The challenge

The Cost Of Stagnation

“If it ain’t broke, don’t fix it!” There is a long & familiar list of companies that have subscribed to this philosophy to the point of entrepreneurial suicide. It includes familiar names such as Blockbuster, Nokia, Kodak, and many more. A quick study of their ultimate demise reveals what can happen when an organization opposes change. No matter what the reason is for this resistance (fear, comfort, pride, failure to recognize it’s benefits, etc.), even a subtle hesitation to implement change can be detrimental for the future.

For decades, the traditional source of offshore software talent has been Asia. However, recent trends have caused many companies to consider “nearshoring” software developers from Latin America. The advantages of nearshoring are many and significant. The key here is that when determining cost efficiency, it behooves a company to understand that it must look at more than merely direct costs. Cultural compatibility, time zones, and distance are just a few of the indirect costs that must be considered.

Stephen Elop, former CEO of Nokia, said this in reference to their smartphone debacle: “We fell behind, we missed big trends, and we lost time. At the time, we thought we were making the right decisions; but with the benefit of hindsight, we now find ourselves years behind.” The best thing about mistakes is that we can learn from them. Learn more about the advantages of nearshoring