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Onshore Vs Offshore Vs Nearshore – Which Outsourcing Model Fits You Best?

Generally, outsourcing can be of three forms, the onshore, nearshore and offshore models. You can as well add another, ‘Unsure’.

You fall in the added category that’s the reason you’re here. 

A lot of US-based companies have constantly been on the hunt for technicians to fill in for particular tasks in their organisation. 

It sucks to recruit people the old fashioned way, making outsourcing the most likely option to carry out this operation.

However, most people are undecided on the way they would prefer to outsource their specific and desired talents.

Therefore, in this article, a comparison of nearshore vs offshore vs nearshore is concisely and expertly evaluated. 

Onshore Vs Offshore Vs Nearshore

Before I venture into an evaluation of these 3 models of outsourcing, I would advise that you properly assess your company to know which is best.

However, I’ll first define all three.

Foremost, onshore outsourcing means that the company you seek to engage in is in the same country or region. 

Offshore outsourcing means that the company you’re hiring is in another country with an entirely different time zone.

Lastly, nearshore outsourcing means that your outsourcing company is in a neighbouring country. That is they’re just a short distance away.

So, let’s look at what these outsourcing models are made of.

  • Onshore outsourcing 

This is one of the commonest outsourcing models because there are companies that wouldn’t want to engage in the stress of outsourcing out of their reach.

It is also known as local outsourcing.  Onshore outsourcing allows companies to focus on their core capabilities.

It has a lot of benefits as well as downsides.

Let’s see them;

Pros

  • In onshore development, there wouldn’t be any need to worry about language barriers or any form of cultural differences.
  • Generally, onshore outsourcing enjoys a similar time zone advantage. The time zones are the same, if not, closely aligned.
  • More so, communication is easier when outsourcing onshore. You can have a meeting or conduct a seminar or training easily. 
  • Interestingly, outsourcing onshore is potentially accessible, at any day, anytime.

Cons

  • If you’re going to be outsourcing on a budget, then onshore isn’t the best option. In some cases, it costs more than offshoring or nearshoring
  • Offshore Outsourcing 

This kind of outsourcing requires you to go halfway across the world to get your desired technicians. 

Both parties in an offshore outsourcing agreement can benefit, both positively and negatively.

It is another popularly sourced option among companies seeking pocket-friendly ways to outsource technicians. 

Pros

  • The project accesses a global pool of talent.
  • Hiring a highly expert team offshore comes at lower costs.
  • When you hire a dedicated IT team offshore that can handle your technology you can access a wider range of services.
  • If you find the right offshore company, you’re assured to work with experienced software developers that are capable of delivering strict deadlines.

Cons

  • There are significant time-zone differences that may become a terrible jam.
  • Sometimes, you can lose control over your critical activity.
  • The working culture in an offshore country is usually different.
  • Offshore outsourcing may not be easy to visit an offshore production team.
  • Nearshore

Finally, nearshoring is when you source your IT technicians near where you stay.

Nearshore is somewhat the balance between offshoring and onshoring.

When nearshoring, the available talents are improved and labour costs are significantly lessened.

Pros

  • Time zone differences are reduced.
  • Less expensive labour than onshore.
  • Some cultural differences but not of significance.
  • Being more able to visit, resulting in a more effective working relationship.

Cons

  • The only downside that you’ll experience with nearshore is the fact that offshore can still be cheaper.