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Three fundamental keys to invest in nearshoring software development in Mexico

Administrator - MSP enero 23, 2023 DAT# 1.274

Interest in nearshoring as a business strategy has grown exponentially. There are many reasons why the idea of achieving business operations with geographic and cultural proximity, the search for logistical and even legislative advantages that allow optimizing supply chains and project development, has become a global trend.

In the middle of the year 2021, Mexico has begun to stand out in this strategic approach, due to the bilateral strengthening that has occurred with the United States, having increased its share in U.S. imports by 13.5%.

Software development is a highly complex field. Organizational transitions to an effective digital environment require the implementation of various services and tools.

In terms of operation, the best way to achieve a successful integration of digital and software work is through the hiring of specialized third parties, with trained professional staff, accessible and in constant communication.

Near-shoring has become the most successful strategy for companies to achieve this fundamental objective. Below, we share five key points to take into consideration when investing in the transfer to suppliers located in Mexico.

What is Nearshoring?

Before moving on to the key points, it is important to understand the concept of nearshoring. The development of nearshore software is an outsourcing strategy in which a company transfers its production to third parties, located in nearby destinations and with a similar time zone.

The supplier is, for that reason, geographically and culturally related to the company; this strategy contemplates the creation of work teams from scratch, considering specialized professional profiles that respond to the client’s needs.

It also contemplates that the nearshore partner provides trained personnel in order to reinforce the company’s internal teams, through the incorporation of profiles and functions that are difficult to find in the market.

In this context, the following points emerge as current advantages of nearshoring in Mexico.

Cultural proximity and geographic position

The proximity in geographical terms between Mexico and the United States has consolidated a mutual understanding of the cultures, history and contexts of both countries. Differences are relatively low in this regard.

This increases the effectiveness of communication and team interaction. A good nearshore partner should understand the needs of the company, and even try to go beyond their tasks, generating proposals that increase the value they bring.

Similar legal and economic framework

The North American trade relations are getting stronger, the T-MEC is in a moment of enormous results, due to the opening towards trilateral cooperation, as well as the coordinated work for the improvement of the economies participating in the pact.

The Mexican legal environment is favorable and secure, efficiently addresses intellectual property protection and pays sufficient attention to potential tax advantages. It is an excellent place to expand operations at competitive prices and access to a market that is commercially open to diversification.

Professional competition generated within the country

One of the basic problems of nearshoring is the formation of good work teams. For this it is necessary that the country where this outsourcing strategy is carried out has good educational conditions.

Mexican universities have seen an indisputable growth in educational quality, given their inclusion in international accreditation organizations such as Times Higher Education, Quacuarelly Symonds or the Academic Ranking of World Universities, which obliges them to standardize their teaching, research and cultural extension functions under global indicators.

Mexico is now a professionally visible country at an international level as an undeniable leader in Latin America.

In the experience of MSP® , one of the main advantages is that it avoids the need to look for experts in other countries; thus, costs are reduced, while sharing a broad understanding of the objectives that we set as suppliers, for the optimization of processes within companies through our services.

For all these advantages, the Mexican economy now relies heavily on software development under the nearshore strategy, to allow companies to acquire software and digital tools without unnecessary expenses and thus can devote themselves strictly to strengthen, expand and diversify their businesses.

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