Outsourcing your talent to Mexico to reduce costs is not a new concept or even a new trend in the world of workforce hiring.
However, with changing times, there are different requirements that a company looks for, and outsourced employees in Mexico have unexpected value. That is why so many giants from various industries have been doing it for years, whether it is in software development, human resources, or any other field.
There are many reasons for choosing to have Mexico-based outsourced employees. The convenience of nearshoring, low labor costs, developed infrastructure, trained talent pool, and similarity of time zone to the US are just a few of them.
Nearshoring in Mexico
When you shift business operations to a nearby country, it is called nearshoring and it can help save on many costs as well as allow you to scale the business.
Nearshoring is a great way to help maximize your business profits by utilizing Mexico’s low-cost economy. In recent years, offshoring was also preferred to India, but due to rising wages in India, Mexico is now more suitable for nearshoring than ever.
It is also more practical when considering COVID-19 restrictions. Trade agreements with Mexico are also favorable. The neighboring country also offer intellectual property protection and Mexico has low labor costs and a highly skilled talent pool along with a well-developed infrastructure, making it an ideal choice for nearshoring.
Pool of Talent
When you hire employees from other parts of the world, you can access a much broader pool of talent.
Mexican talent is highly educated and trained due to the efforts of the Mexican government in the field of education. According to the World Economic Forum, the percentage of STEM graduates in Mexico has increased from 15.5% in 2005 to 21.3% in 2012 and has also been increasing since then. It is on par with OECD countries when it comes to the number of IT and technology graduates. So you could hire smart and efficient employees on the same level as those in the US who would require a higher salary.
Benefits of Remote work
Studies have shown numerous benefits of remote working, from a better employee experience to higher productivity.
By hiring remote workers you save on the cost of renting an office, associated costs like electricity. Time spent on managing employees in person. With the remote work model, gives employees the opportunity to use their time effectively according to their preferences.
It also creates a positive relationship with your employees, as flexible hours allow for a better work-life balance. Additionally, you can measure your performance solely on deliverables and productivity.
Proximity and same time zone
A major advantage of outsourcing employees who are based in Mexico is the proximity of the country to the USA.
It also means that you would be operating in similar time zones, which would make communication, meetings and task management much easier and more efficient than if your employees were based, for example, in Asia.
If your business has a target audience in the US, then the business can greatly benefit from establishing a call center or BPO in Mexico. Time zones and proximity to the target market facilitate quick and effective communication. You can even take a flight to meet with your remote employees at relatively lower costs compared to if you were outsourcing from Southeast Asia.
Growth of your company
Mexico-based employee outsourcing can also help your business grow in the long run.
Several factors related to outsourcing can contribute to this growth, including the reduced costs that can be invested in growth and development, the developed infrastructure of Mexico’s major cities, as well as the highly skilled and educated workforce.
The infrastructure in Mexico is conducive to supporting supply chains. It is also true that the employee turnover rate is lower in Mexico compared to other countries. This would lead to greater efficiency in your business and less worrying about hiring new candidates. This helps your business better focus on its core functions and ultimately lead to growth.