The present world scenario is uncertain: pandemics, international conflicts, and economic and political destabilization.

Many companies and officed need to close down because of the pandemic restrictions. Those who could not adapt to remote working were forced to close down, restructure their business, or change the industry altogether. 

This affected the business world as well as the education sector. Many schools and universities were affected by the pandemic and the measures. 

The IT industry primarily serves the business world and the education system. It provides solutions for the companies if they want to sell or spread their products or services online, and it allows the teams to connect and work remotely. Digital technology also benefits the education system by enabling them to create virtual spaces and classrooms where people can continue to grow and learn. 

Thanks to the implementation of remote operations, the business and the education systems can recover from the sudden halt. In recovery, offshoring and outsourcing have been of immense value to companies.

This article will discover what offshoring and outsourcing are, and then the overview of outsourcing vs. offshoring and how IT companies benefit from these options to maintain their business and grow and thrive.

Outsourcing And Offshoring – The Movement Towards The Remote Working Culture

Schools, universities, and businesses were forced to adapt to small classes, teams, and environments. This was not an easy move.

Many IT companies also needed to leave their offices and start working at home. Moving the facility and all the equipment – software, hardware, and security systems – is not an easy job. Developers could not just walk out to their homes with their laptops. And maintaining all the configurations remotely is quite an expensive and hard-to-manage solution for a company to support a full-time development team. 

This is why many companies with no skill or experience working remotely with teams turned to outsourcing and offshoring. With these options, you can rely on a third-party agency or/and a dedicated team to keep up with your projects without the burdensome management of remote operations.

This saved many IT companies from closing down during the lockdown and restrictions period. It also gave new opportunities to Software development companies facing financial challenges. 

Let`s get into the specifics. What are outsourcing and offshoring, and what are the benefits?

What Is Outsourcing?

Outsourcing offers a quick-fix solution if you want to have engineering services done by a deadline. Outsourcing is often based in the same country as you are, and you get a contract for a certain period that will cost you a specific amount. When the service or project is done, the relationship often ends there.

How does outsourcing benefit IT companies?

Outsourcing is great when you need to act fast. You have to get to the market and show your worth. So you get a quick start with outsourcing.

Another scenario is that you have particular needs, and you need to hire experts that are professionals in that field. You hire them to do marketing, automation, or an app for your company. Teaching your team to do the job will require too many resources and time that you do not have. 

What are the cons of outsourcing?

When outsourcing, you want to get a job done, not create a lasting relationship. This model does not help IT companies grow and scale. You have little influence on the team or the processes they use. There is no involvement on their side, which sometimes affects the quality and the vibe. You cannot count you can have alignment with your outsourcing team.

Things are different with offshoring.

Why Do IT Companies Go Offshore?

With offshoring, you need to create a deeper relationship.

Offshoring implies the agency or team is based in a different land than you. You create a strategy by hiring a team in another country and plan to work with them long-term. You have a dedicated team to do things or projects for you.

In the case of IТ companies, they have development teams working on the projects. 

What are the benefits of offshoring?

Offshoring allows companies to dive into a market that offers a large pool of top-rated professionals at an affordable price.

If you have challenges managing an in-house or remote team, offshoring can simplify this process because when an agency handles your offshoring, you get the whole process and the team all settled for your needs. Some companies these days even walk the extra mile for you.

The term yourshoring is becoming more and more popular in the offshoring world. It was first invented by Turnkey labs, implying a kind of offshoring that tailors every detail according to your mission, vision, values, and needs. You get a team that is hired so that it can align perfectly with your goals and stick with you for a long time. 

What are the cons of offshoring?

As with every business model, offshoring can give you some challenges. The cultural and linguistic differences may cause difficulties to arise. The distance and the time-zone difference can add to these.

However, you can overcome these if you do thorough research and maintain solid communication with your team and your offshoring agency.

Conclusion

The world scenario has changed a lot in the last few years, and many IT companies are pro-actively searching for a solution to maintain their level and grow. Offshoring has proven to be a very beneficial strategy that they can use to reach their goals. It can be a working solution for you too!