Onshore vs. Offshore [local vs remote] Software Development: The Pros & Cons you need to know about!
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Onshore vs. Offshore [local vs remote] Software Development: The Pros & Cons you need to know about!

Posted By Praveen Joshi

September 1st, 2016

Onshore vs. Offshore [local vs remote] Software Development

Businesses around the world are beginning to show their interest in making use of offshore development. More and more startups are considering the possibilities of partnering with a company which offers offshore software development services to take on the task of fulfilling their software needs in a cost-efficient manner. Earlier, most businesses were hesitant to choose offshore software development as they were uncertain of the quality of service and efficiency of the offshore team. But now, it has completely changed, thanks to the improved communications and technological advancements. But, determining whether to have an onshore or offshore company is one of the primary decisions to be taken by any startup or SME.

Both onshore and offshore development have their set of advantages and disadvantages and to choose the right one, there are a lot of factors that come into play. In this blog, we will discuss the factors to consider while choosing between onshore and offshore software development as well as the pros and cons of both models. We will also be discussing when the business models will come in handy for your business based on your project goals and the money you are willing to spend.

Before we move on to the factors, let’s understand the difference between the business models. When we speak of onshore software development, we are hiring software outsourcing companies which provide local software developers in the same country as you whereas offshore refers to getting a software development outsourcing company from outside your country, commonly in a different time zone. You can consider outsourcing your development needs such as web, mobile and custom software development to countries like India, Philippines, Ukraine and China. The main reason to choose offshore software development is the cost-savings as well as access to a wider pool of competent technical resources. It is becoming more and more famous as the world is breaking geographical barriers to work with companies across the globe with the help of better communication tools.

Factors to decide between onshore and offshore software development:

There are four primary factors that you have to keep in mind while choosing between onshore and offshore software product development. They are as follows:

  • Quality: You need to check if the company you are hiring, irrespective of whether it is onshore or offshore, provides the quality it promises.
  • Cost: Choose the company that provides quality at the price best-suited for your budget.
  • Communication: Effective communication is required for the success of a software development project. Look out for companies who are proficient in English and are proactive about keeping you updated.
  • Scalability: Determine how easy is it for you to expand the scope of your project and how often does your business look to scale.

Pros and Cons of Onshore Software Development:

The pros of onshore software development services are as follows:

  • Easy hiring process that allows you to choose the right team.
  • Simplified communication process and management of the team.
  • Meet them face-to-face and they can potentially work from your offices.
  • Familiarity of the system and the work culture

The cons of onshore software development are as follows:

  • Higher costs when compared to hiring an offshore software outsourcing company
  • Limit skill sets with certain software companies.
  • Infrastructure cost of managing an additional team
  • Local training costs

Pros and Cons of Offshore Software Development:

The pros of offshore software development include:

  • Availability of wide-ranging skills
  • Cost-effectiveness
  • High scope for scalability
  • Possibility of a quick turnaround time due to a large workforce.

The cons of offshore software development include:

  • Difficulty in communicating across time zones
  • More effort in quality control to ensure delivery matches the requirement
  • Differences in work culture

In conclusion, while you are making the decision between onshore and offshore software development, keep in mind what type of work, what type of budget and who you want to work with. There is a popular notion that it’s easier to work with onshore companies but that is not necessarily true. Choose onshore if you do not have heavy money constraints and your business needs a company that will understand the local audience and the culture. However, if you have budget limitations, offshore IT outsourcing company is the way to go!

The secret of success is to find a good offshore software development company that has a skilled team of developers : with at least 5 years of experience as well as an on-site coordinator who is fluent in communicating effectively. If you’ve decided to choose offshore software development over onshore, then RSK-BSL is the right choice for you. We offer custom software development services at an affordable price and believe that magic happens by adopting agile methodologies ensuring that the client is updated about the progress made in the project. To find out more about our services, click here.

Praveen Joshi

Praveen is a seasoned IT Solutions Leader and Director at RSK Business Solutions, a technology-driven IT Consulting Company that specializes in Bespoke Software Development, Agile Consulting, Mobile App Development, Smart Sourcing, and much more. For the last 17 years, he has been delivering quality custom IT solutions that help businesses achieve their goals.

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