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As many companies in the U.S. are moving toward the hugely opportunistic mobile market, they are finding that their old partnerships with traditional Offshore IT companies need to be re-aligned. Find out the benefits of nearshore outsourcing.
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Accelerate your Mobile Delivery Series
Meet the Mexican Nearshore
Mobile Experts As many companies in the U.S. are moving toward the
hugely opportunistic mobile market, they are finding that their old partnerships
with traditional Offshore IT companies need to be re-aligned.
W E B I N A R
@itexico #nearshore
P R E S E N T E R S
Guillermo Ortega , Co-Founder & COO @iTexico
Guillermo has been in software development services for almost 20
years. He is responsible for highly standardized quality controls based
on CMMI and other software engineering best practices across all
iTexico projects. Also, he has founded 4 successful software companies
in Mexico.
David Sandoval, Marketing Manager @iTexico
David is a young entrepreneur and UX/UI specialist with more than 5
years of experience in web applications and mobile app projects. He has
a strong focus on customer experience design and marketing projects.
He holds a Bachelor in Information Systems and an MBA in Marketing by
La Trobe University in Melbourne, Australia.
@itexico #nearshore
A G E N D A
Brief history of Outsourcing
Why should you outsource?
What makes outsourcing successful?
Common issues with Offshore outsourcing
The solution: Nearshore!
Reasons why Mexico makes sense
About iTexico
Special promo for attendees
Q&A
@itexico #nearshore
WHAT IS O U T S O U R C I N G ?
A strategy by which an organization contracts out major
functions to specialized and efficient service providers,
who become valued business partners.
Source: http://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
@itexico #nearshore
W H Y S H O U L D Y O U O U T S O U R C E ?
• Access specialized talent.
• Reduce operating costs.
• Create solutions faster.
• Focus on core business.
@itexico #nearshore
E V O L U T I O N O F O U T S O U R C I N G
1950’s T I M E L I N E
Own, manage, and directly control assets.
1970’s
Companies handicapped by lack of agility.
1989
Outsourcing is formally identified as a business strategy. Outsourcing IT is considered revolutionary.
1990’s
Outsourcing some core functions is considered good strategy
2000’s
Near-shoring becomes a popular alternative to off-shoring.
Source: http://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
@itexico #nearshore
W H A T M A K E S O U T S O U R C I N G S U C C E S S F U L ?
@itexico #nearshore
• Understanding company goals and objectives.
• A strategic vision and plan.
• Selecting the right vendor.
• Ongoing management of the relationships.
• A properly structured contract.
• Open communication.
• Senior executive support and involvement.
• Careful attention to personnel issues.
• Financial justification.
@itexico #nearshore
C O M M O N I S S U E S W I T H O F F S H O R E O U T S O U R C I N G
@itexico #nearshore
T I M E Z O N E A L I G N M E N T
USA
Mexico
Canada
China India Ukraine
Poland
12:15pm 1:15am 10:45pm 7:15 pm - 8:15pm
@itexico #nearshore
U N P L A N N E D C O S T I N C R E A S E S
• Unexpected delays within the project scope
• Rising salary inflation costs
11.9% 9.5%
Salary increases in 2012. Source: Wall Street Journal
4.2% ~5.7%
@itexico #nearshore
L A C K O F O V E R S I G H T
• Use of different methodologies
• Difficulties in communication and long waiting
times
• Risk of affecting the final delivery or each
potentially shippable product increment.
@itexico #nearshore
L A C K O F Q U A L I F I E D T A L E N T
• Long hiring processes
• Long training curve for new hires
• Lack of experience
• Frustrating experience for the client
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C U L T U R A L D I F F E R E N C E S
• Culture misunderstandings.
• Different appreciation of time and deadlines.
• Lack of English communication skills.
@itexico #nearshore
O U T S O U R C I N G P A R T N E R C H A R T
Mexico / GDL India China Eastern Europe
Technical Skills ✔ ✔ ✔ ✔
Time zone Alignment
0-2 hours 9-12 hours 12 hours 7-10 hours
Travel Time 4-6 hours 15-17 hours 14-16 hours 9-12 hours
English Language Very Good Excellent Poor Fair
IT Infrastructure & Ecosphere ✔✔✔ ✔✔✔ ✔
Similar Business Culture ✔
Political stability ✔✔✔ ✔ ✔ ✔
@itexico #nearshore
N E A R S H O R E : T A K I N G B A C K C O N T R O L
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
130 K+ Graduates / year with Engineering and Technical
degrees in Mexico.
20 Universities in the immediate Guadalajara region.
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
600 IT companies
In the Jalisco region.
Mexico > Jalisco > Guadalajara
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
22 Billion dollars
Technology exports in Jalisco (region) alone. 2012.
Mexico > Jalisco > Guadalajara
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
0-2 Hours Time difference between
teams in the US and Mexico
Travel time: 3 – 5 hrs.
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
W H Y M E X I C O M A K E S R E A L S E N S E
Talent and technology.
Very similar business culture.
Real-time collaboration.
Very stable project teams.
Outstanding cost-benefit and ROI.
Aligned quality standards.
Full IP Protection / NAFTA Partner.
1 2 3 4 5 6 7
@itexico #nearshore
N E A R S H O R E I N M E X I C O
Collaboration Adaptive processes
Flexible team structures
Technical Leadership
Technical Expertise
Proven competency in popular platforms
Carefully selected expert resources for specific technologies
Stability Low turnover
Stable currency
Transparency
Time Zone alignment
Experience in a variety of architectures
Highly skilled, certified professionals
Macroeconomic stability
IP Protection Non Disclosure Agreements with Staff
Background checks for employees
Protection through NAFTA (Same legal rights as local investors)
Value Reduced total costs
Ease of travel and meetings
In-house ongoing technical training programs
@itexico #nearshore
A B O U T I T E X I C O
We are a nearshore development company based in
Austin, Texas. Our Development Center is located in
Guadalajara, Mexico and our Western Region Office
in Silicon Valley.
We focus on Extended Teams as a Service (eTaaS)
and Full App Lifecycle Mobile Solutions.
@itexico #nearshore
A B O U T I T E X I C O
• Founded in 2009 by American and Mexican
entrepreneurs and based in Austin TX
• 500% growth 2011 – 2013
• More than 70 English speaking professionals in Mexico
• Partnership with Appcelerator, IBM, Microsoft, Xamarin.
SOME OF OUR CUSTOMERS
@itexico #nearshore
F U L L A P P L I F E C Y C L E S E R V I C E S
Application Strategy &
Architecture
UI/UX Design
Cross-Platform & Native Mobile Development
Website & Backend Development
Testing & Quality Assurance
Deployment, Maintenance &
Support
@itexico #nearshore
E X T E N D E D T E A M A S A S E R V I C E (eTaaS) TM
Flexible skillsets that adapt quickly
Meet the financial needs of the client (scale up and down quickly)
Reduce project delays with on-demand available resources
On-site / Off-site ready
@itexico #nearshore
M O B I A P P C A R E TM
Testing, Maintenance and Support plans
New features, new devices
Application porting Ongoing plans, flexible rates
@itexico #nearshore
S P E C I A L O F F E R
• One to two-hour free assessment call with a
Technical Advisor.
• 5 UX/UI Design hours included in any
engagement.
