Contact Us
en
Onshore vs Offshore vs Nearshore Outsourcing
Article

Offshore vs Nearshore Outsourcing: What’s Best for Your Business?

With the increasingly digital and competitive nature of modern business, the need to scale resources and skills to maintain relevant products and services can be tricky to balance with a tight budget. Here’s our run-through of nearshore outsourcing and its advantages, as well as the value that offshore development can bring to a business.

Traditionally, companies may have taken on more exclusive staff to meet their development needs but, nowadays, there are options that can allow for flexible up-scaling while maintaining your core team’s focus on business as usual. Offshore and nearshore outsourcing are two options which provide a lot of flexibility, vs onshore/in-house development. However, these two collaborative models yield slightly different benefits.

Offshore vs onshore vs nearshore outsourcing

Onshore vs Offshore vs Nearshore Outsourcing

When you need to scale or skill-up resources for a project, onshore development may seem like the obvious choice but it comes at a cost. With onshore outsourcing, you’ll be working with highly-skilled software engineers who are located in your country but the hourly pay rate is high. You may also find that the right skills mix isn’t readily available in your location, since onshore development companies can’t afford to keep a pool of experts on standby when they’re not being utilised.

An offshore team saves you considerable time and money, giving you access to a global reserve of skilled workers, but it lacks some of the control. By engaging with a nearshore software development company, however, you get the best of both worlds. Your nearshore team is positioned close enough for streamlined communication and onsite visits, while providing the efficiency and cost savings of offshore development.

With both nearshore and offshore outsourcing, a client can pass over one – or several – business processes or tasks to their partner company. The key difference between the two is that nearshore development offers geographical closeness, which can be hugely beneficial to the development process.

Benefits of nearshore outsourcing

Compared to onshore development and hiring in-house, both nearshore and offshore development outsourcing offer multiple benefits in terms of budget and efficiency. Where nearshore adds real value is in the geographical proximity of your extended team. Here are a few of the key benefits of nearshore development:

  • Flexible scaling - nearshore development offers companies the chance to scale development capacity on-demand, to support an individual project or a growing development portfolio. The chosen outsourcing partner is responsible for selecting a team of specialists with the best-fit skills to tackle the specific project, allowing the client’s core team to focus on delivering better BAU.
  • Access to a large and diverse talent pool - when a company chooses a nearshore development partner they’re gaining access to a pool of, potentially, thousands of highly and diversely skilled specialists, without relying on painstaking internal recruitment. The outsourcing partner puts together the optimal team to fit a client’s project and then integrates this extended resource with the organisation’s in-house team.
  • Cost efficiency - by opting for nearshore software development, businesses can dramatically decrease their development spend, since they don’t have to take on the costs associated with in-house recruitment or the higher hourly rate that onshore commands. Furthermore, compared with offshore development, having an extended team close at hand means that communication can be practically instantaneous, which also factors in reducing development costs.
  • Getting products to market faster - nearshore outsourcing vastly reduces the training time needed to get a team up to speed. This, in turn, reduces the overall software development lifecycle and ensures that a client can launch a quality product to market, up to twice as fast.
  • Geographical proximity - unlike offshore development which can be provided from the opposite side of the globe, nearshore outsourcing places an augmented IT team within “arm’s reach” of the client’s offices. This means that the extended team of experts can be available for regular onsite visits and there’s better time synchronicity, which yields smoother communication, collaboration and project delivery.
  • Unified cultural approach - because of their positioning close to a client’s core team, nearshore development teams are more easily able to integrate with in-house resources. This means that they can adopt a client’s culture while, at the same time, offering the kind of hands-on knowledge transfer process and behaviour-change coaching that offshore development teams can’t necessarily provide.

Is offshore development better in certain situations?

Offshore development does offer many of the same benefits as nearshore outsourcing. It gives clients access to a wide talent pool and offers flexible scaling and better efficiency than in-house development – with a significantly faster time-to-market.

Where it’s less effective, however, is in the level of control it offers. With an offshore team potentially located at the other side of the world, maintaining seamless communication and facilitating face-to-face meetings becomes a real challenge. Where offshore can offer the most value is in its cost savings. It tends to be the cheapest outsourcing development option and, if budget is a client’s core concern, it could provide the better solution.

Conclusion

Whether you’re looking to up-scale resource for a specific project or need to plug a skills gap to supplement your in-house team, outsourcing your software development provides a cost-effective solution with considerable time savings. When you choose the right nearshore development company to extend your internal team, you gain access to a large pool of multi-skilled professionals who can be integrated with your team and processes within a matter of days.

Offshore outsourcing offers many of the same benefits with excellent cost-saving potential, but you do lose a degree of control on account of the geographical and time zone difference, and staggered communication can become an obstacle to the development process.

If you’re looking for a seamless collaborative model at a fraction of the cost of onshore or in-house development, the benefits of nearshore outsourcing make it an attractive choice.

Take a look at some of ELEKS’ nearshore development success stories:

Looking for a cost-effective alternative to in-house development? Choose a trusted nearshore software development company. Choose ELEKS.

Contact Us
  • We need your name to know how to address you
  • We need your phone number to reach you with response to your request
  • We need your country of business to know from what office to contact you
  • We need your company name to know your background and how we can use our experience to help you
  • Accepted file types: jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, png.
(jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, PNG)

We will add your info to our CRM for contacting you regarding your request. For more info please consult our privacy policy
  • This field is for validation purposes and should be left unchanged.

The breadth of knowledge and understanding that ELEKS has within its walls allows us to leverage that expertise to make superior deliverables for our customers. When you work with ELEKS, you are working with the top 1% of the aptitude and engineering excellence of the whole country.

sam fleming
Sam Fleming
President, Fleming-AOD

Right from the start, we really liked ELEKS’ commitment and engagement. They came to us with their best people to try to understand our context, our business idea, and developed the first prototype with us. They were very professional and very customer oriented. I think, without ELEKS it probably would not have been possible to have such a successful product in such a short period of time.

Caroline Aumeran
Caroline Aumeran
Head of Product Development, appygas

ELEKS has been involved in the development of a number of our consumer-facing websites and mobile applications that allow our customers to easily track their shipments, get the information they need as well as stay in touch with us. We’ve appreciated the level of ELEKS’ expertise, responsiveness and attention to details.

Samer Awajan
Samer Awajan
CTO, Aramex