How Cultural Affinity Impacts Your Bottom Line

Are you looking to outsource development to reduce overhead and reduce your Time to Market? You aren’t alone – over the last ten years more businesses are outsourcing to increase velocity and lower their costs to keep up with fast-moving technologies.

Today, IT workers and Developers make up more than 60% of the Outsourcing market. If you’re outsourcing Development talent then it’s critical to first understand the basics that make Offshoring and Nearshoring so different, hint: it all starts with culture.

Let’s start with some basics first:

What is Offshoring?

Offshoring occurs when a business outsources development to a partner with a development group overseas. Usually, these offshore suppliers are in Asia, (India, Afghanistan, Malaysia, China, Vietnam and the Philippines), Eastern Europe (Russia, Romania, Bulgaria, Armenia), or Africa (Morocco, Kenya and South Africa).

What is Nearshoring?

Nearshoring occurs when a business opts to use a partner in nearby countries to outsource work, generally partnering with firms in Mexico, Brazil, Costa Rica, or Argentina. The Nearshore approach includes the conveniences of shared time zones, usually, fewer communication gaps for a faster Return on Investment, and cultural affinity.



So what’s the deal with cultural affinity?

Cultural affinity deals with the relationship of cultural closeness between two separate cultures or ethnicities and it just may be the most overlooked requirement for a successful outsourcing relationship. Latin America has shared a border and a common history with North America spanning more than 300 years, and our cultures continue to become more similar.

We know what you’re thinking, but even though IT workers in countries across the globe speak English, it isn’t uncommon for businesses to run into cultural barriers with their outsourcing partners. In fact, it’s entirely too common.

This commonality is extremely important to supporting collaborative innovation and communication. Having cultural alignment means a smoother working environment for your team and your partner.

How can culture impact your bottom line?

It brings your team together.

First, it makes it your team that much more cohesive. Having cultural similarities brings your in-house and outsourced teams together and really makes them just that, a team. Your teammates in Mexico follow the same types of sporting events, listen to similar music and wear the same clothing. They also live in a republic with three branches of government and speak English fluently.

In addition, these cultural synchronicities help teams communicate more effectively. And effective communications go far and beyond English fluency. It means understanding different expressions and the way feedback is delivered.

Fewer risks are involved.

Second, cultural synchronicity goes much deeper than just sharing a common lifestyle and language. There are more risks involved with offshoring to nations that are still developing. These include legal and financial risks inherent to less developed legal and regulatory systems, less concrete civil infrastructure, and problems related to political instability and sensitive, intellectual property.

Partnering with Mexican businesses also fewer compromises of intellectual property security. This is due in large part to the support of the Mexican government and the country’s rapidly advancing infrastructure.



Shared working cultures…

Finally, office cultures and working conditions in Mexico and the United States are in perfect alignment. This interconnected working environment makes it easier to retain team members with less turnover and a faster Time to Market.

Our culture?

At Tiempo Development, we keep pace with our quickly growing customer base and advancing technology by investing in our most important asset, our people, and in supporting their communities.Click here to learn more about culture.

About Tiempo Development

At Tiempo Development, we are making the business of software development easier and more affordable with a unique combination of a nearshore business model, agile methodology, and advanced talent management. Tiempo’s proprietary agile product lifecycle management framework called Tiempo Quality System (TQS) is composed of principles and best practices that ensure productive client and team interactions and as a result, efficient software development.

Ready to talk?

Click here to schedule a meeting with our team to learn how we can partner with you to keep your innovation moving faster.


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