right now is
60 percent of
what it was in
there are still
—John Thorpe, Arras People,
Some U.S. companies such as
Novell, the global IT networking
firm based in Provo, Utah, have
found great success outsourcing projects
to Mexico. The tactic is particularly
effective for projects that require a lot
of real-time interaction, says Dave
Wilkes, engineering vice president at
“The benefits of nearsourcing outweigh the minor cost difference,” he
says. On one project, his teams interact with one another every day and,
when necessary, the company brings
the Mexico team to Utah.
“We have a lot of collaboration on
that project, and the level of interaction
we’ve been able to achieve with that
team is a big plus,” Mr. Wilkes says.
Nearsourcing is also about client
demand, says Joe Dzaluk, vice president of global infrastructure and
resource management for technology
giant IBM, Armonk, New York, USA.
The company recently made headlines
when it announced plans to open service centers on its home turf: one in
Dubuque, Iowa and the other in East
“To meet our clients’ needs, we
invest in different places, including
the United States,” Mr. Dzaluk says.
“We have a large client base in the
United States and they often want a
local presence due to sensitive data
and compliance issues.”
In the case of Dubuque, for example, the city offers competitive wages
and a rich source of IT professionals
who can handle high-level projects.
“It’s not just a matter of choosing
the cheapest location,” Mr. Dzaluk
says. “You have to match the local
skills to client needs.”
Many of the obstacles that come
with pan-global projects are also
eliminated when you nearsource,
says Ronaldo Annes, outsourcing manager for Sonda Procwork Outsourcing
Informática, São Paulo, Brazil.
“You get world-class service plus
quality, shared cultural values