Nearshore Software Development

Tiempo Development offers offshore software development solutions with nearshore benefits. We use agile methods for high-quality, quick turnaround, cost-effective results.

Nearshore Software Development vs Offshoring [Updated, 2019]

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Best Nearshore Software Companies

Offshoring tends to be in countries that are located in different continents. These application development groups may be based many thousands of miles away from the parent company or partner. Perhaps most commonly these are to be found in Asia, for instance India, China, Vietnam, The Philippines or even Afghanistan. Eastern Europe also has a rapidly expanding tech sector - with Russia, Romania and Bulgaria leading the way. Africa is another popular choice with South Africa, Morocco and Kenya growing in prominence over recent years.

Nearshoring concerns partnering with companies who are based much closer to home. Frequently sharing the same or at least a very close timezone, there is also the advantage of a generally shared work ethic, cultural similarities and few language gaps. Prime examples in this instance would be Mexico, Brazil, Argentina and Costa Rica. US and Canadian companies are increasingly looking towards nearshore development services and alternatives for simply being easier to work with on a practical level, while also offering a sound means of cutting costs while enhancing output.

With 3 Development Centers in Mexico (Hermosillo, Guadalajara and Monterrey), Tiempo helps Software Development Companies to Grow their teams and operate in U.S. timezones. Learn the benefits of nearshore software development and how it can save you time and money.

 

What's The Difference Between Nearshore And Offshore Outsourcing (In Detail)?

Until relatively recently the main question facing companies has simply been whether the ROI (return on investment) is worth the effort of outsourcing at all. The core objective has always been to generate high quality product for less than it would cost to produce at home. Software engineering is one of those industries where quality truly counts, and naturally this has played a key factor in choosing between offshore or nearshore locations. Generally speaking the best ROI respective to financial outlay and quality of service has been found offshore - but the talent gap has shrunk considerably. By nearshore definition and benefits, plenty of companies are now considering the viability of using nearshore developers as alternatives for this very reason.

Offshoring basically means employing the services of a company located on a different continent. While India and China have long been the preferred outsourcing options, there remains the insurmountable fact that considerable difference in culture, language and time zone can considerably deplete the all important ROI.

Nearshore outsourcing presents fewer such hurdles to overcome and can nowadays often provide superior value. These countries are based on the same continent - or at least landmass in the case of Latin America. What is most important is that their comparative proximity allows for project managers and development leaders to build relationships much more easily. Sharing a time zone makes communication much simpler, and this in turn enhances the standard of collaboration and the quality of the end product.

Choosing A Nearshore Partner

The advantages of utilizing the services of a quality near shore software partner are clearly apparent. No longer is this just because of proximity but also thanks to the ever improving standards that they can reliably provide. North American companies - especially those working in extremely regulated sectors (healthcare, technology, education etc) - are increasingly looking towards Mexico instead of China or India.

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Nearshore App Development

Let's compare Mexico with China, India and the Eastern European options. Not only are the likes of Monterrey, Guadalajara and Hermosillo far more accessible but crucially they are established ICT hubs which are expanding by the day. As may be assumed from an educated and technically minded workforce, fluency in English is widespread and brought even closer by the many shared cultural values and influences. Employees tend to stay in these comfortable jobs much longer than the North American norm. This lower staff turnover equates to not just enhanced loyalty, but also a determination to deliver the best for the company and their clients.

These employees are vetted carefully during both their recruitment processing and at frequent intervals during their time with the company. For added peace of mind, it is also worth mentioning that Mexico is a member of NAFTA - allowing for total IP security just like would be the case for a North American based company.

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Comparing Mexico (Nearshore) vs India (Offshore)

As we have so far established Mexico is an ever more appealing option for companies looking to work with a nearshore partner. However, India has been a preferred choice over the previous couple of decades - so how do they compare when put up against each other?

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Nearshore vs Offshore

Mexico has expanded their tech sector dramatically over the last ten years or so and much of this is due to their becoming a member of NAFTA. The country offers not just an educated and skilled tech workforce, but they also command considerably lower salaries than what would be considered the industry norm. Naturally, this has made them a favored option for effective business process outsourcing (BPO). As education standards and training have improved, they are now an attractive proposition for the outsourcing of higher grade software development and nearshore application programming tasks. Making it a great choice for those seeking nearshore app developer, IT nearshore services, nearshore app programmer, and any other nearshore agile development projects.

