chile vs india - Mobiloitte Blog

Chile vs India. Where to Outsource Your Mobile App Development Project?

It seems that from the darkness of the river shore a challenger appear. No, rather it has been here all along, and it is not as dark as it may first appear. It is just a competition and it is our personal conviction and philosophy that competition in fact enlightens you and makes you better in delivering your mission under this Sun.

News have us reached about the emerging supremacy of Chile as outsourcing or better said – near-shoring station for the entrepreneurs and product development companies from USA. Sorry, we are just being brutally honest, why denying that most of our business model which makes more than one side happy is dependent on the American market.

Near-shoring is the option available to organizations that aren’t completely comfortable with the traditional offshoring practice. With resources that are geographically closer, hailing from similar time zones and cultures that are easier to relate to, near-shoring is certainly more convenient.

Oh yeah, culture. It is the most cited competitive advantage of near-shoring against offshoring. You tell me of a another nation who is so globalized and internationalized that has practically neglected it’s ancestors language (which ironically according to a German research turned out to be a great fit for a programming language as well because of its highly syntax-based structure). You tell me of another nation who is more geographically dispersed and holds amazing 60% of the number of successful new companies in the Silicon Valley founded or managed by immigrants.

Exactly. That is India. Highly globalized trend setting nation with many competent of software developers ready to do wonders for your project or your start-up.

However, let’s take this from the beginning. Which country would be the better option to outsource your software or mobile app development project?

Offshoring vs. Near-shoring… Chile vs. India

In 2010, the Chilean government began the pilot program of Start-up Chile which provided a Launchpad for entrepreneurs to set up shop in Chile. Promising local support, office space and $40,000, the program encouraged entrepreneurs to move to Chile for 6 months. In return, the country benefits from the social capital of these start-ups. The program has seen 80% increase in applications since its inception and the percentage of Chileans in those applications has increased 10 to 37%.

Nice going Chile, and congratulations for the forward looking government which logically wants to invest in order to take share in the new Economic value provided by the global growth and penetration of IT. India has been doing it for a while with unhidden zest, arrogance and ambition and it has powered its economy ever since. But we have the advantage of experience.

Chile is a small country and the availability of specialist there is limited. Chile has also chosen to invest in a workforce that delivers specialized outsourcing services rather than cater to volume-centric requirements. Therefore don’t be surprised on the likelihood that your near-shore team in Chile will have outsourced some of your work to another team in another location, most probably India.

Is the effort worth it? Connecting directly with India will yield at least 2 benefits (1) less budget demands and (2) time saving and hassle free delivery of code and project because you are dealing directly with your vendor. Code incompatibility is less likely to happen. You know what happens when more than one chef prepares the stew right.

Language and cultural barriers

We have already talked before why language barriers practically do not exist when you outsource your project to India. Cultural barriers/ Are you kidding me? Which one is more likely to stand with you in terms of culture, a country ex-governed by the Kingdom of England or samba walking Hispanics?

Don’t get me wrong here, the young and emerging force of metropolitan India distinguishes themselves on the level of hard work and dedication they put into code development probably more than any other outsourcing nation in the world. Those who have already outsourced to India know very well what I am talking about. And the presence of all international IT giants in India simply proves it again.

It is of no concern that the government of Chile is putting serious efforts to reposition its economy from copper producing into the realms of high technology and outsourcing. We salute that.

However every participant must undergo its share of challenges and learning before it becomes fully confident and mature to stand behind its promises. Right now Chile is in the middle of those challenges trying to cater to them the best it can with the constraints it faces.

India on the other hand has learned far and wide taught by an ocean of experiences not always pleasant and happy. Experimentation with all it has always been India’s way forward.

Those experiments of trial and error have produced set of principles structure and organization which so many young Indian programmers have taken them not simply by studying by practice and hearth.

The process driven culture and the waves of innovation that release their substance and lubricate those processes every time they become crunchy and obstacle for experimentation existing at Mobiloitte had impressed many American product managers, IT heads and entrepreneurs and they gladly come for more.

That is the level of maturity which an outsourcing company or station must strive to achieve and India has done plenty to earn it. Mobiloitte sincerely hopes for Chile’s progress on the path that inevitably has to be walked.

Meanwhile take the best advantage of what is already built for you within our structure and of course keep your eyes for breakthrough innovation that may come from our future challengers. We love to be taught by both – challengers and customers as well.