Written by Rene Mallari
Table of Contents
With their different benefits and services, virtual assistants (VAs) in Mexico are in high demand in the U.S.
Mexican VAs are among the many third-party contractors who make up the country’s outsourcing business. Mexico has an advantage over other outsourcing destinations because it offers nearshore outsourcing to the U.S.
Nearshore outsourcing involves contracting individuals from adjacent nations to perform customer and back-office services.
Continue reading to learn more about the benefits of outsourcing work to Mexico.
Top 16 Reasons to Outsource Work to Mexico
The following are the 16 advantages of subcontracting tasks and processes to Mexico:
1. Similar Time Zone as the U.S. for Synchronized Work and Collaboration
One good reason to outsource work to Mexico is the minimal to zero time zone difference with the U.S. Many American states have the same standard time as Mexico, and some are up to three hours ahead or behind.
For example, when your office in California (the West Coast region) begins to work at 8 a.m. and finishes at 5 p.m., the third-party Mexican team clocks in at 9 a.m. and ends at 6 p.m. Mexico is only one hour ahead of California. In contrast, Mexico is two hours behind New York (on the East Coast). Regardless, you work almost the same shift as the nearshore team.
Consider the advantages of working in compatible time zones:
- Convenient appointment planning. Organizing online meetings with a nearshore team is simpler than with an offshoring team. You and the third-party team encounter less confusion and interruptions.
- Smoother communication and collaboration. One advantage of outsourcing work to Mexico is better interaction and teamwork. Clients and customers experience fewer lag times or delays in receiving answers from your company.
2. Cultural Affinity for Improved Client and Customer Relationships
One primary reason to outsource work to Mexico is the country’s cultural resemblance to the U.S. Millions of Mexicans have families and relatives in the U.S., and more are migrating there. Similarly, many Americans travel to Mexico for business, leisure, and study.
Here are some commonalities between the two nations:
- Government system. Mexico and the U.S. use the federal and presidential systems, with the president as the highest political leader.
- History. Mexico and the U.S. were European colonies for centuries. Mexico celebrates its freedom from Spanish rule every September 16th, while the U.S. commemorates its independence from British authority every fourth of July.
- Food and drink. Many Americans enjoy Mexican foods, such as tacos, quesadillas, burritos, and enchiladas. Mexicans appreciate Western-made meals, including burgers, hot dogs, and fries. Beer is one of the most popular beverages in both countries.
Mexican third-party teams are more at ease and confident when talking with Americans. They can discuss various subjects that help them build stronger customer relationships. Their cultural similarity offers them an advantage over their international counterparts in back-office outsourcing.
3. Affordable but Effective Workforce for Maximized Revenue
One motive for outsourcing work to Mexico is to gain access to cost-effective, first-rate third-party agents. Their salaries are more reasonable than those in neighboring nations such as the U.S. and Canada. But Mexican professionals’ technical, communication, and education levels are comparable to those in these countries.
Based on Salary Explorer, the average basic salary of a regular call center agent in Mexico is MXN 12,700 or about $724 monthly or $8,688 yearly. An agent’s average salary in the U.S. is nearly $3,000 monthly or roughly $36,000 annually.
From these figures, you can achieve a yearly savings of $27,312 ($36,000 minus $8,688) when opting for a Mexican agent. The significant wage disparity for an efficient third-party Mexican team makes your operations more cost-effective and productive.
Partnering with an established and reliable business process outsourcing (BPO) provider enables you to reap the benefits of outsourcing work to Mexico. The service provider can field qualified, skilled staff matching your budget and needs. It can also assist you in looking for the proper talent and reducing labor costs.
4. Numerous Skilled Personnel to Deliver Excellent Services
One of the benefits of outsourcing work to Mexico is that the country offers competent, young, and active workers, primarily in technology and engineering. Nearly half a million students finish their courses each year to join the labor market. The country also produces over 130,000 computer science graduates annually.
Since they are adept at using digital gadgets, social networks, and computing devices, most technical Mexican workers are well-suited to remote employment. These English-speaking professionals are also familiar with American work culture and methods, allowing them to effectively manage task-related concerns with minimal supervision.
