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The primary goal of most businesses is to make money. Therefore, nothing is more fulfilling for an entrepreneur or executive decision-maker than earning a high return on investment (ROI) for the resources invested in the company.
Outsourcing is one strategic way to boost your ROI. Not only does it reduce your operating costs, but it also generates income for your business. For this reason, consider hiring software developers, call center agents, or virtual assistants from Mexico.
This page shares tips for maximizing ROI with Mexico’s outsourcing companies. Read on to discover their potential benefits for your business.
An Overview of Mexico as a Top Outsourcing Destination
Mexico is a top outsourcing destination ideal for North American companies planning to outsource to cut costs and scale their businesses. However, the country helps organizations achieve more than these two objectives.
Mexico is best for information technology outsourcing (ITO) services, such as software development and IT support. It is also known for its contact center operations and similar business process outsourcing (BPO) services. The industry, however, first planted its roots by outsourcing manufacturing operations.
Mexican outsourcing began in the mid-1960s with the rise of Maquiladora. It refers to a factory in Mexico run by a foreign country using Mexican labor to assemble products with imported materials and export these products back to the original country. Maquiladora eventually led to the implementation of the Border Industrialization Program, allowing U.S. companies to develop products in the country.
Over the years, the country has evolved from offering simple manufacturing operations to complex processes. Outsourcing companies in Mexico have started serving the consumer products sector and the retail, healthcare, automobile, aviation, and aerospace industries.
Today, the Mexican outsourcing industry is notable for its thriving ITO market. With its rising tech hubs, digital ecosystems, and geographical proximity, Mexico has established itself as a leading ITO destination. The country’s ITO market could grow from $4.42 billion in 2023 to $7.90 billion by 2027.
Mexico is also known for its BPO services, such as customer service, human resources (HR), and accounting and finance (A&F). Its global BPO market is forecast to grow from $3.87 billion in 2023 to $4.90 billion by 2027 at a 4.83% compound annual growth rate (CAGR).
Learn more about the industries leveraging Mexican outsourcing and the services they outsource in the next section.
Top Industries Outsourcing to Mexico and Services Offered
As mentioned, Mexican outsourcing started with manufacturing operations. But today, the country is notable for its BPO and ITO services.
To know what business process outsourcing is, consider it as outsourcing secondary or administrative processes to third-party providers. On the other hand, ITO focuses on IT functions, such as IT support, software development, and technical support.
Explore the top three industries leveraging Mexican outsourcing benefits and the services they outsource.
|Service Offered per Major Industry
|Information Technology (IT)
IT support handles IT functions such as:
Technical support outsourcing involves assisting end users, whether employees or customers, with technical issues with tech products such as:
Software development involves providing end-to-end solutions for developing customized software applications, including:
|Business Process Outsourcing (BPO)
Mexican outsourcing companies offer exceptional customer service solutions, including:
|Human resources (HR)
Mexican outsourcing firms provide the following HR services:
|Accounting and Finance (A&F)
Mexico’s outsourcing companies specialize in A&F services such as:
Mexico’s outsourcing industry caters to the health sector, particularly in the manufacturing of medical devices such as:
Mexican outsourcing companies handle the manufacturing of various consumer goods such as:
Many automotive companies outsource their production processes to Mexico, such as the production and maintenance of:
|Aviation and aerospace
Large corporations in the aviation and aerospace industries entrust the manufacturing of the following to outsourcing companies in Mexico:
Below is a list of outsourcing firms in Mexico to give you an idea of which service provider to partner with.
A Glimpse of Outsourcing Companies in Mexico
Mexico has emerged as a preferred destination for nearshore outsourcing. The country is known for its cost-effective labor, low employee turnover, favorable trade treaties, and similar time zones.
From large multinational corporations to emerging startups, Mexico is home to a wide range of outsourcing providers catering to various industries and business needs.
To gain insights into their expertise and service offerings, explore some of Mexico’s outsourcing companies below:
- Unity Communications is a global outsourcing company with an office in Mexico specializing in virtual assistance. It offers front-office and back-end operations and serves businesses across various industries.
- ConnectUSA is a prominent BPO company in Mexico, offering various outsourcing services. These include call center solutions, email and chat support, sales and telemarketing, and social media management.
- Wing Assistant is an outsourcing company based in Mexico that specializes in virtual assistant services. With a team of skilled professionals, this service provider offers administrative tasks such as basic research, data entry, scheduling, and social media management.
- Virtual Latinos is a specialized HR outsourcing company based in Mexico. It seeks to connect entrepreneurs and agencies worldwide with virtual assistants, content writers, graphic designers, web developers, and other professionals.
- APEX Call Centers is a leading call center and BPO service provider based in Mexico. As a full-service outsourcing company, they provide multilingual customer support, telemarketing solutions, technical support, and lead generation.
- Intugo is a call center company based in Mexico that provides contact center, IT, and back-office solutions. It caters to small and mid-sized enterprises (SMEs) with a dedicated office to meet the client’s outsourcing needs.
