offshoring

Software Development: Offshore, Onshore, or Nearshore?

10 Nov 2021

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When faced with a choice of a software development team, you have a world of those to choose from. Literally. Country borders don’t limit you at all. So should you choose someone from your own country or from abroad? And if the latter, is it safe to bet on a team from far, far away? Let’s take a look at the concepts of offshoring, onshoring and nearshoring.

What is this ‘shoring’ anyway?

Before we get to analyzing the three options you have at hand, let’s explain the names. They simply describe the area where your partner software developers come from. Onshore refers to companies from your country, nearshore means companies from neighbouring (or relatively closely located) countries, and offshore is reserved for software houses from far away.

Now, with this out of our way, let’s take a look at the pros and cons of each choice.

Onshore software development

Pros: it’s close and easy to manage.

If you decide to partner with a studio that shares the same region and language, it’s going to be easy to keep everything nicely synchronized. There are no barriers that would make it hard for you to understand each other. It’s easier for the cooperation to ‘click’ between your companies, with you operating on the same cultural plane. You can also easily visit each other if necessary to have this additional layer of relation between you.

Cons: it can be pricey.

With a limited area to choose from, you don’t get the full scope of competitive offers when looking for a software partner. It may happen that you live in a country where the prices of software development are high due to a variety of reasons. And reasons not necessarily related to the skills of your developers. With higher tax rates and other costs of work, you may face costs way steeper than when teaming up with professionals from abroad.

Offshore software development

Pros: your options are limitless, and it’s so cheap!

With an entire world to choose from, you’re bound to find a studio that offers good value at a fantastic price. That’s why so many companies from the West like to outsource their projects to other countries. There are more than a few specialists ready to help at a cost that may seem insanely low in your country.

Cons: choosing the right partner can be difficult, and the amount of control you have is small.

Sifting through all the available options is time-consuming, and sometimes you won’t be able to properly assess your potential partner due to a lack of a cultural common ground. Language can be a problematic barrier—also when discussing the finer details of your software, where you need more than just a basic understanding of each other. Even such small things like communicating on a regular basis may be difficult due to a time difference.

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Nearshore software development

Pros: it combines the best things about onshoring and offshoring.

Just think about it, it’s the best of both worlds! With a close proximity to your partner’s headquarters, you always have this thread of understanding in the form of similar working hours and work ethos. Even if the communication barrier is there in some form, it’s easy to find someone speaking the language of your neighbours without having to pay a fortune for a translator of a tongue considered exotic in your country. And you still get the benefit of having a wide selection of studios that often operate at lower rates.

Cons: you try to find one!

At fireup.pro, we often work with companies from nearby countries. The benefit of being a part of the European Union lets us simplify any formal proceedings, and it’s extremely common for us to speak the same second language. We know how we work, and for our clients it’s easy to find recommendations from easily verifiable and trustworthy companies that worked with us in the past. Also, our rates are very competitive to the clients from many other countries.

Our example proves that outsourcing software development can work really great, especially when you choose to not limit yourself to onshoring. The means of communication in today’s world are so vast and easily available that there are hardly any setbacks if two entities share the same time zone. Having a call to report progress or ask about the finer details is probably even less problematic than actually setting up a meeting in a conference room.

So, if you’re looking for a partner for a software project, consider cooperation with fireup.pro.

Why choose us?

By choosing us, you choose a wonderful skillset and engaged teams!

If you liked what you read, consider contacting us at fireup.pro – meet us, tell us about your needs, and we’ll think together about a possible course of action. This won’t cost you a dime and might open up some nice new possibilities. Stay in touch!

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