How to Open a Captive Nearshore Software Engineering Center 

How to Open a Captive Nearshore Software Engineering Center 

High-Performance Collaboration, Nearshore, Software Development, Strategic Digital Nearshoring, Successful Outsourcing

Written by: Luis Aburto – 

How to Open a Captive Nearshore Software Engineering Center

Companies that depend on proprietary software to provide their products and services are constantly looking for ways to scale their software development capabilities efficiently. For many companies, the idea of establishing a captive nearshore software engineering center in Mexico offers compelling benefits—proximity, cultural alignment, cost savings, and access to a deep talent pool.

This guide covers the considerations, steps, costs, and risks of establishing a nearshore captive operation in Mexico. While the general process applies across Latin America, specific legal, tax, and labor regulations must be adapted to each country.

Why Choose Nearshore and Mexico?

When companies evaluate options for scaling their software development capacity, the decision often boils down to three primary models: onshore, offshore, or nearshore development. While each has its merits, nearshore stands out for companies prioritizing real-time collaboration, cultural alignment, and cost-effectiveness.

How Companies Typically Reach This Decision

How Companies Typically Reach This Decision

The choice to go nearshore—and specifically to Mexico—often follows an in-depth evaluation process. Key considerations include:

Challenges with Onshore Development

  • Talent Shortages: The U.S. labor market for software developers is highly competitive, with prolonged hiring cycles and escalating salary demands. In large cities and key tech hubs, hiring challenges often lead to project delays and higher operational costs.
  • Cost Constraints: U.S. developers command salaries and benefits that are often unsustainable for scaling teams, particularly for companies that are balancing growth and efficiency.
  • Retention Risks: High employee turnover and stiff competition from larger enterprises create challenges in maintaining team continuity.

Concerns with Offshore Outsourcing

  • Time Zone Differences: Offshore locations, such as India or Southeast Asia, operate in time zones with limited overlap with U.S. working hours, making real-time collaboration difficult.
  • Communication Barriers: Variances in language proficiency and cultural norms can slow down progress, especially in agile environments requiring frequent team interactions.
  • Integration Difficulties: Offshore teams can feel disconnected, leading to lower alignment with company goals and challenges in integrating into the core business culture.

Why Nearshore Emerges as the Best Option

  • Geographic Proximity: Nearshore destinations like Mexico are in the same or overlapping time zones as the U.S., enabling seamless collaboration. Teams can participate in real-time meetings, work on tight deadlines, and respond promptly to issues.
  • Cultural Alignment: Shared cultural influences between the U.S. and Mexico, bolstered by long-standing business ties, foster smoother communication and team integration.
  • Cost-Effectiveness: Nearshore operations provide significant cost savings compared to U.S.-based teams, while avoiding the lowest-cost, high-risk compromises of offshore locations. Labor costs in Mexico, for example, are typically 20–40% lower than in the U.S., without sacrificing quality.
  • Ease of Travel: Mexico’s proximity allows for frequent in-person visits, which are critical during the setup phase of a captive operation or during major project milestones. Direct flights to most major Mexican cities from U.S. hubs add to this convenience.
How to Open a Captive Nearshore Software Engineering Center

Why Mexico Specifically?

Mexico has emerged as a preferred nearshore destination for the following compelling reasons:

Legal and Economic Stability under the USMCA

The United States-Mexico-Canada Agreement (USMCA) offers a framework for strong legal protections and trade advantages. Companies feel secure knowing that their operations in Mexico are safeguarded by a predictable legal and economic environment. This includes robust IP protection, which is critical for companies building proprietary software.

Deep and Growing Talent Pool

Mexico has one of the largest IT talent pools in Latin America, with approximately 800,000 IT professionals, including engineers with expertise in modern technologies such as artificial intelligence, machine learning, and cloud computing.

  • Education Strengths: The country’s universities produce tens of thousands of STEM graduates annually, ensuring a steady supply of skilled developers.
  • Bilingual Workforce: Most Mexican developers are fluent in English, which is often taught as a second language in higher education institutions, making communication with U.S. teams easier.

Established Tech Ecosystem

Mexico has a thriving technology ecosystem supported by government incentives and global investments. Large cities such as Guadalajara, Monterrey, and Mexico City are recognized as tech hubs, offering a rich infrastructure and a vibrant developer community, while mid-size cities like Morelia, Colima and Mérida also offer access to experienced developers while offering excellent quality of life and less turnover.
Forma

When Does a Captive Operation Make Economic Sense?

