The Solution is Right Next Door
Reliable software development
with advanced skills, upgraded quality
and/or reducing costs...
Top Talent
Next Door
Same Time
Zone
USMCA Simplifies
Visas
Globally Competitive
Rates
High Quality
Infrastructure
Intelectual Property
Protection

Top Talent Next Door

Experience

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.

University Education

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.

Shared Culture

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.

Stability

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.

“Mexico is now one of the top producers of engineers in the world, according to Oscar Suchil, director of graduate affairs at the public National Polytechnic Institute, where 60 percent of its 163,000 students are studying engineering and paying just $12 a semester in tuition.”
-- The Washington Post

Same Time Zone as United States

North America Time Zone

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

Travel is more convenient, affordable and comfortable, with shorter and more frequent flights between Mexico and the United States.

“Our Mexican developers are available in the morning to join their East Coast of the US teammates and then end the day with their West Coast teammates. They can attend meetings and virtual calls, respond to email and work alongside clients for seamless integration throughout the day.”
-- Hector Teran

USMCA Simplifies Visas

The USMCA Advantage - No Caps and No Timetable

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.

No Waiting

Engineers from Mexico can freely come and go to suit the needs of a project, with visas being issued within three weeks.

Contracts with H1B

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.

“USMCA gives Mexico a very clear advantage over other regions. Mexican firms can get business-work visas to the U.S. without having to worry about H1B quotas or other immigration issues that plague the Indian outsourcing companies. USMCA also allows U.S. businesses to treat Mexican firms as local, making procurement much easier than it is when dealing with foreign firms.”
-- Global Services Media

Globally Competitive Rates

Cost Advantages

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.

Overall Lower Costs

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.

High Quality Infrastructure

Advanced Communication Systems

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.

Sound Electrical Power

Mexico’s power infrastructure is sound with solid electrical grids. Power outages are rare in Mexico.

Business Continuity Centers

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 now shares nearly the same communications advantages found in the United States.“
-- Dan Federman

Intellectual Property Protection

Intellectual Property Law Protection

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.

The Trouble With Outsourcing to Distant Locales

Rising Bill 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.

Increasing Turnover

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.

Costly Travel and Time Zone Differences

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.

"Nearshoring, specifically to Mexico, offers advantages similar to those by outsourcers in the leading country for the United States but alleviates many of the challenges posed by outsourcing to other parts of the world.”
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