Why RightSource to South America?
By Armando Viteri, Neubloc, CEO
Neubloc is a U.S.-based software design and development firm that employs a unique software development organization structure we call RightSourcing, which couples the best of onshore design and project management with highly educated, experienced, and proven product development resources onshore, near shore and offshore in our 7 development centers throughout the United States, Eastern Europe and South America.
This paper will provide those considering the implementation of an outsourcing strategy, as well as for those who have already implemented some form of outsourcing but have been disappointed in the results, the advantages to consider South America as a location to leverage in your development strategy.
Why Neubloc?
Neubloc has a proven track record of delivering high quality software design and engineering services that consistently achieve our customers' expectations. Our focus is dedicated to innovation as we only work with our clients on software and web related product development. We got our start supporting start-up companies but have quickly expanded our client portfolio across industries and have fostered tremendous growth with year over year revenue growth rates doubling since our inception in 2001.
"The collaborative approach we have experienced with Neubloc coupled with the ease of working with a team in our local timezone has proven to us that their software development center in Ecuador can be successful."
Paul Sereiko, CEO of AirSprite Technologies, Inc.
Neubloc's recent expansion into South America has extended the RightSource hybrid development options offered to our clients. By combining the best of onshore design with low cost nearshore and offshore development centers we offer a "follow the sun" development schedule that has consistently delivered software design and engineering services on time and under budget.
Neubloc believes that there are several advantages our South American development centers can offer to our customers:
Professionalism: Our team members in Argentina and Ecuador come from leading technology, mathematics and engineering education institutions and have professional experience working for international finance, manufacturing and technology organizations. Attrition rates in the region are extremely low as the technology sector experiences high employee loyalty most attributable to career-minded professionals.
Innovation: Public and private institutions in South America have been early adapters in several technologies (such as Linux, MySQL, PHP, FLEX, and Apache) that are now industry standards. Our expertise in development for web and prominent programming languages provide a ready resource pool for customers interested in updating existing applications or building new applications from the ground up.
Proximity: The fact that Argentina and Ecuador are in the same hemisphere as the United States allows our customers to interact with their program teams better as these team members are working when you are. The time zone difference between Silicon Valley and locations in South America is 2 - 4 hours, compared to 10+ hours for Europe and Asia.
Communication: Most in South America grow up learning English, which is linguistically more similar to Spanish/Portuguese than languages which don't even share the same alphabet. Our team member's skill sets are augmented with advanced technical English continuing education.
Cost Reduction: Federal and local governments in Argentina and Ecuador have provided technology companies with significant incentives to set up operations in their countries and these costs savings are passed on to our customers.
Competitive labor costs that Argentina and Ecuador afford for skilled engineering and project management resources and provide attractive cost saving opportunities in comparison to conventional outsourcing options.
Why Argentina?
Argentina is a country with a population of just over 40 million, an attractive currency exchange rate to the U.S. Dollar and is widely recognized as a regional leader in education and advanced technologies research and development. Argentina is a regional leader in the export of nuclear and conventional energy, software, pharmaceuticals, electronics and aerospace & defense.
Argentina is also a regional leader in the adoption of information technology for example over 9 million habitants now have access to a Internet connection with nearly 4 million accessing via a broadband connection.
Argentina presents a solid case for nearshore software development as the country's IT sector has seen healthy year over year growth in terms of revenues and jobs created. Here are several advantages nuebloc's Argentina development centers offers to our customers as a RightSourcing option:
- Argentina boosts a large and well trained pool of software engineers.
- Its technology, communications and utility infrastructure are the best in the region.
- Highest level of graduate and post graduate education in South America.
- Leaders in mathematical development in South America.
- Currency exchange rate vs. the U.S. dollar provides substantial cost benefits.
- Strong coordination between the public and private sectors facilitate investment and innovation.
The Argentinean economy has provided consistent growth and a stable platform for economic growth in comparison to competitive emerging markets in the region as well as Asia, and Eastern Europe.
Realizing the impact information technology continues to play in the country's economy, Argentina's government has launched several initiatives to support the industry promoting education, infrastructure and business conditions that continue the industry's expansion. There are currently 14 dedicated incubators and technology parks throughout Argentina that provide collaborative environments that foster growth, innovation and stability to start ups and established companies alike.
Argentina has invested heavily in higher education and its public education system is regarded as the best in South America. It is made up of over 100 undergraduate and graduate institutions attended by over a million and a half students with close to 120.000 of these students are enrolled in undergraduate and graduate programs focused on information technology programs.
