What Type of IT Outsourcing to Choose
Many companies nowadays are looking for experienced developers far beyond the boundaries of their countries. They make a decision of looking for IT specialists abroad not because there is a shortage of skilled developers in their countries, but mainly because they want to discover new horizons of software development and take advantage of the world practice for the sake of their own business.
Instead of sitting and waiting till a skilled developer knocks on your door, it is better not wasting your precious time and start looking for the right specialists yourself. This is exactly where outsourcing comes into play. IT outsourcing offers a myriad of benefits and gives more options than you can imagine. Depending on your needs, each of these options has its pros and cons. Thus, before hiring an outsourcing company, you need to determine your foremost needs. Then you need to decide which company to cooperate with: nearshore, offshore or onshore.
Listed below are some of the main benefits of nearshore, offshore and onshore outsourcing.
This type of outsourcing implies that the ordering party and the service provider work in the same or similar time zone. Thus, the main benefit of nearshore software development is that it makes communication easier. There is no need waiting till late at night or rising with the sun to get in touch with your partner. In case of nearshore outsourcing, onsite visits happen more frequently and faster.
Though nearshore IT outsourcing does helps save money on the project development, its hourly rates are higher if compared to those charged by offshore companies. On the other hand, when working in the same time zone, you can save a good deal of money on the onsite visits and avoid a number of difficulties that a long distance between the partners can cause.
This is the most cost-effective type of IT outsourcing. Offshore outsourcing means that the project development is outsourced to distant countries, like India, China or Ukraine. On the average, an hourly rate of the offshore IT outsourcing, is as low as 20 dollars, which is half-price in comparison to nearshore outsourcing rates.
If you are tempted by low hourly rates of the offshore outsourcing, make sure you also consider its disadvantages. The main disadvantage is, of course, distance that separates the ordering party and the service provider. Indeed, working and communicating with a team, located on the other part of the world and in a different time zone is pretty difficult. Difficulties in communication may be also caused by cultural differences and a language barrier. However, a rational business management will help avoid many difficulties.
This is the most convenient and at the same time the most expensive type of IT outsourcing. In case of onshore outsourcing, the partners are living and working in the same country. Perhaps the only drawback of onshore outsourcing is it price, as hourly rates may exceed 100 dollars.
To choose the right types of outsourcing services, it is crucial determine your company’s needs consider the pros and cons of each type and make a few calculations that will help you make a well-thought and economically-feasible decision.