Unlocking the Potential of Cost-Effective Business Process Outsourcing in Mexico

U.S. businesses increasingly seek virtual assistants (VAs) in Mexico. These Latin American professionals, fluent in English and Spanish, provide different benefits and services. 

Mexican VAs are some of the most skilled third-party workers in the country’s outsourcing business. Mexico has an advantage over other outsourcing destinations because it offers nearshore outsourcing to the U.S.

This article explains what you can achieve and obtain when using cost-effective nearshore business process outsourcing (BPO) in Mexico. Keep reading to learn more. 

Benefits of Cost-Effective Business Process Outsourcing in Mexico

Consider the opportunities brought about by cost-effective business process outsourcing to Mexico.

Similar Hours as in the U.S. for Promptness and Synchronicity

When hiring cost-effective business process outsourcing in Mexico, you can acquire a third-party team in a location with a similar time zone as the U.S. Mexico is at most three hours ahead or behind certain U.S. states. 

Accordingly, when your business in Washington begins operations at 9 a.m. and stops at 6 p.m., the third-party Mexican team should start working at 7 a.m. and be done at 4 p.m. Mexico is two hours behind Washington. Your work schedule and that of the nearshore team are practically identical. 

Consider the following advantages of working in comparable time zones:

• Quick appointment scheduling. Organizing remote meetings with a nearshore team is simpler than with an offshore team. When setting up a meeting, try to find a time that works for both parties. 

• More synergy and fluid communication. One benefit of cost-effective business process outsourcing in Mexico is improved teamwork and interaction. Shorter time zone differences lead to fewer interruptions or delays in responding to client issues, inquiries, or requests.

Regional Likeness for Stronger Client and Customer Relationships

When tapping into cost-effective business process outsourcing in Mexico, you can achieve better consumer relations because of the country’s cultural similarity with the U.S. Many Mexicans have relatives and families living across the border, while millions of Americans travel to Mexico for business and recreation. 

Here are some characteristics shared between the two nations:

• Food and beverages. Numerous Americans favor Mexican dishes such as burritos, quesadillas, and tacos. Many Mexicans are fond of hot dogs, fries, burgers, and other foods from the U.S. Beer is the most popular liquor in both countries. 
• History. Europe colonized Mexico and the United States hundreds of years ago. Mexico celebrates its freedom from Spain every September 16th, while the U.S. commemorates its independence from Britain every July 4th.
• Government structure. Both nations have a federal government with the president as the head of state and the commander in chief. The fundamental law of each country is the constitution.

When speaking with Americans, third-party Mexican teams are more at ease and confident. They can discuss various matters to develop deeper connections with clients. Their cultural similarity offers them an advantage over their international counterparts in back-office outsourcing.

Economical and Effective Labor Force to Maximize Investment Earnings

You can acquire first-rate and affordable third-party workers when leveraging cost-effective business process outsourcing in Mexico. Skilled workers in Mexico have technical and interpersonal competencies equivalent to those of neighboring countries, Canada and the U.S. However, while Mexican expertise matches these sophisticated economies, salaries are lower. 

Salary Explorer reports that the average basic salary of information technology (IT) help desk representatives in Mexico is MXN 26,500, or about $1,530 monthly. A person with the same role in the U.S. can cost about $6,300 monthly.

From these figures, you can save $4,770 monthly ($6,300 minus $1,530) when recruiting a Mexican IT help desk professional. Annually, you can save $38,880 ($57,240 minus $18,360). One benefit of outsourcing cost-effective business processes to Mexico is the large salary gap. 

Team up with a recognized and experienced business process outsourcing provider. The Mexican BPO company can provide third-party personnel to fit your budget and expectations. It will also aid in recruiting qualified candidates and reducing labor costs.

Abundant, Capable Workforce to Deliver Excellent Outsourced Services

You can access affordable, active, young, and flexible talent with cost-effective business process outsourcing in Mexico. These millennials and Generation Z individuals specialize in IT and engineering. 

Roughly 500,000 graduates participate in the labor market each year. Forbes says over 130,000 IT graduates are available to work annually. 

Most technical Mexican professionals can work remotely; they are well-versed in computer systems, social platforms, and digital equipment. These English-fluent young workers can perform tasks based on American culture and processes. They can operate with minimal guidance and correctly resolve task-related concerns. 

