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Website about It Outsourcing - Outsourcing portal. Other useful information: Mexican neashoring costs on average 65% of the US costs, compared to 85% for Indian costs for software development services." /
« Will an economic downturn spark a new wave of outsourcing growth? |
Word on the street at the moment is that several of the leading outsourcing vendors are searching for clients who want to develop resources in Central and South America. This is especially the case for services that require a higher degree of staff interaction and time overlap, for example software development, HR and finance processes. I'm not unusually one for commercials, but I was sent this cute clip - for a small software development outsourcing firm called Nearsoft - which comes up with some very compelling arguments for nearshoring software development work to Mexico for Californian businesses; namely that Mexican nearshoring costs on average 65% of the US costs, compared to 85% for Indian costs for software development services. The principal reasons are as follows:
Our evangelizing of Nearsoft and their guerilla marketing video has made its way through the 'net and resulted in this recent postWord on the street at the moment is that several of the leading outsourcing vendors are searching for clients [Read More]
Interesting to see countries like Mexico competing on price and service value with India for outsourcing work. As you mention, their one drawback is supply of labor talent and whether they can take on enterprise work at a higher scale. Will be interesting to see how the trend of the South American nations develops over the next year or two for taking on outsourcing work like application development.
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| For you information - For Any Supply Chain Function, The Most Significant Decision Is Whether To Outsource The Function Or Perform It In-house. The Decision To Outsource Is Made At A Strategic Level And Normally Requires Board Approval. |
The Outsourcing Blog..."Horses For Sources": Nearshoring Software Development To Mexico - « Will an economic downturn spark a new wave of outsourcing growth? |
Word on the street at the moment is that several of the leading outsourcing vendors are searching for clients who want to develop resources in Central and South America. This is especially the case for services that require a higher degree of staff interaction and time overlap, for example software development, HR and finance processes. I'm not unusually one for commercials, but I was sent this cute clip - for a small software development outsourcing firm called Nearsoft - which comes up with some very compelling arguments for nearshoring software development work to Mexico for Californian businesses; namely that Mexican nearshoring costs on average 65% of the US costs, compared to 85% for Indian costs for software development services. The principal reasons are as follows:
The Outsourcing Blog..."Horses for Sources": Nearshoring software development to Mexico
The Outsourcing Blog..."Horses for Sources"
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| Is the world really that "flat"? »
Dec 05, 2007
Nearshoring software development to Mexico
Wages rates are comparable
Little need to relocate staff into the US
No need for "bridge teams" which spend their time overlapping development work with both onshore and offshore teams
Productivity - for every 2 US engineers, 3 Indian engineers are needed to combat staff attrition and less experienced staff
Staff travel costs are far lower for nearshore
Staff attrition is lower in Mexico
IP protection is stronger under the NAFTA laws
Staff visas are easier and cheaper to acquire under NAFTA visas.
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