When any business or organization hires another firm to execute its IT development, maintenance, and support works, it’s called IT sourcing. When the work is carried out by a company located in a different part of the world, it’s called offshore outsourcing. Companies offering software development solutions in India are known for their reliable offshore services at reasonable prices. If the IT vendor is located in the same country as the client, it’s known as onshore outsourcing.
Choosing between the two is a critical business decision and a tough choice to make for the client. That’s because both outsourcing models have their advantages and disadvantages and a call should be made after considering the needs and requirements of the client.
Advantages of Onshore IT Development
No language barrier
While outsourcing the project to a company at a different country may create a communication hurdle due to the native language of the developers, onshore vendors have no such problem. This implies better, faster, and easier functioning of processes like customer support and reporting.
Same time zone
Offshore outsourcing means that the client and the vendor have to follow different time zones to stay in touch with each other and exchange real-time data. This problem can have serious implications when there is an emergency that demands immediate intervention. However, this problem doesn’t exist if both sides are located in the same country.
Better control of the project
Hiring an onshore vendor is easier and quicker for the clients. Also, if required, the client can train the onshore members on critical aspects of the project. Daily reports and updates are easy to manage in case of onshore software development.
Advantages of Offshore Development
Cost-effective
This is perhaps the decisive factor that tilts the scale in favor of offshore companies. Firms offering software development solutions in India and some other countries offer quality work at much lower costs than what the onshore companies charge. This allows the client to keep the project costs low and invest more in developing other areas of the business.
Reliable
Offshore IT companies have a vast reservoir of software talents with extensive domain experience and knowledge. They specialize in carrying out all sorts of IT tasks such as development, testing, analytics, etc. Thus the client can be certain of getting high-quality products and services form the offshore IT companies.
Timely delivery and long-term support
Reliable offshore vendors are renowned for adhering to project deadlines without compromising on the job quality. Also, post-development activities like post-launch services, upgrades, quick-fixes, and maintenance can all be delegated to the same firm, allowing the client to focus on the other aspects of the business.
Both offshore and onshore IT outsourcing come with unique sets of benefits for the client. Today, due to the obvious cost and quality benefits in offshore outsourcing, many large companies and even start-ups in the western countries outsource their work of software development solutions to India. Before zeroing in on any of the two options, it’s wise for businesses to analyses the pros and cons of each model and match them with their project requirements and budget.