What is Onshore, Nearshore, and Offshore Resourcing?
While enterprises across the world continue walking the path of rapid digitisation, the tools, teams and talent that drive those changes are in higher demand than ever. Talent shortages in critical industries are nothing new - in 2017 in the USA there were less than 50,000 Computer Science graduates and over 500,000 open positions. This vacancy rate now stands at over 8 million. The near future won’t be plain sailing, as Forrester believes “a tech talent panic will create broad gaps until new sourcing models go mainstream".
The future of tech staff resourcing
The answer to this global problem lies in using the very global networks that have expanded as a result of improved latency, a more digitally connected society, and changes to our understanding of collaborative workflows.
The answer lies in decentralising your project management and tech demands through Onshore, Nearshore and Offshore talent solutions.
What is Onshore talent resourcing?
Also known as domestic sourcing or onshore outsourcing, Onshore resourcing is when an enterprise requires resource in the same country or moves some or all of its processes or services to another company based in the same country.
For example, UK enterprises seeking tech resources from talent based in the UK.
What is Nearshore talent resourcing?
This form of outsourcing is where enterprises rely on services delivered from an adjacent or nearby location. (typically no more than +/- 3hrs in terms of time zone).
For example, companies based in the USA seeking nearshore support would source it from Canada, Mexico, the Caribbean and (increasingly) some South American states. For the UK, this would manifest as reaching into the EU tech talent market.
What is Offshore talent resourcing?
Offshore outsourcing is when an enterprise seeks services from a company based anywhere in the world outside of their region along with a marked difference in time zone.
For example, UK companies seeking tech resource support would reach into tech talent markets in India, Japan, the APAC region or South America.
Why the wider tech environment is conducive to multifaceted talent streams
The shift to these decentralised systems of tech support has been a novel introduction for industries not familiar with these sorts of online processes.
But with an increase in pressure on tech companies and larger enterprises with tech departments to deliver seamless digital services both for their own stakeholders and for their customers or user base, this form of sourcing has taken on a new dimension and level of importance.
This solution is effective because it directly connects demand with supply, sustainably, and consistently through understanding local, and global, skill levels and talent pools. Exploring on-, near- and offshore solutions also offers one critical business improvement - the ability to scale, affordably.
A view from the frontline
We spoke to a range of businesses from tech-enabled household names, and investment firms, through to consultancies, to understand why the market is behaving as it is, as well as understand their current views of resourcing and recruitment.
What your tech resource could look like
The resource approach for software development capability, no matter in what guise it is, is an important strategic decision for any business to take.
The on-, near- or off-shore partner you work with needs to be able to provide the right services, with the right commercials, with the right fit for you and your people, and surround it all with an open, honest and trusted relationship. Especially the further away you get from your office locations.
Determining your resourcing model will give you the structure and framework for how your outsourcing relationship will grow.
Resourcing models can be usefully defined by how they align across three main ‘relationships’ you have with your partner(s), which are:
This model places the majority of the responsibility on the client. In this model, you’re hiring workers on a time and materials basis from the sourcing provider to assist with your internal development projects. You still own your projects from start to finish.
Dedicated Development Team Model
The client and outsourcing provider share responsibility for and ownership of development projects, agreeing on which responsibilities belong to whom, creating a dedicated teaming model to co-exist with your organisation.
Project-based models place the majority of the responsibility on the outsourcing
provider. Your outsourcing provider completes your development projects based on your requirements, owning the projects from start to finish.
Click here to download an example of how BrightBox deploys a framework to develop a nearshore journey with a client - our Nearshore Capability Framework 3 Stage System.
How to get started
Getting started with traditional and new resource-sourcing models takes preparation. But it also takes a little internal strategy soul searching - you need to consider every roadmap available, and how each model of outsourcing can help you meet your goals, specific to your team and business expectations.
Second to that is budget, timescales and reach - how incorporated into your HQ team will your outsourced tech team be?
The following approach should be taken when considering your sourcing strategy, which can be a sole-source model or a hybrid-source model of multiple partners to meet your needs.
Before establishing how to approach any resource challenge you need to understand what you need as a business. Click here to download our BrightBox checklist to help guide your thinking.