You have options when it comes to outsourcing software development projects. The term “nearshoring” means working with a team in a nearby country rather than the other side of the world. Countries in Latin America such as Mexico and Costa Rica are good examples of places that are typically used for nearshore outsourcing. In contrast, “offshoring” describes working with countries across the ocean – such as India, Ukraine, and China.
What are the differences between Offshoring and Nearshore Outsourcing?
The most striking difference is the higher level of collaboration enabled by Nearshoring – you share the same workday hours and time zone as outsourced team members. Close proximity of nearshoring countries like Costa Rica makes travel easy for in-person meetings – another real advantage. A good nearshore partner will also deliver the English fluency and cultural affinity that enable a great working relationship with your US-based staff.
In contrast, offshoring can be characterized by poor and ineffective communication due to long travel distances and extreme time zone differences. Who wants to be on work calls at 11 pm? Who wants to wait a day for an answer to a quick question? Time zone differences are a major hurdle for collaborative, agile development. Poor English fluency and cultural differences can compound a frustrating experience. Sometimes things get lost in translation. Can you relate?
Why do people choose offshoring? The biggest driver for offshore outsourcing is typically lower hourly rates. The cons of offshoring, however, are significant, often requiring increased administration attention and longer cycle times.
Why choose a Nearshore versus an Offshore Solution?
There are some projects that lend themselves to the low-cost offshore alternative. These include maintenance tasks and very well defined waterfall projects. Offshore agile development, on the other hand, is considerably more challenging – if not impossible to accomplish.
Find out how nearshoring can help you extend your development capacity, increase project velocity and accomplish real agile development within your budget. Download “The Nearshore Solution Infographic” to dive into the advantages and disadvantages of different outsourcing alternatives.