IT outsourcing is a great way for businesses to cut costs, increase productivity, and gain access to expertise that they may not otherwise have. When considering IT outsourcing, one must weigh the choices of onshore, offshore, and nearshore outsourcing. All three provide distinct benefits, but it’s important to understand the differences between them to make the best decision for your business.
What is the difference between Onshore, Offshore, and Nearshore IT Outsourcing?
“Onshore” IT Outsourcing
Onshore IT outsourcing refers to a company outsourcing its IT operations to a company within the same country. This type of outsourcing may be used in situations where a company does not want to deal with the communication and cultural challenges that can come with nearshore or offshore outsourcing, or when there is a need for on-site support that can be provided quicker than by companies located abroad.
“Offshore” IT Outsourcing
Offshore IT outsourcing refers to a company outsourcing its IT operations to a company in a more distant, typically non-English speaking country, such as India, China, or the Philippines. The main advantage of offshore outsourcing is typically cost saving. However, the distance and language barrier can make communication and collaboration more challenging.
“Nearshore” IT Outsourcing
Nearshore IT outsourcing refers to a company outsourcing its IT operations to a company in a nearby country. For example, a company in the United States might choose to outsource its IT operations to a company in Canada, or a company in Western Europe might outsource to a company in Eastern Europe. The main advantage of nearshore outsourcing is that it allows for easier communication and collaboration due to the proximity of the two companies and similar time zones.
All of these forms of outsourcing have separate advantages and disadvantages and it depends on the specific needs of your business what type will best suit them. Cost and other limitations are also important factors to consider. Aldridge is an Onshore Outsourced IT firm that offers complete IT Outsourcing and other managed services for United States businesses. For more information, visit our It Outsourcing & Managed Services page to see how we can help you.