Onsite, Onshore, Nearshore, or Offshore, which one is right for you?
Since the dawn of history, technological innovations have been bringing people from distant lands ever closer, from ancient ships and telegrams to planes and the internet. Now, in the post-Covid era, with its even greater shift towards online collaboration and virtual working practices, it is easy to feel like you have the whole world at your fingertips.
This reality is never more striking than in the world of IT. Now, as IT systems grow ever more complex and gaps in our knowledge become all too common, more and more companies find themselves looking for external help. If you yourself have reached this stage, it is essential to identify the most suitable outsourcing model for your given situation. So what is the right option for you, and when should you choose it? Let’s take a look!
ONSITE
What? When you hire an outside recruitment company to supply you with expert help at your office or work location.
Why? Even in our highly digitalized world, there is still huge value to a physical presence. After all, face-to-face is almost always the easiest way to communicate or demonstrate new techniques. Working side-by-side also gives internal and external staff the chance to build up personal relationships, which can only have a positive impact on longer-term collaboration. Bringing experts in-house without taking them on as employees is also a great way to increase your capacity on-demand without taking on excessive long-term costs.
Why not? Clearly, this is usually the most expensive outsourcing option. Partly because you tend to need more space and equipment, but mainly because most companies demand more money for onsite work. You will also have to spend some time making sure they fit the culture of your company and know how to use onsite facilities. Insisting on onsite collaboration also limits your options: 99.9% of the world’s best are out of reach.
When? If you have an important job – you want to get a product to market in double-quick time, for example – but you don’t want to burden yourself with long-term financial commitments. The presence of a trusted local partner is also a big incentive.
ONSHORE
What? When outside workers don’t necessarily visit you in the office directly – at least not on a daily basis – but they are based in the same country.
Why? A wider net: compared to onsite, you can access a greater level of skills and expertise and also work on a more flexible basis. Yet you still benefit from local language knowledge and almost guaranteed cultural alignment. It’s true that plenty of overseas companies are happy to communicate in English or another international language, but sometimes it’s easier to work with people who understand your local environment.
Why not? Again, there are limitations, particularly in the competitive environment of IT. When there is a talent shortage in a particular field, trying to keep it domestic not only runs the risk of excessive costs, you might also struggle to recruit the expertise you really need. At the same time, communication could still suffer compared to onsite partnerships.
When: When you don’t require onsite assistance, but you want to work with a familiar company from a similar background. Often makes most sense if you are mainly dealing with your domestic market.
NEARSHORE
What is it? When you look outside your country for assistance, but don’t stray too far outside your time zone or geographical location. Canada and Mexico for the US, for example, Poland and the Czech Republic for Germany.
Why? The best of both worlds: reduce costs without straying too far from home. Being able to shop around from one country to another can be a great way to save money, especially if your company is based in a high-income country like France or the Netherlands and you find assistance in a medium-income country like Hungary. The time difference is also kept to a minimum. Compared to offshoring, you often have much less red tape to worry, especially if you are part of the same economic union, like the EU or NAFTA.
Why not? Even a smaller geographical region like Central and Eastern Europe has dozens of languages and cultures, so there is still the potential for misunderstandings. Fortunately, however, the level of English in so many countries is increasing at a rapid rate, particularly in a forward-looking industry like IT.
When? When your company is expanding, and you need skills you can’t easily access in your own country.
OFFSHORE
What? The biggest step: moving away from your geographical location entirely, crossing oceans and continents to find the right level of expertise at the right price.
Why? Traditionally, the main motivation behind looking across the world for expert assistance is usually financial – teaming up with experts from a lower-income country is a great way to save money. At the same time, thinking globally also gives you global reach and the chance to access the finest experts from across the world. In countries like India, China, and Indonesia, for example, the number of STEM graduates is through the roof. In addition, while language and culture could be an issue internally (see below), drawing on local expertise in different regions could bring you a true competitive advantage if you want to target more international markets.
Why not? In some cases, you may encounter significant differences in culture, or language skills might not be up to scratch. There are often complicated legal and financial barriers, too, while trust may be a further concern. Given that we are typically afraid of the unknown, offshore outsourcing requires a certain degree of faith. One thing is for sure, if you go offshore, you need a highly reliable and knowledgeable partner to handle things.
When? When your company is expanding to other markets and/or you need to upscale and employ local knowledge.
CALL TO ACTION
Thinking of getting some outside assistance to help your business prosper? Mndwrk is a next-gen IT company that provides custom end-to-end IT development services. Headquartered in Budapest, Mndwrk is the largest IT services hub in Central & Eastern Europe, with 10,000+ experts and 100+ agile squads on hand to help your company take the next step. If you’re interested in accessing the finest IT experts in Europe, don’t hesitate to contact us!
