Must Know Software Outsourcing Models
Mainly, three types of outsourcing models function as the core pillars for collaborating with any IT firm for software development.
Onshore, Offshore and Nearshore are the three primary software outsourcing classifications.
Let’s have a closer look at each of them.
Most enterprises have considered onshore the perfect choice for crafting a robust business application in recent years.
Under this model, firms collaborate with a local IT firm in the same city, province, or country. The main objective of selecting onshore services was to contact the company for any query quickly.
Seamless communication and visit on-site were the main reasons behind its popularity.
However, there can be some of its drawbacks. Such as, if the cost of software development is higher in your country, you have to pay more to your technology partner.
You can only expect a budget-friendly project if the development and resource utilization charges are less in your area.
With the growing need for business solutions, the trend of hiring an offshore IT firm is rapidly accelerating.
In the offshore model, you join forces with a software development company in another continent or which is very far from your country.
For instance, if you are running a company in the Netherlands and your development partner is in India, it will be considered an offshore software outsourcing model.
Most companies appraise this approach to minimize the project budget, as rates of developers and essential assets can be less in the other country. In addition, you can find it difficult to manage communication due to different time zones.
Many outsourcing companies offer services according to your time zone, and you have to find a reliable IT company.
It comes under the nearshore model when you unite with a software development company in a border-sharing country.
For instance, if a business in France hires a software furnishing firm in Germany, you can classify it as nearshore outsourcing.
It can offer you the advantages of both onshore and offshore models, as you can quickly visit on-site, your time zone will match, or there will be only a difference of an hour or two. In addition, the development cost in a nearby country can be less in contrast to your country.
Moreover, you will have better communication and cultural similarities, leading to a more robust professional relationship.