Mexico’s Safe Landing Option
Because Mexico is part of the North America region, US Tech Companies expanded their hiring radius to include the country. Also, Mexico is recognized as an entry-point to the Latin America Market.
Countries that attract the most foreign investment are known to have soft landing options. Tech companies add Mexico’s Operational Capabilities using the Subsidiary-as-a-Service option, similar to the successful Shelter Model in the Manufacturing Industry.
Subsidiary-as-a-Service, How it works?
Similar to the as-a-Service model, it avoids upfront costs and leverages large economies of scale to lower operating expenses. It can start in weeks instead of months, ready to scale in size and functionality when needed, and not before. Tech companies gain organizational agility and are sheltered from local risks while owning the operation from day one.
Certainty when expanding to a new country
Adding Mexico’s operational capabilities can help investors maximize company valuation. It enables cost containment strategies and adds new talent & delivery capabilities, in a new market. Rapid turnaround matters to Tech Investors, leverage the Subsidiary-as-a-Service option for predictability in a tight timeframe.
Subsidiary as a Service Platform
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Our framework provides a safe path for companies to start an IT Nearshore Operation immediately in new territories, without any of the upfront investment or risks associated with full foreign incorporation. Combining the cost savings and efficiency of shared services with the power to manage and scale your Nearshore Service as you see fit.
Alternatives for expanding into a foreign country
Every company varies in its approach to expanding into a foreign country, as their financial resources and the degree of commitment they are prepared to invest differ. Assessing the attributes of each option can significantly impact their overall experience
Customer Examples
Midsize SAP Partner plans to enter the Latin America via Mexico, because the region has customers with unmet needs due to a lack of local expertise, wich they have.
The Company is not ready to fully commit to the region until their value proposition is validated. Also, the company doesn’t have a big budget to support a local learning curve and the dedicated personnel to handle local compliance & risk.
Using a Subsidiary as a Service, te Partner was able to support locally their first customer engagements while getting the support needed to build a local pipeline. After the first customers a local entity was set up, while still taking advantage of our economies of scale.
Small Consulting Firm from Texas needed a flexible and low-cost option to compete successfully with global companies.
Built a flexible operation that can implement SAP & Salesforce Solutions using a Nearshore Model, designed to be quick and repeatable using a packaged scope, while traveling on-site for key meetings. The operation switches to standby when the project ends and only uses a shared SAP AMS support its customers.
Customer
UK-based system integrator that delivers IT Solutions and consulting services, with a presence in Europe, Asia, and Africa.
They have a global customer that requires them to upgrade their systems in many countries including several in Latin America, so they need to have a presence in the region for 1-2 years to implement the new solution and leave a local team to support help desk tickets after the initial project ends. They did not want to build a permanent operation.
Solution
With our framework, created a project management office in Mexico that along with temporary teams in South America delivered the services and local presence required for the Project Rollout.
Key Takeaways
-Using an international staff augmentation company was in fact counterproductive, so it switched to a SUB.aaS approach and corrected a complicated start of its Rollout, which was completed successfully.
-Able to maintain a small and flexible local support team that works with their global AMS Center.
-Gained local know-how regarding country localization and how other IT Service Providers handled it.
Featured White Papers
Microsoft Partners: Expansion options for Latin America
Microsoft Whitepaper on Expansion options for their Partners. Geo Expansion services, strategies and best practices for the region. From the use of International Payroll Providers, Relocation & Incorporation, to Subsidiary as a Service.
An Alternative on M&A and Joint Ventures
The white paper examines modern frameworks utilized by Tech Companies to boost their value, including new options that evolved from the Manufacturing Industry’s successful Shelter Model and BPO/PEO frameworks for global expansion.
Mexico Market Information
Download the latest market insights covering hiring options, local incorporation, best locations, costs, market-entry, trends, relocation, and more.
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.
Expansion Strategies to Mexico: How They Compare
Adding cost-efficient foreign operations for tech companies has become a staple in the industry. Opting for a Nearshore location instead of Offshore provides a significant advantage for firms requiring real-time collaboration. Mexico is North America’s de facto nearshore option, offering the ideal combination of Talent and Cost. As a result, companies of all sizes are expanding more than ever to Mexico, employing various strategies based on the scale of their operations and goals.
Mexico widens its lead as the top Center of Excellence Nearshore Location in the Americas
It might surprise newcomers in the region, but regulars know that Mexico has been the top destination for running nearshore operations for North America since the 2000s. Seven years ago, Gartner confirmed the country’s leadership due to its large talent pool and hard-to-ignore location, in their Evaluating Global Offshore/Nearshore Locations report. So, why does it continue to be in the news? And how has Mexico increased its lead over other options in the Americas?
Why Mexico for Global In-House Capability Centers and the new Regional Multi-function Offices
So, your tech company is evaluating opening a GCC office in Mexico for nearshoring. But before you dive in, the question of how to open a business in Mexico arises, as well as what else you should consider regarding business incorporation. Exploring why Mexico for nearshoring could provide valuable insights into your decision-making process
