Archive for the ‘Nearsourcing’ Category
What’s so special about Guadalajara?
Posted by: admin in Agave Lab, Nearsourcing on January 17th, 2012
So why Nearsource?
As the name implies, nearsourcing is exporting your software, design, engineering, and/or testing to someplace “near”. So where is near? In the case of Agave Lab, it’s Guadalajara, Mexico.
What’s so special about Guadalajara? Well, in turns out, a lot of things:
Surplus of Talented Engineers
Known as the “Silicon Valley of Mexico”, Guadalajara’s universities turn out more than 15,000 new IT graduates per year. These programmers are trained in the most modern programming technologies and techniques.
Time Zone
Modern programming and project management techniques require realtime collaboration. Outsourcing in Asia or Eastern Europe puts you more than 10 time-zones away. Realtime, back-and-fourth, communication just isn’t possible. At Agave Lab, we share the central US time zone, so when you’re at your desk – so are we.
Cultural and Language Affinity
Mexican software developers are fluent in English and, more importantly, we share the same cultural background and expectations – “Yes” means Yes, “No” means No, and “Tomorrow” means Tomorrow. If you’ve ever managed an outsourced project in India, you’ll recognize how important this is.
Strong IP Protection Laws
Mexico signed the North American Free Trade Agreement (NAFTA)NAFTA on December 17, 1992. This accord contains the most comprehensive multilateral intellectual property agreement ever concluded.
Prevailing Low Wages
Although Guadalajara generates an abundance of developer talent, the indigenous market for software projects is limited. Political pressure brought on by illegal immigration plus tighter post 9-11 security restrictions have made H1 visas for the US extremely difficult to get. With supply well exceeding demand, talented engineers are eager to work for wages that are fraction of those in the US, and well below other outsource markets.
Proximity
Every so often, an in-person meeting between stakeholders is a must. Guadalajara is a short flight from the US – about three hours from Los Angeles, and four hours from both the SF Bay area and Chicago. You can board a flight in morning, have a tasty lunch in Guadalajara, spend the afternoon meeting with the development team, and then hit the airport for the evening flight. You’re back in your office the next morning. Compare that with the 24 hour flight to Bangalore!
Mexico Remittances Rise the Most in 5 Years
Posted by: admin in Nearsourcing on November 3rd, 2011
Interesting story on how, due to the economic crisis, mexicans living abroad in the US are “moving up the value chain” into higher paid service sector jobs. Also, the weakening of the peso against the dollar represents a great opportunities for companies interested in outsourcing. Read on.
US Shoots Itself in the Foot, Again.
Posted by: andy in Nearsourcing on September 15th, 2010
Check out this post by Kirk Laughlin concerning recent US legislation that increases the processing fees for H1B visa to $2,000. I suppose the bill’s sponsor, Senator Charles Schumer, has the intention of protecting US jobs but does he actually think that preventing highly-skilled technology workers from coming to the US is a good thing? In any event, it’s a boon for the Mexico tech market as the TN visa (the one that allows Mexicans to do the same thing) has been exempted. Bad for India, bad for the US, GOOD for Mexico!!!
Mexico has somewhere between 500,000 and 600,000 IT professionals, and the country graduates approximately 65,000 IT students a year. Both Guadalajara and Monterrey landed on Nearshore Americas ranking of the Six Leading IT Cities in the Nearshore Region.
Agave Lab develops Facebook app for the Juvenile Diabetes Research Foundation
Posted by: andy in Nearsourcing, Random on August 9th, 2010
We were lucky enough to be selected by JDRF to build a facebook app that allows parents with kids with diabetes to sign up to visit their elected representatives in Washington D.C. Check it out.
NYTimes: Mexico poised to outstrip US in economic growth
Posted by: andy in Nearsourcing on July 1st, 2010
Now this is something you don’t see every day. Latin America’s economy is on a tear and, surprise, it’s not all fueled by drugs and bootleg DVDs! I’m sure that much of the success was due to the region’s luck in dodging the pyramid scheme that was the mortgage market in the US (not due to any wisdom or foreword thinking – mortgages of any stripe – much less sub-prime ones – are just not common here). In any event, let’s celebrate before wheels fall off (again)!
After a sharp contraction last year, Mexico’s economy grew 4.3 percent in the first quarter and may reach 5 percent this year, the Mexican government has said, possibly outpacing the economy in the United States.
An App Is Born
Posted by: andy in Agave Lab, Nearsourcing, iPhone and iPad on June 25th, 2010

Is that thing on vibrate?
