Nearshore

Diversify your nearshore partners

Why do many successful companies choose to diversify their nearshore partners? 

Because it is hard to have in-house knowledge in every technological talent on the market, from micro-services to computer vision, more than one nearshore supplier can bridge the gap between your in-house and already outsourced skills. 

The ultimate purpose of a nearshore software development project is to provide favorable commercial results. In the initial few talks, a strong potential partner should be able to grasp your vision, exchange ideas, and offer counsel and recommendations on how to execute key IT initiatives effectively. Nearshore suppliers can enhance your organization’s core strengths with a wide range of specialized technological skills, significantly when diversified. 

Here you can find other interesting content about How to Choose your Nearshore Software Provider?

Now, according to a SkillValue report, including over 550 technical assessments and +46 countries tested, Mexico comes in 2nd place in the ranking for countries with the best developers in the world. Many companies outsource their software development projects as a competitive strategy to grow and scale the business. Internal resources are frequently consumed by supporting current product lines, developing the firm, and putting out fires. When internal teams are stretched too thin, CxOs often look to nearshore partners to scale up to accomplish key initiatives. 

The key to diversifying your nearshore partners is that this practice includes nearby countries, such as Mexico and Canada. Countries that do not share borders are also in your future nearshore partner list. The costs are generally very attractive, with the added benefit of being in the same time zone for easier collaboration. Having your development staff in the same time zone makes communication easier. Whether you require immediate assistance or have a high-priority issue, your team will be available when you are, allowing you to interact and cooperate as needed, just like you do with your internal teams.

Where to find nearshore partners?

The Cali-Baja MegaRegion, rich with opportunities, would be an excellent spot to start looking. Tijuana, which is approximately 35 minutes south of downtown San Diego, is a strategic position that allows businesses to operate inside the flourishing border economy and improve interactions between Mexican and American companies. Cali-Baja has one of the largest population concentrations along the US-Mexico border. Thanks to its unique cross-border integration and IT/Software development, the region has exceptional quality for relocating global and binational business investments and its transnational culture and high-end binational talent pool.

Software that is developed nearshore it’s not just about saving money by outsourcing labor; it’s also about finding the finest people for the job and maintaining those assets who know the regional market and can transfer that expertise on to the team, making it simpler to succeed when developing and implementing plans. That is why the Cali-Baja area may be just what your firm requires to continue to grow while adapting to the new normal we are seeing.

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.

New CoE in Tijuana

A new Software Center of Excellence settles in Tijuana, Mexico

Tijuana is once again honored with opening a new Center of Excellence in Tijuana’s bustling Zona Río. The new facilities that will welcome a market-leading medical device organization that focuses on the continuous development of its IoMT mobile and cloud-based software platform for insulin delivery and monitoring offer an energizing collaborative workspace filled with local flare. The space is equipped to host 140 full-time staff members with another 100 co-working stations for visitors and our growing hybrid team located across Mexico.

In recent years, San Diego and Tijuana have been in the eye of innovation and technological forecasters, including the Montreal-based World Design Organization. Recently the region has been chosen as the World Design Capital for 2024, beating Moscow. The award recognizes the region’s leadership in design across economic, technological, and cultural sectors. Two countries mean more room to grow and prosper. 

For companies creating revolutionary IoMT smart medical processes and devices, Tijuana has become a key partner that helps accomplish the IoMT company’s strategic goal of confidently and cost-effectively enhancing its highly skilled digital engineering capabilities without sacrificing quality and productivity. 

The nearshore approach encourages growth in many ways, allowing companies to establish world-class software engineering centers of excellence. With the help of the right partner, more organizations are currently flourishing with the right experts. 

To know more about the potential and fast-developing innovation hub Tijuana is, you can visit Tijuana Leads Innovation with Borderless Business Congress.

Top 3 industry sectors with the highest revenues during COVID-19

Not all industries experienced a decline during the pandemic. Why? Consumer habits changed during 2020. The lifestyle suffered a compelling shift that affected each sector differently. The monetary global GDP loss in the best covid-19 scenario was USD 76.69 billion, and the forecasted GDP loss in the U.S. was -2.4%. 

In 2021, vertical markets carried the lead with insurance, real estate, hospitals, heavy manufacturing, retail, and transportation organizations. According to the Global 2021 Forecast by Fortune 500, GDP growth was expected to accelerate up to 5.6% only this year. Despite the setbacks, the heft of the Global 500 remains formidable: The combined sales of the top 10 companies with the highest revenues in 2021 are equal to more than one-third of the global GDP of the same year.

But, what were the top 3 sectors with thriving revenues in 2021?

According to the Quarterly Services Survey (QSS) by the U.S. Census Bureau, these are the following industries with the highest reported revenues:

1. Software System, IT Services, Application  The software industry has the highest revenue during 2021. The gross profit for the application software industry stands strong at USD 244.29 billion. This industry will continue to dominate with a net income of USD 81.3 billion and capital returns of 32.07%. 

Software (Entertainment)

There is a subcategory in the software sector: The entertainment software industry primarily encompasses video-game companies, which we all know to be profitable. The entertainment software industry has a net income of USD 83.5 billion and an 18.32% return on capital investment, making it relevant to our revenue scale.

2. Computer services 

The computer service sector is growing at exponential rates. With the increase in demand for computer services, tech companies are bound to generate large profits, contributing to a net income of USD 12.22 billion and a return of 21.92% on capital. It is anticipated that the industry will grow up to USD 20.05 billion in revenue for 2028.

Computer Peripherals 

Working from home has become a common practice for everyone; computers and their accessories have become more of a necessity than a luxury. As a result, the computer peripherals industry grows, accumulating more and more profits as time passes. 

3. Healthcare & Life Sciences

The life sciences sector has played a pivotal role amid the COVID-19 pandemic. To cope with the global crisis, traditional competitors partnered to accelerate research. In addition, governments, health systems, payers, retail pharmacies, and nonprofits are now working collaboratively with the sector to provide widespread distribution and administration.

Global life science analytics was valued at USD 7.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.8% from 2021 to 2028. Increasing penetration of analytics in the life science industry using reporting and descriptive analysis to build databases and predictive and prescriptive analysis to estimate future trends and outcomes are expected to drive the growth.

As essential and fundamental as it is, the healthcare support and services industry does not come as a surprise to see it make it to our list of the three most profitable industries in the world in 2021.

At ITJ, we know the industry’s rapid growth, and we are committed to pushing it even further through nearshoring. You can find more information about the nearshoring processes and the establishment of centers of excellence in 5 Reasons to Nearshore with ITJ.

Drugs and Pharmaceuticals 

The drug industry is notorious for high-priced products as people realize their current needs plus a robust preventive line of biopharmaceutical medications. Currently, these companies employ approximately 5.5 million experts on the matter; as innovation in therapies reaches more countries, there are significant gains in mean life expectancy and quality of life.

About ITJ

ITJ is a trusted partner in building the finest software engineering teams in the Americas. For more information, visit www.itj.com.