Offshoring has been a dominant practice in the United States for years. In particular, according to Statista, about 64% of all companies have outsourced development teams.
Companies quickly discovered that they could have their work completed for much less money by having it done by those living in countries with drastically lower costs of living. Offshoring usually entails sending work to nations of a great distance from the source country. For the United States, this includes India, China, and Russia.
Therefore, the package of advantages businesses get goes hand in hand with the skyrocketing interest in outsourcing services. Companies that outsource software development and IT sectors can effortlessly keep a step ahead of their competitors. And with the right project management tools, success is just around the corner.
But offshoring also has its issues though. Yes, businesses can save a lot of money, but problems due to cultural barriers and time zone differences often lead to delays and added pressure.
To solve these problems, companies have begun aiming out remote workers much closer to home. Businesses in the United States can still save money by using high-quality IT software developers from Mexico and the rest of Latin America, and their proximity to the home base alleviates many of the issues normally associated with offshoring.
The following article will explain nearshoring software development to Mexico, its main benefits, and why finding the right partner to help you connect with software engineers in Mexico can make a huge difference in the success of your business.
Why Mexico is Your Best Choice for Nearshore Software Development?
A great nearshoring partner is difficult to find, but sometimes it is worth looking at your neighbor.
We are talking about forging relationships in Mexico rather than other countries. As much as Asian or Eastern European countries may be great for some American businesses, there are some downsides to the development of outsourcing software.
A well-executed Mexican nearshore IT outsourcing strategy can accelerate time-to-market, deliver a premium end product, and enhance customer service while simultaneously reducing frustration and missed targets.
Mexico has become a popular alternative that sets itself apart from other outsourcing software development companies with its top talent and fortunate location. This country is no longer a hidden gem for software development outsourcing or nearshoring, given its proximity to America.
So, what does Mexico have those other countries don’t?
Large Talent Pool with Lower Costs
The major struggle with outsourcing IT work is finding people with exactly the skills you are looking for. The larger the talent pool you have access to, the better your chances of finding what you need.
During a TV interview, former U.S. President Bill Clinton noted that “All we read about is the violence and the drug war. The truth is that the previous president [Felipe Calderón] built 140 tuition-free universities. Two years ago, the Mexicans produced 113,000 software engineers. We produced 120,000. They’ve had very brisk growth.”
The recent improvements to infrastructure and education by the Mexican government have increased the number of people who have access to the tools and resources to grow their skill sets. This recently enlarged pool of software engineers and other IT professionals improves your odds of finding exactly the right fit for your company and your project.
One of the most important parts of nearshore outsourcing is getting a great product but at a lower cost than available in the United States. Mexico has outstanding schools and universities that produce a wide range of top talent able to complete projects to a high standard.
In addition, because of the lower salaries and lower cost of living, they can do this with a much smaller budget, reducing the overall cost of producing an application.
Developed IT Infrastructure
In recent years, the Mexican government and private developers have invested heavily in business and technology parks and are actively working on transforming the country into the innovative digital hub of Latin America.
The Mexican government has succeeded in implementing infrastructure advancements to spark economic improvements. This makes it likely that they will continue to emphasize infrastructure headways to enable more of their residents to work remotely.
Strong infrastructure and an emphasis on further improvement will likely continue to boost the availability of skilled and reliably connected remote workers.
Cultural Affinity
Culturally speaking, Mexico is greatly influenced by the Americans, from sports, lifestyle, to television and even food: Mexico is “up to date” when it comes to American culture and trends. This includes the English language, which is taught in almost all schools, and is extremely important when applying for any type of job, especially for those who are internationally orientated.
The fact that Mexico and the United States share a border means that the two cultures have already merged to some extent. This reduces the chances of a cultural clash, as can sometimes occur when team members are from extremely different cultures. This shared cultural awareness allows teams made up of members from both countries to be more cohesive and minimize misunderstandings.
Ultimately, when outsourcing to Mexico, there will be no language barriers. IT professionals speak English at a proficiency level or are even bilingual. So, language obstacles that can be common in other offshore outsourcing countries are less probable to happen in Mexico.
Collaborate in Real-Time
Mexico operates within the same time zones as the United States, and many locations switch to daylight savings time and back on the same dates as their neighbors across the border.
When you nearshore to Mexico, your development team normally works during the same hours as your in-house employees, making it easy to collaborate on projects or hop on a last-minute call.
No more staying up late or rising before dawn to contact your remote workers. No more missed deadlines because it’s a different day where the work is being done than where the deliverables are expected.
No more staying up late or rising before dawn to contact your remote workers. No more missed deadlines because it’s a different day where the work is being done than where the deliverables are expected.
Intellectual Property Rights
The protection of intellectual property is vital to the success of many firms in the United States. Many companies carefully safeguard their proprietary secrets — and with good reason. If another enterprise was to get its hands on the key parts of your business model, it could use this knowledge to undermine your success.
Unlike many other countries, Mexico and the United States have built trade agreements that guarantee software is governed by laws and regulations to ensure that it is protected from unauthorized use and that there are legal remedies should unauthorized use happen.
This makes it possible for you to freely share the information needed to develop new software with remote workers in Mexico without any worry of having it stolen from you.
These protections mirror the realities of the modern connected world we live in, resulting in more stringent rights in a broader range of scenarios. When you nearshore your software development work to Mexico, you are better covered than in many other countries. Even better, there are no customs duties for software.
Conclusion
Mexico is a safe, secure, and reliable software development partner. With the advantage of a competitive and powerful labor force that can work with your team in real-time, delivering what you need without the higher costs of recruiting a team of developers in the United States. As an outsourcing solution, it is an option well worth exploring.
For companies based in the United States, outsourcing to Mexico is a unique way because it includes more benefits than any other option available. So choosing the right IT outsourcing and agile partner is key. Technology and expertise are essential to successful projects.
We here at Ascend would love to help your insurance company with your digital transformation through Nearshore Outsourcing and Agile Development teams to achieve your business objectives.
Our competitive advantages are the 20+ years of experience in the insurance industry, a reliable talent pool of skilled IT professionals and agile delivery teams, cost-effective solutions according to your needs, and multiple facets of services like Legacy Systems Modernization and Maintenance, Quality Assurance and Software Testing, etc.
If you are looking for a professional outsourcing partner that can assist you with any of the above services, feel free to contact us.
We are a specialized IT outsourcing provider who has been working for several insurance companies for years and we would be happy to answer all your questions about how our developers and engineers can help you transform your business!