Nearshoring in Mexico vs. Offshoring to India

How the emergence of Agile has changed today’s outsourcing landscape.

Businesses seeking to outsource software development are faced with an ever-growing list of options in virtually every corner of the globe. Each option comes with its share of pros and cons, that can make the decision-making process an epic undertaking. This white paper simplifies the process by evaluating the old standby, India, with a relatively new entrant, Mexico. We performed a fact-based analysis on key decision criteria to evaluate how these two countries stack up in providing cost reductions, quality of code, ease of collaboration, availability of talent, IP protection and more

In this white paper we compare and contrast India and Mexico on key outsource criteria:

Introduction and Overview:

What options exist today?

Availability of the critical infrastructure that ensures reliable communication and travel.

Culture and Language:
Cultural and linguistics that affect ease of integration with internal resources.

Available Resources:
Availability of top talent to meet the demands of businesses looking to outsource.

Cost of Doing Business:
The cost of labor and hidden costs of time, scope and quality can directly impact the ROI of outsourcing.

Collaboration and Communication:
The effects of proximity on ease of collaboration and communication.

Legal and IP Protection:
How secure is your technology and your investment?

Published: June 10, 2019 | 18 pages

Over the last ten years, the number of viable options for outsourcing software development have exploded.

They generally fall into one of three categories: Nearshoring, Offshoring and Onshoring. Nearshoring is a relatively new entrant. As a derivative of the term offshoring. US companies nearshore to Canada, Mexico, Central America and South America. Offshoring, the grandfather of nearshoring, generally means going to India first, or China second, to obtain services at significant cost reductions. Onshoring is simply finding a domestic partner. The Indian software sector maintains a well-known value proposition –cheap labor, where entry level wages remain 8 to 10 times lower than those in developed countries – making India a leading sourcing destination around the world. In 2017 – 2018, India earned 55% of all America global sourcing, estimated to be $185 – $190 billion.

“But as the methods for software development have changed from Waterfall, a linear sequential approach, to Agile, an iterative flexible approach, the rules for outsourcing have also changed.”

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