You must collaborate with the right BPO provider to use cost-effective business process outsourcing in Mexico. The service provider must guarantee its third-party teams have the required technical and soft skills and work experience to manage the processes. Teams must have the experience to offer different services, including:

• E-commerce customer service
• Bookkeeping and accounting
• Virtual assistance 
• Healthcare outsourcing
• Customer service 
• Email and chat
• Data entry services 
• Help desk
• IT support
• Administrative support
• Contact center as a service (CCaaS)

Expanding the Outsourcing Industry to Ensure Long-Term Operations  

You can rest easy knowing that your outsourcing activities will continue without interruption if you adopt Mexico’s cost-effective business process outsourcing solutions. Since its beginnings in the 1990s, Mexico’s BPO industry has grown exponentially. It keeps growing, an indication that service providers will operate for an indefinite period. 

Call center services dominate over 70% of the country’s BPO operations. Technical support outsourcing, consulting services, and other administrative tasks account for the remaining 30%. The outsourcing sector significantly contributes to the local economy and is seen to grow further in the coming years.

Here are some points that Statista published regarding the Mexican BPO industry:

• In 2023, overall revenue in the outsourcing industry is estimated to be €3.28 billion  ($3.57 billion).
• From 2023 to 2027, revenue is predicted to rise at a compound annual growth rate (CAGR) of 6.04%. In 2027, the market will be worth €4.15 billion ($4.52 billion).
• In 2023, the average cost per worker in the BPO category will likely be €54.30.

Familiar with English for Accurate Customer and Client Communication

When turning to cost-effective business process outsourcing in Mexico, you can employ third-party workers well-versed in English, the nation’s most frequently spoken foreign language. Almost 13 million Mexicans, or roughly 10% of the population, can speak English with differing capabilities. 

Above-average English abilities facilitate communication and collaboration with skilled Mexican workers. Americans and other English-speaking consumers and clients readily understand them. Third-party teams can then review projects, assignments, and company targets with U.S. clients while tackling customer complaints without requiring translations. 

Many third-party Mexican workers can speak with a neutral accent and better understand American English syntax and idioms due to their proximity to the U.S. Mexican professionals can also understand more clearly the intricacies of consumer and client interactions. Additionally, they speak Spanish proficiently. 

This natural English usage is one perk when adopting cost-effective business process outsourcing in Mexico. Businesses can get this advantage by working with the right BPO provider. A third-party organization can supply multilingual personnel to improve and expand customer connections. Many American businesses also want Spanish-speaking workers for their roles.  

Ample Government Backing to Expand Outsourcing Operations

The national government’s solid support is among the benefits of cost-effective business process outsourcing in Mexico. 

Over the years, the Mexican government has implemented the following initiatives, policies, and trade agreements: 

• North American Free Trade Agreement (NAFTA). The 1994 pact formed a free-trade zone for the U.S., Mexico, and Canada. It contributed to the inflow of foreign investment into the domestic economy, including the BPO industry.
• Internet para Todos program. Satellites, fiber optic cables, wireless broadband, and blended solutions are among the sophisticated digital technologies put forward by the government initiative. When fully executed, this offers bigger business opportunities, especially for outsourcing. 
• 2021 Amendments to Mexican Labor Law. This revision to the old labor law can boost work productivity in the BPO space. In addition to yearly incentives, employers must provide staff with a profit-sharing plan equal to three months’ income. 
• U.S.-Mexico Cybersecurity Cooperation. The U.S. and Mexican governments acknowledge the need for collaborative cybersecurity efforts to protect shared supply chains and vital infrastructure. It aims to minimize cybercrime in Mexico and other Latin American countries. 

Multichannel Communications for 24/7 Customer Service 

Capitalizing on cost-effective business process outsourcing in Mexico enables you to integrate different communication services (text, audio, and video) into a complete platform for seamless consumer interaction. Despite shifting modes during the interaction, the technology ensures effortless agent-customer conversations.

Look at the following channels included in multichannel communication:

• Standard phones are fixed-line phones that consumers use to contact customer support.
• Email lets senders privately and securely attach files, notes, and images to their electronic messages. 
• Social media lets customers post comments, suggestions, and feedback on the company’s products or services. Facebook and TikTok are common social networks.  
• Voice over Internet Protocol (VoIP) telephony allows calls through the Internet with a VoIP-based phone and high-speed connectivity. 
• Short message service (SMS) permits customers or clients to send short text messages from mobile phones during an emergency. 
• Chatbots allow users to use text or voice commands to converse with a smart application. 
• Live chat lets customers interact with a live agent on your website. 
• A self-service portal is an online site where customers can check frequently asked questions (FAQs), video tutorials, blog sites, online forums, and other useful resources. 

