Posts in category: Blog

“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 at //bit.ly/2WEFUzz.

Face-to-face time is essential in any relationship, whether it’s personal or business. Studies show that regular face-to-face meetings with software development teams help mitigate unexpected management costs that are directly related to project confusion and/or miscommunication. Sufficient facetime may not guarantee perfection, but it does lower the likelihood of setbacks such as fixing or rewriting code, redesigning processes, or moving projects back inhouse, all of which can be costly in terms of time and money. A Ventoro poll showed that over one-third of executives took offshoring projects in house because of performance issues.

This can certainly become an issue for companies that engage in traditional offshoring to countries in Asia, where the time zone difference is not conducive to regular facetime. However,  nearshoring allows companies to engage with their development teams more frequently without sacrificing productivity. Nearshoring to Latin American countries, particularly Mexico, minimizes and often eliminates this problem, not just because of the similar time zones, but also because of other tangibles such as cultural compatibility. More and more companies are learning of the nearshoring option, and others would do well to become educated. Learn more at //bit.ly/2WEFUzz.

According to the Bureau of Labor Statistics, employment of software developers will grow 24% from 2016 to 2026. The laws of economics dictate that as the demand for developers increases, the cost for this talent will also increase.

Nearshoring is a good step to undertake for companies that are looking to decrease their costs for custom software development. The nuances between nearshoring and traditional offshore outsourcing are significant and consequential. So it is in an organization’s best interest to be educated about these differences and consider all benefits that both nearshoring & offshoring have to offer.

For example, when evaluating the source of your candidates, you should pay special attention to choosing the company that is reliable and prompt in presenting candidates to fulfill your needs. Remember that a cheaper price can result in higher logistical costs elsewhere. It can also lead to poor quality of the delivered product. It’s the old adage that you get what you pay for.

This is just one of many factors that play into whether decision-makers choose to engage in nearshoring. Fortunately, nearshoring has been around long enough that we are able to take a retrospective look at how it can benefit companies in the long and short term. Learn more at //bit.ly/2WEFUzz.

When all is said and done, Covid-19 is significantly affecting every aspect of our daily lives. This includes the economy and how companies go about doing business. Organizations in every industry have had to adapt and make tough decisions in order to protect their bottom line. The sensible reaction for any company in times like this is to reassess their strategies in all components of their business.

IT & Software Development have not been immune to the challenges of our day. For the company that engages with or employs software developers, there are new and better ways to improve efficiency and strengthen the bottom line during this time of uncertainty.

According to the Wall Street Journal, one of the key components to weathering this storm is to “proactively develop and implement a strategy for new ways of working.” Thinking outside the box has never been more important. Nearshoring can be part of the solution to making your company more competitive and efficient. Learn more at //bit.ly/2WEFUzz.

With regards to nearshoring, one advantage that Mexico has over other Latin American countries is that it shares a border with the U.S. Why is this relevant? Well, Mexicans generally have a good working knowledge of U.S. culture, especially workplace culture.

This notable benefit should not be trivialized. Cultural compatibility directly leads to good communication and smooth interactions, which are essential to any successful business. Close proximity and the high frequency of travel between the two countries by their respective citizens means that there is a level of understanding between the two cultures that separates Mexico from the rest of Latin America. Additionally, according to the World Bank, Mexico was ranked as having a good “ease of business” score in 2018.

These benefits, as much as any, are significant reasons that so many companies are looking to outsource software to Mexico. As you look for the ideal software outsourcing destination for your company, Mexico should definitely be on your list!

Many Software Development companies are shifting their outsourcing to local countries such as Mexico as opposed to traditional sources of talent such as Asia. In light of this, it’s wise to examine what our neighbor to the south has to offer with regards to devops talent. Mexico has recently invested billions in Public Education & Infrastructure, and Mexican universities account for some of the top universities internationally. Consequently, they have produced a significant amount of talent in the technology sector. According to 2018 data by Stack Overflow, there are 223,398 software developers in Mexico, second-most of any Latin-American country behind Brazil. This large number means that there is a large pool of qualified and talented candidates. As companies move away from traditional outsourcing and start to look at the advantages of nearshoring, the quality of the talent pool in Mexico cannot and should not be overlooked.

There are many advantages to nearshore outsourcing, many of which you may not be aware of. Over the last several years, we have seen why nearshore outsourcing is a better option than traditional offshoring.

MHL News

Offshoring comes with several challenges that prevent can companies from achieving their full potential. Nearshoring offers unique benefits that can help a company overcome barriers and eliminate unnecessary demands.

Forbes Article