onshore nearshore offshore

What’s the Difference Between Onshore, Nearshore and Offshore Outsourcing?

One of the most critical needs for any growing company is a talented team. When sourcing teams, companies often use three different methods:

  • Onshore outsourcing refers to sourcing team members from the company’s home country.
  • Offshore outsourcing refers to sourcing team members from distant countries with prominent differences in time zones.
  • Nearshore outsourcing refers to sourcing team members from nearby countries with similar time zones.

At Mismo, we use a nearshore outsourcing model to help top tech companies grow talented teams of software developers and engineers. Learn more about the difference between onshore, offshore and nearshore outsourcing below.

What is onshore outsourcing?

Onshore outsourcing refers to sourcing team members from the company’s home country. Sourcing your team from your company’s home country is a viable option. It allows you to ensure efficient communication due to the similarity in time zones. However, it can be expensive to build a team this way. For software developers in the United States, hourly rates can be incredibly high. Plus, talent sourcing companies in the States often don’t have qualified talent ready to implement because the cost of keeping unoccupied workers in the company is too high to maintain profitability.

What is offshore outsourcing?

Offshore outsourcing refers to sourcing team members from distant countries with prominent differences in time zones. Countries like India or China are common choices for this type of outsourcing. While offshore outsourcing does have its perks, there are also drawbacks. Offshore outsourcing is the most affordable option for companies in the United States. But the difference in location and time zones can be a major detriment. Extended waiting time because of time zones, language, and cultural barriers can hamper internal communication, driving up costs and increasing your stress.

What is nearshore outsourcing?

Nearshore outsourcing refers to sourcing team members from nearby countries with similar time zones. For most companies, nearshore outsourcing strikes the perfect balance between cost and communication efficiency. The proximity of time zones makes communication a snap, while keeping prices low. Plus, if onsite visits need to happen, it’s much easier when nearshore outsourcing from a nearby country compared to a distant country.

For companies in the United States, nearshoring to Latin American countries – like Mismo’s home country of Costa Rica – is a major game changer. Mismo helps companies grow and implement talented software developers and engineers without breaking the bank. Mismo handles all the contracting, HR, and assists with onboarding. We believe in helping companies grow without the hassle.

Mismo also maintains a talented workforce year-round, ensuring that your company can find the tech it needs without waiting. In fact, most of our remote teams are up and running in just a couple weeks.

Learn more about Mismo’s innovative process for onboarding remote teams. To discover how Mismo can help your business grow a talented remote team of software developers and engineers, get in contact with us today.

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