When we talk about onshoring versus offshoring our outsourced projects, we tend to make assumptions that don’t actually play out in real-life contexts. Most of the conversation surrounding different types of outsourcing, for instance, revolves around the idea that offshoring is a way to secure top talent at extremely cheap prices.
While offshoring can certainly be viewed as a way to save money on development, the expectation of getting something for nothing – that is, an ideal developer for half the price – is sheer fantasy. Instead, we need to see offshored projects for what they are: a viable development option for businesses that don’t have the time or resources to hire internal teams. Whether you’re onshoring or offshoring, the truth remains the same: You get what you pay for.
Instead, businesses should look at their own needs to see which option will work better for the situation. In this slideshow, Himanshu Sareen, CEO of Icreon Tech, has identified six criteria that will help you decide whether offshoring or onshoring is better suited for your next project.
Choosing Between Offshoring or Onshoring
Click through for six factors organizations should take into consideration when deciding whether to offshore or onshore projects, as identified by Himanshu Sareen, CEO of Icreon Tech.
While offshoring has typically been seen as a money-saver by default, the perception is beginning to change. With potential language barriers, travel budgets, and quality control to worry about, companies can sometimes extract more value from onshored projects. Still, regardless of budget, the value of outsourcing hinges on your project’s specific needs. Is cultural coordination a deciding factor for you? Onshoring may provide more value, even if it’s more costly. If you’re looking for a fast turnaround, on the other hand, offshoring may be a snap decision.
Whether offshore or onshore, the quality of an outsourced relationship often hinges on the quality of the vendor. Typically, it’s easier to find an ideal vendor when going with an onshored partnership, as there’s no language barrier, and the qualities of domestic vendors will often be easier to discern via relatable case studies and marketing. However, as more and more off-shore vendors continue to work with American businesses, it’s getting easier to find quality options overseas — which helps to reduce this downside.
For international businesses, one of the greatest strengths of an offshored partnership is that it allows them to better respond to regional markets. If you’re planning on launching a piece of software in Asia, for instance, it may be of benefit to work with an India-based vendor.
One unexpected advantage of working with overseas teams is that sometimes, they offer “time zone advantage” — that is, the time zone disconnect can allow work to be done around the clock. If your next IT project is on a tight timeline, then, you may find some major benefits to offshoring. The trade-off here, however, is that time zones can sometimes make it harder for teams to communicate, as business hours may only overlap for a short amount of time.
The only thing better than a national talent pool is a global one. For businesses that find it too difficult to find domestic talent at reasonable prices, offshoring provides a great alternative. There are a few trade-offs to overseas talent, though, including cultural disconnects that can make team communication even more difficult.
One question to ask is whether you need your software platform to be scalable over the long term. If you see your IT project requiring maintenance and growth over a period of many years, it may be worth it to consider onshoring, as onshore partnerships are less susceptible to sudden changes — legal ones, in particular. With taxes and compliance regulations always shifting, it may be easier to keep up in the long term by staying domestic.