Offshore software development refers to outsourcing software projects to companies in distant countries, typically with significantly lower labor costs, such as India, Ukraine, Vietnam, or the Philippines.
Onshore software development, on the other hand, involves working with developers within the same country, allowing for greater real-time collaboration, cultural alignment, and legal simplicity.
In 2025, these definitions remain intact, but the global software development landscape has transformed with advanced collaboration tools, AI-driven workflows, and shifting geopolitical influences.
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