What is the difference between nearshore and offshore outsourcing?

Let’s talk!
Do you want to know how we can help you boost your business? Leave us your information and a consultant will contact you.

You can find offshore software development teams overseas, usually on the other side of the ocean. They can help you develop your product at a fraction of the cost of their local counterparts, thanks to technology that allows them to work digitally and remotely. Some of the most common places to find qualified developers for your project include Ukraine, India, Pakistan, China, and South East Asia, including Thailand and Vietnam.

Many companies are discovering that outsourcing software development has more benefits than in-house recruitment. There are three types of IT outsourcing to consider when looking for an outsourcing location: onshore or offshore and nearshore. What is the best offshore call center outsourcing for your company? In this article, we will talk about Nearshore vs. offshore outsourcing and which one suits you best.

Let’s discuss offshore/nearshore definition first!

What is nearshore outsourcing?

When a business hires workers from a neighboring country to complete tasks, the practice is known as nearshore outsourcing.

Cost savings, cultural compatibility, proximity to the client, and similar time zones are some benefits of outsourcing in a nearshore area. For example, suppose costs rise to the point where it is no longer possible to maintain operations in your home country. In that case, coastal countries may be the best long-term alternative to outsourcing.

Advantages of nearshoring

By hiring nearshore development services from neighboring countries, you can reap the financial benefits of offshore without having to fly halfway around the world to meet with your team, solve serious language difficulties, or adjust to jet lag. The benefits of nearshore mobile app development are as follows:

Similar time zone

Collaboration with companies based within the country is similar to nearshoring. The language used is the only notable difference. Unlike outsourcing, real-time collaboration with the nearshore IT development team is possible in the same or nearly the same time zone, which can help the team become an essential part of your company. In addition, it creates a similar regulatory environment and similar cultural characteristics.

Minimal cultural difference

The ability to hire workers who already have cultural backgrounds similar to your business or product team members is one of the benefits of offshore/nearshore AI development. There will be no misinterpretation between employees due to language or cultural issues as you will only be talking to native speakers of your language.

Since most developers speak English very well and have a European mindset, Central Europe is a nearshore region that offers many benefits. We at Heinsohn have made it a rule to hire only English-speaking developers so that our employees can manage global projects with excellent communication.

Flawless communication 

Language barriers can have a detrimental effect on your bottom line, as can cultural barriers. Your project can slow down significantly due to miscommunication and the need to wait several hours between messages, often forcing you to push back delivery dates. When working with offshore/nearshore staff, it will be easier to plan and meet deadlines because you won’t have to wait hours for a response. When using nearshore outsourcing, the stakes are similar to offshoring, and the communication style and quality requirements are identical to onshoring. 

Shorter business trips

The opportunity to meet the team in person, made possible by geographic proximity and faster flight schedules, is sometimes overlooked by the advantage of the near abroad. Many Central American countries have more robust infrastructure than many other places. You can be sure that you will have the infrastructure necessary to meet your company’s needs, with Altia Smart City as an example.

Higher security and more accessible audits

Finding a nearshore mobile app development team that is immediately ready to go and available can speed up the entire development process and, as a result, the time it takes to get a product to market. One of its key strengths and benefits is that Nearshoring reduces fixed costs, especially those related to payroll and social security contributions. The region’s human capital is also not only young and active, but very motivated to move up the career ladder and gain as much knowledge as possible.

What is offshore outsourcing?

The system of working in partnership with an outside organization and outsourcing some of your company’s responsibilities to that organization is known as offshore outsourcing. As a rule, an outsourced product or service is advertised only in the outsourcer’s country and will not be sold offshore. Outsourcing to other countries allows enterprises to receive first-class services at lower operating costs.

Advantages of offshoring

Offshoring has short-term and long-term benefits for businesses that choose to go into it. Offshoring makes business owners from worrying about performance risks, allowing them to focus on planning their company’s strategic expansion. Moving corporate operations overseas has several benefits beyond the primary justification for cost savings.


