Nearshoring contact center services to Mexico: key advantages

United States (U.S.)-based businesses have many options when it comes to international outsourcing destinations, but the most cost-effective and flexible solution may be our neighbors in Mexico. Unlike offshoring, which involves outsourcing to a distant region, nearshoring involves outsourcing parts of your business, such as customer support services, to a neighboring country.

For the U.S., nearshoring contact center services to Mexico provides cost savings through international outsourcing without compromising the quality of the customer experience provided. For example, nearshoring customer service to Mexico offers US-based businesses the cost savings of international outsourcing, while still having access to a culture of customer support.

What is offshoring vs. nearshoring?

When it comes to outsourcing customer support services, location is key. In a world where digital resources make international outsourcing a more accessible option than ever, businesses have the flexibility to compare the advantages of both nearshoring and offshoring options.

Offshoring

Offshoring involves hiring an outsourcing provider from a distant region. This can optimize cost savings due to differences in operating costs, while still allowing for access to advanced expertise and skilled support. Some outsourcing providers, like KellyConnect, offer both nearshoring and offshoring solutions and make the determination based on which aligns best with the customer’s goals and needs.

Nearshoring

Nearshoring is the practice of outsourcing certain aspects of a business to a neighboring country. Nearshore solutions offer the benefit of similar hours of operation due to shared time zones and cultural similarities, while still providing financial benefits. This makes Mexico one of the premier nearshoring options for businesses based in the U.S.

The future of nearshoring in mexico

Mexico is already a major importer of the U.S. when it comes to cost-effective, skilled labor and nearshoring, which is only expected to rise. The current outsourcing market in Mexico has several long-term advantages for contact centers interested in nearshore support. For example, geographical advantages, skilled talent equipped to deliver outstanding customer service, cultural affinity, cost savings, and advanced infrastructure.

Geographical advantages

Fostering business relationships requires communication, which is much easier when business partners are close in proximity. Business leaders in the U.S. can effortlessly travel back and forth to visit outsourcing partners in Mexico thanks to shorter travel times and accessible infrastructure for navigating the border.

Mexico also shares multiple time zones with the United States, leading to a major overlap in operating hours. This enhances collaboration between business owners and outsourcing vendors, while also making contact center teams more accessible to customers across the U.S..

High-quality talent

Nearshoring in Mexico provides you with access to a labor market that shares similar values as American consumers, creating a quality customer service experience. Through a combination of bilingual support, enhanced customer service training, and a culture that prioritizes hard work, Mexican contact centers can offer consistent, top-tier support to clients.

Bilingual capabilities

Due to Mexico’s proximity to the U.S., many Mexican professionals are bilingual. They’re also familiar with American accents, leading to greater comprehension between contact center agents and callers. Additionally, Spanish-speaking agents can cater directly to the large Spanish-speaking population of the U.S.

Skilled customer service expertise

Mexico has a 95% literacy rate, indicating a well-educated population with strong communication skills. These capabilities support a better customer service experience, especially when paired with extensive customer service training.

Strong work ethic

The work culture in Mexico revolves around hard work. In general, people are dedicated to their roles and care about building positive workplace relationships. Paired with a focus on collaboration and teamwork, these values can build dedicated, skilled teams that are highly invested in your company’s success.

Cultural affinity

The U.S. and Mexico have a rich, shared cultural history. Modern trade agreements and cultural ties have built a strong affinity between American and Mexican business culture, giving Mexican call center agents an inside perspective on American consumer expectations and habits. As a result, they’re able to provide a localized customer service experience that rivals in-house service from American providers.

Optimal cost savings: operations and labor

Mexico’s lower cost of living makes it possible for American companies to access a high level of service at a budget price. This includes lower operational costs and lower labor costs, plus an additional boost from the beneficial exchange rate between the dollar and the peso.

Lower operational costs

The U.S. is one of the top 25 most expensive countries when it comes to basic utility costs, indicating the serious cost of keeping operations local. Mexico’s utility costs are just a fraction of that amount, drastically decreasing overhead for companies that operate out of Mexico. The overall cost of living index in Mexico is 40.2, compared to 70.4 in the U.S., showcasing the potential for companies to save on operational costs by hiring contact center teams in Mexico.

Decreased labor costs

Mexico offers low labor costs for both entry-level and skilled employees. The average wage for Mexican employees is $10,124 per year, while U.S. employees average $79,546 per year. As a result, U.S. companies can acquire a similar level of talent at a fraction of the cost by using a nearshore team in Mexico.

Helpful exchange rates

The U.S. dollar stands strong against the Mexican peso, giving U.S. companies more buying power when working with Mexican outsourcing providers. The exchange rate has been historically strong and is expected to follow that trend in the future, so companies can be confident in the value of the U.S. dollar when working in Mexico.

Advanced tech infrastructure

When outsourcing to a distant country, American business owners may be concerned about having access to the same technological resources that they have in the U.S. As a technologically advanced, modern nation, Mexican providers have the resources and infrastructure to keep their clients on the cutting edge of their industries.

Modern IT tools

Mexico is one of the top 10 tech exporters in the world, establishing its advanced technological assets. The Mexican government is also actively investing in the development of Mexican internet and tech infrastructure, ensuring that outsourcing partners can enjoy a reliable connection at all times.

A tech-savy workforce

The modern Mexican labor force is familiar with the industry standard tech tools businesses need to support their call center operations. They have the training, knowledge, and tech aptitude to work on the apps, devices, and tools their partners use.

International data security compliance

Mexico has data protection laws for both the public and private sectors, ensuring that outsourcing providers prioritize the security and privacy of their clients. Qualified nearshore providers adhere to both local restrictions and international best practices for data security.

Government support for nearshoring activities

The Mexican government has recognized the value of nearshoring in Mexico by implementing several policies and incentives that support the outsourcing industry. This is evidenced by the launch of incentives to encourage nearshoring in several industries. Companies that shift their operations to Mexico can enjoy extra deductions, facilitating their growth and decreasing operational costs.

Discover the advantages of nearshoring to Mexico with KellyConnect

When you outsource customer support services to Mexico through outsourcing providers like KellyConnect, you can tap into geographical, operational, and cultural advantages to optimize the customer service experience. By shifting certain aspects of your operations to Mexico, your team can access a high-quality, culturally compatible labor market at a fraction of your current costs. You can start building your custom nearshore contact center solution by partnering with the outsourcing team at KellyConnect today.