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Offshore, nearshore and onshore outsourcing explained

This post gives you all the information you need about the different types of outsourcing when considering to hire a company.

Emil Pruden
3 min read

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Offshore, nearshore and onshore outsourcing explained. This post gives you all the information you need about the different types of outsourcing when choosing your tech partner.

Outsourcing your software development is often the right move.

There are a lot of advantages. For example, It is often quicker and cheaper than growing an inhouse team. It can increase productivity, revenue growth, and risk management. It frees you up to focus on growing your core business. You can access experts who know the best tools and processes to make your software dreams a reality.

But how do you choose between offshore, nearshore, and onshore outsourcing?

Offshore outsourcing

Offshore outsourcing is when you hire a company from a different part of the world. This is often what people first think of when they consider outsourcing.

A lot of businesses in the UK outsource offshore to India. Offshore outsourcing often has very cheap hourly / day rates and can make nearshore and onshore outsourcing look expensive in comparison. However, these projects often end up being more expensive in the long run. The potential language barriers and time difference can make communication difficult, which can result in higher project costs and longer development time.

They usually have large talent pools to pull people from, which gives you access to the skills you need. However, it is common for these companies to have high churn rates which can result in knowledge loss and a lack of continuity in your project.

Onshore outsourcing

Onshore outsourcing is when you hire a company in the same country as you. These projects usually have a higher hourly / day rate than the other options. However, the lack of language barriers and cultural similarities usually allow for better communication and project management – which saves you money!

Having a skilled team nearby in your own timezone is advantageous, and it is easier to have face to face meetings and discovery sessions.

What is the right outsourcing option for you?

There are positives and negatives for every option. It is important to find the right solution for you and your business. Be wary of cheap options, as they often end up more expensive in the long run.

If you are looking for an onshore outsourcing provider who can help turn your ideas into a reality.
Get in touch. We are waiting to discuss your project.

There are positives and negatives for every option. It is important to find the right solution for you and your business. 

Be wary of cheap options, as they often end up more expensive in the long run. If you are looking for an onshore outsourcing provider who can help turn your ideas into a reality. 

Get in touch. We are waiting to discuss your project.

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