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Offshore Vs Onshore- Guide to outsourcing Software Developers

Offshore Vs Onshore- Guide to outsourcing Software Developers

Monday May 06, 2019,

6 min Read

For any software development company the first and the last thing that matters is the way you scale up your development process. How can you get the most and the best output result for your budget?

Most of the software companies, including all the multinational and startups founded their result in offshore and onshore development. Since they both offer various benefits they are even useful for the small scale businesses.

Other than offshore and onshore, communication is another important factor that affects your business. Therefore choosing the right amongst the two puts great influence in delivery and quality of your project.

Offshore and onshore developments are rooted in the concepts of offshore and onshore companies. Both carry different approaches and thus have various advantages and disadvantages. Therefore lets just take a deep travel and discuss both the offshore and onshore developments individually.


What do you mean by the term Outsourcing

While talking about software developments, the first thing you should be aware of is - what does outsourcing means?

Definition - The process of completing your job functions by hiring outside company or employees instead of making it done by in-house department. It includes both companies and employees.

Offshore Software Development

Outsourcing a company means you can hire the company or their employees on timely or project basis to complete your job functions. As per the business requirements they performs tasks, provides services and handles all the operations of your business.

Outsourcing is majorly used for controlling the cost factors of any business group. Where the outsider company known as third party service provider arranges or provides their services at external locations.

Offshore software development consists of outsourcing the tasks to different countries. The major factor that affects the company while offshoring is its production cost.

For Example -

While thinking of the software development outsourcing take the most common example of India. Western countries like the USA and Europe prefer outsourcing developers from India. And the major reason behind this is low cost budget. Using the lowest amount of budget they can hire the best and increased number of developers from India as compared to their own nation. It helps them hire the best developers for their company by spending the lowest budget costs.

Offshore development includes services like mobile, web or custom software development to other countries.

Major factors that work behind the idea of Offshore Outsourcing are -

  • The major reason behind outsourcing an offshore developer is - it prevents you from spending large sums of amount.
  • Another important and useful benefit offshoring provides you is - minimizes your workload by dispersing it with other companies or their employees.
  • It helps you save your time and efforts as you can equally distribute your work with other people.
  • Offshore developers have great experience of handling situations that arose while working.
  • And mainly large business groups always have well infrastructure and technological equipments. Which further helps them accomplish their tasks using the shortest span of time.

What makes this process of offshore outsourcing easy?

Offshore in the most simplest terms is - ‘any other country than your own’. Thus offshore outsourcing is sourcing your employee into any other country than their own. Use of technology like the internet helps you spread and find the most suitable person for your business. Increasing further competition it asks your employees to compete with many other countries businesses.

Advantages of Offshore Software Development

Following are some of the advantages for those utilizing offshore expertise -

  • Cost Saving - Offshore development model is cost-effective. Offshore Outsourcing helps you reduce your own employee numbers. Which further helps you with employee related expenses such as recruitment, supervision, salary and many other things. Offshore development performs your work in a more reasonable and cheaper rates.
  • With offshore developers it is easy to manage and organize numerous projects simultaneously.
  • Assigning different tasks to different employees lowers your burden of work.
  • Offshore developers are trained and experienced in handling multiple tasks.
  • Offshore developers always believes in quality of work. Hence, will always deliver the best of their experience.
  • Their knowledge and command over their category of work is excellent.
  • Offshoring reduces your need of investing into non-core business functions. Which makes your capital investment free to make profits in the business.

I would also recommend you to check out my popular post

Benefits of Hiring Android Developers Offshore

Onshore Development

Onshore being completely opposite of offshore hires employees from the same country as you are in. In this process you can hire or assign your work to any employee of your local, native or nearby companies employees. For example if you want to customize a website you can simply get it done by any developer within your country.

The major benefits that works behind the idea of Onshore Development are -

  • No communication gap between employees and owner of company.
  • No time difference hence, they can mutually co-ordinate and discuss anything related to their projects.
  • No difference in language and culture, can easily share and express themselves.

I suggest reading the post where I have discussed:

How to successfully outsource software development.

Advantages of Onshore Software Development

Most of the companies follows onshore development process. Here are some of the following pros of using onshore development model -

  • You can individually interview the employees before hiring. It allows you to choose the best for your business.
  • You can use references and get to know about the best development team in your area.
  • After knowing their strong and weak points you can guide them or give them specific training sessions related to your projects.
  • Onshore developers are familiar with your working environment and are also used with the tools and systems you use.
  • In many of the cases you already know them hence, there is no possibility of threat or loss of information.
  • They are easy to get into contact hence, it is easy for you to take updates about projects.


In the end, the process of outsourcing software development has proved itself very profitable. Regardless of the size of the company outsourcing makes you connect with people all over the world.

While choosing between the onshore and offshore it completely depends on the type and requirements of your business. With the help of globalization now it is easy to make your choice and find software developers.

If you’re thinking of hiring or outsourcing IT developers do check our website - Nimap Infotech. We have all kinds of developers in our team. Depending on your idea of work they are experienced enough to bring it into reality. Contact us for knowing further details about our development process.