ITJ in Nexus nearshore event

ITJ is attending Nexus nearshore event 2022

Nexus conferences are back in full force, featuring CEO Maritza Diaz as one of the panelists. With an outstanding trajectory since 2011, Nexus conferences have served as the centerpiece for the global services community in LATAM.

This year’s event is the first after a pandemic breakthrough halt. Nexus conferences take place in the heart of New York City, on June 8, 2022. The modalities for Nexus 2022 are in-person and virtual conferences covering such topics as Nearshore Digital Talent Outlook, Cloud Strategies for the Customer-Focused Enterprise, Transformation in a Digital Economy, Testing Quality, Talent and Vision, Managing Vendors in a New Tech Universe (AI, RPA, Fin-tech, and Blockchain), Metrics Guiding the Coming Wave of Investment, and more.

Maritza’s Panel will take place at 10:30 am Thursday, June 9th, for in-person and virtual modalities. The panel is titled Opportunities and Alternatives: Confronting Latin America’s Talent Crisis. The topic of the panel covers the number of factors that have been combined to create an extremely competitive climate for IT personnel. Cross-border recruiting, the appeal of work-from-home opportunities, and a thriving Nearshore economy require organizations to be better than ever at discovering excellent individuals. Meanwhile, Latin America has the world’s widest skills gap, and what are the next steps. So, do not forget to register now on Nexus Platform for this and more informative conferences.

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About Maritza Diaz

Maritza Diaz is a talented and seasoned technology executive with over 25 years of experience in IT and Software Engineering. She brings a wealth of expertise with particular strengths in engineering excellence, digital transformation, agile/scrum adoption, software engineering best practices, and building high-performing teams. 

About Nexus

Nexus is a symmetrical route for clever ideas, knowledgeable business people, and cutting-edge technology to find new deployment throughout Latin America and the Caribbean. The conference marks its eleventh anniversary by remaining true to its most crucial promise: to provide the skills you’ll need to succeed in the next wave of inventive service delivery. Whether you’re a business owner, a CEO, an investor, or a service provider.

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Nearshoring in Mexico: Pros and Cons

So you’ve narrowed down that a nearshore solution is the best option for your organization. Presumably, you’ve also considered Mexico as a candidate country for your future operations. Well, these are the pros and cons of nearshoring to Mexico you need to know:

For more information about IT staff augmentation, you can read the article Are you struggling to find software engineers?.

Pros

  1. Larger talent pool

Sometimes the person you’re hoping to recruit — the ideal candidate for the position — lives on the other side of the border. This is where nearshoring comes into play. With this strategy, you may choose from a genuinely larger pool of skilled software specialists. This way, you get to collaborate with highly experienced engineers to produce excellent products for a fraction of the expense of hiring in-house professionals.

Crucially, in Mexico, according to data from the most current survey by the Mexican statistical office (INEGI), there are about a million people with studies in computer science and IT, with 68% being male and 32% being female. “Mexico is now one of the top producers of engineers in the world,” said Oscar Suchil, director of graduate affairs at the public National Polytechnic Institute, in a Washington Post article. Moreover, more than half of these professionals (56%) are under 35 years old, with the largest group being the youngest, freshly graduated (20 – 24 years old). It is a vast talent pool and a significant area of opportunity to seize for recruiters worldwide. 

2. Strong protection of IP rights

In Mexico, US corporations are well-protected in terms of intellectual property. The signing of the United States-Mexico-Canada Agreement (USMCA) bolstered these efforts even further and the support of the Free Trade Agreement (FTA) that Mexico has with other countries. The USMCA includes several elements that update Mexico’s intellectual property (IPR) machinery, including systems for registering, preserving, and enforcing IPR throughout Mexico. Though the regulatory institutions that supervise IPR in Mexico differ from those in the United States, the agreement assures that rights holders in the United States will receive IP protection comparable to that found in the United States.

Intellectual property law is addressed in Chapter 20 of the USMCA. The chapter covers a wide range of IP-related subjects. Here are a few of the most noteworthy IPR clauses: Copyright Terms, Notice and Takedown System, Trade Secrets, Geographic Indicators, Industrial Design, etc.

Also, according to NAPS, US firms enjoy far better intellectual property rights protections in Mexico, owing to a long history of securing IPR protections through international treaties. 

3. Availability of Infrastructure

Infrastructure accessibility is as crucial as finding tailored software engineering teams when looking for a nearshore partner. Therefore, it is imperative to find a location that satisfies a business’ needs, with amenities like electricity, technological hubs available, water, transport, etc., should be considered. 

In the past, Mexico was formerly renowned for its maquiladoras, low-cost assembly facilities, and low-cost exports. Still, technology advances have shifted the country’s focus, and it now possesses Latin America’s most promising tech industry.

