To grow and scale your IT business, you need the help of many experts. Hiring full-time software developers might not be cost-effective. This is why many companies reach out to third-party organizations that cover some non-core company activities. This model — generally called outsourcing — has many facets and aspects. It provides tons of benefits for IT companies. Let us dive into some details about the nuances that set three popular outsourcing models: Offshoring, Nearshoring, and Yourshoring.
We will first explore the world of nearshoring vs. offshoring, and afterward, we will see how the model of Yourshoring offers an innovative solution to the market.
Offshoring – Taking Your Business on a Long Journey Away from Home
Offshoring is a very cost-effective move. Many companies scale their IT Business with offshoring. The model means that you hire teams or specialists that may reside on the other side of the globe. In these remote lands, they work on your software products and bring your projects to fruition.
Offshoring presents many advantages such as:
- Lower costs of hiring highly specialized software development talents;
- Established processes within the company;
- No HR headaches as sick leaves or retirement plans;
- Elimination of charges for expensive hardware, software, and equipment;
- No rental of physical space for inhouse workers; and
- 24-hour support because of the time zone difference.
You find many trustworthy companies that are also very adaptive to your IT business requirements. Moreover, many IT businesses have used this model to scale and grow.
However, there are certain downsides to offshoring, too. Unexpected shifts in the economies in remote countries, travel expenses, difficulties in management, time zones, and other hiccups discourage many companies from using offshoring services. They found some alternative models. Read on for models two and three.
Nearshoring – Growing Your Business in the Same Neighborhood
Nearshoring is like offshoring but in direct proximity to your organization’s country. When you do nearshoring, you choose countries that border your country. This avoids many difficulties, delays, and hidden costs. For example, substantial cultural gaps and divergent time zones lead to losses of time and money.
Nearshoring presents many advantages such as:
- Accessible communication with the teams that are in your same time zone and speaking your language;
- No cultural learning curve – the team has a similar culture to your own home country;
- Cheaper travel and logistics costs;
- Greater control over the operations;
- Enhanced cooperation; and
- Faster response time.
Nearshoring allows many companies to grow and scale while using great talents near their homeland. It reduces costs and delays. It also allows good communication within business hours.
There are several cons related to nearshoring. It is a costlier option related to offshoring. Nearshoring companies usually have similar economies as your own. The cost might be lower, but not that much. In addition, the geographical closeness does not always guarantee there is no divergence in cultural habits, holidays, etc. Another downside is that there are fewer companies to choose from when deciding on nearshoring. Therefore, it is more challenging to choose which one is best for your business.
There is a third model when deciding which one to choose to make your business from a fledgling to a soaring eagle. This newly created model is becoming increasingly popular.
Yourshoring – An Innovative Solution
Yourshoring is a relatively modern term. It implies that the offshoring solution you are offered is entirely customized for the needs of your IT company. What is more, each software developer recruited to work for your project needs to undergo a strict screening. This allows you to choose only the candidates that entirely embrace your company and team’s mission, vision, and values.
The strategy of yourshoring increased the retention of talents to 85% compared to the typical 60% retention on the other models. Briefly, yourshoring has all the added benefits of offshoring and nearshoring, minus some difficulties. Turnkey-labs.com is a pioneer in the yourshoring model, and other companies are waking up to its advantages.
Which One Is Best for Your Business?
If your company and project do not require daily engagement, communication, and strict overseeing, then offshoring might work for you. This way, the time zone differences, cultural differences, and costly travel and logistics might not arise as issues for you.
Those organizations that need to collaborate more tightly with their developers might consider the option of nearshoring as more beneficial for their needs.
Suppose you want an entirely customized solution with a team of software engineers dedicated to your mission, vision, and goals. In that case, yourshoring is the outsourcing model for you. It retains very reasonable prices as well.
In Conclusion
Offshoring, Nearshoring, or Yourshoring — choose the best model for your IT business. Understanding the differences and similarities, the benefits, and the pitfalls, you now are able to make a better decision to help your company grow and thrive.