Partner with the right service provider to gain the advantages of outsourcing work to Mexico. The BPO provider must ensure its third-party teams have the required expertise, knowledge, soft skills, and educational degrees. Third-party teams offer different services, including:
- Virtual assistance
- Administrative support
- Information technology (IT) support
- Data entry services
- Contact center as a service (CCaaS)
- Bookkeeping and accounting
- Outsourced e-commerce customer service
- Help desk support
- Customer service or support
- Healthcare services
- Email and chat
- Human resources and payroll outsourcing
- Appointment setting
5. Expanding the BPO Industry for Long-term Business Operations
Another top reason to outsource work to Mexico is the country’s growing popularity as an outsourcing destination in Latin America. The BPO industry in Mexico began in the 1990s, when many telemarketing companies operated in Mexico City and other urban areas of the nation.
Call center operations account for over 70% of all BPO services in Mexico. The rest is spread among virtual assistance, technical support outsourcing, consulting services, and back-office work. The outsourcing industry has grown considerably and contributed to the local economy since its inception. It is likely to continue rising in the next few years.
Statista published the following findings regarding Mexico’s BPO sector:
- Overall revenue in the outsourcing business is seen to hit €3.28 billion ($3.57 billion) before the end of 2023.
- Market revenue is expected to exhibit a compounding annual growth rate (CAGR) of 6.04% from 2023 to 2027. The volume is estimated to reach €4.15bn ($4.52 billion) by 2027.
- The average cost per worker in the BPO sector is projected to be €54.30 in 2023.
6. Strong Familiarity with English to Understand Customer Concerns
Among the reasons to outsource work to Mexico are the third-party teams’ English skills. With varying levels of proficiency, almost 13 million Mexicans, or roughly 10% of the population, speak English as the most common foreign language.
Higher-than-average English abilities facilitate communication and collaboration with third-party Mexican teams. Americans and other English-speaking consumers and clients quickly understand them. They can thus discuss operations, duties, and organizational objectives with U.S. clients and handle customer complaints with minimal language issues.
Many Mexicans have a solid grasp of American English grammar and phrases due to their country’s long historical, cultural, and business connection with the U.S. With the ability to engage in formal or informal conversations and speak with a neutral accent, they can better understand American expressions. Mexican professionals also speak Spanish fluently.
Collaborate with the appropriate service provider to obtain this advantage when outsourcing work to Mexico. The BPO company can provide bilingual third-party workers to enhance and broaden customer and client relationships. Many domestic U.S. businesses prefer to have Spanish-speaking staff perform their back-end operations.
7. Supportive Government Initiatives to Drive BPO Industry Growth
One of the reasons to outsource work to Mexico is the national government’s robust support for the outsourcing sector.
Below are some laws, agreements, and programs the Mexican government has deployed to benefit the BPO industry:
- 2021 Amendments to Mexican Labor Law. The revision can boost staff morale and productivity in the outsourcing segment. Coupled with annual bonuses, the law requires companies to share their profits equal to a three-month salary with employees.
- U.S.-Mexico Cybersecurity Cooperation. The U.S. and Mexican governments collaborate to protect shared supply chains and infrastructure from cyberattacks and limit online crimes. High data security is why you should outsource work to Mexico.
- “Internet para Todos” program. The initiative aligns with the government’s request for universal connectivity by harnessing the latest digital technologies, including wireless broadband, fiber optics, satellites, and hybrid solutions. This is favorable for the BPO sector once the project is fully operational and implemented nationwide.
- North American Free Trade Agreement (NAFTA). The 1994 pact formed a free trade zone for Mexico, the U.S., and Canada. It helped raise investments in many businesses in Mexico, including the outsourcing industry.
8. Multichannel Capabilities for Seamless Communications
One of the benefits of outsourcing work to Mexico is that third-party Mexican providers can offer different communication services (audio, video, and text) and integrate them into a unified system for complete interaction. This feature assures spotless and uninterrupted agent-customer communications, regardless of the channels used during contact.
The most common multichannel functions are the following:
- Social media is an online network (e.g., Facebook, TikTok, Twitter) where users can post comments, questions, and recommendations.
- Standard phones are conventional and durable fixed-line phones for regular calls. The units are affordable.
- Chatbots are smart programs that answer basic questions via text or voice instructions. Access to reliable chatbots is another advantage of outsourcing work to Mexico’s BPO providers.
- Email allows anyone to privately and securely communicate with the third-party team via electronic messaging.
- A self-service portal is an online resource (e.g., video tutorials, frequently asked questions, forums, blogs) that assists customers in independently resolving service or product issues.
- Live chat allows users to interact with a live agent through a window panel on your web page.
