Beyond Hourly Rates: The Real Costs
The hourly rate is just the beginning of the comparison. Experience shows that the effective cost of offshore development is significantly higher than the initial hourly rate suggests — due to communication overhead, quality differences, timezone differences, and rework.
The Nearshore Sweet Spot for Dutch Enterprises
For Dutch enterprise organizations, nearshore development (within the EU, maximum 2 hours timezone difference) offers the optimal balance between cost efficiency and quality. The effective cost savings compared to Dutch rates are 30-45%, while communication quality and cultural alignment are significantly better than offshore.
When Offshore IS the Right Choice
Offshore development can be the right choice for: (1) well-defined, modular work packages, (2) extensive internal technical oversight, (3) projects where 24-hour development cycles provide an advantage, and (4) long-term teams that are fully onboarded. Without these conditions, the risk of quality loss and delays is significant.
The Tech Broker Approach: Risk Reduction for Nearshore and Offshore
A tech broker eliminates the biggest risks of nearshore and offshore development through rigorous team selection, active governance, and outcome guarantees. Instead of bearing the complexity of international team management yourself, you benefit from a proven framework for quality assurance.