The Results

For this company, the difference in TCE is dramatic. The US base cost for a year would amount to $ 2,757,401 and $ 2,206,790 in India, but they can do it in Mexico for $ 1,626,542.

This represents a difference of more than 20% between the offshore and nearshore locales and a 35% net savings in Mexico. With long term commitments, the savings can be as his as 50%.

In addition, the nearshore choice adds the unique benefit of allowing the teams to work together most of the day. This is a significant benefit, above and beyond the dollars-and-cents savings, that cannot be duplicated in an offshore location.

The Model Behind the Numbers »