Why Nearshore Outsourcing is Better than Offshoring
May 20, 2021
There is no denying that outsourcing is one of the best ways to maximize your output potential. Developers work around the world, from Eastern Europe to Colombia, to help your software development project launch in time. Suddenly, your team is much larger, and meeting your deadlines becomes much more manageable.
However, not all outsourcing models are the same. Offshoring, nearshoring, and onshoring have their pros and cons. However, we guarantee that nearshore outsourcing is the best choice.
In this guide, we'll compare offshoring and nearshoring, so you can see what makes nearshoring the clear winner.
Why Is Nearshore Outsourcing Superior for Outsourcing Software Development?
Many factors make nearshoring superior. Here are just some standout examples we have found.
Closer to Home
If your company is in the United States, but your developers work in Eastern Europe, there are several problems we can immediately identify. The most apparent of these is the time difference and distance.
Organizing development teams and meeting specific deadlines can be a challenge even when working in real-time. Operating across multiple time zones makes it difficult to host meetings, plan collaborative events, and arrange deadlines.
The time zone is less an issue as nearshoring means outsourcing to a company that is closer to shore. Indeed, nearshore outsourcing is just like offshore outsourcing, except you work with development teams that are within (or close to) your timezone. You could even enact on-site visits occasionally, which is much more difficult with offshore outsourcing.
Nothing kills your project like lack of communication. It's much easier for all parties to get on the same page when everyone is near the project's home base.
With offshore outsourcing, you may encounter problems such as:
Cultural Barriers: It is no secret that cultures differ widely between continents, including everything from food to work ethic. Offshoring your work could bring a clash of these cultures, leading to the breakdown of communication, whether in international negotiation for the outsourcing contract or in the software development stage.
The Language Barrier: Perhaps most evident of all, your development teams may run into a steep language barrier. It can greatly hamper your overall productivity.
Nearshoring circumvents these problems, for the most part. Countries with shared borders tend to have more cultural similarities, making issues with cultural and language barriers less likely.
Access to a Wider Talent Pool
Nearshore software development provides a perfect balance of both onshoring and offshoring's most substantial perks. One of the top advantages of both types of outsourcing is the talent pool.
Of course, prioritizing communication is essential. However, if you exclusively stick to local onshore outsourcing companies, then you severely minimize your outreach. You deserve to take advantage of what the developers outside your area have to offer.
Nearshoring allows you to make the most of the talent that's out there without having to take on board all the negatives associated with offshore outsourcing. You aren't limited or restricted to the resources immediately at hand. You can expand and make the most out of multiple development teams beyond your local area.
Disadvantages of Offshore Outsourcing Software Development
Besides noting the evident advantages of nearshoring, it's worth noting the potential disadvantages of offshoring. The latter may have high costs that impact your business and product development.
Below are a few complications you could run into by looking further afield for your outsourcing partner.
Potential Ethical Issues
One of the primary reasons for outsourcing is to reduce overall company costs. However, if this slash in cost manifests in the form of significantly reduced wages, you are walking a precarious line.
Unethical business standards are in the process of being clamped down on, with good reason. But not all countries have followed suit to protect their workers.
Outsourcing to countries with sketchy labor policies could lead to serious trouble for your company. It's what almost happened to H&M and Nike.
Though it is rarer for a software development company to get caught up in such disputes, you're better off avoiding this issue altogether.
The best way to ensure your company's reputation remains unblemished is by hiring your staff conscientiously. Adhere to the necessary regulations and hire talent closer to home.
Nearshoring offers the best of both worlds in this regard. You can lower costs without having to cut corners or principles.
Difficulties Organizing Your Teams
Whether it is due to a significant difference in time zones or a language barrier holding you back, offshore outsourcing can seriously sabotage your deadlines.
How can you effectively organize a team when it is 1 am for half of them and midday for the rest? Breakdowns in communication are inevitable.
A difference in time zones can occur with nearshore software development, but the variance is usually smaller. A slight difference can work in your favor, as it allows one team to pick up directly where the other left off in real-time.
A swift handover of work can significantly improve productivity, whereas the opposite can happen with offshore outsourcing companies.
Dramatic Variance in Work Quality
Utilizing multiple staff and development teams certainly has its benefits, provided there is cohesion between them. With offshore outsourcing, that cohesion is not a guarantee.
The differences are usually far more significant, and this can result in a steep variance in quality. It is often a consequence of the reduced wages, meaning less training and qualifications.
The phrase ‘you get what you pay for’ is most relevant here, and it is imperative to bear in mind. With
Nearshore Outsourcing Is the Best Choice
Bringing on a nearshore software development company beats the other outsourcing choices. You can reap the benefits of a wider talent pool without dealing with schedule delays and cultural barriers. Why bother dealing with working in multiple time zones when you could choose a company that's already on your schedule?
Ready to bring on the best nearshore outsourcing team for your project? Get in touch with our team at SOPHiLABS today. We know how to collaborate with startups on a deadline and deliver outsourced tasks promptly, so you stay on schedule.
Contact us today to learn more about what we offer.
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Photo by Alexandra Acea.Categorized under staff augmentation / software development.
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