Staff ReportMexico keeps making waves internationally. The COVID-19 pandemic-related disruptions as well as geopolitical tensions are pushing for a “Made in Mexico” label at the center of global supply chains.
During 2022, foreign direct investment (FDI) into the country increased by 12% when compared to the previous year, according to the country’s economy ministry. Mexico’s 2022 FDI reached USD$35 billion, the country’s largest amount in the last six years.
Most of the capital comes from US and Canadian investors, which respectively represent 43% and 10.7% of total 2022 FDI into Mexico. The US-Mexico-Canada trade agreement (USMCA) allows a higher level of connectivity within North American markets, but investors from countries such Spain, Japan and Argentina are taking advantage as well.
“As we continue to expand our Latin America business, Mexico becomes more attractive,”—Jose Antillon, Concentrix Mexico Country Manager
Much of this capital goes to the manufacturing sector, but technological services and BPO firms are also paying attention to the opportunities arising in the country.
“As we continue to expand our Latin America business, Mexico becomes more attractive. After all the economic pressure the pandemic imposed on digital and physical supply chains, relocating closer to such an important market like the US makes sense for everyone,” said Jose Antillon, Concentrix Mexico Country Manager.
Concentrix is a global CX and tech services provider with over 300,000 staff and operations in more than 40 countries. The company pledged to increase its Mexico workforce during 2023 with an additional 1,000 workers. According to Antillon , Mexico’s talent pool remains a defining factor when making investment decisions in the country.
Growing Interest From Key Industry Players
Concentrix is not the only firm expanding in Mexico.
Globant announced in 2022 that the firm will be doubling its headcount in the country, investing US$900 million and launching four new delivery centers in cities such as Aguascalientes and Queretaro. By the end of this expansion, Globant will increase its Mexican workforce to around 7,000 employees. Globant already runs operations in Guadalajara and Monterrey, serving a diverse pool of clients such as Nissan and Metlife.
“There is a deep talent pool that allows us to fill open positions. The challenge for key players in this industry is to get them to stay,”—Jose Antillon, Concentrix Mexico Country Manager
US tech firm Sryas recently set up a development center in Mexico City to serve North American clients with software, data analytics and systems integration services. Paris-based Webhelp opened in November 2022 a new site located in the southeastern state of Yucatan. Concentrix announced on March 29 that it will combine efforts with Webhelp, seeking expansion in markets outside North America.
According to Antillon, the expansion efforts of other firms won’t significantly impact Concentrix’s ability to attract qualified professionals.
“There is a deep talent pool that allows us to fill open positions. The challenge for key players in this industry is to get them to stay. That is where our HR practices come into play and differentiates us from the rest,” added Antillon .
Overcoming Obstacles: Talent Retention And Market Expansion
Concentrix set up operations in Mexico in the middle of the COVID-19 pandemic. This created logistical and human capital challenges.
“It did bring obstacles, but it made our operation stronger. It is all about having the right partners on the ground that can navigate regulatory and related issues. It is also about trusting the quality of our services. You must see very clearly all the potential benefits in order to endure the challenges of breaking in and expanding in a new market,” added Antillon.
“The level of interest and expectations of what Mexico can do goes beyond the need to have a promotion agency. At the end of the day, the volume of business is incredible,”—Jose Antillon, Concentrix Mexico Country Manager
Mexico no longer has an official investment promotion agency to help foreign investors interested in installing operations in the local market. There is a small office within the foreign ministry supporting investment attraction operations, but it is not close to having the capacity that trade promotion agencies have in countries such as Costa Rica or even Jamaica.
“It is true that Mexico does not have a foreign trade promotion agency now, but that did not have a significant impact on our interest. The level of interest and expectations of what Mexico can do goes beyond the need to have a promotion agency. At the end of the day, the volume of business is incredible. Then it all becomes about the quality of your product, workforce and proximity,” said Antillon.
Concentrix dedicates robust efforts in making sure the firm can attract and retain top talent. Attrition can also create barriers by reducing the quality of services, also delaying projects and deliverables. It also represents bigger costs as firms need to constantly engage in recruitment efforts and endless training cycles that end up disrupting the normal functioning of any operation.
Concentrix dedicates robust efforts in making sure the firm can attract and retain top talent. The company partners up with local universities and makes sure to integrate all its services to maintain a collaborative mindset among staff.
“We have the goal to double our workforce this year and triple it for 2024 in Mexico. From a HR standpoint, that means attracting new people but also making sure that the ones that already work for us are happy and fulfilled here”, said Antillon.
“We pay attention to our culture to guarantee the best staff experience. But we also understand that often this is not enough, so salaries need to remain competitive because taking care of our staff makes all the difference,” he concluded.
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