NDS makes it easy and affordable for IT service firms to
establish their own virtual captive near shore delivery center in Mexico
As Mexican IT executives visiting India, we were amazed at what we saw, felt, heard and smelled because we realized how similar Indian and Mexican people and cultures are. We then wondered, if we are so similar, why instead of competing for US IT and BPO outsourcing business, don’t we find a way to leverage the best that each country has to give and partner to deliver unsurpassed services to the world’s largest market.
What we do?
Leveraging years of experience, we set out to enable Global Outsourcing firms with everything necessary for them to set-up nearshore operations in Mexico from which they can cover the needs of their North American customers. By partnering with NDS, IT Service firms can take advantage of their long history of managing, implementing and staffing offshore IT projects while leveraging the natural benefits that Mexico offers when working with US and Canadian companies:
- Geographic proximity to the US and short direct flights
- Similar time zones
- Availability of thousands of English speaking Mexican engineers
- Easy travel to the US without needing H1B visas
Mix Resources to Assemble Better Teams
Cultural affinity between Mexicans and Indians have proven to allow people from both countries to work well together allowing IT Service firms to easily create superior delivery teams by mixing resources from both countries.
We see values as a thread that that’s weaves through and binds our organization. Our company was founded and is managed on these core principles:
- Make our customers successful – we will do all that is within our powers to help our customers achieve success.
- Transparency and fairness in all of our actions
- Offer a great work environment where individuals feel at home and can succeed
- Employ and motivate feedback loops to improve constantly
- Do more with less.
Our company was founded by a group of forward thinking, successful executives who have added equally passionate professionals with experience in the international outsourcing and offshoring industry
Nearshore Delivery (Outsourcing)
Many US and Canadian companies are looking to include nearshore outsourcing as one of their outsourcing options. This is due to the fact that long-distance offshoring takes a toll on the control of projects mostly due to time differences between development teams. Firms are finding that the time zone problem - a lag time of up to 12 hours in some cases - can erode program management and communication and leads to concerns in: quality control, intellectual property theft and other issues.
So it's not surprising that many executives are considering the virtues of nearshoring.
Nearshoring offers virtual development teams the ability to collaborate in the same or similar time zones. This means that development becomes more agile because things do not have to wait a day-and-a-half to be turned around. By eliminating the time difference problem, nearshoring providers can offer optimum time-to-market schedules for new projects and new products
Virtual Captive in Mexico
Given the rise in interest for near shore delivery capabilities, a number of IT service providers have surfaced in Mexico that offer these type of services directly to US companies.
Rather than competing to take business away from Indian IT Service firms, NDS focuses on offering the capability to establish Virtual Captive Nearshore Delivery Centers in Mexico, so that the offshore suppliers can easily include this capability to their existing customers.
The Virtual Captive Nearshore
NDS enables companies to have their own nearshore delivery capabilities in Mexico, providing the perfect middle ground between outsourcing and incorporating in Mexico… offering the best benefits of both options.
By partnering with NDS, we will establish, host, staff and help manage your operations in Mexico according to your standards and practices and because it is your virtual captive, you will maintain full control, ensure IP ownership and adherence to all corporate regulations and standards.
- We make it fast.
- You retain full control.
- Your costs will be lower.
- You can mix and match local resources with expats.
- Your customer’s resources can visit the facilities and come away with the feeling that it is YOUR development center.
- Your employees will be more loyal and turnover will be lower.
Everyone at NDS works towards one goal: to make your Nearshore Delivery Center succeed in Mexico. We offer a strong relationship structure to manage your strategic and operational needs, and deliver high quality outcomes.
Traditional and flawed ways of
starting operations in Mexico
Most companies consider two options when thinking about establishing foreign operations. Both options have their strengths and weaknesses:
You could give the work to a third party provider in Mexico who assigns it to their existing developers
You could go to Mexico, start your own wholly owned Mexican corporation and hire a group of developers
|Pro It will be fast||Pro You will maintain full control|
|Pro You won’t have to invest||Pro Your employees will be more loyal and turnover will be lower|
|Pro Your delivery capabilities will gain nearshore benefits||Pro Costs will be lower|
|Con You won’t have full operational control||Con It will be slow and complicated|
|Con Your costs will be higher||Con You will need to make large investments|
|Con Developer rotation will be higher as they will be less loyal to you and your company||Con You will have ongoing issues due to the lack of knowledge about Mexico|
Maintain control, Keep Costs Low and Provide the Best Quality
You maintain as much control as you want and we help with the details you don’t want to worry about while keeping costs down. You take full control of day-to-day operations. You can bring your own Indian or other expats to work alongside locally hired engineers and managers to get the best mix of talent and achieve the best possible results. We help with all of the permits, logistics and management so all you have to worry about is delivery.
