Offshore outsourcing involves contracting a company that is “offshore” or geographically distant from your own. Many engineers from offshore regions have spent considerable time in the U.S. and Western European countries and are familiar with our language, customs, and business practices. In moving back home, they’re able to provide sophisticated software development services that meet Western needs extremely well and at a lower cost.
Onshore contract outsourcing involves hiring a company in your own country to handle your software development. They may in turn use offshore engineers for some of the work on a large project, but all of your interaction and communication will be with engineers in your country, possibly within your own offices.
Nearshore outsourcing is outsourcing to a firm in a nearby country. In the U.S., this is outsourcing to Mexico or the countries of Central and South America. In the U.K., this is outsourcing to the countries of Central and Eastern Europe. Generally speaking, nearshoring options carry similar benefits to onshoring options (such as workday overlap and close-cultural ties) with lower rates similar to offshore service providers.