{"id":2212,"date":"2022-02-07T20:29:29","date_gmt":"2022-02-07T20:29:29","guid":{"rendered":"https:\/\/unitconversion.io\/blog\/?p=2212"},"modified":"2022-03-31T07:49:09","modified_gmt":"2022-03-31T07:49:09","slug":"outsourcing-or-offshoring-development","status":"publish","type":"post","link":"https:\/\/unitconversion.io\/blog\/outsourcing-or-offshoring-development\/","title":{"rendered":"Outsourcing or Offshoring Development: What to Choose?"},"content":{"rendered":"

In recent years, new words have taken root in our minds – offshoring, outsourcing, outstaffing, personnel leasing. Now new semantic expressions are on the way – reshoring, profit sharing, uberization. What is the relevance of these meanings for development companies? Let’s start by analyzing the specific characteristics of outsourcing and offshoring.<\/p>\n

Why outsourcing versus offshoring<\/h2>\n

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Most of us are not used to this yet, but in many ways, these two terms, “offshoring” and “outsourcing,” have the same meaning: transferring some of the professional web development services<\/a> to freelancers. Over the past decades, as a result of globalization, this has become a trend in manufacturing, in line with constraints to cut costs, such as China, India, Russia, etc.<\/p>\n

But the reality of today is that the costs of offshore production are growing, contributing to the return of business to Western countries. This not only strengthens the logistics functions<\/a> (the speed of supply is required) but also improves the quality of finished products (the level of training of cheap personnel in some countries leaves much to be desired).<\/p>\n

Herein we can see the emerging tendencies of reshoring (business returns are still facing considerable problems). This, and additional risks from significant investments, and the level of its own personnel (either guest workers or former refugees). But it is obvious that the withdrawal of capital can provoke stagnation in the IT industry.<\/p>\n

Therefore, there is a good prospect for outsourcing. The idea is to fill the vacant niches. This will save time and money, balance the final cost of production while adhering to quality principles and ensure responsible performance supervision.<\/p>\n

What is outsourcing?<\/h2>\n

Outsourcing is a cost-saving option in which the customer receives the result of work from another company. In fact, this is a subcontract, but the fundamental difference lies in the terms of cooperation. An outsourcing company<\/a> should become a part of the customer’s business process for a fairly long time. The principle of outsourcing is to save money by attracting a qualified workforce to support business processes.<\/p>\n

In turn, the financial burden is reduced due to:<\/strong><\/p>\n