Our Engineers are well trained and highly skilled in software development technology and methodology. This significant knowledge and experience base, coupled with extensive SND training, prepares our teams to meet and exceed client expectations on IT projects across the wide range of the software development spectrum in the United States.
Mexico’s many universities offer excellent computer science, engineering and other technical degrees. More than 60,000 four-year IT-program graduates join the workforce each year with over 10 percent of Mexican students being enrolled in a computer science or IT-related program. As the cost of living in Mexico is lower than in the United States, these graduating engineers can cut end costs to customers by roughly one-third that of their U.S. counterparts – a boon for organizations nearshoring to Mexico.
Mexico shares more cultural traits with the United States than any other outsourcing hotbed. A common culture contributes to higher productivity and lower cost. The cultural affinity is partially based on the constant exchange of goods and services and the fact that many of Mexico’s IT professionals work for United States or global companies. As with the language of computer science and other technical degrees, English is the norm among IT technical professionals in Mexico hired by Software Next Door.
Mexico is currently the United States’ second-largest trading partner and enjoys trade agreements with Canada, the EU, Israel, Japan and various Latin American countries. Software Next Door is headquartered in Querétaro, Mexico’s fastest growing, best run and safest large city. Querétaro is home to many multinationals, high tech, aeronautics and medical research companies.
The close proximity of personnel in Mexico as nearshore partners allows work to occur in the same time zones as each other. Time zone compatibility is critical, facilitating communication, to enable the use of Agile daily Scrum meetings and other rapid development processes. Meetings and calls can take place ad hoc, during regular business hours.
Travel is more convenient, affordable and comfortable, with shorter and more frequent flights between Mexico and the United States.
Because of the United States-Mexico-Canada Agreement (“USMCA”), there are no caps on visas for Mexican software engineers coming to the U.S. And these Visas (“TN Visas”) to work on-site in the United States for an extended period of time, can be applied for and granted at any time during the year. These provisions as to issuance of visas were carried forward and included in the 2018 USMCA Treaty among the United States, Mexico and Canada which renegotiated NAFTA.
Engineers from Mexico can freely come and go to suit the needs of a project, with visas being issued within three weeks.
H1B visas are issued under a strict quota. Applications must be submitted in April, and visas are notissued until October 1. There is always an over subscription for H1B visas, and applicants must pass thorough a lottery to be considered.
Nearshoring to Mexico offers cost advantages which are comparable to those of with outsourcing suppliers from distant shores. Mexico offers a large pool of highly qualified software engineers, steeped in cultural traditions similar to the United States and operating in environments with very strong infrastructure. However, wage rate increase and turnover are much lower than those in many other outsourcing countries.
When all the cost factors are considered – turnover, ease of communication, productivity, travel time, lack of visa quotas and cultural affinity – Mexico offers a lower total project cost, even in cases of lower wage differentials.
In recent years, the Mexican government has undertaken a telecommunications modernization initiative, investing in fiber optics and satellite links. This has enhanced what was already a strong communication system.
Mexico’s power infrastructure is sound with solid electrical grids. Power outages are rare in Mexico.
Mexico has World Class Business Continuity Centers located in key IT centers thorough-out Mexico. KIO and TELMEX re the main providers. Both companies have Back Up Centers in Queretaro. n recent years, the Mexican government has undertaken a telecommunications modernization initiative, investing in fiber optics and satellite links.
Mexico has strong Intellectual Property Law protections, which are reenforced by the United States-Mexico-Canada Agreement.The United States State Department has assessed that these laws afford far more Intellectual Property protection than the laws in any other outsourcing country with relatively low IT labor rates.
While the successes experienced by India, China, Russia, and other nations have been positive, rapidly rising wages and high turnover have presented challenges for outsourcing customers using software development firms in those countries. Wages have risen in all popular outsourcing areas, particularly in India where they have increased 16 to 18 percent annually. Mexico has not experienced these types of wage rate increases.
In the battle for experienced talent, turnover regularly exceeds 20 percent per year. Constant personnel churn necessitates continual training, putting pressure on project continuity and escalating project costs. Mexico has not experienced these types of high levels of turnover.
The challenge of time and cost of travel to faraway locales, plus the strain on productivity when working in a different time zone, is well documented. So too are the issues related to operating with software developers located in different time zones – see below for the impact this critical factor has on total project costs.