To OffShore or Onshore? How About the Best of Both Worlds?

What's the Difference Between Nearshore, Offshore, and Onshore Software Development.jpg

What's the Difference Between Nearshore, Offshore, and Onshore Software Development.jpg

You know how important it is to source the right software development talent for your project, while also balancing your costs and resources. One of the first decisions you’ll need to make when choosing a software development team is whether you should go for an onshore, nearshore or offshore team. But what’s the difference between these teams and which option should you choose in this rapidly changing and developing industry?

Defining Onshore, Offshore, and Nearshore

The terms Onshore, Offshore and Nearshore refer to the geographical location of your business (the primary business) and the software development team. This location can play into different factors that affect your business operations, such as culture, language, time zone, and techniques.

Onshore Software Development: A Convenient Solution, With A Price Tag

Onshore software development refers to a software development company that is working in the same country or local area as the primary business. For a business located in the U.S., this would mean choosing a dedicated software development team in the U.S.

The advantages of an Onshore team are apparent – they speak the same language, keep similar work hours, understand your culture and maintain your standards.

However, the most significant downside of this approach is the cost. For many businesses, hiring an onshore dev team is unsustainable, and the cost can’t even compare to offshore options.

Offshore software development meeting over facetime.jpgOffshore Software Development: Economical, But Sometimes Impractical

Offshore software development means hiring a team in a more distant country to remotely handle software development work, through online correspondence and remote communication. An example of this would be a company in the U.S. hiring a software development firm in India or China to complete their project.

While the price of hiring an offshore software development company can be a fraction of the cost for an onshore business, there can be difficulties regarding time zone differences, language and culture disparities and difficulty communicating and driving the project through remote correspondence. This can result in issues with time management, quality and achieving project goals.

Nearshore Software Development: The Best of Both Worlds

Hiring a nearshore software development team can often be considered the best of both worlds because it allows for reduced costs while maintaining similar time zones, culture and standards. An example of this would be a U.S. company working with a software development company located in Central or South America.

Nearshore software development companies offer competitive pricing, with excellent coding capabilities and closer time zones and culture to your local area. This makes communication and time management easier while fast-tracking your project to success.

Hiring an external software development company for the first time can be nerve-racking, which is why outsourcing can provide the ideal solution. This allows you to ‘try before you buy,’ so you can see the quality and results for yourself before you commit.

Related Content: 5 Factors You Need to Consider When Nearshoring Your Dev Team

With software development outsourcing quickly becoming the ‘go-to’ approach for many businesses and startups, choosing the right nearshore software development outsourcing company is essential. Talk to Bydrec today about our unique, high-quality nearshore software development solutions to help get your business the results you need.


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eBook: Compare hiring in-house vs. outsourcing

Topics: Tips on Hiring and Outsourcing Your Team


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