Nearshore vs Offshore
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Comparing the BOT Model vs the As-a-Service Framework
For years, tech companies expanding offshore that were looking for the advisory of a local expert, favored the BuildโOperateโTransfer (BOT) model to launch Global Capability Centers (GCCs) or Shared Services Centers. The specialized vendor built the operation from scratchโdedicated infrastructure, a new legal entity, admin staff hiring, policiesโthen stabilized it and transferred it to the client after a set term. Because the vendor assumes execution risk, BOT pricing typically includes a margin on top of the total operation (a % uplift). Itโs more expensive than the Do-It-Yourself approach, but the premium is often justified: it reduces unknownโcountry risk and limits budget overruns with a turnkey, governed path to transfer.
Financial Analysis of Starting Operations in Mexico: Cost, Risk, and Time-to-Value
For North American B2B tech companies, expanding into Mexico offers both cost savings and access to top talentโbut the approach matters. A DIY setup can be slow, risky, and expensive, while the Subsidiary-as-a-Service (SUBaaS) model delivers speed, compliance, and significant savings. By paying only for what they use, companies can reduce operational costs by up to 70%, avoid legal and compliance pitfalls, and launch in weeks instead of months. SUBaaS makes nearshore operations scalable, capex-friendly, and investor-approvedโhelping businesses stay lean and competitive in a volatile global economy.