What’s one of the best alternatives to nearshore software development outsourcing? Read the blog to know the aspects of software development outsourcing
In today’s worldwide market, outsourcing has become a crucial term for software development business operations. If you’re new in this industry and looking for software developers, you may hear about three common terms – nearshore, offshore, and onshore, and software development.
Whether it’s offshore or nearshore, each outsourcing model has several advantages and functionalities. In this blog, Sphinx Solutions will help you find out the best alternatives to nearshore software development outsourcing and make the right decision for your next software development projects.
What is nearshore software development?
Nearshore can be considered a subcategory of offshoring. However, people get confused about its definition. This means, outsourcing a project to another country located nearby with a similar time zone. For instance, a US company outsources its project to Canada or Mexico. One of the best advantages of nearshore outsourcing is geographic proximity to the vendor. Moreover, there is no risk of language or cultural barriers. Key advantages of nearshore software development include:
No time zone challenges: Nearshore software development companies are also located in countries with the same time zones or with very less differences. It may lead to quick association & motivate the team to deliver their best. Therefore, with nearshoring operations, you take benefits of all economical offshoring values without sacrificing quality.
Easy to set your schedule: It might be difficult to schedule a conference meeting with overseas clients when there is a big chance of having an eight-hour time difference. Fortunately, nearshore outsourcing allows you to adjust schedules and keep your business operations running smoothly and seamlessly.
No risk of language problems: Usually, members or employees of nearshore custom software development companies interact with their native languages. No doubt, this benefit can effectively reduce all kinds of communication gaps & promote collaboration. Therefore, nearshoring, you do not have to deal with any kind of language or cultural barrier which will make the process simpler for everyone.
A quick comparison between offshore and nearshore outsourcing
Offshore software development services refer to hiring a team of professionals from abroad to do tasks virtually and remotely. This is a common cooperation model that often comes up when talking about software development outsourcing. Offshoring is extensively employed by high-growth enterprises and startups because of its high flexibility, cost-effectiveness, less liability, more development time, quick team building, etc. From a technical point of view, nearshore outsourcing works like offshoring with just only one single difference which is location.
When it comes to selecting offshore or nearshore software development services, enterprises must focus on their operational requirements in the first place. Decisions should be made based on location proximity, cost comparisons, culture, language & time zone differences. For a better understanding, take a look at a quick comparison between offshore and nearshore outsourcing.
| Criteria | Offshore | Nearshore |
| Accessibility of Traveling | Overseas flight with accommodation | 3 to 6 hours flight |
| Time Zone | High difference (more than 4 hours) | Same or minimum difference (30 minutes to 2 hours) |
| Cultural diversity | Different | Same or close |
| Language barrier | High | No or minimum |
| Availability of talents | Global talent pool | Limited |
| Hourly Rates | Low | Average |
| Risks | Low | Average |
What would be a perfect choice?
Well, software project management outsourcing services have different advantages. Technically, onshoring, offshoring, and nearshoring all are similar in nature. You can choose any of them based on personal preferences, business objectives, and budget capacity. For your convenience, we have shared a checklist with you.
Onshoring is ideal for:
- If budget is not a big deal
- If you need a cultural matching
- If you would like to work with your fellow citizens
- If you choose an on-site deployment
- If you would like to avoid any communication gap
Nearshoring is ideal for:
- If you prefer to save money
- If you would like to avoid any communication gap
- If cultural matching is desirable
- If you expand a talent pool
Offshore is ideal for:
- If you want to save money
- If you do not have any problem with asynchronous communication
- If cultural matching is not important
Final words
Software development outsourcing services have proven to be highly profitable for several startups & worldwide enterprises. Between offshore vs nearshore, there is no exact answer to which outsourcing model is best, they are ideal for different needs and different circumstances. So, whichever option you select, you have to be more focused on your project requirements and budget.
Moreover, if you outsource a software development task, you don’t have to take care of all your IT professionals & other major aspects like training, hiring, purchasing office essentials, providing internet connection or laptops & managing the team. However, choosing & retaining the best outsourcing company can be a tricky task & without proper guidance, it can also be a nightmare for you. Fortunately, Sphinx Solutions is here to fix all common & major pain points that happen when it comes to custom software development. For more information and assistance, feel free to connect with our experts.