IT companies in Argentina currently employ almost 50.000 highly educated professionals and projected growth to 75,000 by 2010.
The favorable economic conditions in South America are also slowly making several countries in the region an attractive destination for global companies to sell their products and services. The combination of new market creation in Argentina and the availability of talent with product development expertise has triggered efforts to create innovation from within the country. The efforts are categorized as originating from two distinct types of organizations - multinational companies as well as domestic companies. For example, Intel, NEC, Peugeot and Bayer, have all opened dedicated research facilities in Argentina.
Argentina has also played a leadership role in ensuring that domestic companies comply with international standards for intellectual property and protection. Intellectual property legislation and enforcement in Argentina is very much aligned with American and European Union standards.
Why Ecuador?
Ecuador is a country with a population of 14 million, a stable economy with the local current pegged to the U.S. Dollar and a growing software industry. The Ecuadorian government has placed great emphasis in support the growth in its domestic information technology sector providing investment and legislation supporting its educational system, infrastructure, intellectual property protections and a prospering business environment.
Ecuador provides specialized training for university students to acquire competent technical skills with public and private universities offering undergraduate and graduate programs in the areas of mathematics, engineering and computer science. English proficiency is now mandatory for students earning undergraduate degrees in most university programs. The country has invested heavily in developing a comprehensive information technology education system and provides a ready supply of bright people at very competitive costs.
The recent investment in building a skilled software development workforce are already paying off as Ecuador is quickly improving to become a competitive technology player in the region. Neubloc's development center in Quito the capital city of Ecuador offers our customers the following benefits:
- Ecuador offers a diverse, low cost labor pool with over 7000 employees in the information technology sector
- Strong industry focus on training and adherence to international quality standards (ISO, PMI, CMMi)
- High level of English fluency
- Strong web technologies resource pool
Infrastructure improvements in Ecuador, particularly in the area of telecommunications and utilities have made the capital city of Quito an attractive and reliable technology hub. Ecuador has done much to stabilize and enhance the Internet connectivity and availability throughout the country. In the past 2 years Ecuador has 2 direct connections to the Internet pipe where it previous relied on connections from neighboring countries.
From 2002 to present the country has experienced an average 60% year over year growth in Internet usage while average costs have been reduced by almost 45% in the same time period¹.
¹ConQuito competitive analysis
What is RightSourcing?
By leveraging Neubloc's RightSource development model, our clients can maximize utilization of time and resources devoted to their projects through having around-the-clock software development while reducing labor and overhead costs through our nearshore, and offshore development centers. We transcend the failed offshore models of the past and the broken promises of cost and time savings never achieved. We understand that development shipped outside of an enterprise will fail without defined processes, clear communications, and the right balance of onshore, near shore and offshore resources that can work in concert to deliver around the clock productivity.
The Neubloc "Follow the Sun" methodology
Advances in global connectivity have significantly reduced the effects that physical separation has on geographically distributed software development teams. Neubloc clients benefit from our leadership and experience in structuring project teams from the ground up to manage the complexities in a globally distributed software development environment. This includes a project management team instead of one overall project manager, additional time for the setup of processes for managing code, and time to build and explain detailed specifications and documentation.
The Neubloc Advantage
Our management team has overseen product development for several startups from seed stage all the way to their I.P.O. Our services span the entire cycle of product development from requirements planning to product branding, and user focused design, usability and user interface through development and maintenance. We cater to small and mid-sized engagements (typically 3 to 25 developers) but have the resource flexibility to scale if required.
With our expertise in setting up operations in Eastern Europe as well as executive familiarity of South America we have taken several important steps to reduce the risks commonly associated with outsourced product development and we provide a high level of service our clients have come to expect from us.
Peace of Mind
Protection of proprietary and confidential data and client intellectual property is a commitment Neubloc provides to our customers. Our standards are implemented and enforced utilizing a sophisticated security focused internal controls and infrastructure including encrypted VPN access, physical and desktop security.
You won't find any "buy two developers get one free" gimmicks from us because they are not necessary. We provide our clients with a comprehensive high quality services while offering attractively prices, low developer attrition, reasonable cost and in your time zone.
To learn more about how we can give you 'peace of mind' please contact:
Armando Viteri
Neubloc, Chief Executive Officer
Email: aviteri@neubloc.com
Phone: (480) 797-2970
To learn more about our specific user experience design service offerings go to:
To view case studies go to:
