Onsite VS Offshore: Is That Even The Right Question To Ask?

Onsite VS Offshore: Is That Even The Right Question To Ask?

Talk about technology (or have anything to deal with technology) and hiring developers becomes essential for any business, service vendor, or startup.


It feels that the world today has acute shortage for good, dependable talent. As Marc Andreessen puts it:

 Our companies are dying for talent. They are like lying on the beach gasping because they can’t get enough talented people in for these jobs


However, it’s not just the Silicon Valley where the dearth of good developers is a familiar occurrence. At Kalpavruksh, we know that IT talent demand crunch is a global problem.


Meanwhile, most entrepreneurs get hiring all wrong

Offshore and onsite hiring are indeed two different strategies for businesses to start looking for talent. The fact than more than 99% of the resumes that’ll land on your desk will never make the cut will not make matters any easier.


Officially, we only aim to recruit the top 2%  of every incoming resume or potential candidate who ever walks in, and that makes it just as hard for us to find great talent all over the world.

It’s just that we made it our business to find good talent. Finding good developers is not a business function that we relegate to the human resources department; it’s in our DNA.


But really, of the offshore hiring model and the traditional onsite hiring model – the two modes of hiring available to businesses all over the world today, which one is best? When do you choose one against the other? Or can business straddle both the options?



Let’s find out:

For one, Ashok Korwar – a management consulting growth Analyst — helps solidify an important point that every IT business or any business which has anything to do with IT development wrestles with:

In short, it is profit, the absolute dollar amount of profit, that is key.


Onsite work allows businesses to work as close-huddled teams and it leads to better communication, instant availability of resources, and is much less complex to deal with.

According to Ashok, onsite business models are certainly better positioned for higher revenue and profits on a sustainable level.


We often face lack of local qualified Microsoft Dynamics CRM developers and specialists – in terms of both quality and capacity when we try the offshore option. We usually suggest a prolonged hunt for local qualified Dynamics CRM developers for our clients using the onsite model.

However, this isn’t a cookie cutter strategy. We just can’t apply one of the choices as if it’s a template. if onsite hiring management were so simple, there would never have been anything like outsourcing or near sourcing.


For some business offshoring does make sense

In cases where there’s an acute shortage of talent for specific domains, lack of sufficient capital to manage onsite work, or even the lack of leadership required to propel a massive volume of work that company gets, regardless of size.


Lack of communication, varying time zones, longer waiting times, cultural differences, and many other reasons are cited usually as potential problems that come up for offshoring.

That’s just not the truth, on hindsight.


Plenty of businesses currently rely on offshoring model to help move projects towards completion, to handle backend processes, to streamline business process outsourcing, and even knowledge process outsourcing.


Apart from on-demand onsite talent management for IT developers across domains, we also have a solid offshore talent management setup for clients (starting from a development center in India and all the way to locally established IT talent hubs across the Scandinavian region).


The key to getting the decision right about whether to choose onsite or offshore options is to:

  • Fundamental business strategies
  • Understand and evaluate risks & sustainability
  • The absolute profitability of the business – given both the choices
  • Ability to lead, manage, and control disparately located teams
  • Quality of training, delegation, and project management, and more.


It’s not about this or that; it’s about what the core operations of your company are, the capital you have available for deployment, the strength of leadership, and the availability of talent pool.



What works for you: Onsite Hiring or offshoring? 

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Mangal Pawar is the Head of Customer Engagement & Delivery for US at Kalpavruksh. He has extensively worked with clients in establishing and growing their outsourced setups, and ensuring that the setups become effective & productive for their businesses. Having worked with companies like eConnect India and Infosys — the much celebrated Indian MNC that worked its way to the NASDAQ — Mangal’s rich experience in customer engagement and delivery isn’t an accident. It’s been worked to the bone and chiselled to finesse…! He is currently responsible for engaging with and facilitating growth of our US customers, by leveraging our unique & innovative engagement model.

 +1 (201) 699 6908



Trond Skundberg is a digital advisor specializing in India outsourcing and conceptualization for digital entrepreneurs. Trond is visionary and execution specialist, rolled into one. He is the board member of the Norway India Chamber of Commerce and Industry and the CEO of Skundberg Limited. He’s been on the board for many other companies such as Devant Digital Media, Zett Interactive, and blogs at MyFantastic India . Trond is a big-picture visionary, a serial entrepreneur, and a passionate enthusiast on technology.

 +47 97 025 025



Neils Ahlmann-Ohlsen has been on continuous love affair with India ever since he started a production company in Pune circa 1978. He worked as a consultant for the former Daimler Chrysler Aerospace AG, Noxitest AG, and B & W Energy A/S since the year 2005. Neils also worked in the capacity of a European Director of PCS Technology Ltd, the company co-founders of Kalpavruksh Technologies were associated with. Neils, however, has more to him than just work. He is best known in Denmark for his political work with 17 years as a conservative MP. Neils is also the chairman of the Indian forum in Denmark and also for the board of Lotek A/S.



Martin Dommerby is the Managing Director of Kalpavruksh Technologies, and a sales person at heart. Having worked (and continues to) as a board member on many innovative and technology companies, he is the harbinger of hope where business meets technology. Martin is a believer in the human cloud. While he is the epitome of success himself, his vision for a free, open, and borderless world where work is just a click away drives him to be a staunch advocate of outsourcing. As an able manager, he brings the best people have to offer to the advantage of his company’s global clientele.

 +45 2624 6462



Michael Friang Jensen is our Digital Project Manager at Kalpavruksh in Denmark. Specializing in technology and business, digital concepts, Michael is adept at handling strategic business applications of commerce, marketing, and project management. Michael bring concepts to digital format, manage projects efficiently, deal with a global workforce of distributed talent, and has his pulse on the ever-changing opportunities in digital media.

 +45 2728 8404