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In our last (brilliant and informative) blog, we talked about the differences and similarities between Offshoring and Outsourcing. And we introduced the concept of Yourshoring, which is a term we at TurnKey have coined to describe what we do (we make it all about YOUR product, YOUR team, YOUR deliverable, YOU get the picture).
What’s That? We Had You At Hello? Awesome. Call TurnKey And Let’s Start Building A Yourshore Solution Today.
In this post, I’m going to demystify a couple of other means of business process offshoring in the tech industry. Now meet offshoring’s first cousins, Nearshoring and Onshoring.
Nearshore software development is a more recent term, born when sourcing tech talent in Latin American countries became a thing for U.S.-based companies. Latin America is relatively new on the scene, and utilizes the Nearshoring term to differentiate itself from its Eastern European and Asian-based competitors (though note that places like Ukraine and Romania would be a nearshore option for a Western European company). It’s geographical proximity makes the time zone difference less of a beast to tame, but of course, that depends on where you’re based.
Offshoring is the OG process of sourcing tech talent outside of the United States. Initially India was the shore of choice, not surprisingly because of lower labor costs and because their English-speaking skills were nearly as good as their technical support. India was such a solid go-to that Offshoring became synonymous with building software development tech teams, first in Asia, and eventually in Eastern Europe.
Onshoring is—you guessed it—the process of sourcing talent in the software development industry within domestic borders, ie, right here in the good ol’ US of A. We’ll get into the yays and nays in a minute, but the obvious boxes that are checked for those who choose this route are that the software developers speak the same language, the time zone issue is significantly reduced or eliminated altogether, and there is an inherent cultural familiarity.
Here is the short list of drawbacks and benefits of nearshoring:
Read also about alternatives to nearshoring development team.
According to the YouGov report, 48% of companies offshore software development business functions and predicted a total market value of $620 billion by 2032. This significant increase is driven by various elements, such as the presence of a skilled workforce in offshore locations, the financial advantages of offshoring, and the rising global need for digital transformation in business operations. Here is a sneak peek to offshoring pros and cons:
What this video from TurnKey’s CEO Sterling Lanier to consider if offshoring is a great option for your business.
Ready To Trade In Near, Off, And On For A One-Stop Shop: Yourshoring.
In a perfect world, there would be enough developers to go around and you could hire the perfect talent where you live whenever you needed to. LOL. In the real world, SaaS companies go where the talent is—everywhere.
If you’re well-funded (and super patient), wait until you can find that diamond in the rough a couple of states over. If not, the other options are good ones, too. Based on the pros and cons above, how far you throw your dart is highly dependent on your product, your team, and your comfort level with things like distance, time zone issues, and language barriers. If your hiring manager has had good luck with one or the other before, maybe you go with what you know and find success again. Maybe you don’t.
Remember, location is just one piece of the puzzle. It should never drive your strategy. Wherever you are, and wherever your tech team is, TurnKey’s model ensures you get a high-functioning software development team who fits your needs like a glove.
TurnKey’s boots-on-the-ground presence along with decades of experience building and scaling teams, mitigates against most of the cons people typically associate with offshore development (lack of transparency and high churn), while offering most of the pros (similar if not better quality of talent than in the US at a lower cost). That’s made a huge difference for us.
TurnKey has your back and knows your pain points: We handle legal & compliance, recruitment, payroll and accounting, and every additional service that is vital to your success:
For example, consider the case of an international software firm that successfully transitioned to a nearshoring model. By opting for nearshore operations, the company was able to facilitate smooth communication, meet project milestones on time, and promote a healthy work-life balance for its developers.
How did they achieve this? They collaborated with TurnKey to create a nearshore software development team based in Latam.
Just a month after finalizing their contract with TurnKey, the company smoothly onboarded the inaugural group of employees for their Mexican innovation hub. The integration process was both quick and seamless. Buoyed by these initial wins, the company is now expanding its original plans for the innovation center, effectively solving the problem of time zone differences.
Being able to hire high quality engineering talent quickly is a game changer for any early stage startup. TurnKey has made that possible for us and we are proud that it is one of our company’s strengths.
We’ve noodled the heck out of this industry. We’ve lived it, worked it, evaluated it…and now, we’re changing it. In this age of global, borderless collaboration, the companies that will win are the ones who can lower their cost while continually raising the bar. You can only do that with teams that embody your values and live your culture. You can only do that with Yourshoring.
If You’re Still Reading This, You’re Beyond Ready to Dial. Call TurnKey and Prepare for Greatness.
To sum it all up, you have options. Think long and hard about what your product needs, what you’re willing to invest, and what frustrations are worth the struggle. We’re happy to help you navigate the waters lapping at every shore: Near, Off, and On. But we think you’ll land with a Yourshore solution—one that allows you to preserve and grow your culture, while being cost-effective, productive, and wildly successful.
If you hire a team in Brazil because the time zone works for your company, you like the cost savings, and your in-house tech manager is bilingual, you’re Nearshoring.
It means just what it says—you’re hiring a team at a shore near you. Latin America is closer to the United States; Ukraine is closer to Britain..
Offshoring is the lower cost solution that is the farthest away from the U.S. (Eastern Europe or Asia). Nearshoring is closer (nearby) in Latin America. Onshoring is hiring on your own “soil” so to speak—that’s when you find a team in your own country.
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