Studies have shown the cost benefits of outsourcing to overseas countries are substantial providing up to a 60% reduction in costs. These same studies have also shown that while these savings may seem dramatic much of these cost benefits have been negated by prolonged development efforts due to delays in communication as consequence to large time zone and cultural differences in addition to other incurred costs such as travel. Furthermore, services rates for overseas countries have been steadily increasing to a point where real benefits have declined to below a 30% cost benefit.
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 As a consequence to these issues, the US market has been steadily looking into more viable solutions by seeking resources elsewhere in countries such as Mexico, Argentina and Brazil. These countries offer more attractive globalization models as a result of time zones, cultural similarities and struggling economies. Rates and wages from these countries continue to maintain themselves at competitive levels while overseas country rates are steadily increasing a point where they have been loosing their competitive edge.
Of the above-mentioned countries, Mexico is the obvious choice because of its close proximity and its tight interaction with the US market.
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The Pros & Cons of Offshore Outsourcing
Outsourcing IT and other services abroad promises substantial savings—up to 75%, according to some estimates. While the benefits are significant, there are many risks involved
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