For many businesses, outsourcing data and analytics projects can be a daunting and overwhelming task. However, it can come with significant cost savings, among other benefits. The nearshore model of outsourcing data and analytics offers a unique solution that combines cost savings, access to top talent in STEM fields like data science and analytics, and North American cross-border agreement benefits.
By leveraging available talent pools in Mexico, companies can benefit from proximity to North America. This can provide an excellent advantage for many reasons:
- Similar time zones for seamless communication and measurably faster action
- Collaboration between teams on either side of the border
- Cost savings
The cost-saving benefits achieved using nearshoring services are hard to ignore in today’s competitive marketplace. Outsourcing can save a company 40% or more on information technology needs. There is a reason 70% of American businesses are eyeing nearshore outsourcing.
This article will discuss how nearshoring data analytics helps businesses by assessing the CAGE model, USMCA (United States-Mexico-Canada Agreement), while tapping into Mexico’s talented pool of STEM professionals.
The problems with outsourcing data analytics offshore
There are various aspects to consider outside of the availability of talent. First, look at the fragile domestic policies within Eastern European countries where offshoring has been the norm. Political instability is common in countries with a significant hub for remote work, including technology jobs. Offshoring outsourced data analytics has become even more challenging with additional political constraints.
Next, the distance between the countries can make communication and collaboration difficult. This can significantly slow workflow, making it difficult to troubleshoot any issues that arise, especially when dealing with large or complex projects.
Finally, the time zone difference, while not as prominent a factor as the language barrier, can still create complications. Team meetings, reviews, and discussions may need to take place outside traditional business hours to accommodate both teams.
Why nearshore outsourcing in Mexico
When working with an outsourcing partner, you want to ensure it is done right, on time, and within budget. To do this, nearshore outsourcing provides several advantages.
When outsourcing, it is important to consider the CAGE (Cultural, Administrative, Geographical, and Economic) model to assess offshore and nearshore opportunities. This can help companies identify a nearshore destination that best suits their data and analytics needs. For example, Mexico is an ideal nearshore country for American companies. This model looks at four things: Culture, Administrative rules, Geography, and Economics.
- Culture looks at the language people in the area speak and how they act.
- Administrative rules cover laws that may affect how you do business there.
- Geography means looking at how near or far away the place is from where you live or work and what potential impact the distance creates.
- Economics means considering how much it will cost to outsource your data and analytics project there.
Protecting intellectual property
It is important to note that the USMCA (United States-Mexico-Canada Agreement), benefits the nearshore model through tight intellectual property protection laws and is inclusive of the digital economy, especially as it relates to the free movement of data across all countries. The USMCA is the renegotiation of NAFTA and regulates trade between the United States, Mexico, and Canada, including updated intellectual property protections that aligns with the United States IP laws.
Streamlined visa procedures
The relationship between the US and Mexico bolsters the discussion of security and migration, making Mexico more appealing compared to Asia, Eastern Europe (due to the current fragile political environment), and other offshore options because of its preferential access. Work visas can be applied for and granted throughout the year, whereas H1B visas are strictly monitored and processed and only issued in October. The NAFTA Professional (TN) visa is a temporary, three-year work permit for citizens of Canada, Mexico, and the US. It can be renewed indefinitely for qualified workers from each country to reside in the US with their spouses and children. This means team collaboration can be seamless as professionals can be mobile and, if necessary, stay for extended periods based on the project’s needs.
The bottom line
When it comes to outsourcing, nearshoring data and analytics work in Mexico poses tangible benefits. From near-identical time zones, language skills, ease of work visa and travel, cost savings, and IP protection to US standards to a large pool of skilled professions, nearshore data and analytics solutions can yield positive outcomes. Read more about these solutions here.