Author: TeresaPenafiel

ITJ

Top 8 Questions To Ask Software Outsourcing Providers When Assessing

Posted on | by TeresaPenafiel | 7 Comments on Top 8 Questions To Ask Software Outsourcing Providers When Assessing

Do you intend to grow your engineering staff? Does locating a trustworthy IT outsourcing partner sound like a good idea? You are not the only one – the global market size of the IT outsourcing industry reached 92.5 billion USD in 2019.

Choosing a top-notch service provider might get more difficult as the outsourcing sector grows in size, especially between Mexico and the US. As a result, it’s crucial to thoroughly vet any potential suppliers by asking the correct questions.

In order to determine whether software outsourcing businesses are a good fit for your needs, we’ve compiled some of the most crucial questions you should ask them. These inquiries will look at both operational and cultural factors that might influence how well your collaboration works.

Here are the key 8 questions to ask outsourcing providers:

1. Do they provide time-and-materials contracts or fixed-price contracts?

Although this is not a given, project outsourcing often has a fixed cost because you outsource the whole project per provider’s proposal. The time and materials approach makes sense for teams working together and continuously addressing changing demands.

Contrarily, single-sum contracts, known as fixed-price agreements, require a service provider to complete the project within the budget specified in the bond.

Some use the BOT Model (Build, Operate, Transfer). A BOT is a business model that entails a contractual arrangement in which a company employs a service provider to launch, develop, and manage a company. If healthcare companies want to outsource software processes connected to the production of a medical device to a much wider talent pool, a BOT model may be quite helpful.

2. Does the outsourcing model they employ work for me?

When analyzing the geography of outsourcing, there are three basic models to take into account: 

Nearshoring: Nearshore outsourcing is a method for developing software products in which some or all of the work is given to remote teams located in close proximity and in the same time zone. This strategy combines lower costs, quicker travel times, and the extra advantages of proximity in terms of culture and location.

Offshoring: Nearshoring and offshore outsourcing are quite similar, with the distinction that an offshore staff is often based overseas. India, Ukraine, and other Latin American nations, including Mexico, Argentina, Colombia, and Brazil are common places for outsourcing.

Onshoring: Onshoring refers to “domestic” outsourcing. It entails moving your company’s software development to a non-metropolitan location.

Look for the top suppliers in the nations or regions where you have already decided to outsource your development.

3. Can they modify their offerings to suit my needs?

Particularly in today’s fiercely competitive and inventive industry, software project development frequently requires constant adjustment.

A good outsourcing partner will be adaptable, helpful, and willing to come up with a solution that will satisfy you, the customer. It is usually a positive indicator when potential partners demonstrate a desire to provide you with what you require, so long as your request is within their ability. Isn’t it the reason you’re out there looking for partners?

If the service provider’s internal procedures look overly inflexible and there isn’t much flexibility for rapidly implementing change, you should take that as a warning sign.

4. Have they already been involved in initiatives like this?

It is a good indicator if the service providers have created software or worked on projects comparable to yours. The downtime spent learning about the requirements of various sectors or technology can be avoided. Therefore, you should constantly inquire about their track record of successful partnerships with businesses much like yours.

You might ask the providers to offer you case studies or success stories, client recommendations, or references during the discovery sessions.

5. Are their software developers proficient in the technology stack you’re employing, and do they have the knowledge you need?

Search for particular areas where you require assistance, such as updating outdated software or creating mobile apps. Then, focus your search on businesses with the necessary industry experience.

6. What is the outsourcing company’s strategy for hiring engineers and ensuring their ongoing education?

How they’re adding new team members is a pertinent inquiry. What steps do they take, and is the procedure rigorous enough? Do applicants are in constant examination or enter bootcamps to demonstrate their coding prowess?

When compared to other industries, the IT industry has the fastest rate of innovation. Therefore, a team that keeps up with new technology and updated software will be able to create contemporary, sustainable products that have a long shelf life. They have a culture of continuous learning if they have training resources and learning opportunities available.

In order to address a talent gap in their team that has proven difficult to fill internally, the majority of businesses turn to outsourcing. Not only should your outsourcing partner be able to meet these demands, but they should also be able to meet any future needs you may have.

7. What are the safeguards for the collaboration’s success?

One aspect of the difficulty is creating excellent software. The other is to guarantee that you have system checks and backup strategies in place so that you can continue developing excellent software without being hindered.

Enabling information sharing between the two businesses is a smart place to start when it comes to assuring success. What channels of communication for commercial and technical inquiries are available?

More importantly, how are problems addressed and managed in the unlikely event that something goes wrong? Problem-solving procedures should be obvious.

8. What are the security and privacy policies of the service provider?

The security posture of a potential outsourcing provider is among the most crucial criteria. Does the service supplier hold ISO27001 security certifications, for example? Exist the required data protection policies?

You don’t want to end up breaking the law and having to deal with the repercussions as a result of your outsourcing partner making a mistake.

Since people naturally believe that security measures will be covered when we pay for a service, the majority of businesses don’t look into security measures in great detail. Nevertheless, if you didn’t require certain security precautions in advance, you can now find yourself at a crossroads.

Our area of expertise is offering customized technology solutions and IT staffing services in nearshoring from the US to Mexico. We would be pleased to assist if you need help creating the ideal nearshoring solution for your business or putting together a larger development or scrum team. 

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.

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Great Resignation: Tech firms are getting desperate

Posted on | by TeresaPenafiel | 10 Comments on Great Resignation: Tech firms are getting desperate

Recruiting new employees has never been more difficult or expensive.

