Outsourcing during a slow economy allows companies to cut costs, but still maintain quality in development. When it comes to outsourcing, more companies have been looking for near shore locations.
"Near shore" refers to any location that is in close proximity to the IT company. For example, a company in the United States would consider Canada, Latin America and the Caribbean region near shore locations.
For years, India has dominated the IT industry, as this country offers many benefits, such as qualified personnel and low labor costs. Even though India has long been the main destination for outsourced projects, labor in this country is not as cheap as it once was. In addition, dealing with time zone differences, coordinating work and establishing regular communication can be challenging.
Numerous companies are now making the decision to outsource to near shore IT suppliers for many reasons. As far as IT outsourcing goes, there are more costs than just the price charged by the vendor for the services rendered. For example, there are some hidden costs in outsourcing, such as travel expenses, coordination efforts and communication costs. Near shore IT outsourcing provides companies with the opportunity to outsource to a supplier in close geographic proximity, meaning travel and communication costs will be lower. Also, when the provider is located near shore, there are typically cultural similarities between the IT company and vendor.
Some of the near shore locations that have become increasingly popular for U.S. companies include Canada, the Caribbean region, Brazil and Mexico. Canada has stringent intellectual property protection and privacy laws and a workforce that is considered to be highly educated and skilled in IT-related fields. Caribbean countries have many English speaking employees and a lot of the residents have attended colleges and universities within the United States and Canada. Brazil has a well developed IT sector and is only one time zone away from the Eastern Standard time zone. Mexico has a large labor pool of IT professionals and it is estimated that the country has hundreds of thousands of students studying IT related subjects in universities and technical schools.
Outsourcing to near shore providers offers many great advantages and there are various locations to choose from. In fact, many IT departments, including those from Fortune 500 companies, now send work to near shore IT suppliers. Near shore IT outsourcing provides additional control over projects and helps lower some of the hidden costs of outsourcing
Author Resource:-
A&E Consulting is a full service consulting firm that has been successfully helping clients with their global needs. Visit http://www.globalsourceyourit.com or call 661-200-3612 for more information.
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