Nearshore and Offshore Outsourcing Development: The Pros and Cons

Digital transformation is the need of all modern websites and this involves a lot of resources and diverse software skills and expertise that are often challenging to find in house. Hiring a software development partner is crucial, if you need to deliver a digital solution to your customer.


Reason for outsourcing
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If you are searching the internet for software developers with specific skills, chances are high that you have heard about the terms offshore and onshore software development.


Global Market Size of outsourced services 2000-2018
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Software outsourcing is a practice of hiring a third party in order to complete a specific project for your business. When a company requires skills for individual projects, the IT outsourcing can be a great means to get the right talent at the right time. outsourcing has two subsets:  nearshoring and offshoring.


Let’s understand both these outsourcing types and take a close look at their pros and cons:


What is Nearshore Outsourcing Development?  Its Pros and Cons


Nearshore outsourcing refers to the team that is located within the country or the same continent. It offers skilled resources who can work in similar time zones and geographic proximity that makes communications more of a breeze with the goal of reducing the operating costs.


Pros of Associating with Nearshore Outsourcing:


No Language Barriers

If you hire a nearshore outsourcing company, you will be able to communicate in a common language and this will help in clear understanding without any communication gaps.


Similar Cultural Values

Nearshore outsourcing companies are often located very close to your geo location and so they not only share the time, but they are also able to share some of the cultural values. This makes collaboration easy and also helps them develop solutions that work best with such cultures.


Also Read: Choosing the Right Outsourcing Partner


Close Proximity:

Hiring an outsourcing partner nearby isn’t about simply sharing similar cultures, but it also means that you can also meet your team in person to sort out some crucial issues related to the essential stages of development.



Nearshore outsourcing companies also have some downsides and mostly the most common one is related to cost and the easy availability of resources. These are certainly factors to take into account.


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What is Offshore Outsourcing Development?  Its Pros and Cons


Basically, offshore outsourcing companies are those that are third party companies located in countries that are geographically far from the home countries.


Pros of Associating with Offshore Outsourcing:


Reduced Costs:

This is the most important reason for hiring outsourcing companies to complete a specific task that requires expertise. Outsourcing companies offering such services often have highly competitive prices that means you can reduce the costs by partnering with them.


Multiple Resources

India is an outsourcing hub and the reason behind it is the availability of a talented pool of resources from which you can pick according to your needs.  The benefit of hiring offshore outsourcing team is that you can select the right candidate and communicate with them without having to struggle much.


Work Around the Clock:

Since the time zones of hiring a team from offshore outsourcing companies are different, they will work while you sleep. This means that the company will be working non-stop round the clock offering significant competitive advantage.



Though all the above benefits are very appealing, there are some cons that you should consider too. One of them is the language barrier, that might create some communication issues and the difference in time zones also makes it impossible to meet your team in real time.


Also Read: A Checklist for Those Looking for an Offshore Outsourcing Development Company


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