Do you know what are the basic differences between Offshoring vs Nearshoring?
Offshoring means that the company moves the IT service delivery process to a distant, distant place. Such decisions are often made on the basis of cost. For example, China and India are the two most popular countries for Western companies that want to outsource their software needs but do not have significant resources to do so. Of course, offshoring has some disadvantages that should be considered. These include, first and foremost, different time zones, cultural differences and language barriers. Such factors may affect the quality of work and digital product, although this is not necessarily the case. Therefore, before choosing a company to outsource IT services, it is worth thoroughly researching the market, getting to know its experience and employed specialists. The term nearshoring, on the other hand, refers to situations where a company outsources some (or all) of its IT services to a third party vendor located abroad but in its region. Usually, this cooperation concerns neighboring countries. An important advantage of this type of outsourcing is that these companies are often subject to similar financial and legal restrictions (eg the Personal Data Protection Act). Distance, minimum time zone and cultural differences make nearshoring a solution increasingly chosen by entrepreneurs. By choosing a business partner from a country located abroad, we can make more frequent and cheaper business trips. We gain greater control over the development process, which is especially important in critical situations.
Why is it worth building internal IT structures?
Building internal IT structures is a solution that, although often chosen by companies, generates huge costs. Acquiring highly qualified IT specialists is very difficult, and the impact of the development of new technologies on workplaces means that the specialist employed today and tomorrow may not be the one that the company still needs. For these reasons, it is worth outsourcing IT services.