- Requordit is a trusted outsourcing firm with 20 years of experience. The company specializes in solutions for back-end operations, such as case management, enterprise content management (ECM), and robotic process automation (RPA).
- Softtek is the leading ITO service provider in Mexico. Established in 1982, it offers IT solutions and software development services. This outsourcing company also has a global presence, with offices in Canada, Europe, and Asia.
Find out how to capitalize on outsourcing to boost your ROI below.
How to Maximize ROI with Mexico’s Outsourcing Companies
Maximizing ROI is every business’s primary objective. But if you lack expertise, technology, and resources, outsourcing can help. Mexico can be your go-to hub for nearshore outsourcing.
Mexican outsourcing companies can streamline your operations and scale your business. You can work with a reliable service provider for front- or back-office outsourcing. However, you must make the most of your hired partner to earn high returns.
Here are a few ways to maximize your ROI with Mexico’s outsourcing companies:
1. Examine Business Operations
As with any outsourcing pursuit, start by examining your business operations. You might currently face some operational challenges. Digging deeper to get to the bottom of these problems is recommended.
A thorough business examination helps you identify business problems and operational challenges. It also allows you to determine your business needs and lay out your requirements for a service provider. This first step is the most critical part of your outsourcing endeavor.
2. Set Outsourcing Requirements
After thoroughly examining your business operations, you can set your outsourcing requirements. Be as critical and detailed as possible to guarantee success. Sit with your team and discuss all critical aspects, from headcount to technology to the pricing model.
Establishing your requirements helps you target the right Mexican outsourcing company. You learn exactly what you need and how a particular provider can help your business, which translates to a boost in profits in the long run.
3. Delegate Non-core Functions
Businesses of all sizes outsource for various reasons. According to Deloitte, 65% of organizations consider enabling a focus on core functions as the primary benefit of outsourcing. Following cost reduction (65%) and resolving capacity issues (53%), this benefit is the most frequently cited justification.
Consider assigning non-core tasks to external service providers in Mexico. This frees up time, money, and resources to prioritize your business’s core competencies and strategic initiatives. An increased focus on income-generating activities helps boost your ROI.
4. Pick the Right Service Provider
Hiring the right service provider is the key to outsourcing success. Work with a BPO partner that meets your outsourcing requirements. Ensure your hired provider fits your business niche, type, size, budget, and needs.
Mexico has plenty of outsourcing companies, so picking the one best suited for your business is challenging. Create a list of prospects and evaluate them based on reputation, workforce, technology, pricing structure, and outsourcing track record. This lets you pick a service provider that can truly maximize your ROI.
5. Negotiate a Fair Outsourcing Contract
Outsourcing brings two businesses together—one seeking help from another. Both organizations work hand in hand to meet the same goals. That said, you should put every aspect of the business partnership in writing. That is where an outsourcing contract comes in.
The outsourcing contract seeks to protect both parties: the client and the service provider. Negotiate all the terms and conditions to ensure they are fair to both parties. Create a comprehensive contract that defines your work scope, pricing structure, and specific clauses.
6. Develop Service-Level Agreements (SLAs)
Regarding outsourcing contracts, developing SLAs is crucial. These agreements outline the service expectations and performance standards between you and your service provider. They set the key performance indicators (KPIs) and provide a framework for measuring the provider’s performance.
When hiring one of Mexico’s top outsourcing companies, include detailed terms in your outsourcing contracts and SLA. Aside from highlighting the operational objectives, key metrics, and deliverables, set performance monitoring and business reporting requirements. Clear outsourcing expectations help meet goals, hit metrics, and boost ROI.
7. Establish Standard Operating Procedures (SOPs)
The SOP is a documented set of step-by-step instructions or guidelines that outline how an organization should perform specific tasks or activities. It aims to standardize instructions and guide your outsourcing service provider to promote efficiency, consistency, and compliance.
Establishing SOPs is best for operational efficiency, smooth collaboration, and overall success when outsourcing to Mexico. So make sure to include them in your outsourcing contract. Setting processes, protocols, and guidelines can help increase productivity and profitability.
8. Invest in People Through Training
Mexico’s outsourcing companies prove reliable and effective for the most part. However, the highly skilled and educated Mexican workforce contributes to its overall success. They made the country what it is now—an emerging player in the outsourcing industry.
So when outsourcing to Mexico, invest in your BPO workforce through training programs and learning opportunities. Offer foundational and process training before hitting production. Likewise, provide regular upskilling and reskilling programs to enhance their knowledge and skills. Remember, your BPO team is on the front lines, winning customers and boosting ROI.
9. Leverage the Latest Technology
Technology is crucial for operational efficiency, business success, and competitive advantage in today’s business landscape. The pandemic has triggered digital transformation across various industries by continuously deploying tech at scale. The outsourcing industry is at the forefront of leveraging the latest digital tools and technologies.
When working with a BPO service provider in Mexico, ensure it capitalizes on modern technologies. For instance, consider contact center as a service (CCaaS) software for front-office functions and RPA for back-end operations. Using these technological resources helps streamline your operations for increased profitability.
