Posted by Anton Blotskiy, Marketing Consultant, Softheme
June 23rd, 2009

Offshore, Nearshore, and What, Rightshore?

Since Softheme always keeps an eye on what is going on in the world of outsourcing, we couldn’t pass by one of the latest popular outsourcing solution trends called “rightshore”. Promoted by such outsourcing giants as Capgemini and Lionbridge, this type of service offers an approach to outsourcing alternative to “good old” offshoring and nearshoring.

In general, rightshore approach still does include offshoring and nearshoring models. However, the core of this solution is providing the ideal combination of outsource locations (on-site, offshore, and nearshore) for each customer’s individual project basing on analysis of project-related factors. Service providers claim that rightshore solution usually requires four steps to identify the right-shore location for any particular engagement. Here is the short description of those:

  • Research: gathering information about project-related factors such as development team size, frameworks in use, technical requirements, application vitality for business, and others;
  • Analysis: mapping gathered information against potential locations - on-site, offshore, and nearshore – to identify the best combination for customer’s project;
  • Recommendation: since there is no location possessing all benefits at once, a service provider suggests the ideal combination of outsource locations taking all the analyzed factors into account;
  • Implementation: in order to make sure that the selected mix of production facilities is correct, a service provider runs a pilot project after which the needed corrections can be made and the real project started.

As you can see, rightshore solution is an interesting offering for sure which frees customers from searching right vendors and appropriate outsourcing locations by themselves (everyone knows how frustrating this can be). Quite the reverse, customers get a professional consultation and find their problem solved. On the other hand, this model can be offered only by a global organization having development centers in different corners of the world (e.g. Lionbridge has solution centers in 26 countries); and this, in its turn, certainly leaves its trace on cost of service raising it substantially. Generally, with all its attractiveness rightshore approach is mainly affordable to enterprises with large budgets leaving startups and mid-size companies overboard. Also, as another drawback of this model that seems to be evident: the effectiveness of simultaneous management of such a location mix remains a bit doubtful.

While weighing all pros and cons of rightshore approach, it is important not to forget about the risks (communication issues, vendor competency, security exposures, etc) and benefits of a traditional outsourcing model. The latter are the customer-centric approach and flexibility (vendor and its development team adjust completely to your requirements and project needs) as well as considerably lower costs as opposed to rightshore model. Besides, with the company such as Softheme you can be sure that your project is not subcontracted to anyone else and the maintenance of any sales offices abroad is not included in the price of service like it would be with many other outsourcing firms.

Anyway, whatever your needs and abilities are, making the right decision is up to you – whether you choose to outsource right-shore or, traditionally, nearshore or offshore. In any circumstance, be careful in your outsourcing partner selection and good luck with all your endeavors!

See also: 77% clients of IT outsourcing claim to be overcharged. How to be among the happy 23%?
Ukraine Ranks 11 in the List of TOP20 Outsourcing Locations

 
  1. “Right Shoring” is increasingly becoming a focus of Global Sourcing, as experienced firms look to fine-tune their strategy, and new firms seek to establish unique advantages in the market place.

  2. Thanx for the post.I really like the short decription.your blog is really very much informative. offshore IT services India

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