Nearshore outsourcing is when our neighbors in Canada, Mexico, or South America fill our talent needs.
At Fifty Seven Pounds, the majority of our development team is located in Mexico. We offer development teams (US + nearshore) and agile development services.
US salaries are increasing at a drastic rate -- and our clients need high-quality teams at a reasonable cost.
Traditionally, the US has focused on India, China, Malaysia, and other countries. While successful for manufacturing, offshoring digital jobs to these countries has been challenging. Nearly 50% of people utilizing outsourcing providers have had quality issues and feel providers take a reactive rather than proactive approach to issues.
At Fifty Seven Pounds we tried to offshore to a number of locations and had giant problems.
Problem 1: Digital jobs have unique needs
- How can you feel like a team with another group in a time zone that is 12 hours different? Active collaboration, work, and debate over software features are needed across the entire team creating the product. Tools like jira might allow you to clarify what you need with a feature -- but not in the same way a debate over a video conference will. While it isn’t impossible, requiring teams to overlap work hours can be a tough call.
- Do these people have the right mentality to be able to develop great products and iterate quickly? Are they the type of developers who only create something exactly to spec? Or do they look to understand intent, goals, then to challenge, and possibly improve on the design? Different schools, areas, and businesses impact the talent of any area. Are the other companies and groups in the area ones the help create and develop talent you want to take from? Or are they companies that develop talent that might not fit with what you do, your company culture, or development practices? Not all talent pools are equal.
Problem 2: Are they are a part of your team?
- In my experience, our teams in Mexico are constantly wanting to share their culture with us. I’ve received many meaningful gifts from our team like amazing food, small pieces of art, pens. To me they are no different than my team in Memphis or Raleigh. The relationships we have formed internally help teams work together and develop great product for our clients. I haven’t experienced that working with any another group.
- Having a Nearshore team means we get to visit each other frequently. Trips are relatively inexpensive and can improve your relationship with your team. Most of our team members have about a six-hour flight to visit each other. If we were to visit any of our resources in India, it would take a 24-hour flight.
After a few years of starting up teams in different locations, we started our nearshore team in Mexico. It was immediately clear we found our niche.
The right balance of cost, ease, and skill
Nearshoring provides advantages that constantly deliver for the bottom line.
- 30% - 50% cost savings compared to US
- Your team works at the same time as you
- Similar culture to the United States
- Outstanding English and technical skills
Working in the same time zone as your development team is a game changer.
Daily work with our teams in Mexico feels no different from interactive with any other remote team. You joke around in Slack and send gifs, talk about your weekend, and share pictures from a coworker’s engagement. That said, Nearshoring has its challenges.
Challenge 1: Finding the right talent
We usually take months to find the right candidate for a role. We are incredibly careful with every hire we make. Fundamentally, what we sell is people’s time.
Our brand is simply our ability to find, manage, and nurture talent to create software.
A bad developer, project manager, product owner, or more taints our reputation. Our clients remember who was on their projects and what it was like working with them as much as the solution we ultimately build.
We take our time because we are looking for people who
- Work great with a team that includes external and internal clients
- Have strong technical skill with a product-first approach to development
- Communicate well and understands the importance of communication in development
- Believe in challenging their peers, feedback, and data-driven decisions
Outsourcing to any location does not work without a focus on finding the right talent.
Challenge 2: Nurturing the right talent
People need guidance, constant feedback, and opportunities to grow. We focus on creating a great organization so we can attract and develop the best people. Most mid-size organizations don’t offer the type of development, employee benefits, and career growth that top developers require. We do.
Are you interested in outsourcing or do you need agile development services? Let’s talk about your project.