The Mexican government has spent considerably on infrastructure development to build Mexico a global industrial base and has revealed a plan to spend more than $40 million on infrastructure in 2019. As a result, Mexico’s established industrial regions provide essential services to enterprises seeking foreign direct investment. Now, Tijuana, Guadalajara, Monterrey and Mexico’s City Tech Scenes are the protagonists.

4. Efficient communication

Your expanded development team’s cultural and geographical proximity also facilitates more efficient communication.

Cultural commonalities are a significant benefit of Mexico’s closeness to the United States; plus, about 24 million people study English in Mexico. Over the last decade, the population of English learners has grown, thanks in part to government programs targeted at improving English proficiency.

Furthermore, the lower travel time between your headquarters and your expanded staff allows you to arrange physical meetings and activities more frequently. This promotes teamwork, team spirit, and a genuine sense of belonging to the business culture.

Cons

  1. Be in sync with Mexican Regulations

A challenge for US companies may be to be updated with the last changes in Mexican Regulations regarding their industry. Among them are Normas Oficiales Mexicanas (NOMs): Mexican government standards. Mexican voluntary standards are known as Normas Mexicanas (NMXs), Federal Labor Law: The laws that control labor concerns, IMMEX (Industry Manufacturer Maquiladora y de Servicios de Exportación): Tax breaks for US manufacturers.

During nearshoring to Mexico, businesses must be cautious about these restrictions as they may present a struggle in terms of time.

2. Understanding Investment Costs

The purpose of nearshoring is to reduce expenses while improving profit margins. If the firm cannot attain this primary purpose, the entire effort will be in vain.

For seizing and taking advantage of the nearshore process, companies must determine how much it will cost to establish operations in a new nation via a well-planned financial business strategy concerning all touchpoints: labor, logistics, service, taxes, infrastructure, etc. Nothing can be left off the hook. 

As with every business decision, nearshoring to Mexico can present pros and cons. Inspect each one of them with a magnifying glass.

Companies must strategize to overcome hurdles such as Mexican legislation, investment costs, and cultural adaptation. Use the information presented above to choose where you should begin and help you make the best decision.

About ITJ

ITJ serves fast-growing and high-value market sectors. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. We create long-term relationships with partners and build highly-trained and reliable teams. For more information, visit www.itj.com.

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What requirements must a business meet for nearshoring software development?

“What criteria must I meet to nearshore my software development?” The fact is that there are relatively few requirements. An incentive for CTO, CEO, or CIO leaders to seek nearshore software engineering firms is to accelerate corporate growth through technology, yet, in a rapid, safe manner, and with a quality level at least equivalent to, if not much more significant than, your requirements. Therefore, putting together a large software development team can be a sure-fire strategy to get around the issue of finding software experts locally.

The whole dynamic here is to aim for a win-win situation, a symbiosis between a company that can provide you not only with a trained IT team but becomes a great long-term partner for you. With this in mind, the requirements for nearshore software development successfully:

Be willing to expand your business — If you want to grow your IT team faster by hiring a trusted partner, but you don’t have the time or resources to find, hire, and train new staff, nearshoring is the solution for you. You are an executive leader who wishes to completely transfer IT labor to a dependable and accountable team of professionals, allowing you to concentrate efforts on building the organization; through nearshoring, you can do all that and with confidence that your partner can take care independently of what is on their end. For example, you want to see how a new DevOps or Software Development area might operate in your company, but you don’t want to invest much time in the augmentation process.

Another requirement is proximity — For nearshoring software, a company hires a firm located in a nearby nation, converting their relationship into a partnership. The reason for having a neighboring partner is that similar time zones and a close geographical position facilitate communication between the partners in terms of real-time collaboration.

Furthermore, have a strong work culture and mission — You believe in your culture and beliefs, and you want to share them with people who are willing to learn and grow alongside you. Take it as establishing a culturally similar extension of your team that just happens to be in a different geographic location.

Nearshore Software Outsourcing has emerged as the most practical strategic choice for North American businesses. Although an American firm has a good work team that has been consolidated for several years as full-time employees under the same roof, the ongoing evolution of the software world leads to product upgrades with new technologies, programming languages, or application redesign. Therefore, it might be time to see things from another perspective.

If you are interested in the guidelines for finding a nearshore software provider, you can visit How to Choose Your Nearshore Software Provider?.

About ITJ

ITJ is devoted to serving fast-growing, high-value market sectors that contribute to the growth of the Cali Baja region. With a Nearshore model, working with the highest quality software engineers, data scientists, and creative designers from across Mexico and Latin America, ITJ enables companies to create world-class software engineering centers of excellence in Tijuana, MX. For more information, visit www.itj.com.