WCIT 2008: What is 'Near-Shoring'

This is the talk presented by the Mexican delegates on day 3 of WCIT 2008.

More about WCIT 2008.

To cut things straight, 'near-shoring' simply means outsourcing to the nearest people outside you.

The Mexican delegates was actually trying to semi-pitch sales from the US side to give them business of outsourcing (software) rather than to India and China because 'Near-Shoring' reaps the following benefits.
  1. Due to proximity, it reduces cost (closer time zone and etc)
  2. Closer culture to the US
Thus, what the Mexican was suggesting is that by outsourcing to them, they will get to become the outsource manager for US companies because they will be the one to sub-contract the jobs to India and China, making full advantage of the 24 hours cycle and thus by morning time, the US executives will get to have the updates from the outsourcing manager directly. This would be more ideal for the US and Canada too.

The fact that Mexico has a population of 110 millions and they have national program specifically developed just to bring up the software outsourcing business, and they are serious about it.

Not only that, Mexican engineers are also good in terms of Aerospace and Embedded System.

This brings me to a revelation that in a holistic approach, the world of software can be divided only into two segments:
  1. Innovation (Mainly in the US side)
  2. Outsourcing
Even Malaysia wants to be a part of the outsourcing business and we are only having 25 millions people. Mexico has 4 times more people and they are nearer to US (easier to collect money as well).

But what I really what to bring up is that this shows how much wealth big companies like Microsoft, Google, Apple, HP and etc are controlling and inheriting because even for country with immense talents like Mexico, they wouldn't even "really" want to think about starting the next Google. The point is that not many people even want to challenge the big boys, simply because we think that we are inferior. But perhaps the consensus is clear to the extend that how much time we do have at our side and there is a need for investment to draw a clear timeline. And this is where outsourcing comes into the picture because you can easily predict how big an outsourcing economy would be rather than predicting the next big thing.

John Doerr (partners of Kleiner Perkins Caufield & Byers) mentioned that iPhone is the next big big big thing after the PC era and Microsoft just confirmed it recently as well.

And it is interesting that I was talking to someone who have just visited Hong Kong for leisure trip and she told me that Hong Kong is a place where the economy is stagnant now. And to pinpoint what I understood as stagnant, it simply means that for an average person, if you are driving proton saga now, you would probably won't have the chance to drive Mercedes in the next 20 years. You will get to maintain your proton saga and that is about it. The problem is that competition within the society is so great and couple with inflation, marginal increases in the income will not substantiate your lifestyle.

I agree with this.

In fact, it is starting to happen in Malaysia already, with population of only 25 millions. So, countries like Mexico, China, India and even Korea (40 millions) would be much worst. Let's not forget countries like Egypt has also approximately 100 millions people.

Thus, I can say that based on this, worldwide PC(Personal Computer) has probably coming to the peak that people who can afford PC will keep buying and changing PC, but for those who can't, there will be slimmer chances. So, mobile computing could be the next big thing after all, I am pretty convinced about this.

So, I utter to those entrepreneurs dealing with Mobile computing, long live the next era! Would u care to outsource ?