Onshore vs Nearshore vs Offshore Software Development

What is the difference between onshore, nearshore, and offshore app development?

Outsourcing is the fastest way to get your mobile application or business software developed. This is when a company hires external resources to handle certain app development functions.

By taking advantage of outsourcing, clients cut expenses and increase their workflow efficiency by allowing their employees to focus on their primary business needs. The main reason why companies opt for app development outsourcing over hiring and managing new in-house developers is to reduce expenses and save time.

Why should a company outsource app development?

Companies all over the world have their own reasons for why they prefer outsourcing to hiring in-house app development teams. Here’s a list of the top reasons more and more companies opt for outsourcing:

- Lack of financial resources
- Limited pool of in-country developers
- Need for specific skill sets
- Lack of scalability and flexibility
- Need to increase productivity
- Rising demand for uninterrupted work

With the growing popularity of software outsourcing, Ukraine has become a top destination for outsourcing app development services for the US and Europe. Let’s find out what outsourcing model suits your business needs best.

Onshore software development

Onshore outsourcing is when you hire an app development company in your country, that shares the same time zones, language, and culture. You won’t have any time or cultural barriers. It’s the best way to get your app developed if you’d like to have better control over the development process and seamless communication.

As a rule, prices for onshore app development can be 2x or 3x times higher when compared to offshore rates. So if you have a limited budget, onshoring isn’t your best option.

Nearshore software development

Nearshore outsourcing means hiring an app development company within the same time zone. It’s a mix of onshoring and offshoring.



For example, a Swedish company hires a Ukrainian agency to build an app for their business. According to Clutch, DOIT Software is one of the top app development companies in Sweden and top staff augmentation service firms in the UK. That makes DOIT Software a perfect match for nearshoring in the UK, Sweden, and Europe.

Nearshoring has lots of benefits to offer—minimal time differences and much shorter travel time in case you need to hold some face-to-face meetings. Usually companies are situated within the same time zone or have a 1-3 hour difference. This means better communication and prompt changes if needed.



Offshore software development in short

Offshoring is the most widely-known outsourcing model. Offshore outsourcing means that you hire a company from a different part of the world. For example, a US company hires an app development agency from Ukraine.

Offshore outsourcing gives access to a larger talent pool and lower rates when compared to the US or Canada. Another significant advantage of outsourcing software development services to an offshore company is uninterrupted workflows. Different time zones may burden work and communication, but when well-planned and organized, you won’t even notice any time differences.

When looking for your outsourcing partner, check reliable sources like Clutch. Here you can find all the information about software development agencies as well as customer reviews. DOIT Software was named a 2019 leading developer in Boston. Choosing the right software development agency is the key to getting the product you need for your business.



Advantages of offshore software development

Save money
Taking into account that the largest outsourcing pools are concentrated in the regions with much lower app development fees and the cost of living, offshoring lets you save a pretty penny.

Experienced app developers
Outsourcing app development companies have the most experienced developers at their disposal. They work on various projects so they’re experienced, flexible, and can easily build any app from scratch.

Easily scale your team

While offshoring, you can easily scale your development team up or down. Software development can be quite tricky since you cannot know beforehand how many app developers you may need. Adding one more developer to your offshore team is easier than hiring a new one for your in-house one.

Better skillset

A vast majority of offshore companies focus on certain business industries of technologies to deliver top-notch software solutions.

Save time

You don’t need to take care of employee hiring or training since your offshore partner will handle all HR issues.


Disadvantages of offshore software development


Poor communication
Time differences and language barriers may slow down the communication between you and the company. Thanks to modern technologies, there are lots of ways to streamline communication, even when you have a 10+ hour time difference.

Different culture

Cultural differences can be a real challenge when you’re hiring an offshore app development company. When speaking about software development agencies from Eastern Europe, there won’t be significant cultural barriers.


How to find your outsourcing partner

Finding the right outsourcing partner is your first and most important decision. Here are some simple steps you need to follow while choosing your app development company:
1) Check customer reviews and references
2) Check outsourcing ratings on Clutch
3) Sign an NDA to protect your app idea

Summing up

Outsourcing allows you to be more flexible, whether it’s offshore, nearshore, or onshore. While outsourcing, you don’t need to take care of your IT staff, hire, train, buy new laptops, and manage your team.

There are lots of outsourcing companies all over the world. Nowadays, Ukraine tops the outsourcing market, providing quality app development services for a reasonable price. Still have questions? Contact us, and we’ll help you.

Vitalii Makhov

CEO @ DOIT Software

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