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Natalya Brinza Project Manager
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in the online-business

What to Choose: Onshore, Nearshore and Offshore?

The number of people interested in business or startup grows every day. That’s why I decided to tell you more about outsourcing relations in this sphere. Let me remember, what is the outsourcing - it is the way of running the business, while a part of the team (may be even the main part) is not located in your office. In this article I’m going to tell to you about three types of outsourcing: onshore, nearshore and offshore.

What is onshore outsourcing? And why not to choose it?

Onshore outsourcing, sometimes also called local or domestic is outsourcing in your country. It may happen when you need an extra labor force like developing a web-site for your product or an app and there are no specialists in your office.

It definitely has a list of benefits, like:

  • easier access to the team and their development process;
  • more possibilities of communication;
  • hourly range - 100-200$;
  • no language boundaries;
  • the same time zone;
  • no differences in mentality etc.

But the main problem is prices. Wages in UK, US and developed European countries like France and Germany are pretty high comparatively to developing countries sometimes they are ten times higher. So, if you have some (read - a lot) spare money, you can choose onshore outsourcing, but if every penny is counted in your budget this variant isn’t the best for you.

A little bit about offshore outsourcing

Offshore outsourcing is having a team in the country that is really far away from you. Sometimes to offshore outsourcing Ukraine and other Eastern European countries (Poland, Bulgaria, Russia etc.) are included, but in this article I have special name for them. So, let’s count, that offshore countries are only the one, that are located in Asia.

The main plus here - is obviously lower costs of work, but offshore outsourcing has a lot of minuses too, for example:

  • a great time difference. And the stories about “We’re working, while you’re sleeping” usually turns out not like a dream-team. Because often you will need to communicate with the team in your work time to coordinate some troubles, but they will be sleeping;
  • difficulties with access to the team;
  • a gap in cultural mentalities;
  • low standards of quality;
  • some language boundaries etc.

Onshore, Nearshore and Offshore

Though outsourcing to Asian countries may at first seem like a successful decision, you should understand that the communication with them is really tough and poor quality standarts may become a great pain in the future, when you understand that, for example, the most part of the code (in software development) was written really badly and you need to hire another team to fix all the bugs.

Why to choose nearshore outsourcing?

Nearshore outsourcing is the one in Eastern Europe countries. The dedicated team is located not so far from the main office, so it it easier to communicate with. We include these countries in nearshore outsourcing: Ukraine, Russia. Bulgaria, Poland, Baltic countries, Belarus, Estonia and Romania.

Advantages of choosing nearshore outsourcing for your business:

  • a great cost efficiency for the same amount of work (20-50$ per hour);
  • no problems with access;
  • simple communication with the team and Project Manager;
  • small time difference - no difficulties with online communication;
  • there are no cultural and language boundaries;
  • a really well developed R&D and programming industries;
  • lots of high qualificated specialists etc.

Nearshore outsourcing (also called Golden middle) is a wonderful solution for the business that require a lot of creativity and flexibility. Also countries like Ukraine and Poland usually offer broad approach for your business - from design to marketing.

I hope, this article has cleared your vision to outsourcing, so it will be easier for you to decide where to outsource. Good luck with your startings and remember, Artjoker will happily turn your ideas into excellent results!

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author Liza Kerimova Liza Kerimova
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Natalya Brinza project manager
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