Offshore outsourcing is the process of delegating a company’s business processes to third-party vendors located in another country. It’s been around for decades and has become a very popular way for businesses to cut costs. However, when it comes to custom software development, this model has serious drawbacks. In this article, we’ll tell you why nearshore outsourcing is a better alternative to offshore outsourcing.

Offshore outsourcing

Offshore outsourcing is still very popular nowadays and there are definite advantages to leveraging India or Eastern Europe.

It’s cheaper than nearshoring; that’s a fact. However, you need to factor in the additional costs of going offshore such as: travel, communication and time zone differences. In addition, there are some cultural differences that you must take into account. For example, how comfortable would your team feel if they had to work with someone who doesn’t speak English well? Will this impact their performance or quality? The reality is that most teams cannot overcome these obstacles and will end up paying more than if they just hired a local developer right away.
The scalability of the offshore model in India is much better, there are hundreds of thousands of engineers of different levels of sophistication with a lower cost of living than in Latin America.

However, despite its obvious advantages, there are also some disadvantages of offshore outsourcing.

Communication problems. When the company and its offshore team aren’t in the same time zone or work on different schedules, it can be difficult to communicate with each other effectively. The lack of face-to-face interaction can result in miscommunications or misunderstandings that could otherwise have been avoided if both parties had been working in the same location at the same time.
Cultural differences and language barriers may result in delayed response times as well as lower quality work due to poor communication skills among workers who do not speak your language fluently enough to understand your requirements clearly or quickly enough to respond appropriately.
Technical problems: Because offshore development teams are located all over the world, they may not have access to local resources like libraries and APIs that would allow them to complete certain tasks more easily than if their office was located nearby yours.* Troubleshooting: If something goes wrong with your software after delivery, you won’t usually be able to reach anyone on an offshore team unless there’s an emergency situation (which would require special arrangements). You will likely need someone from another location who has experience dealing with such problems before being able to fix anything yourself.* Traveling costs: Offshore teams tend not travel much because they are often located near less expensive cities where living costs are lower than what they would be elsewhere; however this means that when you want someone from another countr

As a result, they have to take more time to explain different details of their project to the company than if they had hired a nearshore company. This is because communication could be done in real-time via instant messaging or phone calls, but now it has to be in written form and sent through email. It’s also harder for clients to understand what is happening with their project as they are not able to directly communicate with their offshore partner every day. Asynchronous communication means more documentation is needed so that both parties can stay on the same page at all times and avoid confusion. Besides, if any technical problems occur during the process of software development, it will be difficult for you to conduct troubleshooting in real time. In offshore development, you can easily communicate with your offshore team via video chat or phone calls. This way, they can help you troubleshoot the problem as soon as they notice anything unusual with their side of work. However, when there are issues with onshore programming services where most of the team members are located at one place which is far away from your location and vice versa. If anything goes wrong then it may take hours before resolving this issue without even knowing why it happened?

Nearshore outsourcing, a better alternative to offshore outsourcing

If you are looking to outsource software development, you may be wondering whether nearshore outsourcing or offshore outsourcing is a better option.

Nearshore development—which happens in countries that are close to your business location, for the US, this means Latin America—is one of the most common types of outsourcing. It’s also an excellent alternative to offshore outsourcing for companies that don’t have the resources or knowledge base necessary to oversee their projects from afar.

The largest nearshore countries for software development are Mexico, Argentina, Colombia and Brazil. We can also include Costa Rica, Uruguay and Peru to the list as they have solid offerings in this area.

The market is evolving and changing quickly so it’s good to keep up with what’s going on.

Compared to offshore outsourcing, nearshore outsourcing allows for better communication during custom software development and provides clients with a better work dynamic.

Selecting a nearshore software development partner makes it easier for both parties to negotiate changes on a project before they happen. In addition, nearshore teams can be more easily managed via video conferencing than their offshore counterparts who might be on another continent or ocean away from each other!

Conclusion

So, when it comes to choosing between nearshore outsourcing and offshore outsourcing, we would always recommend the former. Nearshore software development services are more affordable (in terms of total cost of ownership), better quality and easier to manage than their offshore counterpart. If you are interested in discussing your specific case, let´s talk!