Technology development occurs at break-neck speeds, and business leaders around the globe are adjusting their strategies and building teams capable of keeping up. Many of these leaders grapple first with one common questions: where will the development take place?
Outsourcing to an offshore development center, or keeping everything onshore are the most common methods, and each have their own unique pros and cons. However, there is a third option to consider: the blended shore model.
First we’ll break down the pros and cons of offshoring and onshoring, then we’ll introduce you to the blended shore model.
- Reduced cost – Average salaries are often lower overseas, meaning you can save a considerable amount of money on staffing.
- Time zone coverage – This can be a blessing and a curse (see cons), but overall, it’s helpful to have coverage around the clock.
- Fast set up – Technology projects can kick-off faster, because your offshore partner will already have the necessary infrastructure in place to get started immediately.
- Scalable – One month, you may need only a handful of technologists working on a project, whereas the next you are in need of 15 more people. Using an offshore company will allow you to grow and shrink without having to deal with recruitment.
- Requires consistent management – An offshore team is not autonomous and does require considerable oversight.
- Cultural differences – Cultural awareness is imperative, since these differences can impact interpretations, understanding, and productivity.
- Time difference – While a plus in terms of coverage, the time difference can make communication challenging. If a problem must be addressed immediately, frustrations can quickly arise with scheduling.
- Hands-on recruitment – Having total control of hiring means you can be selective and pick team members that you are confident will be a fit.
- Management – Daily updates and last-minute meetings are easy to schedule, and tracking productivity is a much simpler process.
- Familiarity with the business – Onshore teams often have a greater depth of knowledge regarding the business outcomes you are focused on.
- Cost – Your company carries the cost of managing additional employees, meaning expenses can quickly creep up.
- Talent shortage – It can be a challenge competing with the tech giants to attract top technical talent, so recruitment can take longer than ideal.
A blended shore model, in which some team members are state-side and some team members are offshore, delivers the best of both worlds. At 10Pearls, we favor this model. With offices around the world, we can provide 24/7 support without time zone restrictions, provide lower costs, and focus on cultural sensitivity. As a result, we can work faster and accelerate growth on behalf of our clients.
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