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Virtual assistance, where professionals support businesses remotely via digital platforms, has become increasingly popular. Companies looking to outsource can hire virtual assistants (VAs) in Mexico or the Philippines. But which country should you opt for?
This article explores the factors to consider when choosing the right virtual assistants from Mexico and the Philippines. Read on to learn the key differences between the two countries and the crucial steps for picking suitable VAs.
Exploring Virtual Assistants in Mexico and the Philippines
The pandemic has further stimulated the booming VA industry. Its global market is forecast to grow by $26.95 billion in 2027 at a compound annual growth rate (CAGR) of $37.29%.
For the uninitiated, a virtual assistant is a remote administrative assistant. VAs offer remote support to business executives or clients using digital tools and communications technologies.
VAs can cover various tasks, such as:
- Calendar management
- Email and phone correspondence
- Social media management
- Travel arrangements
- Data entry and management
Other specialized VA services include:
- Accounting and bookkeeping
- Content writing and copywriting
- Graphic design
- Website development
- Search engine optimization (SEO)
- Pay-per-click (PPC) advertising
VAs can come from either the gig economy or the outsourcing industry. Upwork has over 12 million freelancers, while Fiverr has around 3 million contractors. What is business process outsourcing’s role in this? BPO, the strategy wherein companies delegate tasks to third-party service providers, also covers VA services.
As the demand for VA services continues to rise, two countries have become prominent players: Mexico and the Philippines. Choosing the right virtual assistant in either of these countries can make a difference in your business.
The following section discusses how virtual assistance thrives in Mexico and the Philippines.
Mexico: Employing VAs from the Outsourcing Industry
Mexico has emerged as one of the top outsourcing destinations globally due to its cheaper labor, skilled workforce, rising tech zones, and favorable trade treaties. However, the recent Mexican outsourcing reforms, specifically amendments to the Federal Labor Law (FLL), only allow personnel outsourcing for specialized services.
Aside from manufacturing and information technology (IT) outsourcing services, Mexico has established itself as a reliable BPO hub. The good news is that virtual assistance falls under the specialized service category. Many North American businesses delegate their administrative tasks to Mexican service providers. So, choosing the right virtual assistants in Mexico makes sense.
The Philippines: Hiring VAs from the Gig Economy
The Philippines is the world’s BPO capital, once called the call center capital. It offers cost-competitive labor, a skilled workforce, full government support, and an ideal business environment. Thus, outsourcing to the country and choosing the right virtual assistants is a good decision.
The Philippines has the largest number of VAs worldwide, making it the best country for virtual assistance. The numbers do not lie: a whopping 13% of the VAs on Upwork are from the country. The Philippines contributes innumerable talent to the gig economy, where companies can hire freelancers and contractors. However, Philippine outsourcing companies supply talented VAs too.
Explore the differences between Mexican and Philippine VA outsourcing below.
Mexico vs. Philippines: 12 Key Differences in VA Outsourcing
As the demand for virtual assistance grows, businesses face the crucial decision of picking the most appropriate destination for their outsourced services. Among the leading contenders in the VA arena are Mexico and the Philippines. Choosing the right hub for your third-party virtual assistants can benefit your business.
Earlier, we briefly discussed VA outsourcing in Mexico and the Philippines. It is time to delve deeper into specific aspects affecting your decisions. Start by looking at the table below, which shows the differences in VA outsourcing between the two countries based on 13 key factors.
| Mexico | The Philippines | |
|---|---|---|
| Cost-effectiveness | Low labor and operating costs | Lower labor and operating costs than Mexico |
| Geographical proximity | Close to North American companies | Operating on the other side of the globe |
| Time zone difference | Similar time zones | 10- to 12-hour time zone difference |
| Cultural practices | Cultural compatibility with North American countries | Cultural affinity with Western countries |
| Language proficiency | Bilingual agents (Spanish and English) | High English language proficiency |
| Employee turnover | High employee retention rate | High employee turnover rate |
| Labor workforce | Highly skilled talent (tech and IT fields) | Highly skilled talent (various fields) |
| Technology and resources | Digital ecosystems in tech hubs | Expanding infrastructure in ecozones |
| Business environment | Rising technology zones and advanced digital ecosystems | Information communication and technology (ICT) hubs and ecozones |
| Government support | Solid government support (Favorable Trade Agreements or FTAs) | Full government support (Specia Economic Zone or SEZ Act and PEZA establishment) |
| Laws and regulations | Mexican outsourcing law reforms (such as Federal Labor Law or FLL) | SEZ Act of 1995, Foreign Investments Act of 1991, and Omnibus Investments Code of 1987 |
| Service offerings | Specialized services (non-core functions) ITO, BPO, and manufacturing | Wide range of outsourcing services BPO, contact centers, and IT services |
| Outsourcing track record | Emerging outsourcing player in Latin America | The world’s BPO and call center capital |
Let us expound on each of these factors.
