Offshore vs nearshore outsourcing

June 18, 2021

Tags: Technologies


Every company that is currently thinking about outsourcing one or two of their software development process, has to go make one huge choice: Go for offshore software development or nearshore solutions.


At first glance, these two might seem identical to each other, and you might think there’s no big difference on picking nearshore outsourcing over offshore, or vice versa. But let us tell you, there is a huge difference.


As a company, which one you choose will depend completely up to what you need, what solutions are you looking for, the type of software development team you want to partner with, and of course, how much money and time you’re willing to spend on this project.


Why you need to outsource your software development processes


We understand contracting and working with a development team might seem scary at first, but when you compare the benefits of nearshore solutions vs offshore software development vs on shore, the answer is pretty simple: You have to outsource.


If you don’t believe us, just look at the numbers. According to an estimate made by Outsourcing insight, about 43% of industries and different companies from various backgrounds outsourced their processes from time to time during 2017, and this percentage is expected to keep growing by the end of 2018.


Just think about it, everyday that passes more and more companies are choosing to outsource their software development processes because they know it works, and have seen immediately results.


From cost cutting, to saving time to increasing your productivity, software outsourcing is a great options for companies who are looking to take the next step and keep growing.


Of course, that brings us back to our original question: which one is better? Offshore or nearshore solutions?




Offshore software development


Offshore is one of the most popular types of outsourcing, and it is based on the idea of partnering up and working with development teams that are located far away from your company, meaning in another country, even another continent.


This type of outsourcing allows you to expand your search for the best software development provider, being able to work with literally any company in the world outside the US and Canada.


The reason why so many companies choose to go for offshore software development is due to the low cost rates and the multiple options to choose from when looking for an outsourcing team.


However, the low costs and multiple possibilities don’t cover up the cons of working with an offshore software development team, which are, we must say, quite relevant.


You see, when working with a team that is located so far away from you, you’ll have to deal with two main factors: One, different time zones, and two, significant language barrier, without mentioning the different work cultures as well, which can quickly complicate the process.


Usually, working with an offshore team means having to deal with a lot of miscommunication and difficulties to keep the project going from start to finish, which again, it’s a cons that can surpass the benefits of this type of outsourcing.




Nearshore software development


Nearshore solutions are pretty similar to offshore solutions, but better. You see, the whole concept of nearshore outsourcing is based on the idea of working with a software development team that is located relative close to your company.


This translate to working with nearshore providers that are located in the same continent. For example, if you’re an US or Canada based company, you might want to work with nearshore outsourcing providers from Panama, Mexico or Colombia.


Nearshore solutions allow you to work with providers that already speak your language, can fluently communicate with you and live within a similar time zone, eliminating the language and time barrier, and consequently making the whole project a lot easier.


To sum things up, nearshore solutions are a way better option than regular offshore software development outsourcing, since it gives you all the benefits of offshoring, without having to deal with the cons.


Keep in mind, this does not mean offshore software development isn’t a good idea, because it is, and it might work perfectly for you if you’re willing to find a great offshore provider that will meet your expectations.


We recommend you on video: