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Writer's pictureVolker Schönfeld

Everything you need to know about the different outsourcing models

Updated: Jan 12, 2022





When we are talking about IT sourcing, we are talking about the delegation of responsibilities for various processes related to IT to a third party. One of the most significant advantages of outsourcing models is that it enables a company to rework on their different weak points. These could be issues related to external and internal growth, digital transformations, lack of resources and expertise, etc.

There is no questioning the truth that under the simple term IT sourcing falls hundreds of operations ranging from developing to execution. Companies rely on outsourcing models to take care of their following needs.

· Quality assurance and audit

· Project implementation

· Maintenance and support

· IT infrastructure enablement

· Migrations and upgrading


IT outsourcing has become a popular and one of the most reliable ways to get work done efficiently. Some of the many advantages of IT outsourcing are :

· Detailed subject matter expertise

· Cost-effective

· Short lead time

· High competitiveness

· 24*7 support and monitoring

· Solving issues within the time limit

· Concentrating on core bossiness objectives

The primary three different outsourcing models are onshore, offshore, and nearshore. If you want to hire an outsource team and are confused regarding the best choice for your company, then read on.

1. Offshore outsourcing – just as the name suggests, offshore outsourcing means finding developers for yourself that are far away in some other country far away from you. A lot of companies are hire professional mobile app developers from different parts of the world to not just find excellence for their projects but also to cut down significantly on costs and expenses. There are several countries that are offering the same level of service and expertise for a lower price as compared to their local developers. Some of the significant advantages of hiring offshore developers are :

· With these models, you get a chance to connect with some of the best talents from all over the world and bring a global approach and outlook to your project. This amalgamation of minds and intelligence is sure to result in something extraordinary and excellent.

· There is simply no denying the fact that with the change of countries, there is a significant shift in the pay packages for the same designation. By getting the same work done in a far more reasonable way, you are undoubtedly saving yourself from burning a hole in your pockets.

· With a good offshore company, you are not just finding an excellent team to work with from another country but also undertaking your IT requisites.


Disadvantages of offshore outsourcing

Some of the disadvantages of offshore outsourcing are :

· In a lot of cases, people have been known to suffer from significant time and zone differences. This can be a considerable problem when you need to conduct the meeting or communicate with them.

· When you are working with a team that is not around you, keeping track of all their activities, maintaining a check, and meeting deadlines can be a handful. A lot of times, there is absolutely no transparency over several issues.

· When you are working with people who are far away from you, then this difference is sure to be evident not just in terms of geography, language and demographics but, most importantly, work culture.


2. Onshore sourcing – just like offshore stands for offshore, meaning not from the same region, onshore means getting associated with a company that's well within your area or geography. In other words, this team or individuals are from the same place as you are and can come to your office for meetings, project discussion, etc., as and when required. However, this does not mean that you have hired them on a permanent basis or that they can work only for you. Some of the many advantages of hiring onshore sourcing are :


· Since you are dealing with people belonging to the same place as you, there are bound to be zero differences in terms of language or culture.

· By belonging to the same place, you are entirely ruling out the chances of time and zone differences, making communication easier and compatible.

· You are not entirely dependent on the web meetings and can have better and face to face discussions.

· With everything happening around you, you are in any day better position to regain control over the various activities that are taking place.

The disadvantages of hiring onshore outsourcing developers are :


· If you are from a developed country, then we don't need to tell you how expensive local outsourced developers can be for your firm.

· By restricting yourself to your own area, you are not just getting specified in terms of geography but also talent, knowledge, innovations, and almost significantly blocking your project from achieving a global touch

Nearshore outsourcing – an intersection between the onshore and offline souring. The nearshore outsourcing is an agile software development team that bridges the gap between onshore and offshore souring in the most effective and efficient ways. With this proper amalgamation, you get a chance to not just obtain transparency in all the operations but also ensure that work gets done in the most professional ways within the budget and time limit. Some of the many advantages of nearshore outsourcing are :

· With this model, you no longer have to worry about the differences in the time zone to establish the proper communication and get your work done.

· As compared to onshore outscoring, nearshore outsourcing can be cheaper and lighter on the pockets.

· With this model, better and effective communication can be established among the team members.


Some of the disadvantages of nearshore outsourcing are :


· Depending on the team that you choose to work with, there might not be a significant difference in the prices.

· With nearshore souring, you might not be able to connect with the best and have to settle with the standard expertise if not the best.

A lot of factors should be taken into serious consideration before opting for the right souring for your project. Some factors that are of utmost concern are :

· Cost efficiency

· Time management

· Effective collaborating

· Proper communication

· Cultural harmony

· Level of expertise

· Portfolios and clients review and testimony

· Contact laws.


Before you finalize on a company, be it onshore, offshore, or nearshore, make a list of all the necessary pros and cons. Remember, the main idea behind collaborating with these sources is to boost your company's efficiency, productivity, and growth as a whole. To seek relevance in the selection of the suitable model and to make the most of your outsourcing company, get in touch with us at Mtoag Technologies. With our experience and expertise, we can create a tailor-made plan for you that is sure to work out the best. To find out more, connect with us at Mtoag technologies today.

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