Onshore software development outsourcing is characterized when a company decides to hire software developers within its own country of origin. This type of service becomes more attractive to the client because it is more accessible and adaptable to any changes that may occur, in addition to offering greater control over the professionals.
Another great advantage of the onshore model is that the developer and the company will communicate in the same language and have the same culture, facilitating the negotiation and integration of the professional in teams already defined. Moreover, as the time zone is the same, the question of support is made even easier in moments of technical failures.
In the sequence, you will understand the main differences between the three types of outsourcing: onshore, offshore and nearshore, as well as the negative and positive points of this type of contracting.
Positives of onshore software development
One of the main positive points of outsourcing off onshore software development is the reduction of your company’s expenses. With this type of outsourcing in the technology area, there is no need for the entrepreneur to set up a specific team and not even spend on training his employees to give life to the project. The outsourcing arrives with a team of specialists in the subject in order to avoid this type of cost, increasing the return of your investment.
Another positive point is that, with a team specialized in the subject, the final result will have higher quality in a shorter production time. This happens because the professionals allocated by outsourcing will use any and all cutting-edge technology to execute the project, without using the resources of your business.
In addition, through the onshore model it is possible to hire large professionals specialized in certain programming languages within their country of origin, offering an even lower cost and greater control of the company over its IT professionals.
The reduction in risk is another positive point of technology outsourcing, both of errors occurring during the execution of the project and in the total investment of the company. Being a group specialized in technology, the project will be done by professionals extremely trained in the subject that will be managed by the hired company, that is, the manager need not worry about coordinating the technical project.
The company also does not need to worry about the risks and investments it might need to make, such as opening a new sector or hiring new employees just to perform the service.
Now entering the negative points, one of the problems that can occur during execution is the loss of control of the company over what is being produced. Thinking about it, it is important to keep frequent contact with the outsourcing company so that there are no delays and much less communication problems about what is being developed. This way, structural problems in the project are also avoided.
Besides that, another negative point that startups need to analyze before finding the ideal outsourcing company is in relation to security. When you hire this kind of service for your company, the manager shares important data about your business and if you trust an IT outsourcer without good references, the confidentiality of your company may be at risk.
Another tip is to constantly follow the development of the project to know which areas are being worked on and if everything is in accordance with your ideals and the guidelines of your business. This is because, as offshore is related to professionals from other parts of the world and other cultures, communication can be flawed if it is not done in an assertive way.
The difference between the types of outsourcing
Offshore outsourcing is a process of outsourcing where the technical leader of a team delegates all or part of the development tasks to an outsourced company from another country, as long as it is in a totally different culture and time zone than the contracting country.
In most cases, this type of service is desired by startups and scale-ups that seek technology experts to develop their ideas and that do not find in their countries companies with authority to execute the project.
Currently, in the technology market, there are some trends that companies that perform offshore have sought to specialize. The main ones are: cloud computing (AWS or Google Cloud), automation and technology development involving Artificial Intelligence.
Unlike the previous outsourcing model, the nearshore service is characterized by hiring a technology team from neighboring countries, but with a similar time zone and a very similar culture. Examples of this type of service are found when US startups hire developers from Mexico, Brazil or Canada. Or even when companies from Germany offer services to neighboring countries like France and Poland.
Choose the ideal outsourcing company!
After presenting the positive and negative points of this type of onshore software development, it is super important to know how to choose the ideal partner for this type of service. Because of this, we will present some points that facilitate the choice of a reliable partner for outsourcing.
The first point of attention is to choose a company that has cultural fit with yours and that fits its values. This is very important for the good progress of the work routine and also to avoid discomfort with the outsourcing team. It is also important to ask about all the costs involved, avoiding possible future surprises.
As it is a process that involves high investment, checking the authority of the company through existing cases is one of the main tips to avoid that your investment is not matched.