As of: 4 May 2026 · Reading time: 3 min
Key takeaways
- In the globalized world of IT services, companies are often faced with the strategic decision where they can develop their software.
- The options range from T...
In the globalized world of IT services, companies are often faced with the strategic decision where they can develop their software. The options range from T...
“Good software is not an accident—it comes from a structured development process with clear quality standards.”
– Björn Groenewold, Managing Director, Groenewold IT Solutions
In the globalized world of IT services, companies are often faced with the strategic decision, where they have their [development of software](/services/software development).
The options range from the commissioning of teams in their own country (Onshore) to cooperation with partners in neighbouring countries (Nearshore) to outsourcing in faraway countries (Offshore).
While offshore development often attracts with the promise of significant cost savings, there are strong and strategic reasons why local development in Germany can be the more sustainable and ultimately better choice.
Groenewold IT Solutions has deliberately decided on the path of Onshore development after careful consideration and consistently focuses on quality, safety and a partnership, close cooperation with customers.

The strategic decision: Onshore vs. Offshore
Short: The decision between onshore and offshore development is far more than just a question of price.
The decision between onshore and offshore development is far more than just a question of price.
It is a strategic position that has far-reaching effects on the quality of the end product, the efficiency and agility of cooperation, the safety of sensitive business data and ultimately on the long-term success of a project.
To make the right decision for your company and your specific project, it is essential to consider the advantages and disadvantages of both models differentiated.
What does Onshore development mean in detail?
Onshore development, also known as Local Sourcing, means that [software development](/services/software development) is carried out by a team in the same country as the contracting company.
This allows smooth and effective communication without the hurdles of language barriers and cultural differences.
Cooperation is significantly simplified and strengthened by the same time zone and the uncomplicated possibility of personal meetings.
This promotes a deep understanding of the customer's requirements and goals and leads to tailor-made solutions.
What do you mean offshore development and what risks does it have?
In offshore development, development tasks are assigned to service providers in other countries, often with a significantly lower wage level. The main motivation for this is usually short-term cost savings.
However, this also entails a number of challenges and risks.
These include significant time shifts that make synchronous communication more difficult, cultural differences that can lead to misunderstandings in the way of working and expectations, as well as potential communication problems due to speech barriers.
These factors can significantly affect efficiency and lead to delays and quality problems.
A direct and detailed
References and further reading
Short: The following independent references complement the topics in this article:
The following independent references complement the topics in this article:
- Bitkom – German digital industry association
- German Federal Office for Information Security (BSI)
- European Commission – Digital strategy
- MDN Web Docs (Mozilla)
- W3C – World Wide Web Consortium
"DevOps is less about tools and more about shared ownership of quality and release discipline."
— Björn Groenewold, Managing Director, Groenewold IT Solutions
About the author
Managing Director of Groenewold IT Solutions GmbH and Hyperspace GmbH
Since 2009 Björn Groenewold has been developing software solutions for the mid-market. He is Managing Director of Groenewold IT Solutions GmbH (founded 2012) and Hyperspace GmbH. As founder of Groenewold IT Solutions he has successfully supported more than 250 projects – from legacy modernisation to AI integration.
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This article is in the Software development topic. In our blog overview you will find all articles; under category Software development more posts on this subject.
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