In this piece, we’ll talk through the definitions, pros, and cons of four headline models: Nearshoring, and offshoring.

Let’s start with some definitions

Nearshoring

As the name suggests, nearshoring means ‘near’ to home, but not quite. To give an example, developers in Los Angeles are very expensive, and there’s no easy “onshoring” alternative. Good Mexican developers, however, work in a similar time zone and would with much lower costs.

Nearshoring is useful for companies who want constant, real-time collaboration with their in-house staff. For a company based in Paris, nearshoring might be done with Ukraine, who are only a couple of hours ahead.

Offshoring

Offshoring is where you build an independently-functioning development team, anywhere in the world, and everyone on that team is a full-time employee of your company.

Though this adds a time difference, it eliminates the risks of engaging short-term contractors. It also allows companies to hand-pick their developers, with no geographical limitations. 

 

Offshoring: a more sustainable solution

An offshore development team is a handpicked team of engineers, based in another country, who are full-time employees of your business.

That is the core difference between outsourcing and offshoring. The ideal situation would always be having everyone in the same office – but that is often expensive and difficult. The only difference between offshoring and in-house hiring is that the office space is quite far away —  and in 2020, that’s not a significant barrier.

Will offshoring work for your business?

There are a lot of benefits to offshoring versus recruiting at home. You get top-quality engineers with the specialist skills you need, on a permanent basis, usually at about 50% the at-home cost.

With the right offshoring partner you can scale up quickly and sustainably, which is a potent combination. For companies looking for growth or to engage engineers with rare or niche specialties, offshoring is a proven and powerful approach.

 

Source of content : https://thescalers.com/difference-offshoring-outsourcing-nearshoring-onshoring/