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Differences between onshore vs nearshore vs offshore

What outsourcing model is more convenient for US companies, onshore, nearshore, or offshore? Discover here which is the best option.

Getting highly skilled IT talent locally is a big challenge. This challenge drives companies to try different outsourcing modalities in other cities or countries. Thus, with the advancement of technology, it is possible to access the most qualified professionals regardless of their geographic location.

In this article, we tell you about the different modalities and which one is the most convenient for your company.

Differences onshore vs nearshore vs offshore

The different types of outsourcing allow companies to access quality IT talent without compromising the fulfillment of their projects.

Here are the 3 types of outsourcing you can opt for and their characteristics.

Onshore outsourcing

Onshore outsourcing is the hiring of a supplier located in the same country. This allows the company and the supplier to collaborate in real time by having the same schedule, in the same language and sharing the culture.
In economic terms, this type of contracting may involve a higher cost because the employer may have to pay taxes and expenses associated with labor regulations.

On the other hand, as it involves the same currency (and cost of living), it tends to be more expensive compared to other modalities.

Nearshore outsourcing

Nearshore outsourcing refers to the geographical proximity of talent to the hiring company. An example would be the USA and Latin America. Thanks to the proximity, there is the advantage of sharing the time zone and similar cultures.

In the above example, we could assume that language may be a barrier; however, it is not. This is because Latin countries have a good level of English because, in many countries, it is included in the formal education curriculum.

While in economic terms, in the case we use as an example, it is convenient for the companies that hire, since for professionals the cost of living is lower.

Offshore outsourcing

Offshore outsourcing consists of hiring talents that are far away from the geographical location of the hiring company. As an example, we can cite the USA and India. In this relationship, although the costs are lower, there are disadvantages such as a pronounced time and cultural difference that can complicate the normal development of the project and its completion in a timely manner.

Differences between onshore vs nearshore vs offshore

What outsourcing model is more convenient for US companies, onshore, nearshore or offshore?

As we have seen, each type of outsourcing has its advantages and disadvantages. However, if your company is based in the United States, there is a modality that will be more convenient for you.

This is nearshore outsourcing. This type of outsourcing allows you to complete your IT projects in a timely manner with highly qualified personnel that will work in the same time range as the rest of the team. Without dealing with language or cultural barriers.

Benefits of IT nearshore outsourcing for US companies

You are probably wondering what benefits nearshore outsourcing between a US company and Latam talents will bring to your company. Here are the most relevant ones.

Hiring more experienced professionals

One of the biggest challenges of hiring personnel under the outsourcing modality is to make sure that they have the necessary experience that your project requires.

Latin America has the most experienced IT talent. For example, according to the Stack Overflow survey, Brazilian programmers who completed the questionnaire have an average of 11.5 years of experience.

In this sense, hiring in nearshore mode through consulting firms such as We Have Devs gives you the peace of mind that the talents effectively have the knowledge. This is possible because the selection process includes a technical and language pre-qualification test.

More loyalty at a lower cost

Another great advantage of South American talent is that they have a deep-rooted culture of responsibility at work. This means that when they are hired for a project, they bring their full potential. In the case of leaving a project before it is completed, they organize it in such a way that whoever takes up the work can continue it smoothly.

But that is not all. Latin professionals are interested in working abroad. This is due to the fact that charging their projects in dollars is very convenient for them, because it is more profitable than charging it in their local currency.

Besides, they see the possibility of working for American companies as a great opportunity for professional development. This enhances the possibilities of creating a long-term relationship for other projects which, if complemented with People Care policies such as the ones we implement at We Have Devs, contributes to the retention of these talents.

Smoother communication

Sharing the time zone, an excellent level of English and the great predisposition of the professionals is the perfect combination for fluid communication. This way, coordination is done in real time, improving the chances of a successful project.

In conclusion, if your company is based in the United States and needs highly qualified IT personnel, the nearshore modality is the right one. The next challenge will be finding the right talent, but don’t worry, we can help.
You are just a click away from the IT talent you require, contact us, and we will help you.

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