If you’re looking for a Software Development Company to hire, there’s a good chance you’ve heard the terms offshore, onshore, and nearshore software development while you are searching. But what exactly do they mean and what is the difference between them?
The word “Shore” may remind you of the sea and beaches, but it actually refers to outsourcing software developers from different countries to work with, including your own country.
So, let’s dive into it to discover what they are so you can figure out which of them best fits your software development needs.
Onshore outsourcing means outsourcing the software development work to a company that is located in the same country as your business. The main advantage of onshore outsourcing is getting the benefit from highly skilled developers without language or cultural differences. There’s also an important factor that you are in the same country and the same time zone. It also means that you have the opportunity to visit your development team at their premises whenever you need to.
However, the disadvantage of onshore outsourcing is there is usually no cost reduction. It is often not as cheap if compared to offshore or nearshore outsourcing.
Offshore outsourcing is basically the opposite of onshore outsourcing, it is when companies hire software development companies that are located in a foreign country to do the work remotely and virtually.
It offers many advantages, such as working with highly skilled developers with high cost savings. Sometimes a senior software developer offshore may cost the same as a junior in your home country. Ir is also an attractive option as you can find high quality developers at a better price.
Despite the advantages, the only disadvantage may be the cultural and language barriers when dealing with people from a different country. It also means working in different time zones. This can either be an advantage because you can have a team working while you are sleeping or it can be a disadvantage if you find trouble agreeing on a meeting time or when you need urgent changes or support.
Nearshore outsourcing is the option in the middle of onshore outsourcing and offshore outsourcing. When you choose to nearshore software development work it means outsourcing work to a country that has a similar time zone or has small differences in language and culture.
The benefits of nearshore outsourcing are that it typically provides cost savings more than that offered by the onshore outsourcing as well as having the advantage of being close for more frequent site visits, while still having the required skills for your work. It can really make outsourcing software development easier because it facilitates communication while still offering a competitive price and skills.