According to the most recent data, businesses can save between 30 and 50 percent compared to hiring Australian workers with roughly the same level of productivity and ability. In addition, there are more qualified and experienced workers abroad for various jobs. Because the cost of living in countries where you work abroad or outsource is generally significantly lower, you can save on staff salaries and other labor-related expenses. In other cases, offshore/nearshore IT services eliminate recruitment costs. The knowledge and experience needed to complete the task are already in the hands of your third-party service provider.

Global talent pool

There are numerous cases where a corporation wants to relocate its services or business to a location where the needed employees are readily available at convenient country-specific wages. In other cases, it is possible to purchase specialized equipment abroad only 50–30% cheaper than domestically.

This entails insufficient time and money spent on staff training or purchasing specialized equipment. Especially if the place is home to many bright, talented, and educated young people who may otherwise be out of work. Offshoring development service is an ideal addition to existing staff due to the current demand for skilled labor in developed countries.

Adaptive rotating shifts

Modern consumers expect 24/7 service. For sectors such as retail and entertainment, the Internet has virtually rendered regular work hours useless. Now, when a consumer has a problem with your service, they want it fixed immediately, even if it happens at 2 am. The offshore staff offers businesses a more practical option to provide 24/7 uptime, such as 24/7 technical support, by attracting people from different time zones.

Nearshore vs. offshore outsourcing: Which one to choose for your company

Nearshore vs. offshore outsourcing? Which look suits you best? It would help if you considered several different factors to make the right offshore/nearshore development service choice to meet your needs. The four most significant are money, words, quality, and law.

Service price

Offshore/nearshore web development is the best solution when our primary goal is profitability. For example, the service cost in India and other Asian countries is much lower than in European countries.


The secret to success is communication. You must ensure that communication is not interrupted and that the information we provide is understandable to the recipient. English is the most widely used language for international communication. Make sure the main communication lines are open on both sides. The best way to ensure clear understanding is for both parties to communicate at the highest possible level.

Quality of service

The importance of training and understanding employees will increase as the order becomes more complex. This will be seen in the quality of the project. Due to the abundance of reputable, high-quality technical institutions in Poland, many Polish companies are offering offshore/nearshore mobile app development.

Law and regulations

It is essential to be aware of any laws in the country where we receive services for a near or offshore location. Undoubtedly, this will facilitate cooperation. You should review the insurance coverage details to determine what is covered, whether the data transferred is secure and protected by trade secrets, and how service provider failure claims are handled.

At first glance, it might seem that location is the only difference between offshore/nearshore definitions. However, proximity should not be your primary consideration when choosing which outsourcing strategies to consider in today’s digital age. Prioritize your goals and determine what you hope to accomplish by expanding your team in the first place. What do you suppose? Is it the balance of everything or the least expensive option?

You can only choose which strategy to use if you know the roles, responsibilities, and skills your future employees will need. And if you still have questions about software outsourcing, don’t hesitate to contact Heinsohn for more information.

There is a mobile app for this. After the 2009 campaign was successful, Apple registered the phrase as a trademark. Over a decade later, over 4 million apps are now available to iOS and Android users. Mobile apps are available for everything from business to pleasure and everyday life. These categories then split into different niches, which is why mobile apps continue to expand.

Technology can provide the best answers as we break down problems into their most minor components. Businesses can become the next unicorn in the market by solving niche problems. But how can new companies and small businesses survive in such a cutthroat environment? Offshoring would be the solution. This article will cover everything you need to know about offshore services and how to hire an offshore mobile app development company.

What is offshore mobile app development?

A company may use independent contractors or entire remote teams as part of an offshore outsourcing strategy for non-core tasks such as development. One of the most popular elements of this technique is offshore application development.

According to a study by the National Outsourcing Association, more than 70% of organizations plan to increase their use of outsourcing, indicating an increase in outsourcing overall. One of the most commonly outsourced IT tasks is application development, so more companies are recognizing the benefits of offshore ios/android development and intending to hire third-party companies to develop their applications.

Offshore Mobile Application Development Statistics

According to Deloitte’s 2021 Global Outsourcing Survey, outsourcing has proven to be a robust activity in the face of the global challenge of the pandemic. According to the report, 70% of respondents said outsourcing was primarily motivated by cost savings. According to Deloitte, 68% of respondents said that outsourcing allows cloud technologies in their organizations.

