Nearshoring vs Offshoring

First, let’s establish the facts.

Nearshore software development involves outsourcing services to nearby countries. UK companies often nearshore to Central and Eastern Europe due to strong software development markets and English proficiency.

Offshore software development refers to outsourcing to far more distant countries like India, Malaysia or Singapore, focusing on cost savings and a larger talent pool.

Both approaches depend on the project’s needs, balancing cost, complexity, and the necessity for real-time collaboration. This is where the similarities end.

Nearshoring vs Offshoring - price perspective

The truth is harsh: budget is the main indicator for most companies looking for software development services. This is how business works, and we can’t change it. So, let’s go through a simple price comparison of nearshore (divided into two regions: Western and Central/Eastern Europe) and offshore leading countries.

Western Europe

• Average salary: $57,930/year
• Hourly rate: $79/hour

Services in Western Europe, including Germany and the UK, are still heavily influenced by the high costs of living, resulting in higher service costs.

Central and Eastern Europe

• Average salary: $25,000/year
• Hourly rate: $65/hour

Central and Eastern Europe are gaining a reputation for quality software development at more reasonable prices compared to Western Europe.

India

• Average salary: $7,100/year
• Hourly rate: $37/hour

India offers the most cost-effective software development services, with significantly lower salaries and rates, making it an attractive outsourcing destination.

You might be also interested in the article:

Hidden Costs of App Development - The Anatomy of Product Development Services

Pros and Cons of Offshoring and Nearshoring

Of course, offshoring is cost-effective but it’s related to multiple weaknesses like poor communication, cultural barriers, and time zone differences. Technical skill gaps and legal compliance issues can also pose challenges in case of even the smallest challenges.

Nearshore software outsourcing from the UK to Europe addresses these problems easily, offering even more advantages. Let’s take a look at some of them, with a focus on the Polish market as an example of a nearshore country for many UK businesses:

• Cutting-edge Skills - Polish software developers are highly skilled and rank among the best globally, frequently excelling in international coding competitions.
• Language and Communication Competence - Ranked #13 in the global EF English Proficiency Index, many Polish developers are also fluent in German, French, or Spanish, ensuring clear and direct project communication.
• Modern and Effective Methodologies - Polish developers commonly use agile methodologies, providing clients with regular updates and direct communication with the project team, enhancing efficiency and collaboration.
• Physical Location - Centrally located in Europe with modern transport links, Poland is easily accessible for European clients, facilitating regular visits and meetings.
• Cultural Compatibility - Polish workplace culture is similar to UK standards, with a Monday to Friday work week and shared public holidays, ensuring smooth collaboration with Western clients.
• Convenient Time Zone - Poland’s time zone is ideal for European clients, allowing seamless project communication without significant time differences.
• Shared Legislative and Regulatory Framework - As part of the EU, Poland follows the same legal standards, including GDPR, ensuring compliance and legal compatibility with other EU countries and most UK regulations.

Boldare – Top Polish Nearshore Software Partner with UK Entity

For those visiting our website for the first time—who are we exactly? Boldare is a product design and development company with 20 years of experience. Our team of 130 experts has developed over 300 digital products for 111+ clients, specializing in software development, digital design, generative AI, product innovation, and maintenance. We are proud of our 54 Clutch reviews, with an impressive average rating of 4.8/5

Personally, I think that clients appreciate us mostly for our tech expertise, business understanding, and proactive approach. One of our clients, David Cook from Xinfu, UK, said:

The speed with which they understood the challenge was impressive.

If you want to delve into case studies of our work for UK clients, check out the article about an open bank-based, real-time payment solution for a UK fintech startup or the case study of the Work Room app that integrates with London’s coworking scene.

To better serve our UK customers, we have recently partnered with a UK company, providing all the benefits of working with a UK-based company - legal compliance, cultural alignment, and local talent access - along with the cost advantages of Central Europe.

Why is it worth outsourcing software development to a Polish company with a UK entity?

Here is a comparison of the key cooperation factors when working with Boldare or another software supplier from Poland:

Signs that Tell You that You Have Chosen the Wrong Software Development Partner

What if you’re already in a business partnership but facing some challenges? No worries - you’re not the first. We often take over products from unreliable service providers. In a business with so many variables, it’s really easy to stumble. Here are some examples of the most common issues:

• Insufficient Development Stack: The contractor’s technology stack may initially seem promising but proves inadequate for realizing project ideas in practice.
• Limited Know-How: The contractor’s lack of expertise and knowledge may hinder project progress, prompting a switch.
• Cultural Differences: Misalignments in cultural values and practices between the client and the service provider can cause friction and inefficiencies.
• Political and Economic Situations: Unstable political or economic conditions in the service provider’s country can impact project stability and delivery.
• Time Zone Challenges: Significant time zone differences can complicate communication and coordination, affecting project timelines.
• Values and Work Modes: Differences in organizational values and work methodologies can lead to mismatched expectations and collaboration issues.
• Language Barriers: Communication difficulties due to language differences can result in misunderstandings and project delays.

It’s a perfect situation to search for a better partner and boost your business results. If you want to read more practical tips on changing your service provider while still delivering your digital product, read more here.

The High Cost of Bad Software Development

Choosing the right software development partner is crucial because initial costs are just the ‘ticket price.’ The quality of the product can reveal hidden costs, especially if the cheapest offer has flaws that surface months after release. These issues can result in a product that doesn’t meet business needs, requiring further work, user support, and additional expenses.

Here at Boldare, experience tells us that having strict product quality measures in place is one of the best ways to keep ongoing and remedial costs down.

The following are our standards and quality measures, and we recommend factoring something equivalent into your outsourced partner requirements:

• We aim to put a quality assurance (QA) specialist in every development team we offer.
• Each project has clear coding standards tailored to the product under development.
• A ‘definition of done’ for each product iteration ensures the team shares an understanding of what a successful product will look like.
• Every piece of code is reviewed and approved by at least one other experienced software developer.
• We work using a scrum framework that allows us to build products incrementally, helping to spot and fix potential issues early.

Do not outsource if you can. If you have to, choose the right partner

Avoid outsourcing if you can.

That’s the key message. Poor outsourcing can disrupt your operations and be costly. However, software outsourcing may also be the best business decision you make.

If you need to outsource, choose the right partner to help you manage the challenges. By working with Boldare, you gain all the benefits of working with a local partner while enjoying the competitive rates of a Polish company.\ \