3 Different Types Of IT Outsourcing You Need To Know!

Outsourcing can be broadly classified into three major categories based on location. Let’s discuss the three outsourcing types and which one should you choose!

Onshore Outsourcing

Handing over tasks to a company located in the home country or nearby region is onshore or local outsourcing. Let’s discuss a few benefits of this type of IT outsourcing model.

Pros of Onshore Outsourcing

1. Ease of communication

2. Fewer cultural differences

3. Know your market

4. Respect intellectual property rights

From the above benefits, onshore outsourcing looks very promising and reassuring.

But before you start jotting down the top outsourcing companies in your region, you have to take care of one thing so that you don’t get disappointed.

It is entirely up to you if you are willing to take the risk and choose this outsourcing type. But there is no guarantee that high rates will ensure high-quality results.

Nearshore Outsourcing

Nearshore software outsourcing is getting the work done by companies or professionals that are located in countries having similar time zones or minimal time differences.

In the nearshore outsourcing type, the hourly rates of the developers may vary from $25-$50.

This adds up the major cost savings making everything a breeze. Although, there should be some similarities related to time, culture, and people. Many United States companies outsource work to Canada and Mexico.

Pros of Nearshore Outsourcing

1. Geographical proximity

2. Lessor no time zone difference

3. Cost-saving

4. High efficiency

5. Cultural and language similarities

Nearshore outsourcing is a good choice for projects that need innovative thinking and experimental tasks. Your product or service will not only be fully developed but fully supported by the team.

Retain good control & high responsiveness when you choose a nearshore company that will thoroughly understand your market.

Everything is translated into better quality because the workers don’t have to adjust their schedules to other countries’ working hours.

Offshore Outsourcing

Among all the other outsourcing types, offshore development is a strategic?practice where the company hires a third party or an individual from another country to perform certain tasks for your business, usually to leverage cost benefits.

India is the first country that comes to mind when you think of?hiring offshore developers.?Low price is the major factor. Hourly rates range from $10-$20. Surprised? Don’t be, because that’s true.

Pros of Offshore Outsourcing

1. Less Cost

2. Professionals Having the Right Skills

3. Round The Clock Customer Support

4. Scale Your Business

5. Risk Mitigation