{"id":1279,"date":"2021-04-09T15:46:37","date_gmt":"2021-04-09T12:46:37","guid":{"rendered":"https:\/\/lasoft.org\/blog\/?p=1279"},"modified":"2024-06-24T21:09:58","modified_gmt":"2024-06-24T18:09:58","slug":"offshore-or-nearshore-web-development-what-s-the-best-option","status":"publish","type":"post","link":"https:\/\/lasoft.org\/blog\/offshore-or-nearshore-web-development-what-s-the-best-option\/","title":{"rendered":"Offshore or nearshore web development: What\u2019s the best option?"},"content":{"rendered":"

When getting software developed, you need an agency that will deliver. A reliable agency, a partner in technology, and one that\u2019s going to work well with your processes, team and values.<\/strong><\/p>\n

As part of picking the right web development partner, you might wonder whether to offshore or nearshore this work? Another option is to onshore the work, which means picking an agency in your home country, or very close to home.<\/p>\n

But compared to the offshore or nearshore options, onshore software development is often prohibitively expensive. At the same time, it rarely offers any appreciable benefits compared to offshore development, or working with a nearshore team.<\/p>\n

Around the world, there are several regions known for software development. Whether they\u2019re offshore or nearshore, in many ways, depends on where you\u2019re based. To a company in Europe, Mexico and Latin America would be offshore \u2013 some distance from the client. Whereas, to a company in the UK, working with a software company in Ukraine would count as a nearshore development partner<\/a>.<\/p>\n

The regions of the world where many companies outsource software work to include Mexico and Latin America, Central & Eastern Europe, the Middle East (Israel in particular), India, South East Asia, and China. For the purposes of this article, we will focus on nearshore development in Central & Eastern Europe (CEE), in comparison to offshore development further afield.<\/p>\n

What does offshore development mean?<\/h2>\n

For companies in Europe, the UK or US, to send work offshore usually means to outsource it hundreds or thousands of miles away. Some of the most popular regions for outsourcing include Mexico, the Philippines and Latin America (for US companies), Central & Eastern Europe (CEE; for European and UK companies), alongside India, South East Asia, and China.<\/p>\n

Israel is another popular option, especially for large tech companies, or big corporations that benefit from opening an R&D office. In the case of Israel, these offices are usually in-house departments, so aren\u2019t classed as offshoring.<\/p>\n

Whether or not development work is going offshore depends on geography. For US companies, Mexico counts are nearshore development work, due to its proximity. For European countries, including the UK, the CEE region is a nearshore development; again because of geographic proximity. Both regions, for companies in the UK, EU and US come with the same upsides as nearshore development; although there are numerous upsides for US clients for working with partners in Central & Eastern Europe, even with the time difference.<\/p>\n

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Picture 1. Offshore software development.<\/em><\/p>\n

Businesses usually send offshore development work to regions such as India, or South East Asia, for the perceived cost savings. Hourly rates, and therefore overall project rates can be lower. But not as low as they used to be, and these savings are offset by downsides.<\/p>\n

However, there are several downsides when it comes to offshoring to lower cost regions. Time Zone differences and language barriers can often cause delays and problems with projects. When software is getting developed, the last thing clients need is misunderstandings slowing down the process, contributing to mistakes, and making the project cost more.<\/p>\n

A time difference that\u2019s too vast also means it\u2019s difficult for a client and development team to communicate in real-time. Although that shouldn\u2019t be essential every day, it does help to keep a project moving forward in the right way. It reduces misunderstandings, makes projects run more efficiently, and ensures that an external development team is an extension of your in-house teams.<\/p>\n

What is nearshore development?<\/h2>\n

On the other hand, nearshore development is about working with software companies closer to where you are based. For example, a company in London could work with a nearshore development partner in Ukraine.<\/p>\n

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Picture 2. Nearshore software development.<\/em><\/p>\n

Nearshore development ensures the software engineers working on a project are only an hour or two from the client, which is usually the case between European or UK companies and those in the CEE region.<\/p>\n

For clients, this means projects are more cost effective than working with developers in their own countries, without worrying about language or time zone differences, or compromising on quality. A smaller time zone difference makes it easier to communicate in real-time. When software teams are working together, this ensures projects run far smoother, reducing misunderstandings and mistakes.<\/p>\n

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Picture 3. Nearshore and offshore destinations we are working with.<\/em><\/p>\n

How to choose the best option?<\/h2>\n

What\u2019s best for your company partly depends on where you are. For UK and European companies, the CEE region is closer, making nearshore development a smart strategic option. Even for US businesses, outsourcing to the CEE region, although it\u2019s further than Mexico and Latin America, often proves the smart choice.<\/p>\n

Nearshore software development in the CEE region, particularly Ukraine benefit from the following:<\/p>\n