Onshore vs Offshore: Asking the Right Questions
- BearPeak Design Services
- 5 days ago
- 4 min read
There's so much to consider that the internet is already filled with articles breaking down the key facts. We recommend reading those if you're looking for a surface-level comparison. This article, however, will be different.
We'll be covering the pros and cons of onshore vs offshore software development, but extending beyond the common perception that it just comes down to cost savings or control; it goes so much deeper than that. We want to equip you with the right questions to ask when considering which is best for your project.
Let's start by addressing the elephant in the room (in our case, the bear): We're an American software consultancy. It'd be an understatement to say we have an opinion or two on the subject.
But take it from a team that's worked with companies overseas as well as ones right down the street (both as a service and as the client ourselves): The dynamics can be vastly different, with potential outcomes that should form the crux of your decision.
Since we're based in Boulder, CO, we've worked with local businesses. Nothing can compare to that experience: stopping in at your client's office space multiple times a week, meeting the whole team, discussing in person... it's how a project acquires ideas and strategies you wouldn't have thought of otherwise.
We are blessed to have the opportunity to work with our local businesses— startups stick together! We've made great friends from these interactions that we wouldn't have connected the same way with via email. If you want your business to not only grow but to thrive, hire onshore, even local if you can.
Offshore's strengths
We aren't saying you should never hire offshore. What's often a big benefit to it is the difference in time zone: Your business can potentially work around the clock, enabling faster project completion and 24-hour support. Additionally, depending on your region, the availability of specialized talent might be limited. This digital age gives you the option to hire an expert from anywhere in the world.
Therefore, if the project doesn't require much interaction during your workday, the benefits may certainly outweigh the downsides.
Growing vs Thriving
If you're hiring for a project that needs creative energy, you need a sense of connection. It might sound purely emotion-driven to suggest considering what holidays you'll have in common, but even small shared experiences can have a real impact.
Quite literally, holidays impact delivery times. So do shared languages and time zones. Cultural connections and understanding can lead to smoother communication and collaboration. The ability to relate through current news, the outcome of a recent football game, local events, they all contribute to a semblance of community. Closer proximity also allows for more frequent oversight and quality checks, so everyone can cross-check and learn from each other more often.
Here's one of the most important things to consider: How will the customer be affected by the team that delivers your product?
Onshore teams are more likely to grasp nuances of end-user behavior. Teams that feel close to the client and can more easily step into their shoes may suggest better solutions. In short: cultural alignment coincides with developer autonomy.
Onshore teams may participate in strategy and roadmap conversations, so ask yourself: Are you hiring someone to just complete a task, or to be incentivized to innovate?
It's not impossible to build something without that connection of culture, but it's certainly harder.
Hidden Costs
We know, we've heard it: offshoring is cheaper. And it's true that offshore development can reduce development costs due to lower labor rates. But if you think hiring is expensive, ooh boy, try hiring an amateur! 😂
Time is money. Working with an offshore team can mean steeper onboarding periods, management overhead, and knowledge transfer. Time zone differences, language barriers, cultural differences, and lack of face-to-face communication can lead to misunderstandings and delays. All of this adds up to "invisible hours" spent repetitively aligning with your offshore team. But if they're in person or live on a call in regular work ours, those hidden costs get cut.
Onshore Vs Offshore: The Right Questions
In summary, onshore shines when you want an inventive project team that will help your team go from growing to thriving. This might be an MVP build or high-touch B2B products. Offshore works brilliantly if your highest priority is round-the-clock assistance or the project requires minimal same-day interaction. Choose what's right for you, as there's no one-size-fits-all solution
With all this food for thought, we'll leave you with a list of, what we believe, are the right questions to consider:
How will the customer be affected by the team that delivers your product?
Are you hiring someone to just complete a task, or to be incentivized to innovate?
Would overnight work be beneficial?
How important is real-time communication?
How comfortable are you with not meeting the team in person?
What level of involvement do you expect from the developers in terms of strategic input and collaboration?
If the project grows in scope or complexity, will the team be able to scale with it?
Are you prioritizing the lowest possible price, or the highest possible ROI?
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