For smaller teams, outsourcing often provides the most cost-effective and flexible solution. However, as a company scales, the economics of outsourcing versus owning a captive operation shift.

A captive center becomes economically viable at around 40-50 full-time engineers, when the cumulative cost of outsourcing premiums begins to outweigh the higher setup and operational costs of a captive model.

Cost Comparison

  • Outsourcing: Outsourced developers often come with markups of 20–40% for vendor overhead, project management, and profit margins. For 50+ engineers, and over multiple years, these markups can exceed the initial setup costs of creating a captive center.
  • Captive Center: Operating costs, including salaries, office rent, and technology, are typically 20–30% lower than outsourcing rates. However, the initial setup costs (typically $200,000–$800,000) play a key role in determining when a captive center becomes cost-effective. These initial costs are fixed, so for smaller teams, they can outweigh the savings achieved by lower operating costs. However, as the team grows, these setup expenses are spread across more engineers, reducing the per-engineer cost, and making the captive model financially viable.

Key Indicators for Transition

  • Team Size: A stable team of 40-50+ engineers is a tipping point where long-term savings and operational control justify the upfront investment.
  • Long-Term Projects: Captive operations are ideal for companies with ongoing, multi-year development needs where team continuity and institutional knowledge are critical.
  • Cost Sensitivity: Companies aiming to reduce vendor markups and maintain direct control over budgeting can benefit from captives.
  • Strategic Control: Captives offer tighter integration with in-house teams, which is crucial for proprietary projects or sensitive IP.
Steps to Opening a Captive Center

Steps to Opening a Captive Center

Assess Feasibility

A captive center requires a sustained workload, cost efficiency, and a strategic focus on control. Typical triggers for such an initiative include high outsourcing costs, scaling challenges, an aggressive multi-year software development roadmap or the need for greater intellectual property (IP) security.

Define Objectives

Clearly articulate why the captive model fits your long-term goals. Are you looking for cost savings, strategic control, or scaling capabilities? These objectives will shape your approach.

Select Location

Major cities such as Mexico City, Guadalajara, and Monterrey offer the largest talent pools but also face intense competition for skilled professionals. Mid-sized cities like Mérida, Colima, and Morelia strike a good balance, combining access to experienced talent with lower competition. So, when choosing a location for your captive nearshore software development center, evaluate the following factors to ensure operational success:

  • IT Talent: Choose cities with a strong talent pool and competitive advantage in tech skills.
  • Educational Institutions: Target cities with universities offering strong STEM programs to provide a pipeline of skilled graduates.
  • Talent Competition: Assess local job market conditions to avoid high competition that may drive up recruitment costs or promote high turnover.
  • Infrastructure and Business Ecosystem: Consider the city’s infrastructure, cost of living, and overall business environment to ensure efficient operations and talent retention.

Legal and Administrative Setup

Register a legal entity in Mexico. To do so, follow these steps:

  • Choose the Appropriate Legal Structure: Decide on the type of entity that fits your business objectives. Common options include a Stock Corporation (S.A. de C.V.) for larger operations or a Limited Liability Company (S. de R.L. de C.V.) for smaller to medium-sized businesses.
  • Reserve a Company Name: Submit up to five potential names to the Ministry of Economy for approval.
  • Draft a Power of Attorney (POA): Authorize a legal representative in Mexico to act on your behalf during the incorporation process. This may require notarized and apostilled documents for each shareholder.
  • Prepare and Approve Company Bylaws: Define the company’s purpose, operational guidelines, share capital, and management structure, ensuring compliance with Mexican law. Translate these bylaws into Spanish by an official translator. The signing of the approval of the Bylaws needs to happen in front of a Mexican Public Notary.
  • Obtain a Tax Identification Number (RFC): Register with the Tax Administration Service (SAT) to secure an RFC, necessary for tax and financial transactions.
  • Open a Corporate Bank Account: Use the Bylaws, RFC and registration documents to set up a bank account in Mexico to pay for payroll and operational expenses.
  • Comply with Additional Registrations: Depending on your business, register with authorities such as the Mexican Social Security Institute (IMSS) and the National Institute of Statistics and Geography (INEGI), as well as the corresponding State and Municipal authorities.

Talent Acquisition

Hire an HR team or collaborate with local experts to effectively navigate Mexico’s competitive IT labor market. After building your team, set up HR administration processes to register employees with the required government agencies, such as the IMSS, and ensure contributions to homeowners’ savings and retirement accounts are managed appropriately.

Operational Setup

  • Secure office space and set up IT infrastructure.
  • Budget for technology tools, furniture, and compliance costs.
  • Hire experienced managers and supervisors to oversee the center’s setup and operations, ensuring efficient management of administrative tasks, employee motivation and retention, and software development activities.

Manage Risks

Common risks include talent retention challenges, cultural integration issues, and unforeseen operational costs. Mitigation strategies include strong local management, robust HR practices, and contingency planning.

Considerations for Captive Center Success 

Considerations for Captive Center Success 

While a captive center offers control and long-term cost savings, it comes with notable risks that require careful management:

1. High Turnover

Competitive job markets in Mexico mean that retaining top talent can be challenging. High turnover rates can disrupt productivity and increase recruitment costs.

2. Operational Complexity

Managing a captive center requires expertise in compliance, local labor laws, and cross-border operations. For companies without this experience, navigating these complexities can strain resources.

3. Scalability Issues

Rapid growth or changing project demands may outpace the captive center’s capacity, leading to inefficiencies or delays.

4. Cultural and Communication Gaps

Cultural differences, even in a nearshore context, can create alignment issues. Effective communication processes are critical to avoid misunderstandings and ensure team integration.

5. Upfront and Long-Term Commitments

The significant initial investment and operational requirements of a captive center lock the company into a long-term model, reducing flexibility.

Understanding the Costs of Captive Centers

Understanding the Costs of Captive Centers

Upfront Costs

Setting up a captive center involves significant initial investment:

  • Legal and Administrative: $50,000–$100,000
  • Recruitment: $30,000–$100,000
  • Office Setup: $70,000–$400,000
  • Technology and Tools: $50,000–$200,000

Total initial costs typically range from $200,000 to $800,000, depending on the size of the operation.

Ongoing Costs

Ongoing Costs

Once operational, the captive center incurs monthly and annual expenses:

  • Salaries and Benefits: $160,000–$300,000/month for 40-50 engineers
  • Office Rent and Utilities: $10,000–$20,000/month
  • Technology and IT Maintenance: $5,000–$15,000/month
  • Management and Oversight: $15,000–$30,000/month

These costs scale with team size and the complexity of the operation, requiring careful budgeting and cost control.

Ongoing Costs<br /> Once operational, the captive center incurs monthly and annual expenses: </p> <p>Salaries and Benefits: $160,000–$300,000/month for 40-50 engineers<br /> Office Rent and Utilities: $10,000–$20,000/month<br /> Technology and IT Maintenance: $5,000–$15,000/month<br /> Management and Oversight: $15,000–$30,000/month<br /> These costs scale with team size and the complexity of the operation, requiring careful budgeting and cost control.

An Alternative Path: Flexible BOT

For companies hesitant to commit to a full captive setup, the Flexible Build-Operate-Transfer (BOT) model, like the one offered by Scio, provides a strategic alternative. In this model, Scio handles recruitment, operations, and compliance during the initial stages, with the possibility of transferring ownership once the operation is stable and reaches the required scale.

Benefits of BOT

  • Lower Risk: Leverage Scio’s established expertise to avoid the complexities of setting up a nearshore operation. You will not have to worry about the intricacies of local laws, recruitment challenges, or the significant costs involved in infrastructure and office setup. Scio already has the systems, local knowledge, and operational framework in place, enabling a smooth and efficient ramp-up. This enables you to focus on core priorities while Scio manages the setup and operations, ensuring a quicker, smoother, and lower-risk entry to utilizing nearshore talent.
  • Cost Efficiency: This model incurs little to no upfront costs, as the nearshore engineering team can take advantage of Scio’s established infrastructure and capabilities, reducing the need for significant capital investment.
  • Faster Scalability: Immediate access to talent and infrastructure accelerates productivity.
  • Flexibility: Transfer ownership when you reach the desired scale and maturity.
    Forma

How Flexible BOT Works

  • Build: We use our existing facilities to set up your operation. We manage the recruitment and onboarding of top talent, configure infrastructure, ensure regulatory compliance, and conduct a joint onboarding process to integrate the team smoothly into your software development workflow.
  • Operate: We manage all administrative operations, performance tracking, professional development, and continuous improvement, while your engineering leaders focus on managing priorities and task assignments. We guarantee seamless integration with your team and processes, consistently meeting your standards through a customized blend of coaching, mentoring, and training, all delivered in close coordination with you.
  • (Optional) Transfer: At your discretion, we initiate a seamless handover process, which may include setting up new facilities and infrastructure, establishing a local legal entity if needed, and transferring full operational control.

Choosing the Right Approach

While a captive operation offers control and long-term cost savings, a Flexible BOT model provides a safer, faster way to access nearshore talent. Companies can leverage BOT to validate the nearshore model before committing to a full captive setup, reducing risks, and optimizing resources.

Whether you are ready to open a captive center or want to explore the BOT model, understanding your goals, workload, and risk tolerance will help you make the best decision.

Scio can help you navigate this journey. With expertise in nearshore operations and the Flexible BOT model, we empower companies to scale confidently. Contact us to discuss your needs and chart the best path forward.

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Luis Aburto_ CEO_Scio

Luis Aburto

CEO

Achieving a Great Developer Experience with Nearshore Teams 

Achieving a Great Developer Experience with Nearshore Teams 

Nearshore, Project Management, Strategic Digital Nearshoring

Written by: Rod Aburto – 

Achieving a Great Developer Experience with Nearshore Teams

Developer Experience (DX) is becoming an essential focus for companies aiming to build high-performing, satisfied development teams. It’s no longer enough to ensure developers have the tools to do their jobs; creating an environment where they thrive, collaborate seamlessly, and feel valued is critical to project success. When your team combines US-based developers with a nearshore team from Mexico and Latin America, the potential for a great DX is immense—if approached with the right strategy.

Here’s what achieving a great Developer Experience means in a cross-border context and how you can make it a reality.

1. Foster Seamless Communication

When US and nearshore teams collaborate, time zone alignment is a natural advantage, but communication must go beyond scheduling meetings at convenient hours. Great DX starts with a culture of open, transparent, and respectful communication.

  • Use the right tools: Platforms like Slack, Zoom, and collaborative coding environments help bridge geographic divides.
  • Encourage direct communication: Empower developers from both teams to speak directly with each other, bypassing unnecessary bottlenecks.
  • Promote shared language skills: Nearshore teams in Mexico and LATAM often have strong English proficiency, making real-time collaboration easier. Ensure everyone feels comfortable expressing ideas and concerns.

When developers can communicate without barriers, misunderstandings decrease, and camaraderie flourishes—a key driver of great DX.

Build a Unified Culture

2. Build a Unified Culture

Great DX isn’t about where developers are located—it’s about how well they work together. A unified culture that aligns values, work ethics, and expectations can transform collaboration between US and nearshore teams.

  • Onboard together: Include both teams in the same onboarding processes to establish shared goals and values.
  • Celebrate diversity: Acknowledge and respect cultural differences while highlighting shared values like teamwork, innovation, and accountability.
  • Encourage team-building: Virtual team-building activities and in-person meetups (when possible) help break down silos and create a sense of belonging.

By integrating nearshore developers into the larger company culture, you create an inclusive environment where everyone feels valued and motivated to contribute.

3. Provide Equal Access to Tools and Processes

Nothing erodes DX faster than inequality in access to tools or knowledge. Developers need consistent resources to do their best work, regardless of location.

  • Ensure tooling parity: Both US and nearshore developers should have access to the same development environments, frameworks, and documentation.
  • Streamline workflows: Define clear, shared processes for code reviews, deployments, and issue tracking to avoid unnecessary friction.
  • Invest in developer support: Whether it’s mentoring, training opportunities, or technical assistance, ensure both teams have the support they need to succeed.

Equal access fosters fairness, enabling developers to focus on solving problems rather than navigating logistical challenges.

4. Emphasize Growth and Engagement

Developers thrive in environments where they feel challenged, engaged, and supported in their growth. Nearshore teams from Mexico and LATAM bring unique strengths and integrating them fully into the team provides opportunities for mutual learning and development.

  • Encourage knowledge sharing: Create opportunities for US and nearshore developers to exchange expertise, from pairing on code to hosting technical workshops.
  • Recognize contributions: Acknowledge the efforts of all team members, regardless of location, and celebrate achievements together.
  • Support career growth: Provide opportunities for professional development, such as certifications or leadership roles, for developers in both regions.

Focusing on growth ensures that developers remain invested in their work and in the team’s success.

Prioritize Work-Life Balance

5. Prioritize Work-Life Balance

Developers in both the US and nearshore teams face unique challenges but ensuring a balanced workload and respecting personal time are critical for DX.

  • Align schedules thoughtfully: While time zones are similar, avoid scheduling late-night or early-morning meetings that might disrupt personal time.
  • Manage workloads effectively: Avoid overloading either team by distributing tasks equitably, considering skillsets and capacity.
  • Promote mental well-being: Encourage breaks, flexible work options, and initiatives that prioritize mental health.

A balanced approach to work helps developers remain productive and engaged without risking burnout.

Conclusion: Collaboration That Thrives

Achieving a great Developer Experience with a US and nearshore team from Mexico and LATAM requires intentionality. It’s about more than just having the right tools—it’s about creating an environment where developers can communicate openly, collaborate effectively, grow professionally, and feel appreciated.

When DX is a priority, teams don’t just deliver software; they deliver innovation, foster loyalty, and build long-term success. If you’re ready to take your cross-border collaboration to the next level, start by investing in your developers’ experience—and watch the results speak for themselves.

Rod Aburto - Senior Partner

Rod Aburto

Senior Partner

The Hidden Challenges of Scaling a Development Team 

The Hidden Challenges of Scaling a Development Team 

Nearshore, Outsourced Engineering Team, Strategic Digital Nearshoring, Successful Outsourcing

Written by: Adolfo Cruz – 

The Hidden Challenges of Scaling a Development Team

You’re leading a software development team, and with the company growing quickly, keeping up has become challenging. The management team has decided to allocate more of the budget to IT, giving you the opportunity to hire additional developers—but without increasing payroll. They suggest subcontracting as a solution.
After careful evaluation, you find a partner who can supply developers with the required skill set. Contracts are signed, and three new developers have been added to your existing team.

Mission accomplished? Not quite.

Scaling a development team is far more complex than simply adding more hands. I once skipped an onboarding step, thinking it wasn’t essential, and the team felt it immediately. That experience taught me there’s no shortcut to fully integrating new members.
Team size growth comes with its own set of hidden challenges, such as:
Team Integration: Do your current team members understand that the new developers are now part of the same team? Are they being treated as core contributors instead of temporary contractors?

  • Alignment on Vision: Have the new developers been fully informed about the company’s goals and vision? Do they understand the broader mission the rest of the team is pursuing?
  • Measuring Impact: Is there a process to evaluate the impact of adding new developers? How do you measure productivity or improvement?
  • Collaborative Improvement: If the collaboration isn’t working, do you have a framework to discuss what’s going wrong and how to improve it?
The Hidden Challenges of Scaling a Development Team

Key Strategies for Onboarding and Integrating New Team Members

To prevent these hidden challenges from becoming significant obstacles, here are some strategies for successful scaling:

  1. Share the Vision: Kick-off new team members with thorough induction sessions. Explain not only what you’re building but why—the company vision, the product’s goals, and the long-term aspirations. A well-informed team member who understands the bigger picture is much more engaged and motivated.
  2. Clarify Roles and Relationships: The entire team should know each other’s roles, responsibilities, and skills. This helps foster collaboration and ensures everyone knows who is accountable for what.
  3. Explain Team Dynamics: While many development teams follow some version of Agile, each team often develops unique adaptations to make processes more efficient. Make sure to explain your team’s specific practices so that new members can smoothly integrate without friction.
  4. Foster Personal Connections: Integration isn’t just about work. Organize occasional team bonding activities—these don’t have to be elaborate, but a casual setting helps everyone connect on a more personal level, building trust and collaboration.

    As someone who has navigated the complexities of growing development teams, I’ve seen firsthand how easy it is to overlook the ‘human’ side of scaling. Adding new members is only the beginning; ensuring everyone feels genuinely integrated and aligned is where the real work and payoff begins. It’s about building a culture of shared goals and mutual respect, where each person understands their role in the bigger picture. When we approach growth with that mindset, we’re not just expanding our team. We’re building a foundation for collective success. I’ve seen these principles in action, and I know they’re the key to growing and thriving together as a team.
    If you’re looking to scale your development team, take a moment to reflect on these steps. Building a team isn’t just about headcount; it’s about creating a place where every person feels valued and connected. I hope these strategies help you build that kind of team. Let me know what you think in the comments.