We offer different Options with varying levels of control – Same commitment to make you successful
|Your team||We recruit and hire your Mexico staff. Your team works exclusively and full-time for you.|
|Your office space||We can provide dedicated office space. Enabling you to instill your own branding and corporate culture and provides you with your own secure office environment.|
|Your tools||We believe that it is best to leverage the tremendous experience you have in managing the different workflow systems that enable onshore-offshore collaboration. So rather than getting in between you and your existing practices, we embrace your processes and tools. Just tell us which systems and tools you want and we ensure these are available.|
|Your policies||We embrace your processes and tools. Just tell us which systems and tools you want and we ensure these are available.|
|Your company||If at any time you decide to establish your Mexican corporation and employ your staff directly, we help you incorporate and manage your corporate entity. Even after incorporation, NDS can continue to provide the assets and support services you want to make things easy for you.|
|Your training needs||NDS helps ensure that your team is up to date on the new technologies, methodologies and/or business practices your end clients’ demands and we can get government subsidies for the training|
Virtual Captive Nearshore Delivery Center
A virtual captive solution allows our clients to retain a greater level of control of their business while transferring to the operational and financial risks to NDS. The benefits that this model provides are:
- All of your team-members can and should be treated like your own employees, allowing your organization to implement and reflect your existing branding and organizational culture.
- Ensure that the solution is implemented according to your quality and speed.
- Achieve a solid return on investment.
- NDS provides and manages physical assets for your virtual captive center and provides all of the staff HR services your need, letting you focus on your core business competencies.
The virtual captive model can be as flexible as you want and provide an organization with benefits that correspond to its unique business and legal requirements. NDS, as your partner, plays a pivotal role in setting up and managing the best arrangement to fit your needs.
If you are not ready or do not want to have your own Nearshore Virtual Captive Delivery Center, our offshore staffing services enable you to establish a dedicated team in Mexico. We help you hand-pick the team-members who will work for you full-time exclusively from our offices. Your dedicated team in Mexico are legally employed and managed by NDS, but they will report to you. You can manage them directly through email, phone or Skype, or you can use your own dedicated on-site management team. You can also be provided with an NDS account manager for day-to-day coordination, if you desire.
Build Operate and Transfer (BOT)
NDS’s Virtual Captive Nearshore Delivery Center services enable you to leverage our existing capabilities and resources to set up an offshore operation in Mexico. This constitutes a highly effective way to start operating nearshore without the due diligence, costs, and long-term commitments required to start your own Mexico-based corporation. For companies that have the goal to one day fully own and control the entire nearshore operation, NDS offers a Build-Operate-Transfer (BOT) arrangement in which we will build and operate your nearshore operation for a certain period of time, after which we can transfer the entire operation to your own Mexico-based corporation.
Benefits of a BOT in Mexico
|Risk Mitigation||By starting your offshore operation using NDS’s services, you are significantly lowering your risk when compared to immediately setting up your own Mexico-based corporation because you will not be making any investments or long-term commitments. Should your operation not be as successful as desired, you will be able to exit without major losses and sunk costs.|
|Controlled Transition||The transition phase can be coordinated and executed to take as much time as you may need during which your management team gradually takes over control of the operation. This controlled transition will be a lot easier to execute when compared to direct incorporation, in which case your team in the must be able to execute in Mexico right away.|
|Local Expertise||NDS has been operating in Mexico for many years and we know how to do business locally. During the Build and Operate phase of our BOT arrangement, you can learn from us and use that knowledge to achieve better results.|
|Post-transfer||NDS can provide you with services, even after the transfer of all operations to your own company. Many of our BOT clients still opt to use NDS for some of their operational, advisory, consultancy, business continuity, manpower acquisition, and technical support. It enables them to execute the transition more gradually and focus on the core service that the offshore operation was established to perform.|
For many companies, outsourcing to a third party provider may not be the best solution. There can be a number of reasons for this. In which case, it may be necessary for you to own a majority of a corporate entity in Mexico in in a joint venture with NDS. The concept is simple: your company and NDS start a joint venture in Mexico which effectively creates a corporate entity in Mexico that services your company exclusively and is largely in your ownership. Within the joint venture, your company can leverage all of NDS’s local resources and expertise to operate swiftly and effectively, without any of the pains.
Benefits of an NDS Joint Venture in Mexico
|Ownership||You will own the majority of a Mexican corporate entity, enabling you to add this offshore operation as an asset in your books and assuring that you have the control and ownership required to satisfy your clients and comply with any demands they may have in this regard.|
|Risk Mitigation||Starting a corporation in an unfamiliar geography such as Mexico can be a very risky endeavor. By partnering up with a strong local player like NDS, you can reduce your risk and leverage our years of local presence and expertise.|
|Cost Savings||Running your own wholly owned subsidiary requires great investments and it will not be cost-effective in the short-to-mid-term. Within the joint venture, NDS leverages its scale and assets to run at much lower costs.|
|Time to Market||Setting up your own wholly owned subsidiary will require a lot of due diligence and take an average of 6-9 months to establish. By leveraging NDS's local presence and expertise, you can substantially reduce the necessary time.|
Even for companies already established in Mexico, NDS can provide you with any of the services to enable you to focus on the core service without any of the hassles of managing your operations.