Reduced Operating Expenses to Improve Income 

Employing cost-effective business process outsourcing in Mexico can help you achieve lower operating costs because the service provider will handle costly activities such as spending for physical infrastructure, hiring, salaries, and staff skills enhancement. 

• Office space, equipment, and supplies. Decreased investment in physical infrastructure is one benefit of cost-effective business process outsourcing in Mexico. When delegating back-end functions, such as data entry services and bookkeeping, the service provider will use its tangible assets (e.g., computer systems and workspace). 

• Hiring. The service provider manages all recruitment procedures to hire the correct people. These consist of job postings, candidate assessment, testing, and training. 
• Salaries. Another benefit of cost-effective business process outsourcing in Mexico is minimal or zero salary expenses. Permanent staff members are paid an agreed-upon monthly salary irrespective of the company condition. Included are the employee’s share of federal, state, and local taxes and social security, Medicare, and vacation pay.
• Refresher training and skill enhancement. Staff re-training and upskilling are necessary to acquire the latest work practices and systems to address new challenges and stay ahead of the latest trends. The service provider pays for seminars, workshops, and post-graduate studies. 

Skilled Third-Party Remote Workers for Higher Productivity

Taking advantage of cost-effective business process outsourcing in Mexico lets you obtain efficient and trained remote workers to perform the outsourced tasks. Remote working, or working from home (WFH), can make Mexican professionals more productive as they stay in one place to do their jobs. 

Remote work saves BPO staff from performing daily time-consuming activities such as pre-work preparations and commuting to and from the office. 

More productive WFH professionals and quicker service delivery are the advantages of cost-effective business process outsourcing in Mexico. 

Below are the elements that contribute to a highly productive WFH team: 

• Well-equipped nearshore team. The service provider equips WFH staff with the proper resources to speedily but precisely complete assignments. 
• Structured WFH setup. The BPO provider implements clear, stringent policies for better remote staff conduct, workflow, and collaboration. 
• Regular web meetings. Third-party teams organize online sessions to monitor work progress. They use reliable communication apps, such as Zoom and Slack. 
• Strong data security. Remote workers use the newest data security and antivirus systems to protect client and customer data from cyberattacks.

Excellent Solution to the Talent Crisis in the U.S. 

Relying on cost-effective business process outsourcing in Mexico can help address the U.S. labor shortage, which is seen to continue for the next few years. 

The Great Resignation, a pandemic event wherein millions of Americans freely quit their jobs, was the phenomenon that caused the current workforce crisis. The U.S. Bureau of Labor Statistics reports that from April 2021 through April 2022, almost 72 million workers voluntarily resigned. 

The Great Resignation took its toll on American businesses. Staff turnover rates have increased in various enterprises, affecting worker morale, production, and efficiency. Talent scarcity also disrupted manufacturing (lowering productivity) and customer support operations (adversely affecting service). 

Based on a recent poll, 73% of North American organizations (or three in four) would need help recruiting and retaining employees in 2021, three times worse than in 2020. 

One advantage of cost-effective business process outsourcing in Mexico is that the service providers can supply you with the team size you need. They can contribute to easing the present workforce shortage by tapping into the global human resources (HR) market.

Strong Compliance and Security to Avoid Expensive Penalties

Strict compliance with government rules and industry practices to avoid fines is one advantage of cost-effective business process outsourcing in Mexico. 

A trustworthy BPO provider can assist you in following the regulations, requirements, and norms set forth by government authorities and industry regulators. Failure to comply might result in criminal, administrative, and financial costs such as litigation, prosecution, penalties, and reputational harm.  

The service provider watches the following general and industry-specific rules on your behalf:

• The Payment Card Industry Data Security Standard (PCI DSS) obliges all companies to properly handle credit card data to limit fraud, scams, and theft. You can enjoy full compliance when cost-effectively outsourcing business processes to Mexico. 

• The Telemarketing and Consumer Fraud and Abuse Prevention protects individuals from telemarketing malpractices by mandating telemarketers to secure a license.
• The General Data Protection Regulation (GDPR) demands that companies with customers and clients in the European Union secure their data. GDPR fines are among the world’s biggest penalties. 
• The Health Insurance Portability and Accountability Act of 1996 (HIPAA) orders medical providers to secure patient health information against unlawful dissemination. 

