Nearshore vs. Offshore Software Development: Which one should you choose?

Thinking about consulting outsourcing experts to provide software solutions for your firm?

Software outsourcing is a widely popular option for businesses looking to achieve their digital transformation goals, while keeping the associated risks and costs to a minimum. In fact, the annual global revenue generated from software and IT outsourcing is nearly 70 million US Dollars.

However, with an overabundance of outsourcing companies to choose from, it can be difficult to narrow down the options and find experts that can really provide the solution you desire. In this blog, we’ll compare nearshore and offshore software development services to help you make the right decision.

What is Nearshore Software Outsourcing?

Nearshore software outsourcing, as the name suggests, allows companies to outsource either an entire software project or some of its elements from a company based in a territory located in close proximity. For companies based in US, nearshore locations may include Mexico, Colombia, Argentina, Costa Rica and other Latin American countries.

What is Offshore Software Outsourcing?

Offshore software development refers to the process of outsourcing software developers, for a project or parts of a project, from regions located at a significant distance from your place of origin. For US-based companies, offshore locations can include Russia, Vietnam, India, China, or countries situated in Eastern Europe.

Let’s Compare!

Nearshore and offshore outsourcing both have their own strengths and weaknesses, some of which are discussed below.

Time Zones

When it comes to outsourcing, the time zone of your outsourcing partner is an important factor to consider. Communicating with experts from a company located in an entirely different time zone can be a challenge. Having different time zones can also make it difficult to keep up with deadlines.

In this case, nearshore outsourcing companies have a benefit over offshore firms. Reaching out to a development team located closer to home will help facilitate project handovers, due to similar time zones.

Ease of Travelling

To communicate the objectives of your project or to clear out any misconceptions regarding the project, you might have to travel to the country where your outsourcing experts are located. As nearshore companies are closer, it’ll be much easier for you to travel and conduct face-to-face team meetings, should you choose this option.

Cultural Differences

Standards of work ethic vary from one place to another. If you opt for a nearshore company for your software needs, you’re likely to find a cooperative partner with minimum cultural and working differences.

Looking for nearshore outsourcing experts to fulfill the IT needs of your business venture? Let us be your guide!

EX2 Outcoding is an outsourcing company based in Costa Rica, providing extensive nearshore software development services to both growing start-ups and well-established commercial companies at the most affordable rates.

In addition to offering software solutions, we also provide mobile app development, staff augmentation and Microsoft Dynamics solutions.

For details, contact our representatives today at +1 800 974 7219 or send us an email at info@outcoding.com.

Contact us for further information!