Mexico’s Dual Markets

Mexico’s economy has been climbing steadily over the last several years and with continual growth comes the attention of people that are in the business of making money.

Dan Restrepo, a senior partner at the Center for American Progress who served as special assistant to President Obama on issues related to Latin America, explains that companies are seeing enormous opportunity not only with the Mexican market but the growing U.S. Latino population.

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Shelter Companies

Restrepo says, “You’re seeing U.S. companies recognizing the value of being part of, in essence, two emerging markets: Both Mexico as an emerging market and U.S. Latinos as an emerging market.” He continued, “If U.S. Latinos were a standalone economy, we would be the world’s 12th largest economy, we would be a member of the G-20. That’s 55 million people, roughly a trillion and a half dollars in purchasing power. Companies are starting to realize that there are plays into Mexico that are also plays into this kind of shared economic space.”

With more than $5 billion spent on advertising in 2015, Mexico is the most important advertising market in Latin Americas Spanish-speaking countries, according to e Marketer.

You turn on your television and you see the T-Mobile ads about free roaming in North America or call packages that include the U.S. and Mexico as a single cellular market,” said Restrepo. “That’s an example of where we’re headed.”

Do You Know What Nearshore Outsourcing Is?

Nearshore outsourcing is a technique that businesses and governments use to outsource IT contractors. Many companies are finding that it is more cost effective to outsource certain portions of their business or services. This method of outsourcing has become more and more popular over the last decade. Now that we have established what nearshore outsourcing is, we need to look at why this method is so popular.

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Nearshore Mexico

There are many benefits to using nearshore outsourcing. This method of outsourcing eliminates time zone issues, which helps make interactions with your customers much easier. No matter what time it is, whenever it is needed, outsourced employees are there to respond. This helps reduce stress on you and your business. You will be able to better coordinate between the employer and Mexican labor using this method. You will also be able to arrange travel to the countries that you are outsourcing to. You are essentially hiring employees through a middle man, and visiting these employees to make sure they are properly trained is beneficial. This type of outsourcing also requires no visa formalities in order to travel. You just need a passport and your ticket. This becomes beneficial to both companies involved.

The biggest drawback is the jobs that will no longer exist at your home country’s location. The pay scale drops, which eliminates competition. US workers will not work for the wages paid by many of these other countries. Confidentiality issues may also arise from this type of outsourcing. Generally, these outsourced companies serve many other companies, not just yours. Sharing information could become a problem. There are many web portals that can get you in touch with nearshore outsourcing companies. Most companies find that using a hybrid nearshore model that combines the best of both worlds is the best option. A Mexican laborer provides your business with great benefits. With the help of nearshore outsourcing, you can make your business much more efficient and effective.