Add Mexico’s operational capabilities to Portfolio Companies in days

The Subsidiary-as-a-Service option for Mexico, enables Tech Companies to add their own temporary or permanent Mexico operation achieving cost efficiency and increasing predictability. This strategy enables a flexible and efficient structure for adding nearshore talent and accessing the Latin America Market.

Review Portfolio Company Soft Landing Option

Operating Partners prioritize value creation through growth and efficiency. For Tech companies, this objective imposes added pressure on talent acquisition while maintaining a cost competitive structure.

Mexico lower cost of living and proximity offers these desired capabilities, along with the potential access to a new market. Nevertheless, venturing into a foreign country traditionally entails a high investment and unforeseen risks, coupled with a learning curve that may divert attention and resources.

Today, Investors know that the Subsidiary-as-a-Service (SUBaaS) approach works best for adding these capabilities as it avoids unnecessary costs while the operation is sheltered from local risks. The Portfolio Company has ownership of the operation and Increases the company valuation.  

How it works?

The SUBaaS resembles the as-a-Service model, as companies pay only for users (workers) they use, benefiting from shared infrastructure and staff. Economies of scale further lower costs and its benefits can be used in shorter time. With the option of scaling in size and adding functionality when needed.

Companies can start with 1 temporary worker, to a 500-empoyee Center of Excellence. Similar to how business software incorporates best practices, Everscale SUBaaS assists foreign customers in bypassing the local learning curve of the local market and enhances the likelihood of success of local strategies. For some this approach has advantages over traditional options:

Benefits for Portfolio Companies in the Enterprise Software Ecosystem

  • Maintain the cost containment benefit of adding Mexico to the organization by avoiding high setup costs and unnecessary ongoing expenses.
  • Shelter the company from local risks, while still owning the operation by a USA contract.
  • Start benefiting from the foreign operation in days instead of months, with faster scaling capabilities. Critical when operating under a tight timeframe.
  • Because of Everscale’s expertise in the Enterprise SW ecosystem, a higher success rate of local strategies can be expected.
  • No need to start big. If needed, run a pilot operation before full deployment.

Each benefit holds its own value, but when combined, they offer an added layer of predictability that investors highly value and seek.

Featured in Microsoft Geo Expansion Whitepaper for Partners, as a trusted source for moving into the Latin America region.

Check out relevant case studies

Nearshore Delivery Practice

North America Tech Company faced a limited and expensive market for top talent. In addition, global companies were adding a nearshore option in their proposals.

It opened their own nearshore operation using the SUBaaS approach, avoiding costs and risks. This helped them to pilot the region first while the operation scales as needed.

View this case ->

Mexico Market Entry

Global IT Service Provider 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.

View this case ->

Latin America Rollout and Support

European System Integrator needed local presence just for 2 years in Latin America to upgrade the systems of their global customer.

Opted to use the SUBaaS approach, Implemented a Project Management Office in Mexico, gained local ERP know-how, and built specialized teams for South America. After the project ended successfully, built a local support team for the region, working with their global AMS Center.

View this case ->

Not ready to make a big commitment in the region. Try Everscale´s Pilot Program for Portfolio companies and get a no-risk, custom trial scenario for your company.

Test the region today!