Nearshore vs Offshore vs Onshore: What Is The Difference?

AgileTech Vietnam
4 min readMay 8, 2020


Offshore software development teams can be found abroad, usually on the other side of an ocean.

With the help of technology, they are able to work remotely and virtually to help you build your product at a fraction of the cost of their onshore counterparts.

Ukraine, India, China and Southeast Asia like Vietnam, Thailand are some of the most popular countries to find qualified developers for your project.

Many companies find that outsourcing software development offers more benefits than hiring developers in-house.

When researching a place to outsource, there are basically three types of IT outsourcing to consider: nearshore, onshore or offshore? So, which is the right shore call center outsourcing for your business?

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

According to Statista, the market size of the outsourcing industry has been outstretched from $45.6 B in 2000 to $85.6 B in 2018.

At the same time, the global IT outsourcing market earned $85.6 billion, which is a sure sign of steady positive growth in the industry.

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 beauty of software development is that. There is no need for an in-house team unless you want to. Instead, you can look both near and far outsourcing countries for your ideal dedicated team.

Outsourcing software development happens at any time in any place! Whether you are looking for nearshore, offshore, onshore, first you need to weigh advantages of each.

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.

While values are ensured, the required work is still completed in a connected way.

There’s nothing wrong with wanting a dedicated team speaking the same language. Onshore outsourcing has some benefits:

  • 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

However, if you choose outsourcing to reduce the development budget, hiring onshore company maybe is not a good choice.

In some case, it would probably cost a lot more than offshoring or nearshoring to do the same work.

Nearshore Outsourcing

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

Nearshoring is where the team would be located close to yours, perhaps border your country.

In circumstances, nearshore outsourcing should be the perfect balance between the benefits of offshore and onshore.

If you choose a nearshore company, the available pool of talent is expanded and labor costs can be significantly reduced.

In addition, there are more advantages to nearshore:

  • 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.

An offshore development centre can yield a successful business where quality technology is at a far lower cost.

From offshoring, both partners benefit. But it could be positive and negative.

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

Attitudes toward hierarchy, scheduling, responsibility are just some of the areas where offshoring can be disparate as well.

Nevertheless, all these disadvantages can be reduced by avoiding some common contract loopholes in software outsourcing.

The list goes on. Let’s take a look at full article to know more!

The rise of dedicated team outsourcing?

Which is the best for you?

As a leading software development in Vietnam, we have huge experiences in many fields including e-commerce, car-sharing platform, health care, Livestream and many more.

You can contact us at or via (+84) 936 281 059 for more information.

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