Cost Efficiency: Offshore Takes the Lead, But with Caveats

Offshoring continues to dominate when it comes to cost savings. The wage disparities between North America or Western Europe and countries like India or Vietnam remain significant.

  • Offshore developers can cost 40-70% less than their onshore counterparts.
  • Offshore teams often offer larger, more flexible development teams at a lower cost.
  • Many offshore agencies bundle services like project management, QA, and DevOps into one package.

However, hidden costs can erode offshore advantages, including:

  • Time zone coordination challenges
  • Communication delays
  • Cultural misalignment

In 2025, while offshore remains budget-friendly, companies must invest in process maturity and project governance to realize true savings.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *