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Nearshoring in Mexico

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2 minuteminutos readde lectura
ByPor Pedro Pazmiño

Pedro is the creative director for Webcreek. For the past 8 years, he’s worked on branding and advertising for multinational companies, prioritising the UX/UI functions of products for client projects. He’s passionate about creating outstanding graphic outputs through original design, and loves the color blue.

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Nearshoring in Mexico is becoming one of the most widely adopted strategies in the country, and this is because Mexico borders the United States. As a direct effect of the current economic situation, outsourcing in Mexico has emerged as an alternative to traditional business models. 

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Outsourcing in Mexico

Given that Mexico borders the United States, there are many opportunities to develop outsourcing since Mexico is one of the largest importers. Importing depends greatly on the relationship that China has with the United States because China is one of the largest suppliers. However, Mexico can take advantage of the country’s low labor costs to promote outsourcing and optimize the profits of outsourcing companies.

Cost competitiveness is an emerging issue that has caused many companies to seek new ways to reduce unit labor costs in manufacturing. This, added to the fact that countries like the United States want to diversify their supply from China, positively affects Mexico because it now has a stake in the importation of goods and services. 

One advantage for IT service providers in Mexico is that outsourcing simplifies the hiring process and reduces company costs. Additionally, they can set up teams of experts in a quicker and more organized way as well as outsource the resources and the organization to the nearshoring company. This gives companies that opt for this strategy a significant competitive advantage, as they can focus the rest of their resources on improving other processes. 

Furthermore, software development in Mexico is a key factor in facilitating nearshoring. Artificial intelligence and machine learning, for example, often turn out to be complex matters, so various companies without trained staff are choosing to hire specialized teams through outsourcing companies in Mexico. 

Ultimately, Mexico has a bright future in nearshoring, and it will be a matter of taking advantage of the present job opportunities to maximize the benefits of nearshoring in Mexico.