Nearshoring vs Offshoring: Which one is best?

September 16, 2021

Tags: Managed Teams



Getting experienced software engineers and developers can sometimes be an almost impossible task. And more in the current times in which the demand for IT professionals has grown exponentially, given the digitization of many aspects of our lives: now users consume all kinds of products and services digitally.


We can go to the bank, buy clothes, food and pay for services through the Internet. And it seems that nearshoring and offshoring are becoming the most attractive strategies for companies to develop their digital platforms since it constitutes a fast track to find good technology profiles at a competitive price. But between nearshore vs offshore, which is the most beneficial? We explain it to you in this blog.


Nearshore vs Offshore: What do they imply?


We want to make it clear that both services have advantages and that they should be chosen taking into account the particular context of the company that hires them. The nearshore model may be perfect for certain types of companies and it may not work for others, the same happens with offshore software development: it fits with some businesses and not with others.




Before choosing one of the two software development models, you must evaluate the profile of your company, the context and the type of project you need to execute. That will give you clues about which is the most convenient for your case to avoid bad experiences in the future.


Keys to nearshore outsourcing


In simple words, it is when the outsourcing company is located in a country or city close to that of the client who hires it. For example, a client from the United States hires a nearshore company in Mexico to develop a mobile application. They are both on the same continent and have a similar time zone, which greatly facilitates work and communication between teams.


  • Contributes to an efficient integration between the client's team and the nearshoring company.
  • They share similar cultures and values, sometimes also the same language.
  • Few hours of flight, so quick trips can be made if necessary.
  • Facilitates task execution and problem-solving by sharing similar schedules.




Keys to offshore outsourcing


If you are going to hire an offshore software development company, you should be clear that this team will always be located in a city or country far away from yours, on a different continent, and possibly in a time zone opposite to yours. It is as if your company operates in the United States and you are looking for an offshore software engineer in India, where the offer of IT professionals is quite wide.


  • One of the attractions of offshore companies is that they offer a large pool of talents to businesses. There are no geographic limits to finding the best software engineer or the most experienced developer.
  • Prices are even more competitive in offshoring service.
  • Both the client and the offshoring company must evaluate the culture of the other so as not to clash in the workflow.
  • The language barrier is an important aspect. English is the universal language and the offshore team must handle it efficiently.




So is it better to work with nearshore vs offshore company?


It really is a decision that will depend on many factors present in your company. Mainly the type of project you want to develop, the time and budget you have for it. If you are about to develop complex software, with high technical dependency and you want to have it ready as quickly as possible, a nearshore company may be more convenient.


The reason? Because from our own experience we know that the most complex projects need constant attention and presence from both the company and the partner responsible for development. Being in nearby countries, communication can flow better and everything that arises can be attended to in time. If, on the other hand, the developer is far away and in another time zone, the workflow would be irregular and inefficient for both parties, affecting the results of the project.




If, on the contrary, the company needs to develop software and already has a defined plan from start to finish, it can leave this project to an offshore partner to carry it out under their instructions, without being in constant communication. When they are fully defined projects, it is worth taking the risk with an offshore service.


Now that you know what the keys to nearshore and offshore software development are, you can choose the service that best suits your technological needs. At Rootstack, we have the best tools to help you build the digital solutions that your company requires. Contact us now!


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