Nearshoring: The Future of Developmental Technology Expansion

Nearshoring, a business strategy that involves working with companies in nearby regions or countries, has gained significant popularity in the tech development industry due to its relevance in the evolving IT landscape.

Nearshoring is not a new concept in the tech development industry - it has existed for over 15 years - but the business strategy has found a recent surge in popularity as its benefits have become more relevant to the technological landscape shaping the future of IT. Nearshoring is the practice of using a company in a region or country near the client, allowing for a shared timezone, and improving nearby international collaboration that strengthens business quality, communication, and cost-effectiveness.

“In the past two years, we’ve seen companies from California, Texas, New York, and Colorado that need to augment their teams or do project-based development. They can’t iterate quickly with a 12-hour time difference,” says Gustavo Parés, President of GITMA, in an interview with Kirk Laughlin, Founder and Managing Director of Nearshore Americas. According to Parés, Mexican nearshoring offers three major appeals for American companies: a window to highly skilled AI, cloud, and database engineers to ensure the digital transformation necessary for companies to survive; access to more human resources necessary to augment projects, industries, and process knowledge that outsourcing options are unable to provide conveniently; and the ability to prioritize deadlines for new MVP’s while a nearby team focuses on products and solutions.

These benefits are not just limited to Mexican/American relations but can apply to nearshoring solutions across the globe. The rise of nearshoring reflects the growing importance of international collaboration and innovation. As the tech industry continues to evolve and global connectivity becomes increasingly vital, nearshoring will remain a key strategy for companies seeking competitive advantages.

The nearshore IT Services Market is expected to grow at a CAGR of 4.04% during the upcoming forecast period (2021-2025), thereby being recognized by GITMA as a crucial and relevant topic for discussion and investigation. GITMA also plans to continue fostering a healthy organizational culture in which a breadth of ideas, voices, and backgrounds are given a vessel to share and grow.

By bringing together like-minded and passionate individuals from across the globe, GITMA plans to catalyze nearshoring strategies between businesses worldwide and ensure the evolution of IT can hold pace with the evolution of technology.

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