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Thought Leadership

Benefits of Outsourcing to Mexico

By Javier Navarro-Machuca, CEO at IO Connect Services
March 24, 2021

Nearshore Outsourcing is a derivate of the business term offshoring. In contrast to offshoring, where the relocation of a business process moves from one country to a distant one for lower-cost motivation, the relocation in nearshoring is to a nearby country. In the USA, nearshoring also applies to any country that shares at least one timezone.

Younger generations in Latin America are very fluent in English, mostly professionals in the Tech (Software) industry. Teams that interact with nearshore companies are generally positively surprised about the remote contractors' high communication skills.

Why Nearshore to Mexico

Culture: Cultural alignment with the business is readily achieved because there are similarities between cultures due to their proximity.

Communication: English language skills and time collaboration are the bases of Nearshore and Tech services. Proximity also facilitates in-person interaction when required and available.

Travel distances: The geographical proximity of Mexico to the USA and Canada makes it possible to travel to the clients' location within the same day if needed. You can fly from Guadalajara to Dallas in 2 hours.

Same workdays and time zones: Mexico's labor culture is virtually the same as the USA and Canada, having the same workdays, and Mexico shares three out of the four U.S. timezones.

Intellectual property laws: Mexican laws protect I.P. Mexico is part of the USMCA (United States-Mexico-Canada Agreement). The Intellectual Property Rights chapter in this agreement establishes a legal framework of minimum standards in North America. It aims to support tech innovation, promoting a healthy balance of rights and obligations.

High technical talent: Mexico has the most extensive and highest-ranked university in Latin America: the Universidad Nacional Autonoma de Mexico (UNAM), the first university founded in North America. Mexico has 1,250 institutions of higher education and a population of 120 million people.

Cost-effective: Similarly to offshoring, lower costs of living and lower wages in Mexico, as a developing country, make it possible for companies to accomplish technical goals at a lower price than their U.S. counterparts. On average, Nearshore rates may not be lower outsourcing cost options than offshore rates, but companies benefit from a higher ROI.

The IO Connect Services Difference

IO Connect Services is an American-based company with headquarters in New Jersey. We have nearshore delivery offices in Guadalajara, Mexico, and Madrid, Spain. Companies like Salesforce, Manhattan Associates, Brightfield Technologies, Accenture, and Blue Label MX have trusted IO Connect Services to execute projects and extend their teams with our consultants. Our AWS, MuleSoft, and DevOps experts have helped many customers in the USA, Mexico, Canada, and Europe.

IO Connect Services was founded to overcome the outsourcing challenges and provide cost-effective outsourcing solutions to companies. Our consultants go through a very selective hiring process, and we invest heavily in their training and continuous education.

Our guarantees with our clients are:

Academic credentials: all of our staff have academic degrees that are U.S. equivalent, and they can be validated by educational organizations like World Education Services (

English: all our team members communicate in English at a professional level and can present a qualifying TOEFL score if requested.

Technology Excellence: we value and promote the continuous academic preparation of our engineers.

Certifications: all our employees get certified in primary and secondary service practice technologies. We cover all the certification expenses and promote a culture of getting high-level certifications.

Learn more about the advantages of nearshore outsourcing here.

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