{"id":2001,"date":"2007-12-05T20:35:00","date_gmt":"2007-12-05T20:35:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/nearshoring-software-development-to-mexico\/"},"modified":"2007-12-05T20:35:00","modified_gmt":"2007-12-05T20:35:00","slug":"nearshoring-software-development-to-mexico","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/nearshoring-software-development-to-mexico\/","title":{"rendered":"Nearshoring software development to Mexico"},"content":{"rendered":"<p>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.&nbsp; 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.&nbsp; I&#8217;m not unusually one for commercials, but I was sent this cute clip &#8211; for a small software development outsourcing firm called <a href=\"http:\/\/www.nearsoft.com\/\">Nearsoft<\/a>&nbsp; &#8211; 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.&nbsp; The principal reasons are as follows:<\/p>\n<ul>\n<li>Wages rates are comparable <\/li>\n<li>Little need to relocate staff into the US <\/li>\n<li>No need for &quot;bridge teams&quot; which spend their time overlapping development work with both onshore and offshore teams <\/li>\n<li>Productivity &#8211; for every 2 US engineers, 3 Indian engineers are needed to combat staff attrition and less experienced staff <\/li>\n<li>Staff travel costs are far lower for nearshore <\/li>\n<li>Staff attrition is lower in Mexico <\/li>\n<li>IP protection is stronger under the NAFTA laws <\/li>\n<li>Staff visas are easier and cheaper to acquire under NAFTA visas.<\/li>\n<\/ul>\n<p>While many of these points make a lot of sense, Nearsoft overlooks the issue of talent availability in Mexico and other central American locales, which is my number one concern.&nbsp; Moreover, the productivity issue is debatable.&nbsp; But there is little doubt the LAT-AM nearshore argument is becoming more and more compelling by the day with an ever-weakening dollar and no slowdown with offshore staff attrition rates.<\/p>\n<p><embed src=\"http:\/\/www.youtube.com\/v\/H4FjQDXsmNY&amp;rel=1\" width=\"425\" height=\"355\" type=\"application\/x-shockwave-flash\" wmode=\"transparent\"><\/embed><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Word on the street at the moment is that several of the leading outsourcing vendors are searching for clients who&#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[81,95],"tags":[],"organization":[],"ppma_author":[19],"class_list":["post-2001","post","type-post","status-publish","format-standard","hentry","category-it-outsourcing-it-services","category-sourcing-locations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - 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