By Nelda Dominguez on Friday, September 27, 2019
What is Onshore Outsourcing?
Onshore outsourcing is when you hire resources from your home country. The advantage of onshore outsourcing is that you’re working with a highly skilled software engineer in your own country, but this option comes with a high cost and difficulty to find available talent. So, if you hire an onshore company, you need to take into account the time the company requires to find, hire, and train the talent you need.
What is Offshore Outsourcing?
It is when you work with companies that work in a completely different part of the world.
Offshoring is working with teams in far-away countries such as India, China, Ukraine or other European countries. While the cost of working with offshore companies or offshore developers is attractive, there are many disadvantages to consider.
The teams they may hire for your company are very far away, making communication, meetings, and travel for in-person requirements difficult. It is of most importance the communication a team must have to succeed in having quality software. The language and cultural barrier of offshore companies make for a difficult work relationship.
What is Nearshore Outsourcing?
Nearshore outsourcing is about working with companies that work in a very close proximity country, such as Mexico, with almost the same time zone and cultural similarities.
Nearshore outsourcing includes more benefits than either onshore or offshore companies can offer. First and most important is the low monthly or hourly rates of experienced and talented software engineers. It gives your company additional benefits, such as shorter travel time and more cultural alignment between you and your hired team. Nearshore offers lower travel costs, including the convenience of easy travel. For example, there is no visa required in Mexico for U.S. Citizens or anyone with a U.S. Visa**. In-person meetings, team start-up, and training courses are easy, due to short travel time and cost. Communication is favorable due to the same time zones, so there are no production delays.
In conclusion, with an American based team, you’ve only got one option and that is onshore outsourcing. That results in higher prices and that the right developers aren’t always available when you need them.
Nearshore development offers onshore and offshore benefits. It saves you in cost and still provides you with the advantages of onshore outsourcing such as regular communication during business hours. Travel time and cost is remarkably reduced. Experienced and competitive talent is available. The quality of nearshore developers is high with young and experienced talent.
Onshore outsourcing is convenient but expensive.
Offshore outsourcing is affordable but with many inconveniences.
Nearshore outsourcing is the perfect solution to your company’s resource needs.
By definition, Nearshore Outsourcing works just like offshore except that your business pairs with workers in similar time zones and geographic proximity. This makes communication much more of a breeze. Onsite visits can happen faster and more frequently.
Nearshore software development has been a strong solution to many startups and companies in the Bay Area in San Francisco (Silicon Valley) and worldwide. Outsourcing companies’ resource requirements give these companies a huge advantage of being able to hire top quality engineers all while saving on cost and miscommunication errors.
**Mexico visa requirements are very clear and quite easy to understand. Mexico offers visa EXEMPTION to U.S. citizens, among other countries, and also, offers visa EXEMPTION to any nationality with a valid visa from the US, UK, Canada or Schengen.
At your first port of entry in Mexico, you have to go through Customs and Immigration. You will be asked about your purpose of travel, whether it’s your first time in Mexico, etc. Your passport will be stamped. The number of days you will be allowed to stay will be marked on the FMM card. Usually, it would be 180 days. You must retain the FMM card while you are in Mexico. If you lose, you have to pay a penalty on your exit.
Author: Nelda Dominguez, One of the founding members of Kwan Tecnologia. She handles everyday communication with our clients.