Nearshore Vs Offshore – Which is Best for Your Company?

20th May, 2010 - Posted by Rob - No Comments

Business process outsourcing (BPO) is a cost-effective way of performing your business functions by transforming the work load to a third party. The third party companies are specially meant for doing the outsourced work from many different clients. There are two types of outsourcing – nearshore and offshore.

When you feel that the cost of living in a company located nearby is relatively less and you outsource your work to such a company, they call this process as nearshore outsourcing. On the contrary, offshore development means outsourcing a project to a country where the costs are much cheaper and located very far with a different time zone.

Benefits of Nearshore Outsourcing

Though offshore outsourcing proves better in terms of cost, nearshore development sometimes provides a more appropriate solution. The advantages of nearshore outsourcing include similar business model, lesser travel costs, same time zone and less risk involved.

There are certain limitations to the nearshore development model. As the economies of neighboring countries are more or less same, the process doesn’t make much profit. There are cases where the wages of onshore and offshore workers both are same. In such cases, outsourcing projects to a country located nearby may result in extra expenses related with travel, legal affairs etc.

Why Offshore Outsourcing is the Best?

You have to opt for offshore outsourcing when you know about the project in advance and wish you could do it at an affordable cost. While outsourcing your work offshore, make sure that the team that will work on your project has a very good understanding of the client needs. Being their valuable client, you have to clearly state your objectives to the team located at the offshore development center.

Though software projects can be done locally, there are companies that prefer offshore outsourcing because of the following advantages:

Cost Benefits: As the wages are relatively low, it will have a minimal effect at the overall cost spend on the project.
Quality Output: Offshore development centers promise high-quality results. For instance, the outsourcing giant India has technically strong brains that provide excellent services at an affordable rate.
24 x 7 Working Model: In almost all the offshore development centers, the employees have rotating shifts so that they answer the customer queries promptly.
No Extra Expenses: Once outsourced the work for a fixed amount, you don’t need to spend extra bucks on the infrastructure (PCs, electricity, building costs etc) needed for the work.
Man Power: The man power at the outsourcing centers are adaptable to changes and act politely with utmost sincerity. They prove to be the best people to work with.

Philippines, India and China are the leading providers of business process outsourcing. Their services are affordable and delivered on time.

Indian Software Outsourcing provides “IT staffing and staff augmentation services, website design and development, developing custom software and web applications and implementing outstanding e-commerce and CMS solutions.”

Please contact us with your outsourcing needs.

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