Offshore vs Onshore vs Nearshore software development: What is the difference and best option?

May 20, 2021 — Articles, Blog
Offshore vs Onshore vs Nearshore software development: What is the difference and best option?

Although all companies can benefit from general outsourcing (the term that unites these 3 concepts: Offshore, Onshore and Nearshore software development), there are models that suit some businesses better than others. Which one to pick to truly optimize your output?

If you are managing a business, one of your main concerns is for sure finding the perfect balance between quality and cost. This means getting things fantastically done at the most affordable price possible. When talking about technology, one of the options increasingly recognized as strategic is nearshore software development, or offshore or onshore… Too many concepts? 😉 Let’s clarify them.

Although all companies can benefit from general outsourcing (the term that unites these 3 concepts), there are models that suit some businesses better than others. Which one to pick to truly optimize your output? Continue reading :-).

So, the ‘shore’ term relates to outsourcing software development to other companies located in markets with specially skilled and reasonably priced talent. The difference in “off”, “on” or “near” is mainly their location, but not the only one. Dive deeper with us to decide…

Maybe Offshore?

Off is “out”, outside, out-of-doors… abroad! In fact, offshore is associated with another country, including the other side of the globe. It means hiring a team to do all the work remotely in a really distant location. An offshore development center can provide tech services at also “far” lower costs. Some common options are Asian or some Eastern European countries, with an hourly rate difficult to compete. But there is an extremely high time zone difference that can present problems in terms of setting meetings and solving urgent issues. Also, people from these geographies are not usually proficient in the English language and not enough devoted. Communication is harder and may be reduced to offline messages… These challenges can seriously affect the team’s overall productivity and deliverables quality and, ultimately, the business itself. It´s an affordable, but a hard-to-maintain possibility.

Should I go instead onshore?

In a simple way, onshore outsourcing is about hiring tech services from within the same country. As opposed to offshore, onshore is the closest outsourcing to your “home”. Some people even call it “local outsourcing”. And, of course, that onshore outsourcing has some benefits, like no concerns about language barriers, time zones or cultural differences; it is easier to communicate and you know that an onshore development team is always potentially accessible. But there is a price tag. It’s not as cost-effective as the other two options. It’s a comfortable, but usually a more pricey possibility.

Nearshore software development: the one to choose?

Nearshore software development gaps the space between onshore and offshore as the perfect equilibrium between the benefits of both. And the best choice for most organizations. When you go for nearshore software development, the available pool of top-notch tech talent is expanded, and labour costs can be significantly reduced when compared to in-house teams. But these are not the only advantages to considerer: time zones and culture are quite similar. Also, interaction is easier and in-person meetings can happen faster and more frequently. So, this is the solution that combines the pros and mitigates the cons of offshore and onshore software development outsourcing. Definitely a win-win possibility.

And the good news is that even if you “fail” on your first try, outsourcing allows you to rapidly change plans and eventually come to the perfect solution for your reality (and budget).

So, are things clearer now? Go for the right partner!

When you think about nearshore software development, keep in mind that your business is unique and therefore has specific needs. Your partner must understand them and offer the best-suited talents for each tech challenge. Continuous engagement, delivery capacity and commitment are critical.

The partner you choose can mean the difference between a long and profitable business relationship, or a source of delays and wasted work.

Our nearshore software development center operates under a flexible model that combines the best of face-to-face and remote work to deliver tailored services in record time. From our headquarters in Portugal, it all happens when our top-of-the-game enthusiastic talents get to play. You choose the profiles required, you set the budget constraints and you keep track of the progress in real-time.

WHAT IS THE SECRET? No secret, really. Our teams are agile-driven, so it’s all about setting priorities and getting the job done while keeping everybody in the loop on a daily basis.

WHAT PROFILES WILL MY TEAM HAVE? A team can go from one Developer up to a set of multi-disciplinary squads with Developers, DevOps, Scrum Masters, QA Technicians and Architects, partially or fully allocated.

WHAT TECHNOLOGIES DO YOU WORK WITH? We work with all technologies, we challenge our people to become multi-skilled consultants, passionate about technology as a whole and eager to learn new things.

Cost-e­ffective and highly talented multi-disciplinary teams near you in a blink of an eye. Let’s talk and re-imagine technology together with our nearshore software development services.