Nearshore operation

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.

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.

Everscale announces Mexico´s Private Equity Pilot Program for Portfolio Companies
Portfolio Companies can add their own Mexico cost-effective operational capabilities in days, test the region, and scale in size and functionality when needed.

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?

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.

Latest on the Nearshoring trend in Mexico. North America to make 25% of what it imports from Asia: Mexico January 13, 2023   MEXICO CITY (Reuters) — Mexico, the U.S. and Canada plan to produce in North America 25% of what they currently import from Asia under a new drive to promote the integration of the region’s …

Nearshoring News Update Read More »

For Tech Companies expanding into Latin America, the decision of where to open its Latin America HQ usually comes down to Brazil or Mexico. These two countries have the biggest economies in the region, so it makes sense to establish their LATAM office in one country and then expand into the rest of the region.

Now in a post-pandemic business environment with a mostly work-from-home workforce, companies in North America began opening a business in Mexico and Canada to extend their Talent Pool and take advantage of lower costs.

We offer two main advantages. The first is that any foreigner is always going to have concerns about moving into a new region, either because of the risks they may face because they are not familiar with the local labor laws or because they do not understand the business culture in that country. We make it easier for them to enter gradually, safe in the knowledge that Everscale is backed by a group that has been supporting companies in this process since the 1980s.

With remote work proliferating, cross-border operations are more critical than ever, especially for tech companies.

The question is, which cross-border capabilities are most vital for tech companies, and are they obtainable without risking agility or resilience?

tech companies often treat cross-border capabilities as a one-time thing, which is always a mistake. By approaching cross-border operations as temporary solutions, tech companies actively let go of the valuable new expertise they’ve gained, relying on staff augmentation services or partnering with foreign competitors.

My professional recommendation is to master cross-border operations and embrace them as a vital part of your business.