Often, the first country that comes to mind, when you think of outsourcing your IT development is India. However, if you are a small or mid-sized company (SMC), outsourcing to India is not a good option.
First and foremost, the challenges of communication and management across a 12 hour time zone difference should not be underestimated. These activities add a significant overhead that SMCs are not equipped to handle.
Secondly, if you calculate the total cost of engagement, in smaller teams, the overheads of travel, and the opportunity costs of missed deadlines and peeved customers, means that SMCs do not see the promised cost savings of outsourcing to India.
In contrast to offshoring, nearshore teams collaborate with your internal staff in the same time zones. This means that small issues do not have a day-and-a-half turn around time. This tight collaboration means fast time-to-market for new projects and new products.
Table: Nearshoring in Mexico vs. Outsourcing to India