Software Development Challenges and Why Offshore is History

A decade ago, outsourcing development work was in full swing offshore. Businesses all over the U.S. jumped on the bandwagon. However, things didn’t stay rosy. Often times the challenges in communication and late, poor quality left many businesses underwhelmed. Then came a shift and outsourcing was on the move. Nearshore came into play outpacing offshore, and Mexican software development has been on the rise.

Before you select an outsourcing partner, it’s important to understand what makes offshoring and nearshoring so different, and what makes Mexico so perfect. Let’s start with some basics, what’s the difference between the two?

If you offshore development work you are partnering with a business overseas, usually in Southeast Asia, (Vietnam, Sri Lanka, Indonesia, Malaysia, Philippines), Eastern Europe (Romania, Bulgaria, Armenia), or Africa (Morocco, Kenya and South Africa).

If you go Nearshore instead, then you’re working with developers in closer countries (and shared time zones) like Mexico, Brazil, Costa Rica, or Argentina. Nearshore is becoming increasingly popular with American businesses by reducing the spend on overhead and labor – keep reading to learn why.

Here are the reasons more business are solving their outsourcing dilemma and going Nearshore, and Mexico is becoming so popular:

1. Isn’t Return on Investment reason enough?

Outsourcing has become a business best practice, and it all started because decision makers were looking for a reason to meet growing consumer demands while increasing their Return on Investment. An increasingly competitive North American business market meant more companies looking for ways to reduce overhead without delaying Time-to-Market.

Why? Because while development talent is quickly expanding abroad, the cost of living in these countries hasn’t jumped anywhere close to American levels. So, businesses started looking abroad for other options for development talent. But as outsourcing levels hit new highs, more businesses began to realize that offshoring might not actually increase Return on Investment or agility because of hidden costs.

And that’s not all, while educated talent is growing in countries like Mexico, the domestic job markets aren’t keeping up. This means there’s an abundant talent market available at a lower cost outside of the United States where it seems like there are sometimes more Development jobs open than there are local developers. Outsourcing can drastically reduce the cost of projects and the timeframe necessary to complete them.

2. Can shared time zones and culture actually power results?

Ever hear of cultural affinity? It is the cultural closeness between two separate cultures or ethnicities, and it could be the most overlooked necessity for a successful outsourcing partnership.

Commonality is a must for supporting collaborative communication and innovation. Having cultures on both sides of your team in sync means a smoother working environment.

Cultural synchronicity means a lot more than just sharing a common lifestyle and language. There are a lot of risks involved with offshoring to developing nations. These dangers include legal and financial risks common in less developed regulatory and legal systems, less stable civil infrastructure, and issues with political instability and sensitive, intellectual property.

In addition, shared time zones in closer countries increases productivity and quality. That’s because when you partner with a team offshore, that means fewer shared business hours and longer turnaround time frames that can hinder your Time-to-Market. Even if an offshore team does adjust their hours to work simultaneously and keep pace with your developers, that could come at the cost of quality or result in greater turnover.

3. What makes Mexico your best Nearshore option?

Expanding your development team in Mexico alleviates unnecessary outsourcing barriers. Mexico is closer than other Nearshore options available – that means reduced travel costs, increased flight options and similar time zones for more fluid collaboration. Stronger communication is another benefit of working with developers in Mexico. Because of the country’s proximity to the U.S., there is a growing hub of English speaking technology professionals.

More university and technical programs in Mexico require professional English competence to meet changing market needs. Gartner Inc. recently ranked Mexican IT in the top 3 globally for outsourcing options. That’s because as the global economy and market are quickly evolving, more U.S. based businesses are looking to Mexico for an Agile business model. And Mexican development talent continues to grow.

In recent years, engineers in Mexico increased from 1.1 million to 1.3 million. In the last five years, an average of 130,000 technicians and engineers graduated from Mexican universities and specialized high schools annually – that’s around 650,000 graduates in just five years. This number quickly eclipsed students graduating in the same areas in Germany, Canada and also Brazil, which has almost double the population.

And even while higher education is becoming a norm for Mexicans, the job market has remained stagnant.

Tiempo’s Nearshore business model includes innovative software development and reliable team members in the same time zone without any language barriers for ideal outcomes. Learn how we can fast track your projects and increase your ROI within weeks.

About Tiempo Development

At Tiempo, 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. Our development teams engineer powerful technologies that align with the goals and strategies of our customers for both their internal and public-facing development initiatives. Tiempo’s proprietary Agile product-lifecycle management framework called Tiempo Quality System or TQS, is composed of principals and best practices that ensure productive client and team interactions. The result is efficient software development that enables Tiempo to support companies in launching software releases sooner – without draining important resources.