    Adolfo Cruz - PMO Director

    Adolfo Cruz

    PMO Director

    The Long-Term Benefits of Cultural Alignment in Team Augmentation 

    The Long-Term Benefits of Cultural Alignment in Team Augmentation 

    Interculturality, Nearshore

    Written by: Rod Aburto – 

    The Long-Term Benefits of Cultural Alignment in Team Augmentation

    When companies look to augment their teams, especially with nearshore talent, there’s often a focus on technical expertise and immediate needs. But while skills and capabilities are essential, one critical element often gets overlooked: cultural alignment. From my experience, the long-term benefits of prioritizing cultural compatibility are profound, impacting everything from team morale to project success. Here’s why cultural alignment in team augmentation matters and how it’s led to enhanced collaboration and success in my own career.

    Building a Foundation of Trust and Communication

    One of the biggest benefits of culturally aligned teams is the ease of communication and trust that naturally develops. When team members share similar values and understand each other’s work and communication styles, they’re better able to communicate openly and effectively. In all these years, we worked closely with US-based clients, integrating our nearshore team with their local developers. When both teams embrace direct communication and transparency, we are able to create a more collaborative environment. This mutual understanding minimizes miscommunication and enables team members to give honest, constructive feedback, fostering a strong foundation of trust.

    Enhancing Collaboration and Reducing Bottlenecks in Team Augmentation

    Cultural compatibility also helps to reduce bottlenecks in collaboration. For instance, many nearshore teams, like ours, work within similar time zones, allowing for real-time interaction and feedback. But beyond time zone alignment, shared cultural values mean that team members are more likely to be proactive in problem-solving and contribute ideas.

    In one project, a developer from our team quickly spotted a potential issue and directly contacted the client’s lead developer to address it. Instead of waiting for a formal review, they resolved the issue immediately, which saved us valuable time and kept the project on track. This kind of direct, proactive approach is much easier when cultural values around ownership and accountability are aligned.

    Boosting Engagement and Morale

    When team members feel understood and share a common culture, their engagement and job satisfaction increase. Teams that feel connected are more motivated to go the extra mile, even in challenging times.

    In one engagement related to nearshore team augmentation, we collaborated on a long-term software development project with a client who highly valued teamwork and knowledge sharing—values our team at Scio also holds dearly. This alignment led to regular “tech talks” within the project team, where members exchanged insights and best practices. As a result, not only did everyone on the team grow their skills, but morale was also consistently high. Team members felt valued and recognized, leading to better engagement and a higher-quality product.

    Supporting Long-Term Client Relationships

    Supporting Long-Term Client Relationships

    Cultural compatibility isn’t just beneficial for the immediate project; it’s a key factor in building long-term partnerships. Clients who work with culturally aligned teams are more likely to extend their contracts or re-engage them for future projects because of the seamless integration and reduced friction in collaboration. I’ve seen this firsthand with clients who value our team’s dedication, work ethic, and ability to understand their unique company culture. By prioritizing cultural alignment for team augmentation, we’ve been able to create lasting client relationships that lead to future projects, referrals, and a reputation for being a reliable and compatible nearshore partner. That has enabled us to be partners with multiple clients over more than 10 years and counting.

    Conclusion

    Cultural alignment in team augmentation is more than a nice-to-have—it’s a strategic advantage that yields long-term benefits. By fostering trust, enhancing collaboration, boosting engagement, and supporting lasting partnerships, culturally compatible teams become a true asset to any company’s growth and success. For companies looking to enhance their development process, investing in culturally aligned nearshore teams can make all the difference, ensuring that projects don’t just meet expectations but exceed them.

    Looking back, every successful project in my career has had a component of cultural alignment. It’s a constant reminder that team augmentation is much more than adding skills; it’s about integrating values and visions to create something lasting.

    If you’re ready to experience the difference culturally aligned teams can make, explore Scio’s team augmentation services and see how we can help you build a cohesive, effective team that truly fits your company’s culture.

    Rod Aburto - Senior Partner

    Rod Aburto

    Senior Partner

    Embracing Interculturality in Global Teams

    Embracing Interculturality in Global Teams

    Interculturality, Nearshore

    Written by: Yamila Solari – 

    BLOG : Embracing Interculturality in Global Teams

    Working in a global company with people from different national cultures is a powerful experience. Not only does diversity enrich our lives, but it’s also an engine for innovation in organizations—provided the organization is open to acknowledging and respecting this diversity. In this article, I will share what I have learned, as a team coach and general manager of Scio, about embracing interculturality in our teams.

