The global outsourcing market is massive. It generated $85.6 billion in 2018, according to Statista, and IT outsourcing companies were responsible for the lion's share of this amount, generating revenues of $62 billion.
Software development outsourcing is clearly big business. The size of the market also indicates that it works. After all, so many companies wouldn't be I outsourcing their IT if they didn't see results. Are those results as good as they could be, though?
Statista named India and China as the best two countries for outsourcing in 2017 based on cost efficiency, skill, availability of human resources, and the business environment. Clearly, there's a clear preference for offshoring because of the lower costs. Or so it seems.
If you only look at the direct costs, then offshore software development outsourcing certainly shines. So, if your only metric is how much work you received for the money you paid, then you're probably a die-hard advocate for offshore outsourcing.
However, in today's fast-paced economy, direct costs cannot be your only focus. Agile development and similar practices are now the norm because the faster you can bring your product to market, the more competitive you are.
Companies can no longer afford to spend months or years developing a complete solution. Consumers want results and they want them quickly, and the companies that deliver stay ahead of the game, like Google and Amazon.
When you opt for offshore IT outsourcing companies, you run the risk of project delays, defects, and more.
Nearshore software development outsourcing is a far better option because you get all the benefits of outsourcing without any of the drawbacks.
Having a team working on your projects while you are asleep may sound like an amazing dream.
You hold a meeting before you leave work, and everyone knows what they need to do. When you get to the office in the morning, the work has been done and is waiting for you. Sounds pretty great, and time zone differences have made it possible.
Reality, though, is rarely this seamless, and significant time zone differences can cause major problems.
What's more likely to happen is that you meet with the team during the one-hour overlap between t