Onshore, Offshore and Nearshore: Tips for outsourcing software development


Choosing the right outsourced software developer for your company can be a daunting task. How do you weigh culture vs cost vs workday overlap? Software development skills for popular technologies are pretty evenly distributed around the world, but finding the right service provider can be a challenge. You need to consider costs, cultural fit, accessibility, and intellectual property protections, as well. Best decisions take into account these concerns when partnering with an outsourced software development team.  Here are a few ways to choose how to outsource software development based on your needs.

Offshore Outsourcing: Cost Savings


You might just be starting out with nothing more than an idea, or you might not have the expertise to code. This is where outsourcing can help you achieve your goals. Many of the professional-looking service providers or freelancers don’t have a thorough vetting process, so chances are higher that you’ll hire a subpar developer. They also promote a task-oriented mentality, so the developer you hire is not that much invested in your project.

If cost is a primary concern, outsourcing — and especially ‘offshore’ outsourcing — is effective. While rates in the U.S. might be too high (they average around $$95-$150/hour), there are other best options such as India. At PositiveEdge, we understand if working with a team halfway around the world doesn’t make sense in your current business model. If that’s the case, then “nearshore” may be an effective outsourcing model.

Nearshore and Onshore Outsourcing: Intellectual Property


Nearshore outsourcing still provides cost-saving benefits, but with a workday overlap with your programmers. Business life is hectic, but an early morning meeting to talk about the latest change to your user interface doesn’t have to be what keeps you awake.

Now, even with the benefits that nearshore outsourcing gives to your work environment, you may have other issues, such as intellectual property concerns. While we ensure that all of our certified partners keep strict adherence to U.S. intellectual property (IP) laws, an onshore outsourcing arrangement might work best, or at least outsourcing to a country that respects our IP laws.

Working with a team overseas might save you some money in development, but choosing the wrong service provider could cost you exclusivity even when you’re careful about protecting your IP. You can solve this by choosing to work with a firm that is close to home. Onshore software developers are a major asset if your project requires sophisticated technical knowledge or requires an in-depth understanding of North American user experience (UX) design.

As part of NAFTA, firms in Canada and Mexico are also required to respect U.S. patent laws, as well. This means that in either country, you have all the IP protection guarantees of an onshore programmer combined with the cost savings of an offshore software developer and the workday overlap benefits of a nearshore software provider. That’s a win-win-win.

The PositiveEdge advantage: We view outsourcing as a means to accelerate development, not replace existing hard-working employees. Thanks to competitive rates – often lower than boutique domestic outsourcing firms – you can add more capacity without significant increases in overhead.

Write a comment