Time zone differences can both positively and negatively impact offshore custom software development. On the positive side, it enables round-the-clock work, as teams in different time zones can work on the project while the primary team is offline, speeding up delivery. However, time zone differences can cause communication delays if not properly managed. To mitigate this, overlapping work hours, regular meetings, and clear communication tools are essential. Using collaboration platforms like Slack, Microsoft Teams, or Jira ensures that communication remains seamless, and project timelines are met.