Nearshore IT Outsourcing: Definition, Advantages and Disadvantages

Continuing the series of Offshore, Nearshore and Offshore IT Outsourcing, we take a deep dive into Nearshore IT Outsourcing in this article. We mention 3 aspects: definition, advantages and disadvantages.

1. The definition of Nearshore IT Outsourcing

Nearshore IT outsourcing means assigning software-related tasks to a third-party partner based in a different country in the same time zone or within a few hours. For example, a digital marketing agency in Vietnam partnered with a Chinese software development firm.

2. The advantages of Nearshore IT Outsourcing

2 parties don't have to work extra or late at night.
Business travels are easier, more accessible, and more economical.
2 parties share the same or quite similar cultures.
Nearshore requires lower average salaries compared to onshore.

3. The disadvantages of Nearshore IT Outsourcing

You'll have fewer alternatives because you'll only be able to choose from suppliers in nearby nations.
A lack of management control and monitoring of the vendor's procedures can cost you a lot of time (and money).
There's a potential danger that trade secrets will be compromised.
Low-quality product delivery – this is frequently the consequence of a nearshore partner working on many projects at the same time.

Cost overruns are inevitable since each change made to the final product is charged separately.

This article is totally based on our experience. We want to listen to your sharing and viewpoint, please tell us!

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