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Onshore vs. Offshore Software Development

Onshore vs Offshore
Onshore vs Offshore

Today, there are a million reasons to look for an outsourcing company for your business!

Digital technologies are the core driving force of the future. Enterprises are striving hard to meet the sky-rising customer expectations and for that reason, there is a need for a talented IT team that has expertise in the latest technologies. Not only this, there are some challenges associated with an outcome-oriented approach. For instance, internal or external software applications development requires a lot of resources. Most businesses do not have the capability to develop IT applications in-house and the hiring and training of employees exceed the typical budget.

So, if you say yes to any of the below, you should opt for software outsourcing.

  • Lack of financial resources and development budget
  • Limited pool of developers
  • Need for experts in latest technologies
  • Lack of flexibility and scalability

Outsourcing software development projects can help small companies avoid hefty development, hiring, and training costs. The outsourcing company takes full responsibility for the planning, software development, testing, and deployment of IT projects. The owners therefore can hand over the entire project to the outsourcing team and focus on the core values of the business.

So if you are deciding to outsource your software development project, there are two options: you can either outsource it to an onshore development company or an offshore development company. It is important to know the pros and cons of offshore and onshore outsourcing to find your best fit based on the development needs and budget of your company.

Onshore Software Development

Onshore software development is when you outsource custom software development projects, mobile app development, web development, or any IT project to a company or freelance team that is in the same country as your business. You share work in the same time zones, culture, and language. Onshore software development used to be very common a few years back. However, the prices of onshore software development are two to three times higher than offshore software development.

Advantages Of Onshore Development

The following are some benefits of onshore software development:

  • Seamless communication and collaboration due to no cultural, language, or time barriers.
  • It is easy to meet in person, communicate the goals and requirements to other companies in a much clearer way. Also, it fosters the customer relationship.
  • Fewer iterations are required in onshore software development as the communication is persistent and the other team critically understands the requirement, scope, and objective of the project.

Disadvantages of Onshore Development

Disadvantages of onshore software development include:

  • In-house development of high-quality software products has a high price at the cost of convenience and timely delivery of exact requirements.
  • The shortage of skills and software development in the home country could be very challenging. To fill the gap, companies start looking for experts from offshore companies.

Offshore Software Development

Offshore software development refers to the outsourcing of projects to locations outside of your country. These countries have different time zones and languages. Offshore outsourcing has gained much popularity in the past few years.

Why do Companies Offshore Software Development?

An offshore development company gives you access to a talented pool of developers at lower rates as compared to the United States or Canada. Offshore outsourcing has uninterrupted workflows that allow you to go through each process of software development in a well-thought and planned manner.

Advantages of Offshore Development

Offshoring advantages and disadvantages are discussed below:

  • Offshore software development offers cost-effective development plans. They help you reduce the cost of development, an in-house IT team, equipment, and spend on the hiring and training process of new employees.
  • You get access to a qualified and talented IT team that delivers high-quality development services at much lower wages.
  • You can scale up your team with offshore software development. The requirements of the project might increase with time. At that time, it is easier to add more developers to the offshore team than to hire new employees in-house.
  • You would not need to spend time hiring or training new employees. Your offshore partners have multiple IT teams in which developers are assigned based on the technology, functional and non-functional requirements of the project.
  • You won’t have to find the experts in the latest technologies. It is the responsibility of the offshore team to find the appropriate resources to deliver the expected outcomes.
  • Offshore outsourcing provides you long-term maintenance of your project whereas an in-house development company could not afford software engineers on their payroll just to maintain an application.
  • Regular meetings and updates ensure project delivery on time.

Disadvantages of Offshore Development

The disadvantages of offshore development are:

  • Communication is the real challenge with offshore outsourcing. When you are communicating with a team that does not have English as a primary language, it becomes hard to convey or understand the project’s needs. That said, many companies do have English as a primary language. FiveRivers Technologies personnel all communicate fluently in English.
  • The time zones of offshore outsourcing companies could be very different. So if you want updates in the middle of the night, you might not be able to get them immediately. But if you work with your partner on specific time windows they can even hire and provide personnel who work in your time zone.

Offshore vs Onshore Outsourcing

Despite the communication and timezone barriers, offshore outsourcing appears to be the best choice for companies that are lacking human or financial resources. Offshore outsourcing has gained ground in the IT sector. Offshore development teams are working 24/7 to provide high-quality results on a short timeline. The developers and project managers are always available to communicate and give updates on the projects. The requirements are discussed in the middle of the night, new milestones are decided, and development never stops.

One major benefit of offshore outsourcing is reduced cost and a pool of talented developers, QA professionals, designers, and project managers. FiveRivers Technologies stands among the top offshore outsourcing services providers in Pakistan that have teams of experts working on the latest technologies and world-changing innovations. Our teams are always available to provide you with the best development services. Get customized software development solutions at highly affordable rates with us.

So if you are planning to make a difference between Onshore vs Offshore by creating a disruptive product, let’s make it together!

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