Same time zone: The tip of the iceberg of Nearshore

Although we are gradually emerging from the economical crisis, companies are constantly looking for ways to reduce costs. When I speak of these cuts, is not only related to the financial cost but also the challenges of working with teams that are behind schedule.

When people think of “Outsourcing Software Development” the first thing that comes to mind is India. However, in recent years India has begun losing its competitive advantage compared to other countries. While the cost of labor is not as cheap as it used to be, the current geopolitical climates and the difficulties caused by time zone differences are the main concerns of American executives.

Meanwhile, Latin America is improving its position as an Outsourcing Hub. American companies are starting to look in countries such as Mexico, Brazil, Costa Rica, etc. and happily discovering the importance of working in the same time zone, the excellent quality assurance, and vast knowledge about software development.
Latin America countries, such as Mexico are developing expertise not only in software development but also in cutting-edge methodologies such as Agile and Software-as-a-Service (SaaS) application development.

According to the article “Offshore outsourcing: The Nearshore Advantage begins with Business Hours”, companies outsourcing to Latin America said that the main reason of why they prefer nearshore IT outsourcing is the time convenience.

Mexico has a huge advantage as it’s +/- 2 hrs difference with US makes for easier communication and collaboration.

As many IT executives have found over the years, outsourcing software development to teams across a 12 to 24 hour time difference is extremely difficult and generally results in a massive decrease in productivity. These kinds of projects require constant communications, in a way that problems can be corrected proactive.

Outsourcing software development to a Nearshore location is like having a branch office in other state in a different country, resulting in comfortable communications with people who speak good English and understand your thoughts and needs.

Outsourcing software development to Mexico: Is it a smart option?

When companies begin seeking to reduce in the cost of web software development, many begin to think of outsourcing, or offshoring, particularly to India. Now, in recent years, many American companies are coming across a new alternative: nearshoring software development in Mexico.

Nowadays, the economic crisis is pushing to companies to cut costs without sacrificing quality for the costumers. When considering the best alternative to cutting costs in software development, outsourcing becomes a smart choice.

More and more, nearshoring software development to Mexico is being recognized as a great option for many reasons (see below).

A good example of these economic pressures is the retail industry in North America. Retailing companies think their business is not just a matter of differentiating products in a crowded market, is also about achieving cost savings while enhancing the operational efficiencies.

Is well known retailers look not only for a provider, but a partner who perfectly understands their needs, bringing the best solutions at the best cost. And it is important to recognize that decreasing costs does not require a decrease in quality in the service or product delivered.

Why they should chose Mexico for nearshoring software development? The close proximity (4-6 hrs by flight), similar time zone (+/-2 hrs), close cultural similarity, and lower cost of labor (30-40% less expensive) are just some of the benefits that Mexico gives to American companies. Moreover, Mexican software providers are always seeking to improve their services in order to not only satisfy but also exceed their customers’ expectations. All this leads to long term profitable partnerships.