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 outsourcing 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.
When you need to scale or skill-up resources for a project, the onshore model 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.
Let's have a closer look at the onshore and offshore benefits. An offshore software development 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 software developers are 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 the nearshore option offers geographical closeness, which can be hugely beneficial to the development process.
Compared to onshore outsourcing and hiring in-house, both nearshore and offshore software development services 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 the nearshore option:
Offshore development does offer many of the same benefits as the nearshore model. 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. Maintaining seamless communication and facilitating face-to-face meetings becomes a real challenge with an offshore team potentially located on the other side of the world. Where offshore outsourcing can offer the most value is in its cost savings. When you compare the cost of the offshore vs nearshore approach, the offshore model tends to be the cheapest outsourcing development option, and if budget is a client’s core concern, it could provide a better solution.
Doing your research before engaging in cooperation with a nearshore development company will help you ensure your project is in safe hands. Verify the credentials of the nearshore company you consider partnering with, ensure they follow the essential regulations and compliance requirements, check if they have industry-standard accreditations. For example, the SOC 2 Type II audit provides a comprehensive assessment of the cybersecurity controls within a service organisation. Ask for relevant case studies to ensure they have the skills and experience to deliver your project and enough references from previous clients.
Before you engage in cooperation with your software development team, it’s essential that you clarify the objectives of your project and what you require from your nearshore partner. Your entire team needs to understand exactly what is expected of them. An experienced outsourcing partner should also provide you with their expectations concerning where the responsibility for specific software development tasks sits. Bring together all stakeholders, draw up a clear project scope including goals, timeline, and responsibilities, then make sure everyone is aligned.
Whatever your digital endeavour may be, bringing the right people on board is key to your success. This sounds obvious, but make sure you do not overlook cultural differences while searching for specific skills and specialities. Look for the nearshore software development team located close by so that they are available for onsite visits allowing you to transfer process and behaviour-change knowledge. Make sure they are ready and willing to understand and adopt your internal culture. Such a team will become a true extension of your in-house resource.
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.
Looking for a cost-effective alternative to in-house development? Choose a trusted nearshore software development company. Choose ELEKS.
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.
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.
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.