Outsourcing is one of those areas that come with a lot of consternation, because when we start to siphon off parts of our business, we can worry that the company will start to lose its identity, but when we start to outsource to a third-party vendor, we can bypass a lot of potential monetary problems so we can develop more in house. This is understandably difficult to achieve as a small business which is why, if you are outsourcing, you’ve got to choose one of the two main options, offshore outsourcing or onshore outsourcing. What are the pros and cons of onshore development for your company’s needs?
The advantages of onshore development
Many companies prefer to outsource their development needs to onshore companies, which is defined as working with companies in the same country as you, and while others may not feel comfortable outsourcing to foreign companies, also known as offshoring, there are a number of benefits.
As far as communication is concerned, you will have to remember that when you collaborate in person, this is going to bypass a lot of elements that have been “lost in translation.” When we look at an industry with technical definitions, for example, the IT industry, it’s easy to get confused by the number of terms and acronyms, such as a printed circuit board (PCB), but onshore PCB manufacturing can bypass this problem by improving the communication. It’s not just about speaking the same language, but it’s about making sure that both you and the third-party vendor are on the same page. This means that your business will develop and meet the necessary requirements.
When you outsource development to an onshore company, it’s far easier to meet in person, and even if the company is located in a different state, it is easier to travel to the location rather than flying to another country. The travel time is shorter, and you won’t have to deal with the problems of international travel.
Easier to achieve quality
Naturally, the onshore developments process requires fewer iterations than offshore because communication is easier. The approach is easily completed, especially when businesses are in the same time zones.
The disadvantages of onshore developments
While there are a number of benefits, it’s important to consider the disadvantages as well.
Higher bill rates
Onshore development can cost more because of the quality of individuals working on the project. We end up paying more for expertise, and while the higher bill rates translate to a better quality solution, offshore development is always a cheaper option. However, when you try the process of offshore development, you could potentially be paying more money to have the process redone.
The problem of backdoor offshoring
Something that needs addressing in the modern world. If you are working with an onshore developer, you need to make sure you can rely on them. There are companies that are outsourcing a lot of their developments to offshore companies, known as back door offshoring. Many companies do this to cut costs, but it can lower the quality of the final product.
As you can see, there are a number of things to consider, but the final decision is down to you and what you think will benefit your business.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)