Choosing the Best Sourcing Option for Your Software Needs

Inhouse vs. Onshore vs. Offshore vs. Nearshore

When faced with the decision of how to get software projects done on time and within budget, there are multiple sourcing options available, including utilizing internal teams or outsourcing.

Inhouse, a company can choose to do the project utilizing only their current staff or by augmenting their team with contract or full-time staff.

Companies also have the option of having the project done onshore by outsourcing work to a custom software development company located in the United States. Companies based in large metropolitan areas often look to providers based in smaller cities as “rural sourcing” offers lower rates than those typically found in metropolitan areas.

Similarly, companies looking for cost savings often look to outsource their software development projects to providers offering development teams based in other countries. US-based companies have the option of selecting either offshore or nearshore providers. Traditional offshoring involves outsourcing some of a company’s software development projects to a provider with operations in countries such as Russia, China, and India. Nearshore providers offer economical alternative locations closer to home. Popular nearshoring destinations include countries such as Brazil in South America and Costa Rica in Central America.

In deciding which sourcing option is the best fit for your project and company, it’s essential to compare a wide variety of factors. These factors should include those that can impact your relationship with the provider and the project’s profitability and success. A company’s internal expertise, resource availability, project backlog, project budget, and the ability to outsource outside the United States are essential elements to consider. Comparing communication, value, development capabilities, and other factors are necessary for making the final decision on the best option for each project.

Some certain advantages and disadvantages go along with each option. To assist you in comparing these options, we’ve scored each key factor on a scale of 1-4, with 4 being the highest rating.

Factors Nearshore Offshore Onshore Inhouse
Competitive Rates 3 4 1 2
Culture Similarities 3 2 3 4
Efficient Communication 4 1 4 4
Decision-making Speed 4 1 4 3
Ease of Collaboration 4 1 4 4
Compatible Time Zone/Geographical Proximity 4 1 4 4
Talent Pool 4 2 3 3
Time-to-Market 4 1 4 3
High Interaction 4 1 4 4
Travel 3 1 3 4
Secure Infrastructure 4 1 4 4
Language 3 1 4 4
Turnover Rate 4 1 2 4
Technical Expertise 4 2 4 3
Innovation 4 1 4 3
Total Budgetary Savings 4 2 2 2
Total 60 22 54 55

QAT Global Nearshore Outsourcing Approach

Companies looking to take advantage of the popular nearshore destination of Costa Rica or Brazil will find QAT Global’s nearshore development centers based in those countries an excellent option. Nearshoring to Brazil or Costa Rica can save you an average of 20-40% compared to a fully onshore outsourcing engagement. At QAT Global, nearshoring clients find outsourcing their projects to dedicated development teams at our development centers in both countries to be strategically beneficial. Costa Rica is located in the Central Time Zone (CST), and Brazil is CST +2, making real-time communication easy from anywhere in the US. These convenient locations reduce travel expenses and offer shorter flight times than traditional offshore destinations.

Inhouse vs Onshore vs Offshore

Costa Rican and Brazilian IT professionals are also familiar with Western culture and business practices and provide comparable talent to the US. Not only that, but QAT Global’s Brazil Development Center has a low 5-year turnover rate of 5% in comparison to other overseas vendors that have up to 40% each year.

Are you ready for a proven outsourcing solution that enables you to extend your development capacity at a high value, scalable, sustainable basis? Start the conversation today, and let’s discuss your software needs!