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Nearshore Outsourcing VS In-house software development

Published on
January 26, 2024

It may be safe to say that we all prefer having our team working under one roof. There’s a confidence that comes with being able to talk directly to Rick down the hall or John in the corner cubicle to discuss any changes, doubts, or suggestions that may have arisen in the spur of the moment. This is perhaps the number one reason why CEO’s, CTO’s, and Start-up owners still shy away from the nearshore options available.


The number two reason is no doubt qualification, and the third is experience. Those responsible for hiring personnel are weary about nearshore because they don’t feel that a Latin American developer will have the necessary education to carry out their software development projects, or the experience to work in the stressful and demanding American business culture. 


All of these are fair concerns, I certainly wouldn’t want to entrust any of my company’s tasks to someone who is underqualified or incapable of dealing with the common difficulties of my business context. 


However, these trepidations may be based on misconceptions.


Learn more about what experts in Nearshore Outsourcing can do for your company here.


Mexico is Becoming a Nearshore Outsourcing Hub for Software Developers 


This is due to many factors. Mexicans have had a historical predisposition towards engineering with students competing and winning in worldwide events, and migrating to top tier universities to become globally recognized; this compounded with the fact that Mexican students are getting more and more interested in tech-based majors, a great amount of highly-qualified graduates are looking for jobs in a country in which there are still a limited number of positions. 

It’s only necessary to realize that out of the Top10 careers Mexican students opt for in 2020, Systems Engineering is now ranked in 4th place, only behind Business Administration, Law, and Marketing.


Then there’s the question of experience with the American business culture. The fact of the matter is that Mexicans have grown very closely with the United States. As historic business partners, Mexico is constantly updating in everything and anything the U.S. market requires being as it is its most important business ally. As a result, Mexicans find English proficiency as an absolute must and contact with American employers is well within their range of experience.


Discover more reasons why Software Development Companies are turning to Mexico for Nearshore Outsourcing here


The Current State of the World Has Answered Some Doubts about Nearshore Outsourcing


Then we circle back to Rick down the hall and the main reason why nearshore was not quite in the conversation… It's just too much of a gamble to try it out… virtual onboarding, video-conferencing, home office, it’s just too much of a hassle to set up… and along came lockdown. The global pandemic forced companies to do business remotely, relying on the capacity of people to work unsupervised, and the results couldn’t have been better. 


The truth is that employees love working from home, especially those that fit the profile of a software developer. Efficiency skyrocketed, and, suddenly, nearshoring was back on the table, with one huge advantage: Cost. 


When you realize that the next door market charges anywhere between 50 and 60% less than the local one you start to wonder. Perhaps you’re not going to nearshore all your software development projects, but you can certainly fall back on a highly-qualified, cost-effective B-Team, that can work as reliably as you’re A-Team, carrying the load of some of the less interesting break/fix, maintenance projects that used to take up valuable time from your top stars.


When it comes down to it, Nearshoring is not here to destroy the local market, it’s here to complement it.


Contact us today so we can show you what we can do for your company’s staff augmentation plans through our Assisted Expansion model. You won’t regret it!


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