Making the Choice Between Onshore or Offshore Outsourcing

Outsourcing business functions has become common practice today as new technologies and trust in the internet have evolved. Not only does taking time-intensive and specialized tasks outside of the enterprise make financial sense, but it’s also helping companies to grow and exceed their capabilities.

eye icon201 Views
clock icon15 minute
About The Author
Nitin Nijhawan,CDOicon

While there isn’t one set way to approach outsourcing, there are many reasons why either option can work best over the other. In this post, we’ll look at each model and the reasons why software and application development needs are best done using the offshore model.
Keep reading to understand the route to take for your project.

An Overview of Onshore Outsourcing

Onshore outsourcing is the process of utilizing a company that’s outside of an organizations doors but still resides geographically close. This contractor will offer services and skills required to complete the necessary tasks and can typically work during the same hours. Companies may turn to onshore outsourcing when face-to-face meetings and quick service is their main project goal. Other reasons to choose this outsourcing option is to keep internal staffing focused on their core competencies and reduce unnecessary spending on in-house training to complete the tasks.
On the other side of the coin, there is a known labor shortage for software and application developers that make finding talent for these projects who can produce the needed work in the required timeframe difficult and expensive to come by. In this case, turning to the offshore model makes the most sense.

Benefits of Offshore Outsourcing

With offshore outsourcing, projects are sent to specialists located overseas for completion. This method opens the company up to a higher-skilled labor pool at significantly lower costs.
When it comes to application and software development especially, this is a critical factor. A more certified pool of developers from across the globe who have training in focused markets and emerging technologies can bring important skills to a project to maximize its potential.
Other reasons to offshore include a desire to have around-the-clock operations since talent is in a different time zone.
Cost savings are also due to the fact that the cost of living and hourly rates are less in other countries. Those possessing these same skillsets in a local market come with a much heftier price tag. That doesn’t include the cost of purchasing and also maintaining on-premises infrastructure if you choose not to outsource at all.

Need help finding the right talent? 

VLink has global technology resources and provides high-quality and cost-effective IT solutions to a worldwide client base. After a careful assessment of your company’s specific requirements, we deliver a tailored solution to address even the most challenging situations. Get in touch today!

Got a Requirement?