Nearshore outsourcing involves outsourcing projects to countries geographically close to the hiring company, with examples being Mexico, Argentina, and Colombia. It is appropriate for projects requiring specific talent, large projects needing expanded teams, or complex solutions where fast reaction times are needed. The benefits of nearshore outsourcing include reduced language and cultural barriers, same time zones allowing calls and meetings, and fast ramp-up of expert teams, though costs are not as low as offshore outsourcing. Offshore outsourcing refers to outsourcing far from the hiring company, with examples being India, China, and Ukraine. It is suitable for budget-constrained or niche-skilled projects, and benefits include very competitive prices and

1. Difference between
offshore and nearshore
What is it: outsourcing of a project to a country that’s
geographically close to the hiring company’s
Examples of countries with nearshore services: Mexico, Argentina, Colombia
Nearshore
Projects of all kinds that require specific or hard-to-find talent
Large projects that call for an expanded development team
Development of complex solutions that need fast reaction times
Scenarios for which it’s appropriate:
Pros of nearshore outsourcing:
Not as cheap as offshore outsourcing
Cons of nearshore outsourcing:
Access to a larger talent pool
Reduced language and cultural barriers
Same time zones that allow for calls or meetings
Fast ramp-up of expert teams
Nearshore
Nearshore
Outline the whole project in detail before reaching out to a potential
partner
Define individual tasks and deadlines
Identify the level of expertise needed for completion
Things to keep in mind
How specific are the roles you’re lacking? How hard is it to find them?
Will you need to meet with the external team on a frequent basis?
What type of workflow will the project need?
How complex is the project?
Questions to ask
Offshore
Offshore
What is it: outsourcing to teams that are located far away
from the hiring company’s
Examples of countries with offshore services: India, China, Ukraine
Offshore
Projects with budget constraints
Projects which require very specific skillsets
Scenarios for which it’s appropriate:
Pros of offshore outsourcing:
Frequently the focus is put on quantity at the expense of
the final quality
Depending on which country you choose to work with,
numerous language and cultural barriers may arise
Meetings and calls are harder to arrange
Cons of offshore outsourcing:
Very competitive prices
Offers a vast talent pool
Working at different times keeps the project moving
around the clock
How to pick the right model
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