Scaling development teams locally has challenges. The shortage of developers and rising salary expectations prompt companies to consider alternatives like offshoring, nearshoring, and outsourcing.
However, information on these models is often vague. This post defines and compares outsourcing, onshoring, nearshoring, and offshoring in terms of their pros and cons.
With clear explanations of each approach, companies can make informed decisions on resourcing models to scale engineering teams effectively. So, let’s get started!
Let's Begin By Defining Some Terms
Outsourcing means hiring third-party vendors on a contract basis to deliver software. This can be cheap but results are unpredictable since you have little control over development.
Onshoring transfers software development to non-metropolitan areas within your own country to reduce costs compared to big cities.
Nearshoring locates development teams in nearby countries to enable real-time collaboration with in-house staff. For example, a Paris company might nearshore to Ukraine.
Offshoring builds an independent development team anywhere in the world as full-time employees. This adds a time difference but eliminates contractor risks and geographical limitations.
If you want to know more about offshoring vs nearshoring, please visit our blog post : https://thescalers.com/difference-offshoring-outsourcing-nearshoring-onshoring/
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