Mexico Near Shore
View of the Global Outsourcing Market for IT Professional Services
Since the mid 90’s, the delivery of IT services industry has had dramatic changes. These changes have brought an evolution to the sourcing arena from a local delivery into a Global IT Service Delivery model. According to industry experts, this evolution is irreversible, and the industry players must adapt to a global labor force, while companies will make investment decisions based on the capabilities of the different countries and the return on than investment. The map of IT professional service suppliers is already changing.
Some of the factors that drive this behavior are:
· Accelerate the innovation process and time to market.
· Companies need to reduce costs to remain competitive.
· Improve the quality of software development and maintenance efforts.
· Better perception and understanding of offshore outsourcing value (low cost, high quality and faster time-to-market)
· Better understanding from global corporations on the feasibility of supporting IT functions in lower cost geographies.
· Service provider’s maturity in the offshore market.
· Security and intellectual property protection concerns.
Nowadays, the majority of large US companies consider the acquisition of services through a global model to be a good alternative to fulfill their requirements in a competitive way.
Given this context, the IT professional service capabilities and offering in Mexico has inherent competitive advantages such as:
· Mexico is the geography that offers the lowest operational costs in North America.
· The North American Free Trade Agreement sets the legal basis for the commercial exchange of goods and services between the United States, Canada and Mexico.
· The UN, in its technological achievement index, positions Mexico as the best Latin-American country.
· Because of proximity, Mexico presents in many cases, a better alternative to countries such as India or China for service effectiveness and total cost of IT projects.
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