The demand for software outsourcing is likely to grow in the coming years. According to ManpowerGroup, in 2019, 69% of US businesses will have difficulty finding skilled workers, with IT being the hardest to find. Employers in the UK face similar challenges, with 67% of technology executives saying progress is hindered by a need for more qualified candidates.

Why consider offshore mobile app development

The offshore app development company is typically headquartered in a nation with abundant talent. It can provide high-quality IT services at a significantly reduced cost compared to the local development company. The essential services that entrepreneurs can obtain from an offshore development business include custom design, enterprise software development, online and mobile app development, and software maintenance or upgrade.

Each offshore IT solution provider follows a certain SDLC and has engagement models (Software Development Lifecycle). Hiring a business that offers complete software development services is preferable.

Your software project will cost a small fortune whether you assemble an in-house team of engineers or hire developers from major cities such as London, Sydney, and Los Angeles. Also, there is a lot of competition for talent in major urban areas, so it can be difficult for you to retain a talented team for an extended period. At this point, an offshore mobile development company enters the scene.

Pros of offshore mobile app development

Outsourcing is often associated with less personal control over the workflow and communication issues, especially with offshore teams. However, a talented project manager can solve any problem.

The benefits outweigh the disadvantages if you hire an experienced and reputable team to develop your applications. Here are just some of the main advantages of outsourcing mobile applications.

Various talent pools worldwide

You’ll prefer a larger talent pool if there aren’t enough developers in your area. You have a choice to manage offshore mobile app development teams. You won’t have to worry about competition and shortages that drive up wage rates. These advantages allow small firms to grow at a lower cost. Managing offshore mobile app development teams has many benefits, but most business owners doubt it. This is a valid concern.

Good risk management

An offshore mobile app development company will provide a large, dedicated team of knowledgeable developers working on your product. These dedicated teams work with you to ensure your project is completed on time and quickly. These competent, genuine professionals will ensure that your offshore software development work runs smoothly and without errors.

Reasonable & affordable cost

This is the most significant benefit of outsourcing your project to an offshore ios/android development partner. The project can become very profitable due to lower labor costs. In addition, a pool of experienced engineers from many countries, including India, can be deployed to perform the most critical tasks. Working on client projects, they better understand the subject area and values of the company.

In addition, many countries provide companies that attract offshore developers with tax incentives, which further reduces the cost of the procedure.

Quick access to the latest technology

Businesses can hire competent employees with access to the latest equipment and technology. Offshore mobile application development is necessary due to the uneven distribution of qualified engineers across countries and regions worldwide. Because of this, discovering talent in one country can be challenging but accessible in another or even another continent. By entrusting your task to competent offshore resources, you can provide high-quality services as quickly as possible.

The same programming languages all over the world

Traditional means of communication between a company and a development team can sometimes be complicated but not a programming language. Hence, offshore app development developers can provide satisfactory, if not excellent, results regardless of the source programming language.

Examples of offshore mobile app development

Mobile app development has its roots in older, more traditional software development, just like web app development. Mobile applications are often created specifically to take advantage of the unique features of a given mobile device, which is an important distinction.

For example, a game app could be built to use the iPhone’s accelerometer, and a mobile health app could be made to use the smartwatch’s temperature sensor. The two most popular mobile operating systems today are Google’s Android and Apple’s iOS, and an offshore mobile app development company makes many applications on these platforms.

Today’s two most popular mobile operating systems are Google’s Android and Apple’s iOS. A full-featured web browser and the Apple App Store are essential programs preinstalled on Apple smartphones and tablets. In addition, similar apps are preloaded on Android devices, and you can install more using the Google Play Store.

Our Approach Are Your Benefits

Companies that want to keep up with the times release their mobile applications. It is a means of streamlining procedures, gaining a competitive edge, increasing customer loyalty, improving communications, etc. However, because this is not their core business, they quickly outsource this work, saving money and improving the final product’s quality.

The risks are reduced, and the advantage over your team remains significant if you choose a reliable 

offshore mobile app development company and enter into an agreement considering unforeseen circumstances. Finding a reliable partner with experience, a solid reputation, and specialists is the most important thing. Contact Heinsohn and get a ready-made team of professionals in the blink of an eye.

Other content that may interest you