    Interculturality involves understanding, respecting, and valuing the differences and similarities among cultures. In an organizational setting, acknowledging and reflecting on these differences is crucial if we want to enhance effective communication, creativity, innovation, and conflict resolution.

    At Scio, we used the Scrum Framework, which has transparency as one of its key pillars. Transparency refers to the open and honest flow of information among team members and stakeholders. I’ve found that recognizing intercultural differences is essential for developing transparent communication. To achieve this, we focus on educating team members and fostering cultural self-awareness.

    Tools for Building Cultural Awareness

    Tools for Building Cultural Awareness

    A great resource for intercultural education is The Culture Map by Erin Meyer. In her book, Professor Meyer introduces eight scales that describe cultural tendencies based on common workplace behaviors. While some scales are similar to Hofstede’s cultural dimensions, many offer fresh insights into other organizational behaviors that may be related to national cultures.

    Meyer emphasizes that while every culture falls at a certain point on these scales, individuals may find themselves within a range around that point. This means we should use cultural scales as tools for personal reflection and refrain from defining someone solely by their country’s profile. Each person should identify where they are on the cultural scale through self-analysis or by using online cultural profile tools. You can learn more at Erin Meyer’s website. One free tool for individual cultural profiles is found at Harvard Business Review. A free tool for country profile comparison is found at The Culture Factor website.

    One way to further our understanding of the effects of interculturality in a given team is to design a team building session around it. Besides covering topics like individual strengths and weaknesses, team members reflect on their culture profile and share with the rest of the team where they fall in their country scales. To consolidate this learning, the team reflects on the diversity of scales and ponders how these differences benefit teamwork but also how they may become a hindrance to it. In my experience, it’s also important for teams to consider interculturality when drafting their working agreements.

    Lessons from Our Journey

    Lessons from Our Journey

    Over the years at Scio, we’ve had the pleasure of working with professionals and clients from various countries. However, two decades ago, when the company was young, we didn’t have a

    formal structure to coach teams in interculturality. Looking back, I see instances where this kind of coaching would have been invaluable.

    For example, I recall a brilliant French team leader working with four Mexican developers. He was dedicated to their professional growth, providing very specific feedback on areas for improvement. However, the team members felt demoralized. We later realized that his feedback style was too direct for them. Relating this to Meyer’s Evaluating Scale, France tends toward direct negative feedback, while Mexico leans toward indirect negative feedback.

    In another case, I worked with a team comprising one Spanish developer and three Mexican developers. On the surface, they got along well, but during a coaching session, it emerged that they were unhappy with how conflicts were handled. The Mexican team members felt their colleague was too confrontational. By examining their cultural maps, we noticed that Spain tends to be more comfortable with direct disagreement, while Mexico prefers to avoid confrontation. This understanding allowed us to adjust our team working agreements to address conflict resolution more effectively.

    Today, we offer interculturality training to our new employees. Since most of our clients are in the US, this is the culture we cover more extensively. Also, we include this topic in the team building sessions, right before the project kick-off. If conflicts arise later, we make sure to remember the interculturality component for team interventions, whenever the team has different national cultures in it.

    Moving Forward Together

    Since implementing interculturality training and incorporating it into our team-building sessions, we’ve seen significant improvements in team cohesion and communication. Our teams are better equipped to navigate cultural differences, leading to more innovative solutions and a harmonious work environment.

    These experiences have taught me the importance of embracing interculturality within teams. By understanding and appreciating our differences, we can create a more harmonious and productive work environment.

    I encourage you all to explore the role of interculturality in your teams. You might be surprised at how much it can improve communication, collaboration, and overall performance.

    Yamila Solari - GM and Co-founder

    Yamila Solari

    GM and Co-founder

    How I Learned the Importance of Communication and Collaboration in Software Projects. 

    How I Learned the Importance of Communication and Collaboration in Software Projects. 

    High-Performance Collaboration, Nearshore, Outsourced Engineering Team

    Written by: Adolfo Cruz – 

    How I Learned the Importance of Communication and Collaboration in Software Projects

    I have been involved in software development for a long time. I started my career on the battlefront: writing code. In recent years, I no longer write code; nowadays, I coordinate the people who write and test the code. I have learned that every team faces some of the common challenges in software projects.

