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Pros and Cons of Hiring Offshore Vs. Onshore Developers

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When it comes to trusting your software projects to outside developers, is it best to look for onshore or offshore contractors?

Every business or brand will have vastly different needs when it comes to their software. Smaller startups have begun to use more offshore developers to stay competitive, while larger companies still rely on in-house or onshore teams.

The differences can make a big impact on your bottom line, so which one is better? Your mileage may vary, but it doesn’t have to with the right resources.

Support local vs. foreign vendors?

The growth of high-quality offshore developers in regions of the world like Europe, Asia, and South America means top global talent at your fingertips. And companies around the world are taking notice.

Using in-house or onshore IT experts is like supporting local businesses. They incorporate and do their business in the same country of origin as you.

But the rise of better online collaboration tools and cloud computing means managing distributed teams is easier than ever. And there’s no longer an ethical stigma for working with globally outsourced companies.

Business data leader, Statista, reported the global offshoring and outsourcing market in 2017 was ~$90 billion.

Offshore companies can now compete for the same jobs with incredible success from all over the globe. The “new normal” is our interconnected web of IT pros working seamlessly, regardless of language or timezone.

Access is everything

Any business in need of those competitive digital niches can now access a diversity of quality problem-solvers. Using onshore developers can reduce the anxiety that comes with working with a distributed offshore team.

But remember, “96% of software and IT companies allow remote work in some capacity.” Backdoor offshoring by local development teams in not uncommon.

And advancements in global internet security make offshoring far more appealing than it once was. Just be sure to research and define your software development needs thoroughly before choosing a path forward.

Some things to consider about each before evaluating your best option:

Onshore development

  • Cost - Average higher cost, smaller more competitive talent pools.
  • Communication - Often in the same time zone can mean quick, same-day comms with little delay. Face-to-face meetings are easier to schedule.
  • Collaboration - With recent advancements and tools like Slack, Trello, JIRA, and Yammer, this is a coin toss between onshore vs. offshore.
  • Quality - Often a higher quality of both talent and code. Fewer discrepancies in iterations to successful product launch.
  • Security - Onshore companies will be governed by your country’s regulations making copyright or IP laws transparent from the start.

Offshore development

  • Cost - Lower cost, greater access to multiple disciplines, but can often come with its own price, including greater oversight required (i.e. higher project management costs).
  • Communication - Slower communications, language barriers can mean some unavoidable delays. Face-to-face meetings can be difficult to schedule.
  • Collaboration - Again, a coin toss between onshore vs. offshore.
  • Quality - There is a potential for drift if teams aren’t properly overseen by a Project Manager. Talent can be equal to onshore but vetting can be unpredictable to non-existent.
  • Security - Though IT security solutions are evolving daily there is still some risk involved. Offshore companies may not abide by your country’s copyright or IP laws.

You could also consider a hybrid approach. Project management has become a high priority for distributed teams. Consider the best use case for each.

Onshore is often best for larger, labor-intensive development projects that require multiple disciplines and/or custom software design.

Offshore can be utilized for maintenance of ongoing projects, simpler one-off jobs, or upgrades to well-established infrastructure.

Many businesses aren’t hesitating to utilize offshore developers in expanding fields like AI, machine learning, and cybersecurity. Talent and technology are exploding around the world.

There is no wrong answer

Remember that no matter which path you choose the two options can be equally valuable. With the right mix of transparency, collaboration, and consistent processes, you can boost quality and speed to market.

Take it from us! There is still objective quality when it comes to your software project, and we value only the highest quality talent at Esteemed.

We know that finding top talent in those highly technical disciplines can be a drag. Employers are already spending way more time than ever courting, recruiting, and simply keeping their best.

Work with the best of the best!

We’ve touched on some of the challenges employers face when sourcing top tech candidates. And with the shortage of top-tier IT candidates, it makes sense to turn to staffing made simple.

We’ve employed both great Eastern European developers as well as US and Canadian IT experts. A hybrid methodology works, it just depends on which key elements you need in your business plan, and how well vetted they are.

With over a decade of experience, we love helping businesses save time and money so they can focus on their core competencies.

Drop us a line anytime and we’ll be happy to help you find the best team for your business!

Category: Hiring Strategy , Talent Sourcing