Is Offshore Software Development Better Than Onshore?

While there are benefits to going offshore with your development needs, including the potential for lower costs or quicker development timeframes, this strategy presents several challenges. In many cases, hiring offshore developers to build new applications or enhance legacy systems doesn’t translate to a successful outcome.

Finding a great developer is like finding a great contractor. Ask yourself these questions: Many offshore developers will claim to be qualified, but do you know how many successful projects they’ve completed? Are they available for consultation? Can you meet with them to discuss project goals face-to-face?

In this blog, we’ll break down why switching to onshore development is better for your organization.

Onshore vs. Offshore Software Development: Why Local is Better

If you’re a U.S.-based organization looking to create a software solution from scratch, you should consider finding a local software team. When you have the choice to work face-to-face with an experienced software development team, the question of onshore vs. offshore software development is straightforward.

To start, the potential for shared time zones and better cultural understanding can help enable faster decision-making. On top of this, the benefits of onshore software development also include better alignment with business goals, more in-person meetings, and real-time updates from your team. With offshore software development, even the smallest miscommunications or time lags can snowball into costly mistakes.

Think about it this way: proximity fosters stronger relationships, clearer accountability, and a shared sense of urgency. Ultimately, choosing onshore vs. offshore software development reduces risk and increases your odds of building a solution that’s not just functional, but truly aligned with your long-term business strategy.

So, before you send out that next bid or hire a new developer, consider looking closer to home first. You may be surprised by the return on investment onshore development brings, especially when quality and maintainability are considered.

Here is why.

The Challenges of Using Offshore Development

Now, if you’re still considering offshore software development for your next project, keep these potential challenges in mind:

1. Protection of Intellectual Property

Protecting your organization’s intellectual property (IP) is vital when considering offshore software development for your project. There are many Far East countries that are notorious for not adhering fully to copyright and IP laws. This is especially concerning when dealing with any confidential data used in making your new software.

While breaches can occur anywhere in the world, it is less likely to occur in the U.S., which is one of the benefits of onshore development.

2. The Location of the Developer

A key difference when analyzing onshore vs. offshore software development is the proximity of developers to your organization. When your developers are a car or quick plane trip away, you’ll be able to meet with them in person throughout the development process. Compared to needing a long international flight, which is neither convenient nor economical, face-to-face interaction may become limited. This may negatively affect the development of your software, as resolving bugs or other issues could take much longer.

With distance comes time. A benefit of onshore software development is that your team can be closer to your developers, saving you time and energy when collaborating on custom software projects.

3. Potential Language Barriers

When choosing offshore vs. onshore software development, also consider that English may not be your developer’s native language. This could lead to confusion when discussing technical details of the project.

A benefit of onshore software development is that you’ll likely avoid any language barriers, ensuring seamless collaboration at every step of the process.

4. Unexpected Costs 

Offshore software development is not always a consistent process, which could lead to additional costs throughout the project. While enticing when only considering the lower up-front costs, offshore development may not be worth the potential language barriers, long distances, and IP protection laws.

The typical onshore software development team will consist of one project manager to act as the liaison between you and the developers, to relay important updates and information back to you, and to keep the team on task, on time, and on budget. When you use an offshore developer, you’ll need to take into consideration the cost for additional project management resources, in the event the team isn’t as well-versed in the specific development process you’re using.

If you’re looking for an experienced, trusted, fully onshore development team for your next software project, contact SOLTECH today to bring your ideas to life.

FAQs

What is onshore vs. offshore in software development?

Onshore software development means working with teams in the same country, often in similar time zones and cultures. Offshore development involves teams in different countries, typically chosen for cost savings, but may introduce communication and time-zone challenges.

How do I choose an onshore software development company?

Look for a proven track record, industry experience, transparent communication, and cultural alignment. Review case studies, ask for references, and ensure they understand your business goals. 

What are the benefits of onshore software development?

Onshore vs. offshore software development offers easier communication, shared cultural context, and fewer time zone barriers. It enables quicker collaboration, higher quality control, and stronger intellectual property protection.

Thayer Tate

Thayer is the Chief Technology Officer at SOLTECH, bringing over 20 years of experience in technology and consulting to his role. Throughout his career, Thayer has focused on successfully implementing and delivering projects of all sizes. He began his journey in the technology industry with renowned consulting firms like PricewaterhouseCoopers and IBM, where he gained valuable insights into handling complex challenges faced by large enterprises and developed detailed implementation methodologies.

Thayer’s expertise expanded as he obtained his Project Management Professional (PMP) certification and joined SOLTECH, an Atlanta-based technology firm specializing in custom software development, Technology Consulting and IT staffing. During his tenure at SOLTECH, Thayer honed his skills by managing the design and development of numerous projects, eventually assuming executive responsibility for leading the technical direction of SOLTECH’s software solutions.

As a thought leader and industry expert, Thayer writes articles on technology strategy and planning, software development, project implementation, and technology integration. Thayer’s aim is to empower readers with practical insights and actionable advice based on his extensive experience.