Monday, December 8, 2008

Mexico for IT Outsourcing And Team Augmentation

Mexico is an Excellent location for IT Outsourcing and Team Augmentation

Have you heard this yet? Is that news to you? It was to me just 6 months ago and I was part of the IT industry. (See my profile on Linkedin.com)

Mexico has been a on the offshoring / outsourcing radar for at least 4-5 years now. Many have written about it. It seems to make a lot of sense - close cultural ties, close proximity, similar time zone. See what others say:

Accelerance is an Outsourcing Consulting company. they help companies decide who amongst the many should be your partner.
http://www.accelerance.com/outsourcing/mexico.htm

CIO.com has several articles about the topic.
http://www.cio.com/article/151704/Outsourcing_Vendor_Genpact_Makes_Mexico_a_Passage_to_India

Some say US companies are choosing Mexico over India.
http://www.bnamericas.com/news/technology/Praxis_CEO:_India_facing_increased_competition_for_IT_outsourcing

Computerworld spoke of the trend in 2003.
http://www.computerworld.com/managementtopics/outsourcing/story/0,10801,84829,00.html

SourcingMag obviously has opinions.
http://www.sourcingmag.com/blog/archive/outsourcing_to_mexico_a_frank_appraisal.html

Offshore Experts posts several options
http://www.offshorexperts.com/index.cfm/fa/map.outsourcing_mexico

Again, the major players in outsourcing are easy to find
http://www.businessweek.com/magazine/content/06_05/b3969412.htm

Here you can find a list of Gartner events, specifically those around outsourcing summits
http://www.gartner.com/2_events/attributes/attr_58627_519.pdf

Gartner's Criteria are as follows:

1. Language
2. Government support
3. Labor pool
4. Infrastructure
5. Educational system
6. Cost
7. Political and economic environment
8. Cultural compatibility
9. Global and legal maturity
10. Data and IP security

This CIO article quotes Gartner:
"The seven countries from the Americas are becoming or already are attractive destinations for U.S. companies, but a lack of government support is restricting offshore development. Only Mexico rated "very good" in this area, followed by Canada and Uruguay."
http://searchcio.techtarget.com/news/article/0,289142,sid182_gci1286775,00.html

Here's the original Gartner press release
http://www.gartner.com/it/page.jsp?id=565107

Indeed, TechBA is supported by the Mexican Ministry of Economy and suports the export of IT services from Mexico to the US.
http://techbasv.com/joomlamain/index.php?option=com_content&task=view&id=41&Itemid=72

Stephanie Moore of Forrester has a good article about Mexico and nearshore development, although it is primarily god posture for Softtek, another large company.
http://www.forrester.com/Research/Document/Excerpt/0,7211,40995,00.html

Whole article here:
http://www.dataskill.com/no-shore/pdf/Forrester.pdf

More About Gartner's Summit
http://www.psia.org.ph/LinkClick.aspx?fileticket=VHcscQa9cFo%3D&tabid=56&mid=424

This blog goes into great details about the outsourcing considerations.
http://pragmaticoutsourcing.com/2008/10/24/pragmatic-outsourcing-vs-gartner/

Another good article from a product marketing company
http://www.phaseforward.net/news/Mexico%20Outsourcing%20Article.pdf

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