Nearshore vs Offshore vs Onshore: What Is The Difference?

onshore vs nearshore vs offshore what is the difference between software outsourcing company

Onshore, nearshore or offshore: Unsure?

There are pros and cons to all of them. And it’s essential to define which model of IT outsourcing that fits your company best. As of now, let me explain what they are:

  • Onshore means that outsourcing software development locates in the same country or region.
  • Offshore indicates that the company you hired is in another country with a different time zone.
  • Nearshore refers to your outsourcing partner in a neighboring country which is a short distance away.
the difference between nearshore vs onshore vs offshore

Onshore Software Development

Onshore is often known as local outsourcing. In this kind of software development service, a company has the opportunity to focus on its core capabilities.

  • No concerns about language barriers or cultural difference
  • Timezones should be the same, if not, closely aligned
  • Easier to communicate, have a meeting or conduct training
  • An onshore development team is potentially accessible

Nearshore Outsourcing

Nearshore software development team gaps the space between onshore and offshore.

  • Time zone differences are reduced
  • Less expensive labor than onshore
  • Some cultural differences but not of significance
  • Being more able to visit, resulting in a more effective working relationship

Offshore Development Center: What you need to know?

Offshore software development is located in another country, including the other side of the globe.

Advantages of Offshore Software Development

Some potential benefits of an offshore software development team:

  • The project accesses a global pool of talent
  • Hiring a highly expert team at lower costs
  • Dedicated IT team can handle your technology to a wider range of service
  • If you find the right offshore company, you assure to work with experienced software developers that are capable to deliver strict deadlines

Disadvantages of Offshore Software Development

Opposite, there are some risks if you outsource. While planning to hire a dedicated team, you need to take care of:

  • Significant time-zone difference which may become a bottleneck
  • Sometimes losing control over your critical activity
  • The working culture in an offshore country can be different
  • May be not easy to visit an offshore production team



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