Photo: Outsourcing to Mexico on Rise
Offering their United States customers closer proximity to home, Mexico is increasingly being chosen for IT services over companies in India or China.
Typically many companies in the United States outsource their IT services to India. While the market in India is still ranked the highest, México is starting to get noticed. Business owners are attracted to the ‘near shore’ idea of working with their neighbors to the south. In addition to location, México shares the same time zones as the United States and has a closer connection culturally. This is especially true in the southwest region of the U.S.
The shift from India began as labor costs rose, workforce began to decline, and the infrastructure began to weaken. As a result, companies in the U.S. turned their eyes toward Mexico as well as other Latin American countries to fulfill their outsourcing needs. This move was attractive to many business owners since Mexico and the United States already have a business agreement in place after the 1994 signing of NAFTA.
Although Mexico has seen growth in this field, India is still leading the pack. Yet, with a projected growth in the U.S. market between 4 and 6% through 2014, the future is looking bright for Neoris and similar outsourcing companies in Latin America.