Softtek, a Mexican provider of IT services, added 30 new clients last year, writes BusinessWeek Asia.
Most of them had been using Indian firms for their outsourced IT.
Companies that traditionally rely on India for offshore IT services have been looking for alternatives for years, citing such reasons as high employee turnover and unreliable communications.
But the search has taken on added urgency, especially for U.S. companies, as a weakening dollar has boosted the cost of IT services priced in India’s rupee.
Over the past five years the dollar has declined about 16% against the rupee. High real estate costs and expectations for tax increases also have diminished India’s allure.
As outsourcing to India becomes more expensive, North American companies are more inclined to “nearsource,” keeping work in the Western Hemisphere, where they can operate in a closer time zone.
