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.