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Home Technology

NearShore Technology CEO Gabriel Apodaca Challenges Outsourcing to India When You Could Nearshore to Mexico

Richard by Richard
October 11, 2019
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The IT Market in Mexico

The strength in Mexico’s IT market is being driven by a number of factors. Enterprise spending is accelerating, due in part to strengthening business sentiment and a more competitive regulatory environment. There is also a more robust telecommunications infrastructure, which is allowing enterprise application spending to grow in concert with the wider availability of software-as-a-service and infrastructure cloud services.

Mexico’s internal IT market is an important indicator of the country’s business competitiveness and the digital literacy of its population. In Mexico, according to BMI Research, The Mexican IT services industry had total revenues of $10.8bn in 2018, representing a compound annual growth rate (CAGR) of 17.7% between 2014 and 2018. The infrastructure services segment was the industry’s most lucrative in 2018, with total revenues of $6.8bn, equivalent to 62.9% of the industry’s overall value.

NAFTA and IP Protection

Mexico has been a nearshore option for many years. The implementation of NAFTA, the close physical proximity of an educated population, and lower wages resulted in Mexico becoming an appealing location for business process outsourcing (BPO). Over the years, the market has matured and made Mexico attractive for higher-level software development. This includes industries where “farshore” markets represent heightened IP risk and significant time-zone challenges, making it hard to maintain a close working relationship with a provider.

Why Mexico?

India appears to have hit a wall. The focus is now on the commodity business, and innovation is lacking. Though pay scales remain low, at US $10,000 to US $15,000 for a software engineer, resource access is complex with many workers overstating their competencies. Project turnover rates are high. Unlike workers in the United States or Mexico, Indian workers can be reluctant to question approaches, test their understanding, and challenge assumptions. India has a hierarchical culture that makes collaborative teamwork difficult and can lead to inefficiencies being covered up.

Businesses need to create fascinating experiences. Companies live and die by their ability to respond, innovate, and deliver. NearShore Technology has experienced and talented people throughout North America that are focused on where the world is going and can help you get there faster.

About: NearShore Technology offers IT project development and team enhancement services to forward-thinking companies seeking the predictability and ROI of “nearshoring.” More specifically, NearShore Technology delivers real business synergies and cost savings to Fortune 1000 companies looking to outsource IT processes in North America—NOT halfway around the world.

Richard

Richard

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