Comparison between onsite and offshore PHP developer
TABLE OF CONTENT
Definition of Onshore and Offshore PHP developer
Points to compare between onshore and offshore PHP developer from the business view
Pros and Cons of hiring offshore PHP developer
Advantages and disadvantages of onshore PHP developer
Conclusion
Definition of Onshore and Offshore PHP developer
Onshore PHP Developer
This is when companies decide to hire a PHP developer who is located in the same area or timing zone. This word is also only applied to personnel in software outsourcing projects, not used for full-time hiring by a company.
Offshore PHP Developer
Au contraire, the word is used in case the clients decide to hire PHP developer who is located in different areas or timing zone. An offshore PHP developer can come from companies, agencies or freelancers willing to cooperate with foreign businesses through legal agreements.
Points to compare between onshore and offshore PHP developer from the business view
Cost
According to Deloitte’s recent study, 85% of companies who decided to outsource their projects to abroad agencies are mainly because of their cost-effectiveness. The majority of customers who need to control costs through the difference in developer personnel rates are developed countries in the top 20 largest economies in the world such as USA, Japan, UK… As for receiving countries and providing outsourced human resources from developing economies such as Southeast Asia and Eastern Europe. The cost per employee can vary widely in each country depending on factors:
- Basic salary of the region
- Energy costs
- Operating costs such as network and computers
- The level of experience and skills of the personnel themselves.
Labor costs in countries in 2023 for your reference are as follows:
- Asia (Japan- Korea): 50-60 USD/hour
- Latin America (Brazil): 80 USD/hour
- Southeast Asia: 35-45 USD/hour
- U.S and Most of European: 300-400 USD/hour
Working Model
The onshore working model is usually direct and does not have many language or time barriers. PHP developers will have direct contact with the client to receive requests and process those requests on the client site. Meanwhile, 90% of offshore outsourcing projects will work remotely in different time-zones. This makes the development process almost 24/7 and requires constant communication between nations. The offshore PHP developer will have assistance from onshore communication translators, project managers, business analysts to fulfill professionally and quickly to meet customer demands.
Culture
Work culture in general only indirectly affects the effectiveness of hiring, but we think you should not ignore this factor. For example, for some Asian countries, personnel may take 2 weeks to 1 month off to celebrate their traditional Lunar New Year, while European countries have autumn or Christmas holidays lasting at least 1 week. On the other hand, Asian officers accept overtime work to complete development progress, while European staff is stricter about overtime work requirements. Some countries respect the rigor of the processes while developing countries often have a faster and more flexible approach. If you take advantage of this properly, offshore PHP developers can be the factor that makes a difference and competes effectively for your business. However, if you hire an onshore PHP developer, you will not have to deal with the above cultural differences.
Pros and Cons of hiring offshore PHP developer
Benefits to Hire Offshore PHP developer
The frontier of this strategy is that business can save from 50-70% total budget compared to other options. Most businesses can benefit from this cut in cost, in some cases, it is a matter of aliveness. We have become one of the leading IT service providers with 15 years of experience, so, we assure you there are other advantages of offshore development besides cost-effectiveness. It is important to understand that offshore PHP developers have a fast approach to new technology. They are fully capable of delivering quality outputs as well as shortening your time-to-market with professional delivery teams. Many offshore PHP developers have in-depth experience in website developers for industry-specialized purposes that you can leverage their best practices and know-hows. In most cases, offshore PHP developer also can be the dedicated PHP developer who is fully under your management and scope of work.
Disadvantages of Offshore Outsourcing
Business owners may find it is hard to identify a fluent working model to work with offshore PHP developer for their first-time connection. The barriers of languages and culture are hard to ignore without professional support. Overseas data security is influential to the director’s decision to partner overseas. Furthermore, many companies find it hard to check the quality coding of offshore PHP developers.
Following 15 years of experience, AHT Tech offshore development advises our partner to limit these above risks by multiple activities. Our customers feel the most help when remote companies can arrange for a representative office in the same location or country. Thanks to that, the gap between culture and working language will be greatly mitigated. Therefore, many outsourcing businesses establish sales and legal offices in different time zones to support their offshore PHP developers in completing their requirements.
Advantages and disadvantages of onshore PHP developer
One of the most important priorities of working in onshore software development is controlling costs and working efficiency. Therefore, if properly utilized, businesses can still gain the advantages of this form. On the contrary, the setbacks of this form are also cost and productivity.
For onshore development, many developers feel they do not have enough support and have a lot of pressure when working directly with customers. On the other hand, the fact that customers do not understand the entire background of the employee also causes the work process to reduce efficiency. Meanwhile, the cost of recruiting and interviewing a full-time employee in dominant markets also takes a lot of time and effort.
Conclusion
Hiring an offshore PHP developer or overseas development teams seems to be complicated. The final decision will vary on the complication and project duration. In short-term cases where only 2-3 personnel are needed and the duration is below 1 year, we recommend that you consider using onshore developers with flexible project management models. Meanwhile, if the project can last more than 1 year with a larger number of employees, you should consider overseas services to optimize long-term costs. Some questions you need to answer before you hire offshore PHP developers:
What is your project goal? Why do you need a PHP developer?
What are the skills you look for in your PHP developer? How to verify their quality?
How much money can you spend to find a PHP developer? What time do you need the offshore PHP developer onboard with the project team?
Does your company have the necessary support services to hire offshore: legal, technical architect, etc.?
Do you need to hire other positions such as business analyst, data science, tester, IT comtors?
How much budget do you have to hire a PHP developer? Do you have experience using overseas services?
Apart from doing your research, it is advisable to discuss the same strategy with other consultants to get acquainted with the prevalent scenarios. AHT Tech offshore developers are always aiming for quality goals and sharing a sustainable vision with customers. Our core mission is to be a trusted companion, delivering exceptional value and remarkable experiences that contribute positively to society, while upholding a commitment to excellence through our comprehensive services. Don’t hesitate to share your PHP product ideas to receive best-of-breed consultancy in ITO sectors.