Nearshore Vs. OffShore BPO & ITO

“Mexico is positioned to deliver the full gamut of business services for years to come. This differentiates it from many other markets that are nearing saturation.” – Sean Goforth – Nearshore Americas

 Sean Goforth is Director of Research with Nearshore Americas and recently delivered the above statement in a presentation he delivered in Baja California, aptly titled “Nearshore Leadership Amid Shifting Realities”.

Goforth believes Mexico’s global position in business process and information technology outsourcing (BPO and ITO, respectively) will continue to evolve over the next five years. This is, he thinks, due to sound macroeconomic fundamentals, high number of tech graduates and rising degrees of innovation coupled with strong ties to the tech industry in the U.S.

Julio Barajas, an IT Services Analyst with the International Data Corporation, says, “Mexico’s offshore outsourcing services are consistently getting stronger. The financial benefits provided by these services are having an impact on the economies of numerous countries, which is why Mexico will continue to see significant growth in the outsourcing of IT and BPO services.”

Mexico has become increasingly competitive in the aforementioned sector with an IT labor pool of around 600,000 and graduating around 65,000 IT professionals each year. Those numbers rank Mexico at the top of Latin American countries.

A report conducted by Deloitte and the Manufacturers Alliance for Productivity and Innovation, “Footprint 2020: Expansion and Optimization Approaches for U.S. Manufacturers,” analyzed how companies will be changing their global manufacturing investment decisions through 2020, reported that one-third of companies are considering bringing operations back to North America that for the last twenty years have primarily been in Asia.

Although, according to the report, Mexico was the more likely destination over the U.S. “Mexico is the first choice destination to re-shore operations, followed by the U.S. Mexico offers greater access to the U.S. market, but allows companies to maintain advantageous operating cost structure.”