The main cost factors in offshore software development include the complexity of the project, the expertise required, and the location of the offshore team. More complex projects, requiring advanced technologies or specialized skills, generally cost more. Offshore custom software development rates vary significantly by country, with developers in Eastern Europe, South Asia, and Latin America typically offering lower rates than those in Western countries. Communication tools, project management software, and potential travel costs for in-person meetings should also be factored in. While offshore development reduces labor costs, it's essential to consider the overall value, including quality and timelines, in the pricing.