The market has already noticed the benefits of outsourcing software development because of its cheapness and quality. Offshore and Nearshore outsourcing are two types of outsourcing strategies. Each of these strategies has benefits, as well as disadvantages. Let’s first give definitions of these terms.
Offshore outsourcing is a software service that is provided by far distance countries in contradistinction to nearshore service which is provided by relatively close countries. As for Western Europe Ukraine, Belarus are nearshore outsourcing providers while India, Philippines are offshore providers. To choose the most suitable one for your business you need to understand the common problems of the outsourcing software service.
Let’s try to define the common issues in IT outsourcing which can be solved by Nearshore providers.
The main problems in software outsourcing which can be solved with applying Nearshore strategy
- Ignoring a culture clash – choosing your software vendor it is rather to know the culture difference before any communication to avoid any culture gap;
- Time difference risk – it could happen that during your workflow the attendant problems arise and you need to solve it immediately, but your outsource developer is sleeping;
- Expensive communication (flight rates, hotels, etc.) – the more distance to your country, the more you need to spend to get there;
Thus, we can determine the Nearshore benefits which are listed below.
- Geographic proximity and culture similarity make travel and communication easier and less expensive;
- Products are more expensive then offshore‘s, but most of the companies provide cost efficient service;
- Developers have high degree of technical skills. For example, Ukraine stands 4th among the most educated nations in the world;
- The flexibility, scalability and instead of offshoring more or less the same time zone that makes possible to communicate without any confusions in time schedule.
The both Offshore and Nearshore strategies have benefits, as well as disadvantages. So it’s up to you what is the more suitable for your business. If your company outsources simply for cost savings, offshore countries may become a good decision for you because of its cheap products. But if you need to move your enterprise toward specific goals it is rather to choose nearshore to avoid the common problems of the outsource software service.