Outsourcing to Mexico: 4 things to consider if you are relocating your company
I reflected on the transnational companies that have decided to relocate their operations outside China.
Considering that we can find its origins through the growth of globalization, becoming an attractive option in matters of investment and resource optimization.
It turned out to be in the nineties and early 2000s through the famous “offshoring,” in which this practice raised popularity among companies of all kinds.
Something incredible considering the great distance and how it could be a factor if differences apply because of time and culture.
Particularly in the electronics and manufacturing sector, they positioned China as the world’s factory.
Now that I mentioned a little of the context and the big decision that several transnational companies have taken, I would like to say four elements to consider for the relocation matter.
An action that has given Mexico a new momentum for its strategic position through the offer now known as “nearshore.”
- What does relocating to a nearby location represent?
Undoubtedly one of the most significant points to consider the advantages of the nearshore is the proximity companies can have between American countries.
This factor has represented an alignment of language and culture, facilitating the relationship and final experience for the consumer.
With experience, this element has allowed diversifying many businesses, including manufacturing and multi-industry care.
All available kilometers away, with more travel facilities and routes in case of events or topics requiring assistance between companies.
- Bilingual language and talent
Due to the proximity between American countries, it has developed years of commercial and cultural relationships.
Learning English has become an opportunity, even a necessity, particularly in border cities by sustaining one of the world’s largest and most dynamic borders.
With significant daily and mutual traffic from Americans and Mexicans, understanding and speaking the language has become a regular.
A factor also added by the constant investment of foreign companies that request English as a prerequisite for the performance of tasks.
The communities of both countries are clear about this consideration, which is why they work together to promote these issues.
There may be certain differences, of which they should not be afraid, since we can enrich and even find new and better methodologies of work and attention.
- Cost reduction:
Investment in nearshore locations also greatly reduces productive and operational costs.
Moving production from China to Mexico can become an excellent opportunity to keep high costs off the radar, allowing companies to concentrate on their core competencies.
Generating opportunities to invest in resources for innovative businesses and better jobs with better wages within the market.
- Improvement in logistics and regulations:
The deficiencies in logistics have been prolonged and have affected the supply of basic inputs and materials.
The supply chain problem has subsided on the routes of nearby territories and the arrival of goods at different American ports.
Outsourcing new businesses through offshore options has become less attractive by several issues, such as recent international tensions and American consumer preferences.
Travel restrictions and constant regularization is not a problem for companies that do business in Mexican territory.
After years of commercial and political relations, private investment has been recorded, especially in Baja California, Sonora, and Nuevo León.
Final Thoughts:
With the departure of several companies from Chinese territory, the nearshore will position itself even more in the different business models.
Offering talent capable and aligned to different work methodologies facilitates avenues of cooperation and investment.
Implementing new technologies is a trend already applied in several Latin American countries, so it will not be a problem either.
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