When looking to outsource your software development process, you will come across three major options: Onshore, nearshore, and offshore outsourcing. Each one representing a completely different set of characteristics than the other.
However, we are going to focus on onshore and nearshore development as they are the most popular options when it comes to outsourcing this specific type of process.
Onshore development is based on the idea of working with a provider or development team that is located in the same country as you, meaning you will be working with people relatively close to your company.
This could be incredibly beneficial for many reasons, not only there isn’t risk of a language barrier or any significantly time zone differences, but you can have the advantage of physically meet with the team.
However, as far as benefits go there aren’t any more when it comes to onshore development. Meanwhile, nearshore development has many other benefits that we will get to touch later on.
Now, unlike onshore development, nearshore is based on the premise of working with a provider that is located in a country or region relatively close to you, however it isn’t in the same country.
Think about nearshore development as a mix of onshore and offshore, in the sense the provider or team you’ll be working with is from abroad, but is still somehow close to the country your company is located.
The preference for nearshore development becomes rather obvious when you look at the statistics. Only in 2016, 67% of the whole outsourcing market was represented by the nearshore sector.
Working with a onshore team could be as expensive as hiring someone new on your own, meanwhile, hiring a nearshore development team could immediately result in lower rates.
This is due to various factors, but mostly due to the fact hiring a nearshore development team from Central and Latin America represent a really great investment for American and Canadian companies.
You could hire a team of experts developers to help you with an specific project and wouldn’t have to spend as much money as you would hiring an onshore team.
Although Nearshore development is similar to offshore, unlike this one, nearshore reduces the risks of having a language barrier. Since you will be working with a team from a country that’s relatively close to yours there’s a chance they will either fluently speak your language or understand it perfectly.
This is extremely important since communication is key when outsourcing such a huge project like software development, and working with a nearshore team will assure you the communication channels will always be open and fluent on their side
The huge unspoken problem about onshore outsourcing isn’t just that it is extremely expensive, but that there aren’t enough people to cover everyone’s necessities.
On the other hand, reaching out for a nearshore outsourcing team will allow you to expand your horizon and encounter thousands of qualified, expert teams that are willing and ready to work with you, giving you more options to choose from.
This is perhaps the winning factor. You see, a lot of companies usually end up choosing onshore development over offshore due to the time zone factor, however, this totally disappears when it comes to working with a nearshore team.
You see, since you’ll be working with a provider that is located in a country near you chances are you share the same time zone, and even if you don’t, the difference might be almost unnoticeable.
To sum things up, nearshore development combines the best thing about the onshore and offshore outsourcing, offering you and your company the possibility to work with an experienced team that is relatively close to you, fully understands you and isn’t as pricey as the previous options.