Previously, we dedicated a lot of our posts to the phenomenon of IT outsourcing. Among other things, we discussed the benefits and advantages of outsourcing various IT initiatives to external vendors for startups and small- and medium-sized businesses. In addition, we also shared our opinion on what potential customers should avoid while choosing an IT outsourcing company and how they should establish partnerships with their vendors of choice. In these articles, we mentioned such terms as “offshore outsourcing” and “nearshore outsourcing” as a matter of course. However, those of our customers who are going to launch their first IT-outsourcing collaboration might be slightly confused by them. That is why we have decided to clarify how we understand them.
Basics
In simple terms, IT outsourcing can be viewed as an approach based on entrusting your IT initiatives in their entirety or some individual processes to an external source of IT expertise, skills. At the same time, this broader phenomenon implies several subsegments.
Offshore IT Outsourcing
This sort of IT outsourcing means collaborating with an IT vendor in a remote country. Obviously, such directions normally mean relations between developed geographic zones and developing nations, such as the CIS countries (first and foremost, these regions include Russia and Ukraine), Eastern Europe (Poland, for example), India, and Southeast Asia.
Why do people choose this type?
Increased cost-effectiveness
If you want to get things done cost-effectively and on time, then this is your direction. Wages, expenses on software development, fixed and variable costs, tend to be much lower than in North America and West Europe.
Flexible schedules
As a rule, companies based in developing countries tend to be ready for shorter coding sprints, more tight schedules, and extremely flexible approaches. For sure, certain conditions may differ, however, if you deal with an offshore IT outsourcing company, you are likely to deal with much more productive, proactive, and effective attitudes to work.
Outstanding IT talent pools
Many developing nations are well-known for their reputable IT schools. The first ones to come to mind are, beyond any doubt, Russia, India, and Ukraine. Some specialists opt for moving to industrialized countries, while many others choose to stay in their home locations. And the comparative economic conditions make the idea of hiring them extremely palatable to both customers and those local experts.
Evercode Lab’s Place: Offshore Outsourcing
As an offshore IT outsourcing company, the team of Evercode Lab can offer all the conceivable advantages in this respect:
– It operates a big office in St. Petersburg, Russia’s second city serving as a magnet for local IT professionals
– It can offer a proven track record of complex IT engagements with customers from all over the world
– It also operates in the European Union, with a full-fledged representative office, which significantly enhances the reliability and transparency of any collaboration
Nearshore IT Outsourcing
Nearshore IT outsourcing denotes hiring a software development vendor in a nearby nation. In the case of Evercode Lab, it means collaborating with a company from Poland, Lithuania, or the Nordic countries on the one hand (our St. Petersburg office) or with Greece on the other hand (or office in Cyprus).
What can be the possible advantages in this case?
– First of all, it is all about time zones
– Cultures also tend to be closer to each other on the basis of geographic proximity (even though it is not always the case). At the very least, one can expect to deal with a higher level of cultural familiarity
– Third, it may be the question of the same quality with reduced costs. Even though it is not always the case, subcontracting a Russian company is a very reasonable option for, say, Polish and Finnish counterparts.
– Finally, in light of all the aforementioned factors, it is always easy to manage such IT outsourcing projects
Evercode Lab’s Place: Nearshore Outsourcing
Again, Evercode Lab can be an extremely well-delivering partner in terms of nearshore outsourcing. Even though our St. Petersburg and Cyprus offices are located near not so many countries, we are enjoying amazing partnerships with some Estonian companies, for example.
Onshore IT Outsourcing
Finally, onshore outsourcing – also denoted as domestic outsourcing in some sources – means outsourcing individual IT projects and entire IT functions to an entity located in the same country.
This aspect is too specific to cover in the English language. We can only say that our reputation in Russia is also quite attractive to potential customers. To sum up – if you are an SME or startup willing to outsource an IT task, Evercode Lab is your optimal direction to go!
