Insights

Access the latest news and articles of interest to the Enterprise Software Ecosystem. Emerging trends, key players in the region, nearshoring, hiring talent, cost reduction strategies and operational best practices.

Soft landing in Mexico for foreign companies

Expanding into a foreign country represents a unique set of challenges. Countries that attract the most foreign investment are known to have soft landing options that facilitate opening and running new operations. Mexico in particular, has options by industry. Tech companies add Mexico’s Operational Capabilities using the Subsidiary-as-a-Service (SUBaaS) option, similar to the successful Shelter Model in the Manufacturing Industry that foreign companies have been taking advantage for the past 30 years to move into the region. These options avoid unnecessary expenses and risks, while lowering dramatically total costs, with total ownership from day one.

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Cover image of article about how SUBaaS streamlines your entry into the Mexican market. Our analysis covers cost, risk, and time-to-value for starting operations in Mexico.

Starting Operations in Mexico: Cost, Risk and Time-to-Value Comparison

In the highly competitive landscape of the tech industry, staying ahead often involves running foreign operations. However, the challenge lies in doing so efficiently, especially when faced with a tight budget for 2024. In this article, we’ll explore why B2B tech companies in North America have used Mexico’s soft-landing options, such as SUBaaS, to avoid unnecessary costs and risks associated with the Do-It-Yourself approach. This capex-friendly approach is preferred by Private Investors, as they can achieve more with the same budget while owning the operation from day one.

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Banner image for a blog highlighting main nearshoring and LATAM market entry cities, addressing the tech talent pool and tech talent shortage

Which cities in Mexico are the best for Nearshore Delivery and Market Entry?

Mexico’s geographical strategic location, population size and Talent pool make it the preferred nearshore location for North America. But it is also known as Latin America port-of-entry, because it’s one of the top two largest economies in the region and it is Spanish-speaking, as the vast majority of the region. So, the same city will support both strategies, right? No.

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Master Cross-border Operations 

Safe Landing Options for Foreign Companies

For adding the operative capabilities of a foreign country, companies have taken advantage of different services that allowed them to test drive the region while maintaining ownership. Because it can support end-to-end operations, It eliminates the need of hiring multiple vendors and shelters foreign companies from local risks, while saving on upfront costs and recurring expenses.

Depending on the industry, this option is known as the Shelter Model, Subsidiary-as-a-Service, and Virtual Subsidiary. What Tech Companies should expect from this type of service? Which vendors are available by country?

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Incorporating a cost-containment strategy that adds operational scalability

Tech companies frequently experience the fluctuating influence of Silicon Valley relentless pursuit of growth at any cost. Usually tied to a bullish market outlook followed by a pessimistic swing that triggers an avalanche of cost-containment strategies. Common sense appears and disappears as well, when it shouldn’t, regardless of the economic climate.

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