1. Cost-effectiveness
One reason to outsource VAs is cost-effectiveness. Companies can significantly cut labor and operating expenses since they no longer need to build infrastructure, hire workers, and invest in technology. Choosing the right destination for your virtual assistants can help you save money in the long term.
The Philippines has an advantage over Mexico because it offers competitive pricing to businesses looking to maximize their budgets and hire quality VA services. Meanwhile, Mexico has slightly higher labor costs than the Philippines. However, it can provide North American companies with economical solutions due to reduced operating expenses and shorter travel distances.
2. Labor Workforce
Choosing the right virtual assistants is vital to outsourcing success. Businesses must pay closer attention to the labor force since talent is the most important factor when selecting a service provider. Here is the good news: Mexico and the Philippines both boast a vast pool of highly skilled and educated workers.
The Philippines is known for its skilled talent in various fields. The country’s education system produces graduates ready to join the BPO workforce, while the government invests in its people through talent development. Meanwhile, Mexico excels in technical fields such as IT functions, technical support, and software programming. It is also notable for its BPO services, such as virtual assistance.
3. Employee Turnover
Employee turnover is critical to consider when choosing an outsourcing destination for VAs. Employing a VA team with high staff retention is best for ensuring workforce stability. Retention can reduce hiring costs, guarantee employee availability, and increase business productivity.
Mexico generally exhibits lower turnover rates compared to the Philippines. Mexican VAs often display strong loyalty and commitment to their employers, resulting in longer-lasting working relationships. Conversely, the Philippines consists of service providers with frequently high turnover rates. Filipino employees tend to hop from one BPO company to another.
4. Language Proficiency
Language proficiency is vital when hiring VAs, especially for businesses with an English- or Spanish-speaking clientele. Contracted VAs must be able to communicate effectively with their clients and their customers. Choosing the right virtual assistant with language competency can boost employee collaboration, customer satisfaction, and business productivity.
Filipinos are notable for their high English proficiency since the language is widely used in education and business. The country ranked 20th globally in the English Proficiency Index’s (EPI) 2022 ranking. Meanwhile, Mexicans can speak English and are proficient in Spanish, making the country ideal for bilingual virtual assistants.
5. Geographical Proximity
Geographical proximity is another vital consideration when selecting an outsourcing destination. Businesses should choose service providers whose operations and headquarters are closer. That way, they can facilitate seamless communication, ensure real-time collaboration, and enjoy the ease of travel.
Mexico has the advantage of being geographically closer to North America, making it a top choice for businesses in the U.S. and Canada. The Philippines is farther from North America, which might lead to longer travel times and more challenges in communication and collaboration.
6. Time Zone Difference
The time zone difference is essential to consider when outsourcing VAs since it can significantly impact business interactions. Companies should opt for service providers with similar time zones—if not, those with up to six-hour differences. Otherwise, your business might need to make huge adjustments.
Mexico holds an advantage in this area since its time zones are identical to or similar to those of North American countries. Outsourcing to Mexico ensures real-time communication and collaboration. However, the Philippines is ahead of North America by 12 to 16 hours, which requires VAs to make necessary adjustments and work night shifts.
7. Cultural Norms
Front- and back-office outsourcing often involves two businesses working in different countries. They might encounter gaps in traditional norms, working styles, or business practices. Understanding and aligning cultural norms is crucial for smooth collaboration between your business and contracted VAs.
The Philippines has strong cultural ties with Western countries due to its historical connections and business partnerships. This affinity fosters better communication and understanding between Filipino VAs and their clients. Although Mexico is geographically closer, it is also culturally more diverse, which might require adjustments from North American countries.
8. Technology and Resources
Access to technology and resources is vital for seamless virtual collaboration. Mexico and the Philippines generally have reliable internet connectivity and the necessary infrastructure to support remote VA work. They also invest in new and innovative technologies, such as automation, artificial intelligence (AI), and contact center as a service (CCaaS) platforms.
As a top outsourcing destination, the Philippines has expanded its digital cities with robust technological setups that accommodate various business needs. The same applies to Mexico; the country invests in developing advanced digital ecosystems. Both hubs have the technology and resources to provide third-party VA services.
9. Business Environment
Choosing the right virtual assistants entails examining the outsourcing destination’s business environment. The Philippines has become a major player in the outsourcing industry with a well-regulated business ecosystem. The country secured the 15th spot in the 2023 Tholons Global Business Innovation Sustainability Index. It is categorized as a “Big Kahuna” nation.
On the other hand, Mexico’s outsourcing industry has been steadily growing, offering businesses opportunities to tap into its expanding market. The country has emerging technology hubs, such as Guadalajara’s “Silicon Valley” and Monterrey’s “Digital Creative City,” and digital ecosystems, such as Mexico City, Tijuana, and Yucatan.
