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Nearshore development is when a company outsources their software development work to developers in a nearby country, generally adjacent to their own. Wondering if nearshore outsourcing is the right option for you? We break down the different types of outsourcing that we offer and how nearshore differs from offshore, onshore, and onsite development models.
Nearshore Development
Nearshore development is a phrase that you might be hearing more lately since this type of outsourcing is becoming more popular. Nearshore means that while you are still outsourcing your development outside of your home country, the countries are located closer in proximity. If you are in the US, this likely means Central and South America. The benefits of nearshore development are that your developers are in the same time zone as you, so there is quicker turnaround time and threats of hacking can be much lower. While the cost of nearshore development is less than US-based development, it is higher than offshore development. You can generally expect to pay around $50 – 60/hour for nearshore developers.
Offshore Development
Offshore development has been the typical outsourcing model for a long time. This generally means outsourcing to developers in eastern Europe or India. This is the most economical choice and you can expect to pay around $30 – 40/hour for developers in this area. However, the downside is that hacking is more prevalent and the time difference can cause delays if your project is on a tight timeline.
Onshore Development
Onshore development is work that is outsourced to developers within your country. This can be the best option if you need quick turnaround time or want to work with a local company. You can choose someone within your time zone, or even within your city if in-person meetings are important to you. This tends to be the more expensive option because US-based development starts at around $120/per hour and goes up quickly from there.
Onsite Development
Onsite development is a staff augmentation solution that means someone will be placed at your location as an extension of your team. This differs from the outsourcing options above in that your in-house team is responsible for project management vs. the outsourcing team managing the project. With this option you can quickly integrate developers into your team and onboard them in a way that is most efficient to how your company operates. Onsite developers can be fulltime or part-time, for short-term projects or long-term, ongoing projects. This is a popular option as you gain a resource that has the exact skillset you need while avoiding the recruiting process and overhead costs that come with hiring a developer directly. Similar to onshore development, hourly rates start around $120 and increase based on the skills you are looking for.
Questions?
Have questions about any of these development models? Unidev facilitates all four options and can help you find the best option for your specific project, skillset needed, and budget. Contact us today for a free consultation!