Improved Customer Relations (CX) for Higher Loyalty

A consistently excellent customer experience is something you can achieve when harnessing cost-effective business process outsourcing in Mexico. CX refers to the total time a customer spends interacting with your company and its products or services.

Below are some positive effects of improved CX for your company: 

• Diminished advertising costs. Better CX can help control operating costs. The company no longer needs more resources to advertise and attract new buyers. 
• Better return on investment (ROI). A better customer journey translates to buyers shopping more. They also tend to share their positive experience with others, which can attract more prospects.
• Improved brand image. More efforts on CX enable the company to stand out from the competition. A good brand image gives the product or service a market edge. 
• More positive feedback. Making customers happy to strengthen their brand loyalty is one benefit of cost-effective business process outsourcing in Mexico. Buyers are likely to return to purchase more or new items.
• Higher consumer awareness. CX provides insights into consumer buying attitudes and preferences. The third-party Mexican team reviews the collected customer data to further improve the experience.

Easy Access to Innovative Technologies to Simplify Processes

Having the opportunity to use the latest innovations is what you can gain from cost-effective business process outsourcing in Mexico. 

A service provider offers advanced technological solutions to help the third-party Mexican team handle outsourced tasks. They can monitor each team member’s performance and productivity. These technologies enable agents to employ self-service options, reducing human errors and allowing them to manage larger workloads. 

Furthermore, service providers use cloud-based tools to optimize workflow. One benefit of cost-effective business process outsourcing in Mexico is elevating the user experience to new heights with these affordable technologies. They integrate applications and systems to ensure a continuous flow of information.

BPO companies also make use of the following technologies to find creative task management solutions: 

• Cybersecurity is a solution that protects the IT system against data intrusion and breaches. 

• Artificial intelligence (AI) simulates human intelligence in devices to provide cost-effective solutions for boosting productivity.

• Robotic process automation (RPA) manages software robots to perform specific duties to help live agents.

• The Internet of things (IoT) is the interconnection of digital devices for quicker information access.

Scalable Processes for Better Cost and Budget Management 

Cost-effective business processing outsourcing in Mexico enables your organization to attain scalable operations and sufficient third-party workers according to its business situation or needs. This versatility allows for better cost and budget control.

To avoid paying more than necessary, the BPO provider offers you the exact number of remote workers you need. It also covers HR issues and challenges. The service partner can reduce the number of third-party team members without firing anyone. The contractors affected by the reduction will most likely be assigned to new or other customers or activities. 

Furthermore, the BPO provider can increase the workforce size to accommodate an increase in project, call, or transactional operations. It can deploy additional agents during busy periods, such as marketing and advertising initiatives, sales efforts, and holidays. Its expertise is in fulfilling rising demand by distributing more third-party Mexican professionals.

Conversely, operating expenses stay unchanged when the internal team works on the procedures. Full-time and permanent employees’ salaries remain constant despite shifting company situations. Thus, switching to cost-effective business processing outsourcing in Mexico makes sense.

Low Technical and Administrative Burdens to Eliminate High Spending

You can minimize legal and management duties when leveraging cost-effective business process outsourcing in Mexico. When opening an overseas branch in Mexico, you must adhere to and keep abreast of government regulations, compliance requirements, tax programs, labor codes, and administrative guidelines. 

In contrast, acquiring BPO services will insulate the organization from the direct dangers and legal implications of recruiting employees. Mexico, in particular, has developed labor rules that allow workers to form labor associations for bargaining leverage. The service provider deals with employment-related issues to lessen your exposure to costly duties.

Most importantly, the third-party supplier aids in team oversight. It monitors and manages employee conduct, absence reports, and personal income taxes. You merely examine the BPO partner’s regular reports. To cut costs, consider having your business processes handled in Mexico.

Aside from team oversight, here are a few benefits of outsourcing related to HR:

• Extensive connections. The BPO provider has access to sufficient local talent, providing you with the best applicants. 
• Skilled managers. The third-party provider has HR experts managing activities and employment-related concerns for work harmony.

The Bottom Line

Businesses that adopt cost-effective business process outsourcing in Mexico can receive various benefits. Aside from the perks outlined above, third-party Mexican teams are ready to work in cycles. These skilled workers can work anytime—holidays and weekends—to service clients, customers, and end users wherever they are. 

Mexico’s nearshore outsourcing benefits are not transitory but rather long-term. When outsourcing to this nation, you can benefit from partnering with an established, reputable, and client-oriented BPO company. 

Let’s connect if you want to learn more about cost-effectively outsourcing business processes to Mexico.