Do Companies continue to outsource during this type of economy?

Outsourcing in this Economy?
Does Outsourcing help you?
During the last few years the economy has faced rough patches around the world, impacting the US economy as well. Companies have encountered difficult decisions to make about its future. In fact, Payroll is one of the company’s major expenses. How can a company save money in payroll and still satisfy its customers’ needs? Outsourcing jobs offshore saves the company’s money while increasing efficiency and it helps the company focus on its core business.


What do economists say about outsourcing? “Economists refer to this process of turning to those who can produce a product or service at a lower marginal cost as ‘comparative advantage’, and it’s the key ingredient to an efficient and productive economy.”

Small companies cannot afford “to match in-house support services” that big companies have. For instance, “General Electric Chief Executive Jeffery Immelt… told the Wall Street Journal [in 2011] that 30 percent of GE’s business was overseas in 2000; today it’s 46 percent, and the majority of GE’s employees are now overseas”(Mathews,2012). Small companies have the opportunity to act as a “big” company in order to reduce or manage its expenses.


Benefits of Nearshoring
Nearshore to Mexico
InternationalThe benefits of nearshoring vs offshoring are many and include the following constructs of proximity: geographic, temporal, cultural, linguistic, economic, political, or historical linkages.


Most outsourcing companies are located thousands of miles and many time zones away. Mexico as an option for offshoring is simply smart.


Mexico shares much of the same telephone networks and Internet infrastructure with the US.

Cultural compatibility and professional affinity between the two countries:

Many professional and technical staff are bilingual in Mexico. Using English- language textbooks and support manuals.




Mathew, Merrill. (February 2013). Companies ‘Outsource’ Because that’s where the Sales Are. Forbes. Retrieved from

Outsourcing, Low Cost! Low Quality?

We have witnessed economic shifts in the market through these last years. Keeping up with business needs, such as customer service, has become a difficulty with this financial blow. When partnering with an Outsourcing provider your goal is that they facilitate your operation, help you succeed and reduce your costs that will let you focus on your core business and preserve quality.

Lowering Your Company’s Expenses

There’s no doubt that outsourcing to another country can lower the company’s expenses. The cost could be much less than what your company would regularly pay an employee. Find an Outsourcing Provider that is committed to meet your needs, and help you focus on their business. Outsourcing your company’s customer service, help desk or another business office process will not sacrifice its quality.

How to Choose an Outsourcing Provider!

Two important things that you need to keep in mind when choosing an Outsourcing provider: reduce costs and maintain excellent quality for your clients. Think of this process as if you were hiring a new employee. When you hire someone to work for your company you do your research. Therefore, look for information about your outsourcing provider, their country’s culture, intellectual property, time zones, turnover rate, experience, cost, etc. After all, they will be working for you.

Is Mexico a good option for BPO Outsourcing?

Business process outsourcing (BPO) is the fastest-growing segment of Mexico’s outsourcing industry.

“BPO is growing at 15 percent, while outsourcing in general is growing at 9 percent,” said Federico Ferreres, an analyst at Mexican consultancy Select.. “In Mexico, all outsourcing is worth US$500 million and BPO is maybe US$90 million of that.”

Companies are looking at the cost and benefits and it looks very favorable. Not only for the global companies but also for small and medium sized companies.

Some of the Key Benefits Mexico has to offer:


It’s cost effective and many levels: a short flight a way from most US cities, which translates on travel savings and time and management savings plus time zones are +/- two hours at the most which is common for the US.

Infrastructure/Security: Mexico shares much of the same telephone networks and Internet Infrastructure with the US. This can translate on improved security of data and information transmission, as well as desktop security, when logging on through the Internet or a VPN. Also Mexico’s intellectual properties laws are very much aligned with US laws.

Cultural compatibility and professional affinity between the two countries: Many professional staff and technical staff are bilingual. Using English- language textbooks and support manuals. Mexico graduates more professionals each year than any other Latin American country.