nearshoring, nearshore, benefits of it nearshoring ITJ

Benefits of IT Nearshoring for US Companies

A well-planned and expertly carried out IT nearshore assists in advancing your US-based company’s operations. The effectiveness and flexibility of a BOT approach are unmatched, allowing you to save expenses, make better use of your resources, access a bigger talent pool, and shorten your time to market.

IT Nearshoring for US Companies

Which nearshoring location is the best fit for you? That depends on the particular requirements of your company. When searching for nearshoring companies, you should first think about:

  • The degree of expertise needed for your project
  • How closely do you require collaboration between your internal team and distant team
  • Whether you believe that having direct, immediate contact between the two teams is necessary
  • How strictly do you wish to control your additional developers
  • The financial savings you’re aiming for

You should choose nearshore development if your distant teams must collaborate closely and communicate openly with your internal personnel. Tight cooperation and almost instantaneous communication are possible by the close proximity and little time difference. For US companies, this entails expanding into countries like Mexico and Brazil.

5 Advantages for Nearshoring to Mexico

  1. You are the one in control

Nearshore solutions provide you with complete control over the creation of the product. In contrast to traditional outsourcing, you have full control over your remote engineers at every stage of the development process, just like you would with an in-house team.

  1. You save money and time

Many of our clients cite the fact that the BOT model providers handle a sizable portion of the administrative and organizational headache as one of the nicest aspects of extended development. That covers everything, including setting up the workspace and workstations as well as recruiting and onboarding new employees. You are able to increase and maximize the utilization of your resources as a consequence. The development process is thereby sped up, and money is saved. Furthermore, selecting a service in Latin America will be less expensive than recruiting locally and internally in the US. Finally, the best part is that, after the training and setup, nearshore companies that handle the BOT model in their practices completely transfer the teams to your company.

  1. You have access to a vast and large talent pool

Are you looking to recruit professionals with highly specialized or in-demand skills? If so, you could find the US market to be too tiny, too competitive, too expensive, or both. However, nearshoring allows you to access a genuinely global network of experts. In addition to having the necessary experience, they are significantly more affordable than regional developers.

  1. You become more adaptable and agile

The ability to swiftly scale up or down your personnel and take care of urgent demands is provided by IT nearshoring. Additionally, it guarantees that your business gains from hiring diverse experts and people with different skill sets. Being more agile can provide you with a significant competitive edge in light of Silicon Valley’s and the US IT industry’s lightning-fast pace of innovation.

  1. Time and zone proximity

The proximity of your larger development team in terms of geography and culture also makes communication more effective. Furthermore, you may schedule physical meetings and events more regularly thanks to the shorter travel distance between your headquarters and your enlarged employees. This encourages collaboration and a sincere sense of kinship with the company culture.

There are unique binational regional capabilities to expand the BioMedTech Valley Initiative in the Baja Cali megaregion. Take Tijuana and San Diego as an example; they are both just a 30-minute trip apart by car. If company A has an IT team and a center of excellence in Tijuana, they are free to travel there for a single day and see their staff without paying additional charges for hotel or transportation. For some, flying from the US to Mexico may be a big problem; however, a 30-minute drive could be a workable alternative.

Offering specialized technology solutions and IT staffing services in nearshoring from the US to Mexico is our area of expertise. If you need assistance developing the appropriate nearshoring solution for your company or assembling a bigger development or scrum team, we would be happy to help. Be sure to get in touch.

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. 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. For more information, visit www.itj.com.

Global chip shortage

What is the Global Chip Shortage?

The supply chain bottlenecks we’re experiencing worldwide start with chips, specifically, chip shortages. Only a few previous unbalanced markets can compare to the current global chip shortage. However, it is exceptional in the breadth of product groups experiencing a supply and demand mismatch. And there are no signs of the phenomena slowing down any time soon.

Chip vendors have raised prices by 5% to 15% across the board in response to supply restrictions and rising raw material shortages and expenses. Price increases for older analog and diode technologies have reached 20% to 25%. According to Jabil, these rises, like the shortages, are likely to persist beyond 2023.

Certainly, it isn’t the first time this has happened; severe chip shortages have occurred before, including in 1988 owing to excessive demand and in 2000 due to a scarcity of many Intel products. Then there was the 2011 earthquake in Japan, which produced a significant shortage of NAND memory and screens. Today, the global chip shortage is due to an increasing lack of skilled personnel, particularly highly qualified engineers needed to develop new chips and handle production challenges for ever more complicated ones. 

Many sources quoted by the WSJ said that the supply-demand disparity is widening because of the talent shortage:

“The world’s leading chipmakers are competing for personnel to staff the billion-dollar-plus facilities they are constructing worldwide to address a semiconductor shortage. […] New chip-making facilities, known as fabrication factories, need the employment of thousands of college-educated engineers. Technicians supervise and manage the production process, while researchers contribute to developing new types of chips and manufacturing methods.”

Furthermore, according to a research by Eightfold.ai, about 70,000 to 90,000 people or more would need to be hired in the United States alone by 2025 from 2020 levels to cover the most important manpower demands for predicted fab development. So, how can companies cope with this talent shortage they are facing?

One solution is nearshoring. Nearshoring is a tried-and-true method of staying competitive by recruiting talented individuals in the same time zone but living in lower-cost-of-living locales. 

Here is everything you need to know about the tech talent shortage and what you can do about it: Are you struggling to find software engineers?

ITJ supports fast-growing and high-value market areas by assembling talented teams, saving organizations valuable time and resources in recruitment, and establishing big, low-cost, high-performance software engineering centers. Get in touch with us, and we can help you solve your talent shortage obstacles.

About ITJ

ITJ is a trusted partner in building the finest software engineering teams in the Americas. For more information, visit www.itj.com.