Is it wrong to desire high-quality work at a moderate rate? Absolutely Not! Whether your business is a small or big-brand name, expecting top-notch quality is perfectly understandable.
However, the main question is how you can get quality and cost-saving at the same time, and the answer is Software Outsourcing.
Software Outsourcing means hiring a third-party developer from another software development company or a freelance professional developer for completing your project instead of recruiting in-house developers to work on various digital platforms, software development models, several programming languages, or multiple frameworks.
According to the report of Beroe Advantage Procurement, the software development outsourcing business was a $405 billion industry in 2017.
And they expect it to reach $531 billion by 2022.
So, the best way to shape your business globally successful is to outsource software experts. You can go with Offshore or Nearshore software outsourcing.
The outsourcing software industry is productive, but selecting one approach from a plethora of options is difficult. It’s hard to judge which one is best for your project, so here we’re with the advantages and disadvantages of offshoring and nearshoring for you to comprehend the best one for your enterprise.
With various factors of both methods, we have pointed out the difference between nearshore and offshore outsourcing.
In this post, you can decide whether you should go with offshore or nearshore outsourcing. The benefits and drawbacks of both models will help you to pick the one that can optimize your business’s output at the best level.
However, before we focus on the advantages and disadvantages, let’s have a brief introduction to offshore and nearshore outsourcing.
What is Nearshore Software Outsourcing?
Nearshore Outsourcing is quite similar to offshore, except in nearshore outsourcing, you need to associate your business with an external software development company in similar time zones and geographic proximity as yours.
When you opt for a nearshore outsourcing option, you can have onsite visits frequently. Moreover, nearshore is a much better option for cost-saving and high-quality software products compared to onshore outsourcing.
Nearshore is a specific delivery approach that includes:
- Integration with your team members capacity
- Blend with the work culture & environment
- Competencies
- Skills
- And quality elements
What is Offshore Software Outsourcing?
The concept of offshore outsourcing is quite the opposite of nearshore. Offshore outsourcing means enterprises outsource skilled software developers from different parts of the world with varied time zones and languages.
Offshoring defines working with teams in other continents’ countries such as India, China, Malaysia, or other European countries.
And the best thing about offshore outsourcing is that you can have proficient professionals for your project at a low cost compared to nearshore and onshore software outsourcing.
Nearshore Outsourcing Vs. Offshore Outsourcing:
Outsourcing is one of the fastest ways to develop your mobile & web application, along with essential business software, at a moderate cost. For outsourcing, a company hires external software development companies to manage several application development features.
The most popular advantage of outsourcing includes:
- Cut down expenses
- Increase work efficiency
- You can focus on core business
- Save on infrastructure and technology
- Access to skilled resources
- Faster and top-notch quality services
However, you can pick the apt one for your project by weighing the advantages and disadvantages of Nearshore and Offshore software outsourcing.
Advantages of Nearshore Outsourcing:
- Time Zone: Nearshore outsourcing means you and the associated software development company will both be in proximity of a similar time zone. That means outsourced work becomes easier to handle for both enterprises at the same time.
- Cost-effective: Nearshoring assists your firm to have better management along with faster communication, which can save a lot of money for your company.
- Faster problem-solving: Not having much time zone differences helps you to be more focused on problems from you and your joint venture partner in a short span with an immediate solution.
- Fewer cultural exceptions: One of the main benefits of being in the same continental region is that you and the associated software partner will face fewer obstacles in regards to the cultural and work differences.
Disadvantages of Nearshore Outsourcing:
- Fewer Options: Opting nearshore means your company will have fewer options to pick software experts. Nearshore puts limitations over choosing professionals due to geographically close to your region.
- More expensive than Offshoring: It might seem that nearshoring is more affordable than in-house business and software development. However, it is still going to be more expensive than offshore outsourcing.
Advantages of Offshore Outsourcing:
- Skilled People: With offshore outsourcing, you can save the time of recruiting and training employees for specific skills. The offshore team completely is dedicated to your business success and will accomplish perfection in productivity levels with skilled software experts.
- Reduce the cost: One of the biggest advantages of offshore is cost reduction. This type of outsourcing will reduce resource expenses saving the provision of workspace, the latest digital tools, equipment, and applying methodologies.
- Increases Efficiency: Outsourcing helps you to have access to experts as per your project. Their specifications directly increase the efficiency of the project, as they have sufficient knowledge of the subject compared to a novice developer.
- Focus on Core Business: Hiring in-house developers to take your focus on the procedure of recruiting them, as well as you need to establish various aspects for the IT department. That sometimes drifts away from your attention from your core business, so offshoring is best for you to be focused on your game and let the offshore software experts handle the IT part.
Disadvantages of Offshore Outsourcing:
- Cultural and Social Differences: During offshoring, due to culture and time difference, your project might suffer sometimes and not be finished in the estimated time. Also, the lack of communication or different languages might be an issue.
- Increase Unemployment: The biggest drawback of offshore outsourcing is for your own company; it might lead to unemployment in your region.
The bottom line is
There is no doubt that outsourcing software development is one of the most beneficial approaches for many startup business and companies across the globe. In the digital era, it is essential to have benefits and professional team members that can provide the best result for your enterprise.
And with a globalized software business, your enterprise can improve its competitive edge by outsourcing compatible programmers at affordable prices.
However, when it comes to selecting one of the outsourcing approaches between nearshore and offshore it depends on the demand of your software requirements and that you can determine with the above advantages and disadvantages of both of them.
So, pick wisely, weighing both options, then select the perfect one for your software development.
