It should come as no surprise that outsourcing development has become a growing trend over the years. Organizations of all sizes have looked towards Outsourcing for a variety of reasons. Either to augment their existing team or perhaps develop a turn-key product or solution to everything in between.
Outsourcing can either be done onshore, nearshore or offshore. In simple terms, the difference boils down to location and distance from you, the client. There are a number of differences between the three, some subtle and others not so subtle. In this blog, I will be grouping nearshore and offshore into one definition and referring to them as offshore.
Bear in mind there are pros and cons to both approaches and neither of them is the right or wrong way to outsource. Each project should be evaluated individually to determine what works best based on technical requirements, team sizes, timeline constraints, and risk factors.
Before we dive into the differences between the two, let’s talk about what is Offshore Development.
What is Offshore Development?
Outsourcing is the act of hiring a third party company to develop your code/product/solution for you. In simple terms, Offshore Development is when said third party company is located overseas or in a developing nation where labor costs are much cheaper.