10. Monitor and Measure Performance
Setting KPIs, measuring performance, and monitoring progress are imperative for businesses. The goal is to identify areas for improvement and align initiatives with objectives for success.
Mexican outsourcing companies are reliable and effective. But that does not mean you should not still monitor and measure their performance. Establish a quality assurance (QA) team to audit services and ensure they meet standards. Consistent monitoring by a QA team guarantees timely corrections, continuous improvements, and business profitability.
11. Continue to Optimize Operations
Measuring performance is one thing; implementing strategies for improvement is another. Businesses should continuously find ways to improve their operations and achieve success. This idea applies to their outsourcing engagements as well.
Maximizing ROI is ongoing, so regularly evaluate and optimize your outsourcing operations. Assess the business partnership’s effectiveness, identify improvement areas, and make adjustments. Ultimately, foster a culture of continuous improvement to enhance productivity, quality, and ROI.
12. Pursue Long-Term Partnership
Outsourcing entails pursuing business partnerships, whether short-term or long-term. However, companies often have contracts with service providers for at least six months or a couple of years. Many renew outsourcing deals with new terms and conditions or look at other destinations beyond Mexico to seek additional contracts with outsourcing companies.
Hire the right outsourcing partner and strive to pursue a long-term partnership. Building long-term relationships with your BPO provider promotes collaboration, trust, and stability. It also ensures success in your outsourcing endeavor with increased ROI over time.
Key Benefits of Outsourcing to Mexico
Outsourcing has become an integral part of business operations, and Mexico has emerged as one of the preferred outsourcing destinations. Mexico’s outsourcing companies handle various services, whether virtual assistance, data entry services, or tech support. More importantly, they can meet objectives, from reducing costs to increasing profits.
Below are the key benefits of outsourcing to Mexico:
- Core business as the primary focus. As mentioned, prioritizing core operations is the most commonly perceived reason for outsourcing. Delegating tasks to a Mexican outsourcing company gives you peace of mind, knowing a reliable provider handles your non-core functions. It also lets you focus on revenue-generating activities to boost your ROI.
- Vast talent pool. Mexico has a vast pool of educated talent. It has a highly skilled workforce due to its investments in STEM (science, technology, engineering, and mathematics) education. The country produces over 130,000 engineering graduates yearly, contributing to its ITO.
- High employee retention. Employee turnover is a global problem companies face, particularly in the outsourcing industry. However, Mexico has high retention rates due to lesser competition in the market, not to mention its competitive packages, promising career opportunities, and good work environment.
- Lower labor costs. Mexico offers cheaper labor expenditures without compromising high-quality standards. The country’s minimum wage is $10.82 daily, less than that of North American countries. This differential lets you capitalize on outsourcing’s main promise—significant cost reduction!
- Rising tech hubs. Mexican outsourcing companies are expanding in major cities with tech hubs, including Mexico City, Guadalajara, Monterrey, Tijuana, and Yucatan. Dubbed the “Silicon Valley of Latin America,” these outsourcing locations give you access to expertise and technology.
- Digital ecosystems. Mexico has recently invested in business environments supporting the tech and outsourcing industries. It has started establishing digital infrastructure and internet connectivity to create business opportunities. In 2021, the country secured the 13th spot in Tholons’ Top 50 Digital Nations list.
- Favorable trade agreements. Mexico has ideal trade agreements with various countries, such as the North American Free Trade Agreement (NAFTA), United States-Mexico-Canada Agreement (USMCA), and Japan-Mexico Free Trade Agreement. They offer reduced trade barriers, simplified customs procedures, and access to a broader market.
- Geographical proximity. Mexico’s geographical proximity to the U.S. and other North American countries offers significant advantages. Such proximity allows for faster responses and more accessible travel, which is crucial to outsourcing operations. Businesses can better communicate and collaborate with service providers in Mexico.
- Shared time zones. Due to its proximity, Mexico uses the same time zones as Northern American countries. The country has four time zones similar to those of the United States. Such similarity allows for effective communication and seamless collaboration when outsourcing.
- Flexible contract. Mexico’s outsourcing industry offers flexibility in business partnerships. Businesses can choose short-term or long-term contracts with Mexican outsourcing companies. This arrangement allows them to adjust the work scope and scale operations according to business needs and requirements.
The Bottom Line
Mexico has emerged as a rising BPO hub next to outsourcing giants such as India and the Philippines. Since the country has become a go-to destination for nearshore outsourcing, North American businesses should consider working with some of Mexico’s leading outsourcing companies.
Consider our practical tips and steps above to maximize ROI with the country’s top BPO companies. Start with setting your outsourcing requirements and end with pursuing long-term partnerships. You should also hire the right BPO partner best suited for your business niche, size, needs, and budget. Ultimately, the right service provider can minimize your risk and maximize your ROI!
Looking to outsource to Mexico? Work with a highly reliable outsourcing company, such as Unity Communications! We can help optimize your operations and scale your business. Let’s connect today to get started with outsourcing!