Nearshore could be the most appropriate option for general savings. The move to offshore software development or nearshore Romania has been on the rise since the 1990’s, however, in the last five years off-shoring has witnessed fast growth as U.S. establishments have migrated most of their programming efforts to European and Asian companies (primarily) in a bid to save costs. Most Fortune 1000 establishments in the United States now employ the use of off-shore help for application support, software development, helpdesk functions or quality assurance: In a lot of cases, all of the above.

Getting any level of productivity was a big problem in the early days of off-shoring as a result of the distance and the time difference (10+ hours) which made it very hard to have direct interpersonal visits. Well-detailed requirements were needed and the off-shore teams needed to have the ability to function well in a vacuum so as to be productive.  Tools such as Webex, Skype as well as other video conferencing tools have limited the pain of communication in a way, however,the overlap in working hours is minimal between the U.S. and India and the difficulties in cultural differences and verbal communication remain.

Nearshore was initially a term invented by the Indian off-shore establishments to describe the off-site, on-shore component of their offering. For off-shore engagement, the off-shore partner normally offers 10-20% of the total workers on-site at the client at subduing on-site rates. Then the off-site developers (usually in India) offer the other 80% of the development to even out the total rate to the client.

Clients desired a “middle” component that was off-site, but in the same time zone, thereby leading to the birth of nearshore. Normally off-shore organisations will create the nearshore Romania facility in the U.S. and won’t charge less than the on-site rate, but much more than what is obtainable with the off-shore rate. The client saves on equipment, office space,and rate and is still able to get the all-day overlap with the nearshore team members.