subject: Nearshore Vs Offshore : Staff Augmentation Outsourcing [print this page] Outsourcing is a cost effective approach of executing your business functions by transferring the work load to a third party. The third party companies are specialists in performing the outsourced work from different clients across the globe. There are two types of outsourcing nearshore and offshore.
The process of outsourcing the work to a nearby located company having higher operational costs is called nearshore outsourcing. On the other hand outsourcing the work to a country which is located far away in a different time zone & where costs are much cheaper is called as offshore outsourcing.
Benefits of Nearshore Outsourcing
Though offshore outsourcing proves to be more cost efficient, nearshore development sometimes provides a more apt solution. Nearshore outsourcing reduces the complexity and risks associated with the distance between a client and a service provider. Nearshore outsourcing also reduces the travel costs and there no time zone differences.
The biggest limitation of this development model is that it doesn't make much profit as the economies of neighboring countries are more or less the same.
In many cases the remuneration of both the resources working onshore and offshore are same. In such cases, outsourcing the projects nearshore to a nearby located country may result in extra operating expenses related to travel, legal affairs etc.
Why Offshore Outsourcing is the Best?
When you have the detailed project specifications ready with you or you know about the project in advance then you should opt for offshore outsourcing. Keeping in mind that you could it do it at affordable cost offshore outsourcing makes a lot of sense. While outsourcing offshore, make sure that the offshore team working on your project has clearly understood your requirement & that it takes a proper care of your business needs. You should clearly explain your aims to your development team located offshore.
Though development projects can be executed locally, but still companies prefer for offshore outsourcing because of the following advantages:
1. As the rates are comparatively low so it will have minimal effect on the overall expenditure of the project.
2. Offshore development centers provide high quality outcomes. For example, the outsourcing giant, India, has technically sound experts to provide exceptional services at reasonable rate.
3. Almost all the development centers have employees working in rotational shifts so that they can answer client queries anytime and hence provide a 24*7 support.
4. There are no overheads involved in setting up the infrastructure to execute the work .The project is outsourced on a fixed amount.
5. The resources at the outsourcing centers are compliant with the changes and act politely with extreme sincerity.
India, China & Philippines are the top-most offshore outsourcing providers. They provide affordable services & high quality results.
Nearshore Vs Offshore : Staff Augmentation Outsourcing