- Short message service (SMS) lets customers send text messages to third-party agents through mobile phones. Inquire via SMS, and customers can immediately receive replies.
9. Reduced Running Expenses To Access More Working Capital
Lower ongoing costs are one of the gains when you outsource work to Mexico.
Consider the potential cost savings when transferring processes to a BPO provider in Mexico:
- Recruitment. The third-party provider manages the entire hiring process to acquire qualified workers. Job advertisements and applicant screening, testing, onboarding, and training are among the activities it performs.
- Salaries. Minimal or zero salary expenses are one advantage of outsourcing work to Mexico. You leverage the skills of a third-party team, but the service provider shoulders fixed monthly salaries and other costs such as employee income taxes, social security, and health insurance.
- Re-training and skill improvement. The BPO provider shoulders staff re-training and upskilling costs to hone the skills of its workforce and stay updated on the latest best practices. Staff competencies must be improved periodically to address new and unfamiliar challenges. The service provider pays for the workshops and seminars.
- Office space, supplies, and equipment. Decreased capital spending is an extra perk when you outsource work to Mexico. Delegating secondary functions, including data entry services and bookkeeping, indicates you no longer need to purchase additional equipment and build a new workspace. Your BPO partner has the required facilities.
10. Competent Third-Party Remote Workers for Higher Productivity
Obtaining efficient work-from-home (WFH) professionals for your processes is one reason to outsource work to Mexico. Remote workers are not required to report to the office regularly, so they can serve clients and customers better and help resolve issues faster than on-site staff.
The benefits of outsourcing work to Mexico are more efficient WFH contractors and quicker support. Below are the primary factors that make third-party remote workers highly useful:
- Regulated remote work. The BPO company imposes stringent but fair WFH procedures to improve and maintain staff conduct, teamwork, and workflow.
- A high degree of data security. WFH professionals apply virtual private networks (VPNs) and the newest antivirus applications to protect all data and information.
- Fully furnished team. The BPO firm provides WFH staff with the equipment necessary to smoothly complete daily operations.
- Extensive use of communication technology. The third-party Mexican team heavily depends on Microsoft Teams, Zoom, Skype, and other reliable collaboration apps for real-time and uninterrupted interaction.
- Frequent online meetings. Supervisors conduct video or audio calls to monitor the third-party teams’ work progress and status.
11. Suitable Alternative to Help Ease the Labor Force Crisis in the U.S.
One of the reasons to outsource work to Mexico is the country has an ample workforce that can help resolve the ongoing labor deficit in the U.S. The pandemic-triggered mass exodus of American workers known as the Great Resignation (the Big Quit) cost U.S. businesses about 71.6 million employees from April 2021 through April 2022.
The Big Quit took its toll on American companies, causing many industries to deal with higher staff turnover rates that adversely affected employee morale and productivity. The workforce shortage also disrupted production, service delivery, and customer support operations.
A recent study reveals that over 70% of companies in North America had a tough time recruiting and retaining employees in 2021, three times harder than the previous year.
This is one motivation to outsource work to Mexico. A nearshoring company can provide the needed employees to continue running your operations and help mitigate the existing labor shortage confronting U.S. industries. It has access to a broad talent pool to address your staffing needs.
12. Great Degree of Data Compliance and Security to Avoid Costly Fines
One benefit of outsourcing work to Mexico is that service providers can properly adhere to government rules and industry norms to prevent hefty penalties. Noncompliance with federal regulations and other standards can result in legal and financial repercussions, such as criminal charges, litigation, and reputational damage.
Below are examples of general and industry-specific policies the service provider tracks for you:
- The Telemarketing and Consumer Fraud and Abuse Prevention Act protects consumers from telemarketing abuse, obliging telemarketers to obtain a license before practicing their profession.
- The Payment Card Industry Data Security Standard (PCI DSS) requires businesses to process credit card data securely to limit fraud, theft, and scams.
- The General Data Protection Regulation (GDPR) mandates businesses to protect the data of their European customers. Several big companies were penalized because of GDPR violations. Strict compliance with the regulation is one reason to outsource work to a Mexican BPO provider.
- The Health Insurance Portability and Accountability Act of 1996 (HIPAA) orders healthcare providers to safeguard patient information from unauthorized distribution.
- The International Organization for Standardization (ISO) certifies an organization that meets its stringent assurance policies.
