Mexico: A Rising Nearshore Star
America’s closest neighbor to the south has long been a hotspot for outsourced manufacturing—now it’s ready to move up the value chain to provide U.S. customers with high-end, high-touch tech and business services. Here’s a look at three companies that are leading the charge.While far-off shores like Asia have long been a go-to destination for outsourcing, an increasing number of U.S. firms are now looking south to Mexico, for services ranging from application development to business process outsourcing to IT support—for a host of reasons that make sound economic and business sense.
- Mexico is now the world’s fourth-largest provider of IT services and the country saw its revenues from ITO and BPO services nearly double—from $6.99 billion to $12.25 billion—between 2006 and 2011.
- Outsourcing sales in the Americas as a whole slumped in the first quarter of 2013, but Mexico has enjoyed solid growth.
- Mexico’s software and services sector now comprises more than 500,000 professionals, and its 121 colleges and universities are producing more than 90,000 graduates annually with IT-related degrees.