Open Mexico Operations
Expand your business into Mexico swiftly and strategically—without the high costs and risks of going solo in a new region.
Choose an approach tailored to your strategy—whether you prefer starting with a small, adaptable setup or launching a full-scale center from day one.
Build, Operate, and Transfer (BOT) Evolution
Companies that seek the assistance of a local provider to help them reduce entry risks and gain local expertise to increase the success rate of their new operations, can opt for the Build-Operate, and Transfer (BOT) model. This approach is ideal for establishing a large center with a defined scope and size, which will be fully transferred to the company after an agreed-upon period. Its primary goal is to ease the challenges of setting up a new operation in an unfamiliar location.
Alternatively, for companies unsure of the operation’s size and prefer to validate assumptions while scaling, the Subsidiary-as-a-Service model is the best fit. As an evolution of the BOT model, this flexible, pay-as-you-grow framework is provided by vendors with substantial economies of scale, and also has the option to transfer the operation later. It provides benefits expected from the as-a-Service approach, reducing operational expenses thanks to a shared infrastructure and volume efficiency.
Subsidiary-as-a-Service Model
It helps companies avoid the initial learning curve like its predecessor, but also reduces the initial setup costs and operative expenses, creating a more cost-efficient structure. And for those companies that want to plan on every outcome possible, the model significantly reduces shutdown cost exposure.
It has a faster time to value, starting in weeks, not months. As it does not depend on building everything from the ground up as a self-run independent BOT operation. This agile approach allows businesses to scale in size and functionality without committing to a specific structure size at the start.
The model is also known as GCC-as-a-Service, Virtual Subsidiary, and Virtual Captive.
Operations supported
For decades, companies in the Financial, Healthcare, CPG, Travel, and IT Industries, have opened offshore/nearshore operations in cost-efficient countries. Traditionally, the primary goal of these centers, known as Global Business Services (GBS), Shared Services Centers (SSC), Global In-House Centers (GICs), or Captives, has been to support the main organization rather than to develop the new region. However, tech companies are increasingly using these bilingual regional offices to expand into new markets, like Latin America, while simultaneously delivering services to North America.
Both small and medium enterprises (SMEs) and large corporations are increasingly opting for soft-landing solutions. SMEs leverage nearshore operations to remain competitive, while larger public companies choose this model when business opportunities don’t warrant the risks of a full-market entry or when the global economic outlook is uncertain.
With the Subsidiary-as-as-Service Framework, the foreign company fully owns and manages its personnel, while the local vendor provides administrative support and infrastructure. The model scales flexibly, with access to services such as Recruitment, HR & Culture, Payroll, Company Formation, Facilities, Procurement, Relocation, Accounting & Tax, and a Vetted Talent Database, among others.
Expected Benefits
- Cost-Efficient: Maintain the cost containment benefit of adding Mexico to the organization by avoiding high setup costs and unnecessary ongoing expenses. Reduce operative costs +40% or more in the first 3 years.
- Risk Avoidance: Shield the company from local risks while retaining operational ownership through a USA contract. If operations must be halted unexpectedly, significantly reduce shutdown cost exposure to 90%.
- Time to Value: Start benefiting from Mexico operations by reducing 3 to 5 months the company Time to Value. Critical when operating under a tight timeframe.
- Industry Expertise: With more than 30 years of local experience and industry specialization, we help our customers fine-tune their local strategy for a higher success rate.
The SUBaaS model has a pay-per-use fee based on headcount and includes all access to all of the specialized areas needed to run operations locally.
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