Most companies require software to ease their operations in the digital age. Startups particularly run on computerized solutions for agility and the automation of business processes.

The internet has made it easy to engage the services of software development companies. Hundreds of software development teams (onshore and offshore) can help any company obtain its software requirements.

There are both advantages and disadvantages in employing either onshore or offshore companies to handle your software development needs.

Onshore Development Model

A 2016 US Labor Department report listed software developers as among the highest paid skilled workers with an average median salary of US$100,080. The high demand for Information Technology (IT)-related jobs continuously push the pay scale for experts in the field, which results in the high turnover rates among personnel. Companies try to outdo each other in recruiting the best IT architects and engineers; hence, homegrown talents and highly skilled IT personnel can demand high salaries.  Given the escalating labor costs, onshore software development companies also charge high rates for their products and services.

Offshore Development Model

An offshore development model is a process, application, or web program developed by a team located in another country. In contrast with the onshore model, the cost of hiring an offshore team is considerably lower. This is why many companies and business enterprises are encouraged to outsource their IT requirements to offshore talents.

To help you choose which company you should hire to help you with your software development project, consider the following advantages and disadvantages of recruiting either an onshore or offshore team.

Advantages of working with an onshore team

Aside from getting high-quality services, there are other advantages in hiring an onshore development team.

Proximity

The foremost advantage of an onshore team is its proximity to your business location which makes it easier to monitor the progress of your project. You can require regular and frequent updates on how the project is going.  When a problem arises, it is easy to set up face-to-face meetings and conferences to thresh out the concerns of both parties.

Ease in Communication

You and the onshore team speak the same language.  Therefore, there is a minimal chance of miscommunication. Likewise, as you are both in the same time zone, you can always connect with the team with little or no hassle.

Regulations

Operating in the same country means you and the onshore company are likely governed by the same regulatory bodies; thus, you can easily detect non-conformities and can quickly flag the other company for irregularities.

The downside of an onshore team

High Cost

As mentioned earlier, a top rate onshore development company will charge higher rates for its services.  In addition, because of the high demand for its services, you may not be immediately accommodated. This may cause a setback on your company’s timetable.

Advantages of working with an offshore team

Low Cost

Inversely, an outsourced project may cost less. Most offshore companies operate in countries where the cost of labor is much lower; thus, allowing them to offer their services at lower prices.

Downsides of an offshore team

The following reasons may cause you to think twice before outsourcing your software development requirement:

Language Barrier

While the team assigned to your project may be fluent in English, they may be used to different communication styles. Sometimes, a simple call may cause a problem due to different inflections or an offhand remark that the other party deemed offensive.

Different Time Zones

If you hire an offshore team from a country with at least a five-hour time difference from yours, you will likely experience delays in your project. Because your working hours are not in sync, your offshore team may not be able to immediately address your urgent concerns.

Regulatory Considerations

The internet facilitates ease of transacting business with overseas companies. However, they may be subject to regulations, such as intellectual property laws and other restrictions which may compromise or affect your project.

Onshore Vs Offshore: Which is the Best Option?

There are no hard and fast rules that can help you make the right choice between an onshore and an offshore software development team. However, there is no harm in taking your time to review the credentials and track record of a prospective company before signing a contract.  It is always wise to analyze your options.

The best company to handle your project is one that would meet your expectations without putting much regard on the price tag. After all, in this internet and digital age, what matters most are speed, agility, and fast connection.  Moreover, the dedication and passion of an in-house team can also make a big difference in the success of your project which you may not be able to achieve with an offshore team.

To get the benefits of working with an offshore team, along with the advantages of an onshore team, consider working with a nearshore software development company. For your IT solutions, visit our website and get to know the company you can depend on. Contact us and tell us how we can help you gain a competitive advantage through our agile development practices and software development expertise.