Access the Latin America Market via Mexico
Add Mexico’s operational capabilities in days and expand your business in the region. Open a local presence and your follow global customers into Mexico or develop first a local pipeline before committing to a large operation.
The Latin America Opportunity
Foreign companies have the option of entering LATAM via one of the two biggest markets in Latin America, which are Brazil and Mexico. When LATAM Market entry via Mexico is selected as the top option, it´s because it’s a Spanish speaking country, as the vast majority of the Latin American Countries are (the official language for Brazil is Portuguese). Also, International companies that have the U.S. Market in their plans, use their Mexican operations with a double purpose: as an entrance to the LATAM Market and to deliver Nearshore Services to North America.
VC investment trend continues. Seed funding was resilient through the downturn, as a growing number of fund managers continued to invest in early entrepreneurs and the Tech Industry.
Top VC verticals in 2022 were Fintech, E-Commerce, HRtech, Proptech, Logistics Tech, Enterprise Software, CRM/Sales Mgmt., Digital Security.
Evidence is mounting that Mexico is a key beneficiary of a reconfiguration in global supply chains that are seeing companies find ways to be closer to the US economy. In particular, the nearshoring trend in the Manufacturing industry continues to accelerate, Fitch Ratings anticipates that Mexico could seize half of the total FDI inflows in Latin America in the coming years.
How it works
Tech companies can add Mexico’s Operational Capabilities in days to deliver proposals in Mexico, build a pipeline and access a new market. The operation can scale following revenue and not before.
Similar to the successful Shelter Model in the Manufacturing Industry, foreign companies from the IT Industry have the Subsidiary-as-a-Service (SUBaaS) option. This approach avoids unnecessary expenses and risks, while lowering dramatically total costs, opening a legal entity when ready while still maintaining an agile operation.
It resembles the as-a-Service model, as companies pay only for users (workers) they use, benefiting from shared infrastructure. Economies of scale from the vendor further lower costs and provides a faster time to market. Another similarity is starting in weeks and not months, including the option of scaling in size and functionality when needed.
Common Scenarios
- Pipeline Development: Sales Executive with temporary offices for local presence and initial pipeline executive. Adding Marketing Lead (sales collaterals localization), Inside Sales Executive (ISEs), and PreSales roles as it grows. Support for RFP submission and nearshore/local pricing proposals.
- Sales Office: Full Sales Team, with permanent offices and leadership positions. Creation of a Legal Entity for signing local customers. Feedback on quotas, seasonality, and benefits packages according to local market. Mix of permanent/temporary delivery team.
- Region development: A full Sales Team for acquiring initial customers in the region, is needed to develop local resellers/channels. Feedback on companies to Network and Industry/Customers to target. Legal entity and engineering support team for the region.
- Regional Hub: Sales, Delivery, and Support Team for the region, with permanent offices with company brand and legal entity.
All scenarios can scale in size, cities, hiring type, and offices as needed. Including implementing recent grads bootcamps and relocation of foreign personnel.
Because of Everscale industry expertise in the Enterprise Software Ecosystem, the turnkey subsidiary incorporates best practices and built-in capabilities that will assist foreign companies in bypassing the initial learning curve of the local market and enhance the likelihood of success of local strategies.
Customer Examples
Mexico Market Entry
IT Services Company with potential customers in the region, was uncertain of entering the Market due to the associated costs and uncertainties.
To overcome this, utilized Everscale SUBaaS, which allowed them to support their first sales engagements in Mexico while building a local pipeline with a temporary team. Once the pipeline matured, it set up a local entity and grew the team, while still benefiting from an agile operation.
Mexico Market Entry
Global Digital Transformation Company, with offices in APAC, the Middle East, and the Americas.
Their global customers require support in Mexico, so instead of subcontracting local tech companies that could become future competitors, are evaluating expansion options into Latin America.
Choosed the SUBaaS option to avoid setup costs and start supporting their customers locally in weeks, while taking their time in deciding where to open their own branded offices and the right configuration of their team to hire, gradually increasing in size.
Demand certainty when expanding to a new country
Recommended cities for Nearshore Delivery
With a Population of 130 Million, Mexico has a clear advantage over other LATAM Countries that attract foreign investment, such as Costa Rica (5M) and Panama (4M), with cities larger than other countries.
Review Market Entry Scenarios
Need to answer an RFP or build local presence for a global customer? Schedule a Meeting and learn more on North America Nearshore Scenarios built for B2B Tech Companies.
The SUBaaS framework supports testing the region and customers response before fully committing to a large operation.
The best path possible into Mexico.