We’re in a celebratory mood over here at Agave Lab this morning. . .
Last night, after working a scant 10 days and (mostly sleepless) nights, we delivered a very cool iPhone application into the gaping maw of the iTunes App Store Approval Process. We were working with one of the most highly-regarded design firms in the world (they’ve won countless awards and are consistently on the list of “Top 50 Design Firms”). The end client was a major luxury, auto manufacture. Unfortunately, we can’t disclose the identity of either but, the grace-under-pressure that was required and the compressed time frame made this a learning, as well as marginally traumatic, experience – kind if like giving birth but with fewer fluids involved. Here’s what we learned:
-Pick your partners carefully. The design firm is based in NY and in Stockholm. They were our primary point of contact – and they were fantastic. There were plenty of tense moments but even as tensions rose, they had our back. They were more than willing to offer advice, forgo sleep (the project manager in NY stayed up late with us for every session – fantastic guy), and keep a great sense of humor.
-Don’t bog down on a single issue. This project made extensive use of the multi-tasking capabilities of the new iPhone 4.0 OS. The problem was that it wasn’t released until the project was nearly due. No one had any idea of how it was going to work and we wasted a few precious days in the process trying to map out how it might work. In the end, we just shelved it and, as most things do, the solution popped up in due time and was easily implemented. Key message: if you get stuck, step back, do something else, and come back to it later.
-Be proactive about stuff that doesn’t look right. As a developer, working for a client, there is a temptation to do just what you’re told and nothing else. Often times we’d see something in the wireframes or the art that just didn’t look right. By pointing out the things that seemed odd or that we didn’t understand, we avoided building in functionality that, while technically in the spec, would have to be changed later.
-Balance architecture and UI. This one is always a bitch. We focused for the first few days on getting the architecture right – we’re a bit maniacal about code hygiene. That made the rest of the project go more smoothly but, 5 days into it, the client lead at the design firm (not an engineer) began to freak a bit. For him the product IS the UI. On the other hand, it’s easy to pound out the UI components first and then back into the architecture. But with this approach, the the same client lead is going to wonder what the hell you’ve been up to – “The app looked complete at day 3 and we’re now at day 7″! The solution to this seems to be to develop slices of the application from UI to architecture so that you’ve got steady progress on both fronts. Easy to say, tough to do but we’re going to work on it for the next project.
-Hire people that you like. We have a killer team. This project involved a lot of late nights, crappy food, and tension. Our team was stress-tested and passed with flying colors. I used to work for a Kleiner Perkins company and Ray Lane was on the board. I once asked him how he hired people and his response at first surprised me but throughout my career has become increasingly right on. He said, “The most important thing for me is that I like the person right away”. Simple, no? And it works. It’s really rare that someone works out that I generally didn’t get a good feel about in the first 30 seconds. I’ve been trying to work out why this is true. Maybe it’s this: I consider myself hard-working, smart, honest, etc. so I tend to like people who share those traits. There are a million subtle factors that, I suspect, get boiled down to an instant “vibe” – you either like someone, or you don’t – but that vibe signifies a lot more than a hunch. Pay attention to your hunches, they’re smarter than you are.
Intel Invests in Guadalajara
Posted by: andy in Nearsourcing on April 28th, 2010
A tech museum for kids?! A center for environmental design?! How cool!!
Intel, the manufacturer of microprocessors, will invest 2.3 billion pesos over the next three years in Guadalajara, Jalisco, announced world chairman Paul Otellini. The firm plans to expand its installations in this city with a design center, a technological museum for kids and a laboratory with links to small and medium-sized businesses. Otellini said that the new building would be one of the company’s first to be certified as a leader in environmental design and energy consumption.
Read more: http://www.poder360.com/dailynews_detail.php?blurbid=7045#ixzz0mPNmm0b0
India Outsources To Mexico
Posted by: andy in Nearsourcing on April 21st, 2010
Interesting video on BPO outsourcing. I suppose that it make financial sense for them but is still seems a bit bizarre. Company in San Fran sends it’s work to India (with all of the inherent time zone, structural, cultural, and travel challenges) and they turn around and send it to Mexico (just 2 time zones ahead and 3.5 hours by plane). It seems like the extra step just compounds the problem, no?
Indian outsourcing losing ground to nearshore vendors
Posted by: andy in Nearsourcing on January 5th, 2010
Just caught this article from SiliconIndia. Looks like major Indian IT outsourcers are losing contracts to emerging rivals. They make special mention of Mexico’s Softek. This bodes well for us!





