Outsourcing, Offshoring or Nearshoring?

“How can you extend the existing team with IT resources while reducing development costs?”

“How to find a competent team or an individual quickly for your project(s)?”

“What is the most optimal and cost-effective solution, which boost up the increase in returns and productivity of your businesses?”

…..

Several questions – One solution.

Let’s shed light on the question of Outsourcing and what does this term actually mean.

Outsourcing or “contracting out” is not just an agreement in which one company contracts its own internal activity to an external, contracted to a third party for a significant period of time. Outsourcing is a successful business practice nowadays.

Leading companies understand importance and in some cases necessity of performing tasks or handling operations by competent companies, which help them to deliver and to complete products or services more quickly.

Outsourcing includes offshoring and nearshoring contracting. By offshoring are business processes (technology consulting, software product development, software QA and testing, maintenance and others) relocated to a distant country.

Nearshoring is the outsourcing IT processes to companies in a nearby country.

For a company based in Germany, typical Nearshoring locations include Poland or the Czech Republic. For example, this can affect the time shift, cultural differences, the reachability and cost reduction.

The world’s top offshoring countries for IT services are India and China. They stay in leading positions because of their low-priced rates.

But low cost is not the only point that is important for clients: they would more likely focus on quality, cost-effectiveness and proximity. So is why countries in Eastern Europe has become an attractive outsourcing region. Belarus is one the best countries to outsource software development.

In our next post we tell you about the pros and cons of outsourcing and special aspects of outsource software development in Belarus.

Questions and comments are welcome 🙂