Many clients opt to use NDS for some of their: operational, advisory, consultancy, business continuity, manpower acquisition, payroll processing and technical support.
Mexican engineers can work in the USA and Canada without requiring H1B Visas. The North American Free Trade Agreement (NAFTA) created special economic and trade relationships for the United States, Canada, and Mexico. Qualified Mexican engineers can apply for a nonimmigrant NAFTA Professional (TN) visa, which allows U.S., Canadian and Mexican citizens the opportunity to work in each other's countries in certain professional occupations. The TN Visa is somewhat similar to the H-1B visa, but the duration can be for up to three years and may be renewed indefinitely in three-year increments.
A Virtual Captive is a type of business engagement model between a customer that wishes to setup a development or R&D center in an offshore site and an offshore provider (NDS), who is committed to provide the customer with full control and transparency related to all operation-incurred costs including accounting, salaries, procurement, administration, legal and other business aspects.
NDS builds-out the R&D center to fully comply with the customer’s guidelines and with full alignment to its development methodologies and processes as well as team structure and corporate culture.
The software development center is built either within the provider’s existing facilities or created at a designated site/office space. The engagement between NDS and the customer is based on a cost plus base fee. The customer agrees to pay all wages and all related overhead costs and NDS, using a transparent model, charges a fixed markup on top of the virtual captive expenses.
The customer is usually in charge of the professional management of the team while the offshore provider undertakes the responsibility of the administrative, HR, financial and legal management of the facility and team including the handling with the offshore authorities.
A Virtual Captive is the easiest, most cost efficient way for a foreign company to set-up and maintain operations in Mexico.
A shelter program is a value-added outsourcing arrangement and is the best option to allow you to: fully control your own production and quality and, by relying on a local partner, to benefit from the experience of an organization that knows the local market, and eliminate the need to make sizeable investments in physical and human assets. Working through NDS, foreign firms are able to initiate operations quickly without actually establishing a legal presence in the country. They are in Mexico as a department of NDS. In essence, firms opting to use this vehicle are “sheltered” from many of the risks and liabilities that normally affect firms that choose to incorporate directly.
Under the typical shelter arrangement, NDS sets-up operations and hires local engineers after which you can send supervisory personnel to train and manage workers. Once the operation has gone live, NDS provides all of the tasks and functions that are not “core” to the company, such as: human resources, payroll and benefits administration, logistics, facilities management, procurement, real estate leasing, expat help and travel.
Once your Virtual Captive operation is established, you can send supervisory personnel to train, manage and work alongside the workers. NDS helps establish the right mix of local and expat resources and processes all of the necessary permits.
The interest in nearshoring IT Services has companies from many Latin American countries promoting their advantages as a platform from which teams can deliver. However, among all of them Mexico holds singular geographic, political, trade and cultural advantages, making it the most favorable location to host a nearshore delivery team.
- Mexico is the nearest “Nearshore” destination
- A Direct flight from San Francisco takes only 4 1/2 hours and from New York 5 hours, making travel quick and easy.
- US Citizens or citizens from any other country holding a valid US visa don’t have any visa requirements for stays up to 180 days.
- Mexican citizens don’t have the need for H1B Visas to enter the US for work. A NAFTA Visa (called a TN Visa) is easy to procure, taking only two weeks if an invitation from a US company. TN visas are valid for 1 year and are easy to renew.
- Centuries as neighbors has created a cultural affinity between US and Mexican Citizens.
- Most of Mexico’s population lives in the Pacific or Central time zones, making it extremely easy for US and Mexico team-member to coordinate during normal work days.
- Millions of Mexicans speak good English.
- Mexico has hundreds of accredited universities from which over 40,000 qualified IT professionals graduate every year.
NDS has experience in finding and hiring IT professionals to work in any country in Latin America as well as US and Canada. NDS offers two options:
1) Mexican engineers who work on-site anywhere
2) local (in-country) resources.
For companies already established in Mexico who don’t need a Virtual Captive, but who need help with some of the services, NDS can provide any of the services to enable the company to focus on the core service without any of the hassles of managing its operations.
Some of the services that NDs offers are: talent acquisition, payroll processing, real estate acquisition, technical support and others.
NDS can easily lead you from initial contact to setting-up your own virtual nearshore captive delivery center in Mexico.
- Requirements Analysis - After initial contact, we go through a mutual due diligence process to identify your organization’s goals and match those with NDS’s capabilities. We work with you to analyze your requirements and clearly identify and documented your offshore operation in terms of talent, infrastructure, support, and management needs.
- Proposal & Acceptance - Once your offshore operation is well-defined, we work with you on a transparent cost-plus pricing model. After any necessary interaction both parties reach agreement on the basic terms of service and pricing.
- Services Agreement – Once pricing is covered, a formal services agreement containing all the details of your offshore operations, our service delivery, and all agreed upon service level agreements is formalized.
- Project Team Assembly - In most cases, a project team is established to execute the setup process. Typically, this project team is made-up of members from your management team as well as from NDS. The project team has weekly conference calls to discuss progress and ensure that everything is on track for a timely go-live of the offshore operation.