What Is Onshore Outsourcing

Sparq’s onshore outsourcing offers companies the opportunity to outsource their software development needs, yet keep the work within the United States. Outsourcing is not a new phenomenon. Companies have always assessed their core competencies by weighing the pros and cons of outsourcing processes in areas such as legal, accounting, PR, and marketing domains. There are two groups of activities that companies generally outsource in the technology world – Business Process Outsourcing (or BPO) which is the contracting of operations and responsibilities of specific business processes to third parties. Useful examples of BPO would include back office functions such as HR Admin, Payroll, Accounting, Help Desk and Customer Support. The second group is referred to as ITO (Information Technology Outsourcing) and covers the onshore IT contracting of operations and responsibilities related to the use of information technology. Sparq’s onshore outsourcing lives within ITO and focuses on software development and support.

Once a company has decided to outsource some or all of their software development, company leadership must decide which variety of outsourcing they prefer. Offshoring is the cheapest form but their problems can be significant. Nearshoring is not as cheap, but just as challenging. Staff augmentation and contracting suffer from the problems of labor shortages, spiraling costs, and turnover. All these choices can play a role in helping a company deliver technology to the business, but in the digital world, they lack the speed and consistency that has become mandatory.