genuine Australian company.

Furthermore, signing up with a company of this nature may result in limited accountability for the project. Instances have arisen where individuals have lost both their money and the project due to the sudden stop of communication from the overseas company after a few months and no contact further.

As an example, we once assumed responsibility for the maintenance of a software project developed by a publicly traded Indian IT consulting firm. Upon inspecting the code, we discovered poor design and engineering practices, exposing numerous security vulnerabilities. This situation could have culminated in a data breach, jeopardizing the customer’s business. Rectifying such software architectural issues requires significant time and effort, often resulting in expenses that far exceed the initial project cost. A project costing x times will now cost 2x or 3x times had the client come to an Australian company.

Australian companies are obligated by Australian Consumer Law just like all businesses, meaning that the customer is protected.

Lack of Business Understanding and Compliance:

Overseas companies may struggle to grasp the intricacies of your business requirements, privacy laws, and financial regulations specific to Australia. Unlike the United States, Australia possesses its own set of laws and financial regulations concerning payments and privacy obligations, especially when handling sensitive data. Partnering with a company experienced in building projects that adhere to local regulations can provide invaluable guidance in navigating these areas successfully.

Absence of Source Code and Documentation:

Gaining access to the source code poses a significant concern when collaborating with overseas-based companies. Upon completing the project, these companies may withhold the source code, forcing you to rely on them for any updates or feature enhancements at their discretion, potentially resulting in exorbitant invoicing for even minor changes. Without access to the project’s source code, you are effectively hindered from engaging another developer or making independent modifications.

In approximately 95% of failed projects outsourced overseas, we discovered a complete absence of documentation for future builds.

Kproapps has established a strong foundation based on its impeccable reputation and strategic alliances with engineering companies and developers, enabling us to provide cutting-edge hardware solutions to our forward-thinking clientele and future-proof software. For a complimentary consultation tailored to your specific needs, we encourage you to reach out to us at Kproapps.

To initiate this conversation, please contact us via email at Our team is ready to assist you and explore the possibilities of collaborating on innovative projects that drive your business forward.