The Future of Onshore, Nearshore, Offshore Tech Resourcing
The tech industry is evolving, and enterprises worldwide are relying heavily on their tech capabilities to navigate this new reality. However, the demand for technical proficiency far outweighs the current supply. In 2017, the US had fewer than 50,000 Computer Science graduates, yet there were over 500,000 open positions, leading to an 8 million-strong deficit today. Filling the tech skill gap will be a formidable challenge. Forrester's prediction warns us of a tech resource panic until the arrival of new sourcing models. Enter the future of tech resourcing.
Tech Resourcing: Embracing the Global Network
The global problem of tech resource scarcity requires a global solution. We are more connected than ever before, thanks to lower latency, a digitally linked society, and evolving collaborative workflows. Onshore, Nearshore, and Offshore resource solutions offer a way to decentralise project management and tech demands.
Onshore Resourcing: Homegrown Resources
Onshore resourcing, or domestic sourcing, involves enterprises obtaining resources from within their own country. For instance, UK enterprises seeking tech resources would source them from within the UK.
Nearshore Resourcing: Neighbours to the Rescue
Nearshore outsourcing occurs when enterprises source services from an adjacent or nearby country, typically within +/- 3 hours of their time zone. US companies, for example, might look to Canada, Mexico, the Caribbean, or South American states for nearshore support.
Offshore Resourcing: Casting the Net Wider
Offshore outsourcing involves enterprises sourcing services from countries outside their region, often with a significant time zone difference. UK companies might seek tech resources from markets in India, Japan, the APAC region, or South America.
A diagram to demonstrate the different tech resourcing models and the different geographical locations.
The Benefits of Multifaceted Tech Resources
The digitisation of business processes has made these decentralised tech resource models essential. The increased pressure on tech companies and larger enterprises with tech departments to provide seamless digital services has boosted the significance of these sourcing models. This strategy effectively matches supply and demand, offering a scalable, affordable way to access resources.
Insights from the Industry Frontline
Industry leaders and consultancies provide valuable perspectives on this shift in resourcing, including:
James Ball, Partner at Oaklin Consulting
Gary Young, Head of Development at Missguided
Andy Sumner, Portfolio Director at Praetura
Harry Armstrong, Corporate Development Director at Opencast Software
Shaping Your Tech Resource Model
Determining your resourcing model is a crucial strategic decision. Your onshore, nearshore, or offshore partner must provide the right services, with appropriate commercials and a perfect fit for your needs. The model should define how your outsourcing relationship will evolve, typically aligning across three primary relationships:
Staff/Team Augmentation
This model places the responsibility on the client. You hire workers from the sourcing provider to assist with internal development projects, while you retain control of the projects.
Dedicated Development Team Model
Here, responsibility and ownership are shared between the client and outsourcing provider, with a dedicated teaming model coexisting with your organisation.
Project-Based Model
The outsourcing provider takes the reins. They complete your development projects based on your requirements, overseeing the projects from inception to completion.
This flowchart represents the sequential process for setting up a tech resourcing strategy.
Commencing Your Journey with Tech Resourcing
Embarking on new resourcing models requires preparation and strategic introspection. Consider your budget, timelines, and reach - to what extent will your outsourced tech team integrate with your HQ team? Your sourcing strategy could involve a sole-source model or a hybrid-source model with multiple partners.
The future of tech resourcing lies in the strategic use of onshore, nearshore, and offshore resource solutions. As we move further into this digital era, businesses must explore these resourcing models to bridge the tech resource gap and stay competitive in the marketplace.
A diagram showing resourcing considerations from business demand to selecting partner relationship.