Wondering whether to choose offshore or onshore software development for your company? You are not alone. Many businesses are faced with this dilemma when seeking a comprehensive solution that doesn’t dent their pocket. Thankfully, this post analyzes the pros and cons of each and provides all the crucial information needed to help you make an informed choice.
When it comes to software development, companies usually have several options. However, most prefer outsourcing as it is linked with quick and quality results. Outsourcing is divided into several types, with offshore and onshore being the most common ones. Let’s look at them for you to understand better.
What is Offshore Development?
Offshore development is when companies outsource their projects to a software development team overseas. In other words, the company allocates the work to a third party in foreign countries to get more benefits on the project. Typically, renowned offshore software developers can mitigate talent gaps while keeping operational costs lower.
Advantages of Offshoring?
- Save on Cost: Companies choose to hire offshore developers because building software in the country they are in is expensive. Outside countries like Vietnam, China, India, and Ukraine don’t spend much on labor compared to the US. Therefore, hiring developers from this country ensures you get a high expertise level without breaking the bank.
- Enhanced Productivity: If experts work on the given tasks, there will be enough time to focus on the main tasks. Offshore developers help companies manage their projects and strategies efficiently. As such, it saves them from purchasing costly facilities like software upgrades, internet connection, etc.
- Access to a Big Talent Pool: Offshore developers come from different countries and regions. Companies can take advantage of the wide range of skills, experience, and expertise that they may not have locally.
Disadvantages of Offshoring
Communication and collaboration may be challenging because of factors like language barriers, time differences, and cultural differences. Sometimes, the response may be slower, and coordination may be hard. Also, offshoring means companies will share sensitive information, which puta their data security at risk.
What is Onshore Development?
Onshore development involves companies choosing service providers within the same local area or country as the main business. For instance, if a company is in the US and hires a developer in the US.
Advantages of Onshore Software Development:
- Communication: Since the software team is in the same region and shares the same culture, communication won’t be an issue, and collaboration will be better.
- Quality Assurance: with clear instructions, it is easier for the developers to implement things correctly. If you notice anything missing on the project, you can easily contact the company.
- Real-time collaboration: you can easily contact the onshore company in case of anything. Even if it is in a different state, you can easily travel there compared to traveling to a different country.
Disadvantages of Onshore Development?
Onshore development is more expensive since the company is forced to pay premiums in other countries to work with developers in their countries. Also, companies have fewer growth opportunities since the talent pool is limited.
Offshore Vs. Onshore: At a Glance
| Offshore | Onshore | |
| Time | Different time zone | Same time zone |
| Skills | Various skills | Skills are limited |
| Security | Higher risks | Lesser risks |
| Language | Hard to communicate | Effective communication |
| Costs | Cheaper | Rather expensive |
Choose Wisely
It is difficult to choose which is best since every company has its own needs, budget, and goals. The onshore development works well for re-engineering projects that have a repetitive work scope and prefer face-to-face collaboration.
But for structured and planned projects, it’s better to opt for an offshore development model. And if you’re looking for an offshore development provider that ticks all the boxes make sure to check out KMS.
Keep reading informative contents at bhtnews.com
