Omar del Rio Aug 14, 2020 8 min read

Nearshore, Offshore & Onshore Software Development

Whether you're a new startup or an established business, chances are you've heard about 'outsourcing software development.'  

Many organizations now choose to outsource software development over in-house hiring and training as it saves them time and costs. That explains why the outsourcing industry is now worth more than $85.6 billion compared to $45.6 billion in 2000. 

However, the productivity of any outsourcing initiative depends upon the model the company uses. Your choices are nearshore, offshore, and onshore software development. 

Before you go off to Google to learn what differentiates them each from the other, let me save you some time and explain what they are:

Offshore Software Development

Outsourcing software development will help businesses to be more productive and cost effective. Its important to choose the right model for your needs.

Offshore software development refers to the outsourcing services located far from your country, sometimes even on the other side of the globe.

Here are some of the few benefits of offshore services:

  1. Recruit the best from a global pool of talent 
  2. Get a highly qualified team of experts at very low cost
  3. Expert IT team that can manage your tech and offer a wide range of services 
  4. Highly skilled software developers who meet deadlines 

However, offshore is not without drawbacks. You'll also have to prepare for:

  • A major difference in time zones can create hurdle in work
  • A diverse work culture that may not gel with yours
  • Not being able to visit staff, hold regular meetings or train them 

Onshore Software Development 

Onshore software development, often known as local outsourcing, is the closest to your home as it lets you outsource to developers within your own country or state. This type of software development service allows businesses to focus more on their core capabilities as they no longer have to worry about conflicting schedules.

With this service, you get ample benefits that can make it better than the previous option. For example, 

  1. There are no language barriers as both speak the same language 
  2. No work hours conflict as time zones stay the same
  3. It's possible to conduct meetings whenever it suits you 

However, if you're outsourcing to reduce your budget, this is not the right option for you. In many cases, onshore outsourcing cost a lot more than the alternatives.   

Nearshore Software Development 

Difference Between Nearshore, Offshore & Onshore Software Development<br />

This type of outsourcing lies somewhere between offshore and onshore software development, i.e., your developers would be located in a nearby country. 

With nearshore services, you get a qualified pool of new talent, and that too at a significantly lower cost.

Here're a few other benefits:

  1. Little to no time zone difference so work on similar hours
  2. Low-cost labor 
  3. Little to no cultural differences 
  4. Nearshore allows you to plan a visit at your convenience 

One drawback of this service is that it's relatively more expensive than offshore outsourcing.  

Which Model Is The Best For Your Business? 

Outsourcing software development is a tested strategy for successful businesses. However, it is important to know which model to choose as all three have different qualities and drawbacks. 

If you're looking for quality work and price is not the issue, choose onshore. Whereas, if you want quality work in the minimum budget, go offshore. While nearshore outsourcing is an ideal win-win situation as it gets the job done with less price and high quality.

If you haven't decided yet what's best for you, feel free to give us a call, as we deliver the best advice in town. Contact us to learn more!

Related post: Nearshore Outsourcing: Main Business Advantages

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Omar del Rio

CEO at Definity First. Process management enhancement, operations management and IT solutions architecture are the things I like the most about the IT industry. My goal as a CEO is that Definity First will be recognized in the software consultancy industry as a company that knows how to perform and has full world-class potential.