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Innovation a Deal Breaker in Nearshore Outsourcing iTexico .pdf


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Innovation a Deal Breaker in Nearshore Outsourcing
Since the earliest days of the technology outsourcing industry, India has arguably been the dominant player in the world.
So much so that jokes and idioms referring to Indian outsourcing services are common. But changing times are hurting
India's position, especially given the rise of nearshore outsourcing in countries like the U.S. The biggest thing hurting
India right now is a lack of innovation.
At iTexico, we prefer to concentrate our outsourcing strategy on nearshore opportunities in Mexico. We believe Mexico
is a much better environment due to its large volume of tech-savvy workers and its favorable economic environment.
Compared to India and a few other markets, Mexico is also a stronger leader in innovation. Mexico has all of the right
ingredients to create successful and productive nearshore outsourcing relationships.

Innovation Is the Foundation
There is no getting around the fact that innovation is the foundation of every technology business. By definition,
technology encompasses those new things designed to make life easier, businesses more productive, and data
communications more secure. It is about the mobile app developer utilizing the latest tools to generate superior results;
it is about the consumer enjoying the benefits of those results. Without innovation, the technology company does not
survive.
Combining innovation with nearshore outsourcing creates an interesting conundrum: companies wishing to outsource
need to get the services they are looking for at an affordable price, yet they cannot sacrifice innovation in order to save
money. This is where India is having a problem.
A brand-new white paper from Nearshore Americas explains that the outsourcing environment in India is now so
focused on generating larger turnover that they are neglecting innovation. Nearshore Americas says that Indian
outsourcing companies are treating their business more like a commodity rather than a continually developing service,
creating a business model that is all about raw numbers. That does not work in a business that relies heavily on cutting
edge front end developers, innovative server software code writers, and app user experience designers looking to push
the envelope in trying things that have never been tried before.

Move Forward or Be Left Behind
A good way to encapsulate the current state of technology outsourcing is to explain it this way: move forward or be left
behind. Outsourcing, whether it is based on a nearshore or offshore model, is a service designed to provide technology
companies with the staff they need without forcing them to invest in hiring and maintaining their team. Companies that
outsource are only trying to save money on staffing overhead. They cannot afford to stifle innovation.
Clients of iTexico who appreciate our nearshore outsourcing model know they can rely on us to provide what they need
to help drive their companies forward. Whether they need a mobile app developer or an entire team of full stack
JavaScript developers to create cross-platform products using Ionic or Titanium, they know we deliver consistent results
combined with a team-oriented approach that fosters innovation and collaboration. The question is, how do you know
whether an outsourcing partner is also an innovator?
The answer is to look at that company's track record. Who have they worked with in the past? What kinds of projects
have they helped developed? What is their reputation within the industry for staying on the leading edge of technology
development? Choosing an innovative outsourcing partner is really no different, in principle, from finding a contractor to
work on your home. A little research is all that's required.
Innovation is a true deal breaker for nearshore outsourcing. If a technology company's outsourcing provider cannot
deliver innovation at a competitive price, that company will be left behind.
Sources:
1. Nearshore Americas - http://www.nearshoreamericas.com/mexico-is-better-bet-than-india-for-us-outsourcingbuyers-says-nsams-new-whitepaper/
2. iTexico - http://www.itexico.com/nearshore-plus-outsourcing/why-nearshore-plus


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