India on the other hand has not fared so well in recent years. Their IT sector is at best stagnating, and some would speculate in decline due to their shift towards stock business requiring much less innovation and imagination. Combine this with a worrying trend for indigenous software developers to exaggerate their skills and frequently change employers mid-project, and it is increasingly difficult to source a truly reliable service. Wages may remain low, but this does not breed confidence in their ability to professionally stick to deadlines or deliver exactly what is promised. There also remains a work culture that is very hierarchical, and this does not often integrate well with more progressive Western working practices.

Being Cost Effective (Nearshore vs Offshore Costs in 2019)

Nearshore Software Companies

Offshore Costs

Having identified an Indian outsource service that seems the best match for this projects demands, it's time to discover what they'll be charging. Technical leads are available for $74,880/year and engineers for $52,000/year. On first impressions that may seem very reasonable, but the project manager - who has dealt with offshoring before - anticipates a few other costs that severely impact their projected ROI. Perhaps the most crucial is a staggering 40% turnover rate during the project that equates to a 25% decline in productivity, not including the 10 business days to replace an engineer and the 15 days to train up their replacements. This is worsened even further by needing to hire four new engineers to perform the work that three could carry out in the USA. Consider this just as an example for it can often be considerably worse in practice.

Nearshore Costs

Our project manager instead decides to take a look at what may be on offer in Mexico. The rates will be around the same but there are some crucial differences. To begin with, the additional costs incurred are a mere 5% turnover rate with a 10% loss in productivity. It is reasonable to assume that hiring and training a replacement would be around the same as the Indian example, but once again there is one key advantage. Thanks to the proximity, trips to visit their offices can be conducted far more regularly to provide accurate oversight over the progress of the project, and at a considerably lower cost.

Using this projection the TCE for India would be $2,206,790 compared to the $1,626,542 for nearshore Mexico - an overall saving of 26%. Most probably the true savings would be considerably enhanced by the capacity for Mexican and US employees to work together at the same time, theoretically shortening the time it will take to complete the project. Tiempo Development can dramatically reduce the TCE of an outsourcing project while also providing considerable advantages over alternative solutions. Contact Tiempo today to discover their approach towards addressing any software development needs.

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The Beauty of Shared Time-Zones

One of the key reasons for the booming Mexican manufacturing sector has been a devotion to meeting deadlines in a time sensitive world. Global supply chains have never been more demanding or exacting, and this is reflected in the Mexican worker's flexibility and devotion to providing the highest standard of service. IT services are no different and this is again one of the reasons why so many North American businesses now prefer to use the services of their nearshore alternatives.

Advantages of Nearshore Software Development [Updated 2019]

Nearshore Software Developers

Growing Pool Of Technology Talent In Mexico

At present there is a huge supply of well-educated science and IT graduates needing employment. To put it simply, there are not enough local jobs in these sectors to come close to matching demand. For instance, over the previous five years there has been an average of 130,000 technicians and engineers graduating from Mexican specialist schools and universities. In comparison, this is more than double the number seen in Brazil (despite a far higher population) and even traditionally 'technical' nations such as Germany and Canada. The problem is that over this time frame opportunities in this sector have increased only from 1.1m to 1.3m - clearly leading to a considerable surplus of skilled workers. Mexican workers are available in their tens of thousands and without the wage inflation so clearly seen to be effecting US and Canadian businesses. Mexico's second largest city, Guadalarjara has transformed into a research and development hotspot, offering a nearshore delivery model for the country's future and perfect opportunity for American companies to find the best nearshore software development solutions and java development nearshore applications.

About Tiempo Development - Nearshore Software Development Company

Nearshore Software DevelopmentTiempo Software Development offers all the advantages of nearshore best practices, as a nearshore company without compromising on quality. Instead, our focus is to deliver tailored software solution that will perform for both internal and public facing aspects of your operation. Thanks to our focus on adopting an agile nearshore and flexible approach to our development process, our highly skilled and carefully recruited team have an outstanding record in delivering deadlines early and to the highest of standards. We work closely with our partners throughout all stages of their project and assure total satisfaction for even the most demanding clients.

Mexico Overview

Mexico has enjoyed incredible growth since joining the NAFTA on January 1st 1994. Emerging as a real technological player perfectly poised to grow even further over the 21st century, today over 16 million Mexicans speak fluent English and are largely employed in white collar industries. With a GDP of $1.3 trillion and a growth of 2.3% in 2015 expected to expand beyond 3% for 2016 and 2017, the country is developing ever more towards an 'American style' workplace culture. Many technical, engineering and manufacturing degrees now require prospective graduates to pass English language courses before receiving their certification. All this combined makes Mexico the ideal nearsourcing solution to work alongside their NAFTA partners.

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