Difference Between Onshore and Offshore Company

“It marks a big step in your development when you come to realize that other people can help you do a better job than you could do alone” --- Andrew Carnegie.

Organizations have now come to terms with the above lines and have tightly grasped the meaning of “ working together with another app development company is a success.” However, the quest between Onshore Vs. Offshore companies still prevail. With the spiraling number of mobile app development companies available both, Onshore and Offshore, it is really a tough choice to make between the two. And if you have clicked this blog and started investing your time reading this article, I assume that you are also sailing in the same boat. Well, we will bring an end to the pursuit. In this article, we will discuss Offshore Vs. Onshore team comparison and what reasons could possibly influence the onshore company vs. offshore company selection.

The agility requirement in the process of app development has led organizations to think smartly before making a choice. Outsourcing development tasks has become the new norm but, working in proximity a better choice or remotely is a huge task to decide.

Distance is what differentiates offshore and onshore development companies. Let’s understand the meaning of these terms.

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Offshore development company

An offshore company is one that is located outside your country or at a different geographical location than yours. You and the company may operate in different time zones and might have a huge cultural difference.

Cost comparison between Onshore and Offshore Team

Onshore development company

An onshore company is one that is located in the same home country as yours & in your geographical proximity. Here, both of you might share the same culture and operate in the same time zone.

Both solutions perform the same task and participate in scaling up the business. Outsourcing companies, in general, focus only on the growth of an organization and accelerate the software tasks to ensure business sustainability. Onshore and offshore developers work in favor of increasing your productivity, but there may be differences in their pricing.

However, these options have their own pros and cons, which as a headhunter, you should know.

To begin with,

Advantages of Onshore software development

We can say the onshore software development company is located in your neighborhood, probably speaking the same language as yours. It becomes quite flexible to reach out to them, and they soon become your go-to hand for software development.

Face to face communication

While developing a product, you need someone with whom you can talk instantly. Since onshore software development companies are located close to you, you can afford to visit their premises or vice versa as and when required. Face-to-face communication is far more appreciated than virtual discussion.

Same time-zone

Onshore development companies function in the same time zone as yours. Meaning, you do not have to worry about time synchronization for setting up any meeting.

No cultural differences

Working with an onshore development company has this brilliant benefit, that you do not have to explain your culture to them. You become highly compatible with them, and this leads to an amicable relationship.

Better quality of work

There are rarely any barriers on the way, and you can focus closely on the project’s progress. The design and development teams can work collaboratively to bring out the best in the solution.

Same rules & regulations

Having an onshore development team working with you means they are fully aware of the country’s rules and regulations. You do not need to explain it to them, and they can take care of things by themselves.

Quicker time to market

Instant communication brings faster solutions. Meaning, the bugs, and the software issues are solved at the earliest, leading to faster app development.

Support plans

The fact is, you will need after support for your project. Onshore and offshore companies do offer, but working with offshore software developers becomes quite difficult because of the time difference.

Disadvantages of onshore development

- Onshore software development comes with a baggage of high cost. There are multiple expenses, such as employee management, infrastructure management, etc., that add up to the final cost of app development.

- If you opt for onshore app development, you may have access to a pool of developers, but finding the right one might become really challenging. You may or may not end up hiring the best one.

- Also, the confidentiality of your project is put to question with onshore software development. Since the onshore software developers work closely with your in-house team, you need to check that there is no agreement breach.

Advantages of Offshore software development

Offshore software developers though work on the other side of the world, but they can never compromise over quality. These developers work with you together like your extended development team, and it is highly suggestible to hire offshore developers.

Higher project efficiency

Since the offshore developers are located in a different time zone than yours, they are bound to deliver projects within the given timeline. Meaning they leave no stone unturned in delivering projects with increased efficiency.

Lower development cost

The offshore software development competition is high. Every country has a bucketful of offshore software development teams to offer. This competition leads them to work at a very cost-effective price which may be difficult with onshore software development.

Coping up with the communication

In spite of working on the other side of the world, offshore software developers make use of a variety of communication tools such as Skype and other mediums to communicate with you effectively.

Disadvantages of Offshore development

Cultural differences

As much as you both would appreciate working together, you might face cultural differences with an offshore development company. The language might not be the same, and you really would have to take care while communicating your needs to them.

Time zone constraints

Your in-house team would typically work in a daily nine to five schedule. And if your offshore development team is located in a completely different timezone, they might have to extend their working hours. It is really a challenge to manage daily communication because of time constraints.

Poor product quality

It is difficult for you to travel to your offshore development partners’ premises to check their infrastructure and resources. And if any discrepancies prevail, it may have a severe impact on the quality of the product.

Delayed development

Communication is the key to swift software development. While working with an offshore development team, it may happen that your issues might not get resolved instantly, which can result in the delay of project deliverables.

Now that you know the difference between the onshore and offshore companies let’s look at the cost difference.

Cost comparison between onshore and offshore team

Finding the right coding heads from the onshore and offshore teams options available isn’t an easy task. Hiring an offshore development team is quite lucrative because of the cost-effectiveness and other benefits.

Say, for example, an offshore development team can be available working at $25 to $120 per hourly rate. This price varies from country to country. A software developer in India might work at $30/hour while the same works at $130/hour if hired from the US.

The price variation also depends on the project scope; however, offshore would always be cheaper than onshore software development.

This means, if you are an organization working with a tight budget, it would be great to opt for offshore software development over onshore development.

Have you made your choice between Offshore Vs. Onshore company?

As mentioned above, the best way to accomplish a project is to outsource the development part so that you can focus on other important aspects. We have shared our view on offshore development vs. onshore development.

However, the project scope, skills of developers, their communication commitment are what matters the most. Make a smart choice that benefits your project. Thank you for reading!

blog author - kodytechnolab

Sanjay Kidecha