{"id":7890,"date":"2023-03-02T08:35:40","date_gmt":"2023-03-02T07:35:40","guid":{"rendered":"https:\/\/proshore.eu\/?p=7890"},"modified":"2023-12-17T16:27:54","modified_gmt":"2023-12-17T15:27:54","slug":"offshore-vs-onshore-software-development","status":"publish","type":"post","link":"https:\/\/proshore.eu\/offshore-vs-onshore-software-development\/","title":{"rendered":"Offshore versus Onshore Software Development"},"content":{"rendered":"\n

These days, both startups and well-established companies seem to be using software outsourcing to fulfill their business needs. From increasing capacity and reducing costs, bringing in third-party developers has many proven advantages for many software companies. The key question is what type of outsourcing to choose \u2013 onshore or offshore?<\/h2>\n\n\n\n

In this blog, we will explore both offshore and onshore software development outsourcing options. By the end, we hope you better understand which one is right for you.<\/p>\n\n\n\n

What is Onshore Software Development?<\/h2>\n\n\n\n

Onshore software development involves outsourcing development to a third party in the same country \u2013 on the same shores. This could be a single developer or an entire agile development team, but they should reside or be registered for business within the same geographic borders.<\/p>\n\n\n\n

For example, if a tech startup from Silicon Valley, USA, outsources certain software development work to a developer residing in Montana, then it\u2019s known as onshore software development.<\/p>\n\n\n\n

Why would the tech startup choose to outsource apart from the regions with lower average salaries<\/a>?<\/p>\n\n\n\n

Check the benefits and disadvantages of onshore software development below. <\/p>\n\n\n\n

Benefits of Onshore Software Development<\/h2>\n\n\n\n

Onshore software development is the traditional model for outsourcing development tasks. Here are some of its major benefits:<\/p>\n\n\n\n

1. Real-time collaboration:<\/strong> <\/h4>\n\n\n\n

When you\u2019re in the same time zone, it\u2019s easier to collaborate in real-time and hold in-person meetings.<\/p>\n\n\n\n

2. Cultural similarity:<\/strong> <\/h4>\n\n\n\n

If you\u2019re outsourcing to the same country, state, or city, you will likely share common technical terminologies and avoid miscommunication. Likewise, you will not face gaps in understanding consumer behavior or having different holiday calendars.    <\/p>\n\n\n\n

3. Timely problem-solving<\/strong>:<\/h4>\n\n\n\n

Since both you and your outsourced development team will be working in the same time zone, it will be easier for you to sync your meetings and solve issues in real-time without any delay.  <\/p>\n\n\n\n

4. Simpler talent search:<\/strong><\/h4>\n\n\n\n

Outsourcing onshore brings automatic confidence as there are fewer perceived risks. Moreover, with the right connections, hiring local onshore developers or development teams can be simpler by drawing upon your existing networks.<\/p>\n\n\n\n

Disadvantages of Onshore Software Development<\/h2>\n\n\n\n

Now that you understand the benefits of onshore software development let’s explore some of its drawbacks. <\/p>\n\n\n\n

Here are common drawbacks of onshore development that might influence your decision to outsource:<\/p>\n\n\n\n

1. Smaller talent pool:<\/strong><\/h4>\n\n\n\n

With onshore software development, you can only hire from within the country. This directly limits the amount of talent you can get per your requirements. As a result, the demand for the right talent exceeds supply – especially if you have specific needs.<\/p>\n\n\n\n

2. Higher costs:<\/strong><\/h4>\n\n\n\n

Hiring onshore means you will be liable to pay similar salary ranges. Hence, outsourcing onshore developers might help cut in-house recruitment costs, but not by much. On the other hand, outsourcing offshore developers from developing countries can drastically improve your savings.<\/p>\n\n\n\n

3. Greater churn:<\/strong><\/h4>\n\n\n\n

The flexibility of the gig economy can seem attractive if you\u2019re not looking for a long-term commitment. However, it also makes the retention process challenging for developers who will have no shortage of offers. <\/p>\n\n\n\n

4. Labour costs:<\/strong><\/h4>\n\n\n\n

The cost of living varies considerably worldwide. If you\u2019re based in a country with a higher cost of living, then the cost of hiring onshore talent will reflect that. While you might make marginal savings against hiring full-time employees, outsourced developers will always seek to improve their quality of life.<\/p>\n\n\n\n

The global shortage of skilled IT professionals means that competition for the best talent can be fierce within a single country, such as the Netherlands or the US. Furthermore, this competition for the best tech talent on home soil inflates local hiring costs \u2013 making offshore software development a viable option.   <\/p>\n\n\n\n

What is Offshore Software Development?<\/h2>\n\n\n\n

Offshore software development<\/a> is when a company contracts out its software development to either individual developers or a team of developers in another part of the world.<\/p>\n\n\n\n

Simply speaking, part or all of the software development is outsourced outside the borders of the company\u2019s home territory. This can be done in a variety of ways:<\/p>\n\n\n\n