Let’s Look at Offshoring
An offshore team is a team of developers that are physically based overseas, but are totally integrated and dedicated to one company. They work only for that business, and culturally and operationally aligned with the wider organisation. When going offshore, a business often opts to parter with an offshoring company based in the new location who help to hire the new engineers and run the team in terms of day-to-day administration and operations. However, assigning tasks, control over projects, and team management are handled in the exact same way as with their developers at home. It's ultimately an augmentation of their existing setup.
Essentially, an organisation gets very high-level developers with the expert, specific skills it needs, on a permanent basis. And, with favourable arbitrage — not to mention savings on the prohibitive premises costs they would expect to find in pricey metro areas like London or New York.
We'll look at the difference between offshore vs nearshore in the section below. There is one primary difference between the two solutions and it all comes down to location when proximity in terms of time zones is an important factor in a company's operations within their wider development team. With offshoring, the team tends to be based a continent or two away, with quite a few time zones difference between the offshore engineering centre and HQ. This can be leveraged positively, as engineers in one development location may begin earlier or later than the other, meaning more overall development hours per day.
And Now Nearshoring
When it comes to offshore vs nearshore, then a nearshore team is essentially the same as offshoring but just a little closer to home. The nearshore team is usually only an hour or two away in time zone to the HQ. For example, a business in London might have a team in Warsaw. The engineers are similarly integrated into the organisation, and completely culturally aligned — especially when you have an expert team builder to partner with on the ground in the nearshore location.
Both offshore and nearshore teams are a strategic advantage for businesses to have over their competitors, with the only actual difference being the proximity to the headquarters or primary development location. In fact, the offshore or nearshore location often becomes the primary location for development when organisations see first hand how high the level of talent is.
Source:https://www.apsense.com/article/a-closer-look-at-outsourcing-vs-offshore-vs-nearshore-development.html
It is a powerful tool of choice, which helps to gain competitive advantages in the business sphere.Every business today is present on the internet on multiple platforms: social networks, cloud, mobile devices, mass media.
Stakeholders spread their business geographically and adapt them to the changing environment.
Among the future offshore development tendencies there are:Standardized relations and people-driven processes, instead of the price-driven onesMore flexible Service Level Agreements and scope of deliveryThe outsourcing is becoming more popular for small businesses and startups: it helps to increase their time to marketThe outsourcing will help to save costs, even if the transportation and oil cost will continue growingThe outsourcing of low-end services will stabilize, and more high-end business functions will be outsourced in the next few years What Is Nearshore Software Development And Its BenefitsNearshoring is a model of outsourcing when you hire the programmers for your project from the people in countries neighboring to yours or in similar time zones.
For example, for the US countries for nearshoring are Canada and Mexico.The nearshore software development solves the problems, common for offshoring and caused by complicated travels to the client, cultural and language barriers, differences in time.
Here are some reasons why customers choose or decline to offshore:Pros:Cons:Cost-saving due to the lower salaries of the foreign programmers and lower development costThe constant need for communication and effective managementThe possibility to save time and meet the deadline by hiring more coders from abroadDifficulties in communication because of the significant time differenceAbility to hire the coders with the relevant skills you don’t have in your teamThe risk of getting the results of low qualityAbility to unload the in-house workers or to shift them to more important tasks Easy cost control and ability to predict the expenses How The Benefits Of Agile Offshore Development Improve Your BusinessIf you are establishing a strategic approach towards your business, offshore outsourcing may help you in this way.
For example, in the Czech Republic, the PHP developer earns $25,627 in a year, And in Ukraine – $17,000.Saving TimeIf your team members are working their fingers, but it is still impossible to meet a deadline for the important project – hire more workers.