    Common Challenges in Software Development Projects

    Software projects often encounter several recurring challenges, which can complicate development processes and impact outcomes:

    • Changing Requirements: Unforeseen changes in project scope or client expectations that disrupt development timelines and budgets.
    • Tight Deadlines: Pressures to deliver software within short timeframes that lead to quality compromises and increased stress.
    • Complex Systems: Developing intricate software systems with multiple interconnected components can be challenging to design, test, and maintain.
    • Technical Debt: Accumulating technical debt, such as using inefficient code or neglecting refactoring, can hinder future development and maintenance efforts.
    • Security Threats: Protecting software from vulnerabilities and attacks is crucial but difficult to achieve.
    • Scalability Issues: Ensuring software can handle increasing workloads and user demands as it grows.
    • Communication and Collaboration: Effective communication and collaboration among team members, stakeholders, and clients are essential for successful project outcomes.
    • Unrealistic Expectations: Misaligned expectations between clients and development teams that lead to misunderstandings and dissatisfaction.

    Some of these challenges are interconnected or are consequences of others, so I want to focus on one that can cause many of the other problems.

    Why Communication and Collaboration Matter in Software Development

    Why Communication and Collaboration Matter in Software Development

    Instead of trying to define communication or collaboration, I’ll give you an example of what I consider effective communication/collaboration or the lack of it in this case:

    When I was a junior developer, I received a well-written document containing the requirements of a report I was supposed to implement in the company’s ERP system. I diligently read the requirements and started coding immediately to meet the two-week deadline. I didn’t ask many questions about the requirements because they were well described in the document, and I didn’t want to give the impression that I could handle the job. Two weeks later, I delivered the report on time after many tests and bug fixes. It was released to the UAT environment, and it monumentally crashed. What went wrong?

    Now I know what went wrong. Back then, I was embarrassed. Here is a list of the problems that my older me identified:

    • Lack of communication: I received a document, read it, and then jumped into coding without asking about the context of the report, how it was going to be used, how much data was expected to show in a production environment, or who the final users were.
    • Deficient communication: My manager asked me every other day about my progress in development. My answer was: Everything is okay, on track. His reply was: Excellent, keep working. I was not sharing details of my progress, and he didn’t inquire more about my progress. We were not communicating effectively.
    • Lack of collaboration: I was part of a team, but our collaboration was more about providing status than helping each other. I could’ve asked for help from more senior developers about my approach while implementing the report. I could’ve requested a code review of my DB queries, which looked beautiful but performed terribly with large data sets.

    So, I had a problem of scalability and a deadline that was not met, caused by deficient communication and collaboration.

    That is how I discovered that decent technical skills were not enough to become a good developer. I needed to learn more about effective communication and efficient collaboration.

    Examples of Effective Communication and Collaboration

    Today, when I coach my teams at Scio, I often talk about the importance of communication and collaboration between all the people involved in a project, for example:

     

    • After a daily Scrum, is it clear what everybody is working on? Do you leave the meeting with a daily mission to accomplish?
    • Do you know when to ask for help? Have your team defined rules about asking for help when a problem solution takes too long?
    • Are the team goals aligned with the client’s goals?
    • Do you communicate any deviations to the plan to the right people?
    • Do you feel comfortable with your team discussing inefficiencies in your development process?
    Practical Tips for Improving Communication and Collaboration in Software Projects

    Practical Tips for Improving Communication and Collaboration in Software Projects

    To make the most of communication and collaboration in your software projects, consider these best practices:

    • Ask Questions: Encourage developers to clarify requirements and ask questions to avoid misunderstandings.
    • Keep everybody in the loop: Keep communication open with team members and anyone involved in the project. “No man is an island,” or in this case, “No team is an island.”
    • Foster a Supportive Team Environment: Promote an atmosphere where team members feel comfortable discussing challenges and asking for assistance.

    Summing Up

    In summary, technical skills and methodologies are necessary for successful software development, but they aren’t enough without effective communication and collaboration. By focusing on these areas, you can improve project outcomes, reduce misunderstandings, and deliver quality software that meets client expectations.

    Interested in learning more about how our teams at Scio can help your software project succeed? Contact us today to find out how we can help you achieve your software development goals with a team focused on effective collaboration and communication.

    Adolfo Cruz - PMO Director

    Adolfo Cruz

    PMO Director