A Gartner research found that just 29% of worldwide IT professionals have a “strong intent” to stay in their present positions. Undoubtedly, it becomes evident that the skills shortage is destined to become worse before it gets better when you multiply that issue across different tech positions.

Employers now find it hard to replace the wave of workers who quit in the Great Resignation, which started last year and hasn’t ceased. Statista reports that the number of workers departing in the US has now eclipsed pre-pandemic highs for 8 consecutive months. Due to this widening disparity between demand and supply for tech professionals, firms are now forced to use extraordinary incentives to attract as many of these individuals as possible, but this shouldn’t be the only solution.

Reframing The Great Resignation

Discussion about the Great Resignation has centered around the negative, but what about the present? 

Demand for Flexible Work Has Increased

The pandemic forced a change in the way we work, the likes of which have never been seen before. Workers who had previously been denied remote employment options and flexible work schedules have had a taste of the brave new world. 

Companies that have attempted to force employees to come to the office or workplace have faced a huge backlash, especially when workers believe they can do their duties just as effectively from home. For this reason, hybrid and remote working adoption are the best alternatives. 

Instead of going against the current, take advantage of it.

A major reset

Despite what some may think, as we’ve already mentioned, all is not lost. Many chances may be seized by pausing to consider the “why” behind The Great Resignation and using it as a model for change.

First, we must acknowledge that a new assessment of work is long required. Henry Ford popularized the idea of an eight-hour workday and a forty-hour workweek in 1926. He understood that in order to find applications for and learn about consumer goods, individuals needed to have enough free time. The concept was that downtime should not be considered “lost time” or even a “class luxury” but rather an essential component of daily life and work. The fact is that workers who participate in The Great Resignation don’t necessarily leave their jobs altogether. Instead, people are making efforts to discover occupations and employment that will improve their quality of life and work-life balance. On a broad scale, it is up to employers to meet workers where they are and work with them rather than against them.

Think outside of the border

An ecosystem of specialized companies that are located on both sides of the border is a solution for the tech talent shortage issue. Mexico has the same drive to boost its innovation and tech hubs across different industries and different companies. Nearshoring is a pretty good option.

BOT (Build, Operate, Transfer) model, a model of contracting and then owning a qualified and trained team to operate at fulfilling capacity strengths. More and more companies around the world are coming to know all the advantages they get from adopting a BOT model.

Adopting the Hybrid Work Model

It’s crucial to remember that merely giving this concept lip respect won’t be enough to make it stick. Organizations must establish highly specific policies and support for these models, allowing workers to choose whether they want to work on-site or remotely. Transparent policies and procedures that outline workers’ positions and the parameters in which they have discretionary authority are the first steps in achieving this.

The battle over a dwindling talent pool is getting more heated, and our assumptions as employers must change. Great IT experts and developers can occasionally be found all over the world, and by leveraging them effectively, you can get the most from them.

At this moment, hiring excellent tech talent would seem to be the ideal option, but because the tech environment is changing so quickly that we frequently can’t keep up with it, the best course of action would be to adapt and optimize. Don’t hesitate to contact us to help you get the best software teams in the Americas.

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.

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3 Facts That Make The Tech Scene In Mexico A Promising Paradise

Posted on | by TeresaPenafiel | 6 Comments on 3 Facts That Make The Tech Scene In Mexico A Promising Paradise

Formerly renowned for its maquiladoras, low-cost assembly facilities, and affordable exports, Mexico is currently regarded as having the most promising tech scene in Latin America as a result of technological investments.

As one of the greatest economies in the world, Mexico is predicted by financial experts to enter the top 10 in the next few years. Indeed, by 2050, Goldman Sachs predicts that Mexico’s economy will rank as the world’s fifth most prominent.

Mexico is making good progress toward achieving its goal of becoming a major world power, and here are the 3 facts that make the tech scene in Mexico a promising paradise:

1. Mexico’s Tech Hubs

Mexico was the first nation in Latin America to enact legislation governing the fintech industry. Meaning a law that prevents money laundering and corruption was enacted. Also, the law dispels misconceptions about cryptocurrency and crowdfunding technology. Now, because of the significant yearly expenditures made in the technology sector, Guadalajara, Monterrey, and Mexico City now have stronger tech ecosystems than the rest of the country.

There are now 238 new fintech companies operating in Mexico, a 50% increase from 2016. With this statistic, Mexico surpasses Brazil, which typically dominates Latin America’s IT industry. Mexican fintech has advanced due to a number of variables, including the country’s expanding economy, low banking penetration, and an undeveloped lending system.

2. Mexico’s Tech Talent

It is no secret that engineers graduate at a higher rate in Mexico than in the US. 

Mexico’s top institutions are working hard to provide the skills the country needs to grow its digital sector. Indeed, three million individuals are enrolled in school in a nation where more than 33% of the population is under 25. And more than 160,000 new specialists in computer science graduate from universities in Mexico each year. 

Mexico is making great progress toward achieving its goal of becoming a major world power and dominating most of Latin America’s digital sector in the next few years thanks to a youthful, particularly related mass that is migrating to the middle class.

3. Mexico as a Start-up Accelerator

Successful businesses are being produced through accelerators in Mexico. The 500 Startups: Latam initiative offers investment and mentoring to Latin American startups, so they expand their companies across a range of sectors. So far, startups that have completed the accelerated program have earned more than $300 million in capital. Additionally, there are now 45 active funds, and the number of companies is rapidly increasing. Over the next ten years, Mexico’s IT economy will surely be one to watch.

In conclusion, one of Latin America’s burgeoning digital powerhouses is Mexico. More multinational businesses seek south of the border every year to accomplish their business objectives thanks to the elements that make up Mexico’s tech sector, which combine to form the ideal balance.

About ITJ

ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.