Nearshore Development in Mexico

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Nearshore Developmentin Mexico

• Jorge A. Zavala
• Technology Business Accelerator
• Silicon Valley
• jorge.zavala_at_techba.com

The concept of Nearshore is a Softtek S.A. de C.V
registered trademark.
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Agenda

• Economy overview
• Pain points
• Offshore vs nearshore
• Country suitability
• Infrastructure
• Locations, companies
• Total cost of engagement (TCE)
• Focus
• Success history

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Mexicos Economy Overview

• Total population 106 million
• GDP (worlds 13th largest economy)
• U.S.s second largest trading partner (Canada
  1st)
• Country with most Free Trade Agreements worldwide
  (including NAFTA, EU, and Japan)
• 4th country on the list in number of airports and
  1st in daily flights to and from the U.S.
• 7th largest exporting economy
• Ranked 5th in per-capita foreign direct
  investment received
• Best country in Latin America in terms of
  technological accomplishment, according to the UN

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Economy Overview
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Pain

• Startups - need a fast and low cost development
  and operation
• Fast Time to Market
• IP Protection under US laws conditions
• Geography and time zone proximity to the working
  team
• Low Employment Turn Over

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Offshore vs Nearshore
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Gartner Country Suitability
Source Gartner Study of Qualitative Indicators
of Country Suitability
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Infrastructure

• Incubators of High Technology
• Universities
• Number of students
• Locations
• NATFA

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Locations and Companies

• México
• Local BrainUps, Innovamedica, Azertia,
  Hildebrando, Praxis, Sinersis, Pissa
• Clusters Emperia, Qataria
• Monterrey
• Local Kernel, Softtek
• Clusters Origo
• Embedded Dextra
• Guadalajara
• Local 3dmx
• International companies HP, IBM, Sun, Intel
• Embedded ASCI
• Tijuana
• Clusters Amplitec, Intuare
• Ciudad Juarez
• International EDS
• Aguascalientes, Queretaro, Torreon, Yucatan

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Total Cost of Engagement Model

• The overall cost of a project when
• Direct Cost
• Management
• Trips
• TCE is lower in Mexico than in other offshore
  countries for software development projects

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Focus

• Software development
• BPO
• Embedded development
• Bio technology and Pharmaceutical Test
• Call centers

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Where we are now
http//www.indiainfoline.com/nevi/inds.html
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Offshore Developmentin Mexico

• Jorge A. Zavala
• Technology Business Accelerator
• Silicon Valley
• jorge.zavala_at_techba.com