13. Enhanced Customer Experience (CX) and Satisfaction for Greater Loyalty
One of the advantages of outsourcing work to Mexico is the ability of the third-party Mexican team to constantly provide an exceptional client experience.
A buyer’s overall perception of your company, product, or service based on your interaction with them is called CX. It covers every encounter, from the customer’s first transaction through payment, returns, and refunds—which contribute to building a loyal and satisfied customer base.
Consider the benefits of improved CX for the company:
- Better return on investment (ROI). A better CX translates to buyers shopping more, increasing sales. Loyal consumers are likely to tell others about their positive experiences, which can attract more potential customers.
- Improved company reputation. A better image enhances market competitiveness. More attention to CX enables the business to keep pace with the competition. A greater reputation can also widen your industry share.
- Lower operating costs. Higher CX can help control operational expenses. You can spend less on advertising to draw new buyers. It also decreases the need for extra staff to handle customer complaints and fix service or product malfunctions.
14. Accessible New Technologies to Simplify Operations
Helping staff productivity and streamlining processes with the latest technologies, applications, or platforms is one of the benefits of outsourcing work to Mexico.
Cloud computing is among the advanced solutions service providers utilize to facilitate workflow and boost team performance. This platform also takes customer service to a higher level. The cloud network integrates all systems, software, and applications to increase output and efficiency and create a more fluid workflow.
BPO companies also harness the following technologies to deliver innovative methods for handling processes:
- The internet of things (IoT) is the network of digital-enabled devices, machines, and equipment. IoT uses the internet to share data across the network for faster information retrieval.
- Cybersecurity is another benefit to enjoy when you outsource work to Mexico. Data protection policies safeguard IT systems against data breaches, threats, and intrusions.
- Robotic process automation (RPA) uses software-driven robots to perform specific duties, including addressing typical consumer concerns. RPA allows human agents to prioritize high-value, pressing, and critical assignments.
- Artificial intelligence (AI) is the imitation of human intellect in machines or devices. Similar to RPA, this technology provides cost-effective ways to boost team productivity.
15. Scalable Operations and Processes for More Effective Budget Planning
Another reason to outsource work to Mexico via a nearshoring service provider is cost optimization. The BPO provider can scale delegated processes per business requirements, conditions, or demand.
The BPO firm can increase or decrease its outsourced workers, procedures, or functions without compromising or negatively impacting ongoing operations. Scalability enables you to achieve the best cost while maximizing performance and productivity.
Check out the other benefits of scalable activities:
- Adaptability. When delegating back-office operations, the service provider can easily and seamlessly alter existing procedures. Better flexibility equals more competitiveness.
- Cost-effectiveness. One perk of outsourcing work to Mexico through the BPO provider is you can save on operating expenses by employing the right number of third-party Mexican workers you need. Additionally, the service provider helps you determine the necessary steps to increase production and output.
- Agility. The BPO provider assists you in dealing with unexpected scenarios while maintaining customer support, help desk, and administrative operations. The more agile your company is, the better positioned it is to withstand the challenges.
16. Adaptable Workers To Deliver Continuous Customer or Client Service
Third-party workers amenable to alternating shifts are one motivation to outsource work to Mexico. These professionals are willing to work at any time to attend to customers or users wherever they are—whether at night, on weekends, on holidays, or based on your time zone.
The U.S. is one of Mexico’s biggest outsourcing clients, and the time zone disparity between the two is up to four hours. Time differences are not a major concern among Mexican workers. Changing shifts and weekend duties are common work procedures.
Outsourcing work to Mexico is favorable for your business. For example, the nearshoring team can perform processes during the day while your offshoring team continues operations at night. This approach enables you to have different staff working around the clock.
This strategy provides you with these advantages:
- 24/7 availability. The third-party teams work in different time zones. This indicates your business is accessible to customers whenever and regardless of their location.
- Faster replies. Round-the-clock accessibility permits your agents to manage customer issues better. Consumers encounter shorter wait times since customer support is always available.
The Bottom Line
Acquiring BPO services in Mexico offers various rewards. In addition to the advantages listed above, outsourcing work to a nearshoring service provider will limit direct employee recruitment risks or legal backlashes, such as staff lawsuits, labor strikes, and other work stoppages.
In particular, the service provider deals with worker-related concerns. It has human resources experts who manage the processes and issues associated with employment. The BPO provider also has an extensive talent pool, enabling it to choose the best candidates for your outsourced operations.
Let’s connect if you want to learn more about outsourcing work to Mexico!