With offshoring, the operating activities are relocated to another country and the geographical location is irrelevant.

Are you in need of software development, but lack the office space or time to train new team members?
Perhaps you’re looking for a dedicated team of qualified software engineers to deliver fast, effective results?

Offshoring is the answer, and we can help you with that!

OFFSHORING

SO, WHAT ARE THE BENEFITS OF OFFSHORING?

Typically, most corporations offshore different segments of their business for different reasons. But for the majority, lower cost plays an important or primary role.

Main advantages of offshoring

LOWER PRICES
A lot of services become substantially cheaper when outsourced, especially for those in the IT industry, due to the salary differences and favorable conditions in smaller countries. However, a paramount reason why companies choose to offshore is the huge difference in taxes and tariff relieves which you can benefit from.

SPECIALISATION
For a specialized field, such as software development or web design, offshoring can give you direct access to specialists based in other countries, with vast skills and knowledge of the required area, who will be able to render fast cost-effective brilliant results.

FLEXIBILITY
Offshoring simply allows you to pay for exactly what you need. You don’t need to hire a new employee or a whole new team and have to spend time training them. You simply give the job to a qualified specialist and pay for the final service or the hours they have invested.

OUTSOURCING VS OFFSHORING

In today’s world of business, the meaning of ‘offshoring’ is being confused with ‘outsourcing’ due to the similarity in the concept of both words. Do you know the difference between ‘outsourcing’ and ‘offshoring’?

Offshoring Definition

The practice of contracting a third-party company from another country to carry out various operations or services, so as to take advantage of lower costs.

Outsourcing Definition

Contracting or subcontracting of a company’s processes or services to another organization who holds a competitive advantage of knowledge in a specific area. Often a decision to downsize the workforce and to reduce costs.

Essentially, ‘outsourcing’ is the overarching term for contracting your services to another company, without the specification of its location. Whilst ‘offshoring’ literally means contracting a service from a company which is located in another country for benefits like low labour costs. However, offshoring can also have its disadvantages.

Disadvantages Of Offshoring Overseas

Communication issues

A major drawback of offshoring is the language barrier. Even when there is a common language, the understanding and depth of knowledge differ. Accents can also make communication difficult.

Security

Offshoring requires extra strict protocols and safety measures to be implemented.

Time zone differences

Companies working with other companies in different time zones will need to assign and adapt to appropriate shift patterns.

Cultural and social barriers

Cultural differences and behaviours can have an impact on a business partnership. This is why intercultural communication (ICC) is a primary necessity, as it can lessen potential misunderstandings, reduce the risk of perceived insensitivity and minimise cause for offence.

Higher offshore costs

Labour costs might be reduced by 70%, but other utilities could be more costly in other countries, such as electricity.

But, offshoring needn’t be to a distant country…

HAVE YOU CONSIDERED NEARSHORING?

The term ‘nearshoring’ is when an organisation decides to transfer its work to another organisation based in a neighbouring country within the same region, for reasons including same spoken language and data protection laws, fewer cultural discrepancies, as well as small or no timezone differences.

Other Advantages Include

Less expensive travel for visits due to proximity

Greater control and timely decision-making

Similar financial and legal systems

WHY INTERVENTURE?

With InterVenture you can have your very own dedicated software development team in Serbia.
Fast. Cost-efficient. Sustainable.

YOUR OWN DEDICATED TEAM OF SPECIALISTS

By building up a dedicated development team in Serbia, InterVenture offers you a proven nearshoring solution which enables you to extend your development capacities on a cost-efficient and sustainable basis.

GET IN TOUCH

LET’S START BUILDING TOGETHER

Book a free workshop or consultation or give us a call at +41 44 543 4319

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INTERVENTURE SOURCING AG