10. Government Support
The government plays a crucial role in facilitating outsourcing activities. Its policies and support can influence your decision when choosing the right virtual assistant. Selecting an outsourcing destination that welcomes foreign investments and business opportunities is best.
The Philippine outsourcing industry has always had the government’s support since the enactment of the Special Economic Zone (SEZ) Act. Its IT and Business Process Management (BPM) Roadmap 2028 provides regulatory support, talent development, and infrastructure expansion. The Mexican government enacted outsourcing law reforms prohibiting personnel outsourcing for core operations.
11. Laws and Regulations
A country’s legal and regulatory framework can significantly impact outsourcing processes, including choosing the right virtual assistants. The Philippines has a well-established legal system and clear regulations supporting its outsourcing industry. Consider the SEZ Act, not to mention the Foreign Investments Act and Omnibus Investments Code.
Mexico’s outsourcing reforms have posed some challenges for businesses looking to outsource. The FLL prohibits personnel outsourcing for business activities with corporate purposes. Companies must hire registered providers and only outsource non-core functions, such as VA tasks.
12. Service Offerings
The service offerings available in each country are a vital consideration when selecting a VA outsourcing destination. The Philippines has a mature and diverse outsourcing industry. The country offers various VA services, including customer support, content creation, and data entry services.
The Mexican outsourcing reforms, however, regulate the BPO industry in the country. The specialized service providers must register with a particular government agency, and businesses should only outsource non-core operations to the country. Virtual assistance is often considered a specialized service allowed in Mexican outsourcing.
13. Outsourcing Track Record
Choosing the right virtual assistant boils down to what a country offers. Businesses looking to outsource VA services must examine the country’s outsourcing track record. Doing so provides valuable insights into its reliability and suitability for VA services.
The Philippines is the world’s BPO capital, making it a top destination for VA services. The country also contributes significantly to the gig economy by allowing businesses to hire freelancers or contractors. Meanwhile, Mexico is an emerging BPO destination and a top choice for North American companies. The country has a lot of potential in terms of offering VA services.
How to Choose the Right VA in Mexico or the Philippines
Choosing the right virtual assistant in Mexico or the Philippines requires proper planning, keen evaluation, and careful selection. Below are crucial steps to help you make an informed outsourcing decision:
- Define your VA requirements. Clearly define and outline the tasks and responsibilities you want your VA to handle. Identify the specific knowledge, skills, expertise, and experience required for the role.
- Study both countries. Understand the differences between Mexico and the Philippines based on the abovementioned factors. Evaluate which country aligns best with your business requirements and meets your needs.
- Check service providers. Examine the availability of VA services in both countries. The secret to outsourcing success is partnering with the right BPO firm. Do they specialize in customer service, virtual assistance, or technical support outsourcing?
- Examine the workforce. Request portfolios and resumes from potential VAs to review their knowledge and skills. Assess their expertise and experience, considering the types of tasks they have completed in the past.
- Review the track record. Research the outsourcing track record of both countries. Look for success stories, case studies, online reviews, and client testimonials from businesses that have worked with VAs from Mexico or the Philippines.
- Assess language proficiency. Determine if your VA tasks require English or Spanish proficiency. The Philippines is known for its high level of English language competency, while Mexico is notable for its bilingual agents speaking both English and Spanish.
- Evaluate cultural compatibility. Consider the cultural affinity with North American businesses. See which country has cultural norms and business practices that align with your business.
- Confirm time zone alignment. Ensure the VAs’ working hours align with your business operations to facilitate real-time communication and collaboration.
- Consider employee turnover. Inquire about staff retention rates to determine the workforce stability and loyalty of VAs in the selected country. As you can see, Mexico has a higher staff retention rate than the Philippines.
- Review the legal and regulatory framework. Familiarize yourself with the legal and regulatory framework for outsourcing in the chosen country to ensure business compliance.
- Negotiate terms and conditions. Discuss terms, pricing, and contract details with the selected VAs. Ensure both parties agree on the scope of work, payment arrangements, and confidentiality agreements.
- Conduct a trial period. Consider a trial period to assess how well the selected VAs perform on the assigned tasks and whether they meet your expectations. You can officially launch your VA outsourcing operations if the service provider you hired meets your requirements.
The Bottom Line
Choosing the right virtual assistant in Mexico and the Philippines depends on several key factors. Consider those mentioned above, from cost effectiveness to labor workforce, business environment, and outsourcing track record.
Both countries have their strengths and weaknesses. Generally, Mexico is better for nearshore VA outsourcing. Meanwhile, the Philippines has proven offshore outsourcing expertise and gig economy flexibility.
To decide between Mexico and the Philippines, follow our crucial steps above for choosing the right VA service provider. By doing so, you can unlock the true potential of virtual assistance and experience increased productivity and business success!
Indecisive about choosing between Mexico and the Philippines for your VA outsourcing? Work with Unity Communications! We offer reliable virtual assistants in both countries. Let’s connect today to get started with outsourcing.