Onsite, Onshore, Nearshore, or Offshore, which one is right for you?
Since the dawn of history, technological innovations have been bringing people from distant lands ever closer, from ancient ships and telegrams to planes and the internet. Now, in the post-Covid era, with its even greater shift towards online collaboration and virtual working practices, it is easy to feel like you have the whole world at your fingertips.
This reality is never more striking than in the world of IT. Now, as IT systems grow ever more complex and gaps in our knowledge become all too common, more and more companies find themselves looking for external help. If you yourself have reached this stage, it is essential to identify the most suitable outsourcing model for your given situation. So what is the right option for you, and when should you choose it? Let’s take a look!
ONSITE
What? When you hire an outside recruitment company to supply you with expert help at your office or work location.
Why? Even in our highly digitalized world, there is still huge value to a physical presence. After all, face-to-face is almost always the easiest way to communicate or demonstrate new techniques. Working side-by-side also gives internal and external staff the chance to build up personal relationships, which can only have a positive impact on longer-term collaboration. Bringing experts in-house without taking them on as employees is also a great way to increase your capacity on-demand without taking on excessive long-term costs.
Why not? Clearly, this is usually the most expensive outsourcing option. Partly because you tend to need more space and equipment, but mainly because most companies demand more money for onsite work. You will also have to spend some time making sure they fit the culture of your company and know how to use onsite facilities. Insisting on onsite collaboration also limits your options: 99.9% of the world’s best are out of reach.
When? If you have an important job – you want to get a product to market in double-quick time, for example – but you don’t want to burden yourself with long-term financial commitments. The presence of a trusted local partner is also a big incentive.
ONSHORE
What? When outside workers don’t necessarily visit you in the office directly – at least not on a daily basis – but they are based in the same country.
Why? A wider net: compared to onsite, you can access a greater level of skills and expertise and also work on a more flexible basis. Yet you still benefit from local language knowledge and almost guaranteed cultural alignment. It’s true that plenty of overseas companies are happy to communicate in English or another international language, but sometimes it’s easier to work with people who understand your local environment.
Why not? Again, there are limitations, particularly in the competitive environment of IT. When there is a talent shortage in a particular field, trying to keep it domestic not only runs the risk of excessive costs, you might also struggle to recruit the expertise you really need. At the same time, communication could still suffer compared to onsite partnerships.
When: When you don’t require onsite assistance, but you want to work with a familiar company from a similar background. Often makes most sense if you are mainly dealing with your domestic market.
NEARSHORE
What is it? When you look outside your country for assistance, but don’t stray too far outside your time zone or geographical location. Canada and Mexico for the US, for example, Poland and the Czech Republic for Germany.
Why? The best of both worlds: reduce costs without straying too far from home. Being able to shop around from one country to another can be a great way to save money, especially if your company is based in a high-income country like France or the Netherlands and you find assistance in a medium-income country like Hungary. The time difference is also kept to a minimum. Compared to offshoring, you often have much less red tape to worry, especially if you are part of the same economic union, like the EU or NAFTA.
Why not? Even a smaller geographical region like Central and Eastern Europe has dozens of languages and cultures, so there is still the potential for misunderstandings. Fortunately, however, the level of English in so many countries is increasing at a rapid rate, particularly in a forward-looking industry like IT.
When? When your company is expanding, and you need skills you can’t easily access in your own country.
OFFSHORE
What? The biggest step: moving away from your geographical location entirely, crossing oceans and continents to find the right level of expertise at the right price.
Why? Traditionally, the main motivation behind looking across the world for expert assistance is usually financial – teaming up with experts from a lower-income country is a great way to save money. At the same time, thinking globally also gives you global reach and the chance to access the finest experts from across the world. In countries like India, China, and Indonesia, for example, the number of STEM graduates is through the roof. In addition, while language and culture could be an issue internally (see below), drawing on local expertise in different regions could bring you a true competitive advantage if you want to target more international markets.
Why not? In some cases, you may encounter significant differences in culture, or language skills might not be up to scratch. There are often complicated legal and financial barriers, too, while trust may be a further concern. Given that we are typically afraid of the unknown, offshore outsourcing requires a certain degree of faith. One thing is for sure, if you go offshore, you need a highly reliable and knowledgeable partner to handle things.
When? When your company is expanding to other markets and/or you need to upscale and employ local knowledge.
CALL TO ACTION
Thinking of getting some outside assistance to help your business prosper? Mndwrk is a next-gen IT company that provides custom end-to-end IT development services. Headquartered in Budapest, Mndwrk is the largest IT services hub in Central & Eastern Europe, with 10,000+ experts and 100+ agile squads on hand to help your company take the next step. If you’re interested in accessing the finest IT experts in Europe, don’t hesitate to contact us!
