One of the main objectives for industrial companies is expanding their operations and being able to be more cost-effective. Based on the company’s supply chain needs, the company can decide between nearshore vs offshore.

It means transferring your operations across national borders to business operations in another country that is in proximity, with a relatively small-time- zone and cultural differences. This in order to be more cost-effective and save time.

It means transferring your business operations overseas. The main objective is also cost reduction, by looking for qualified employees with low labor costs.

The Main advantages of nearshoring are:

• Geographical proximity and share time zones facilitate communication.
• Fewer travel expenses and reduction of traveling time.
• Lower shipping costs compared to overseas operations.
• Cultural integration is more fluid.

Both nearhsoring and offshoring can help a company to reach their objectives and be successful, the decision of nearshore vs offshore will depend on the company’s needs.

One of the most effective ways to save money is the combination of nearshore or offshore with outsourcing.

Outsourcing allows your company to focus primarily on production, quality control among others while letting the experts take care of the rest. With offshore or nearshore outsourcing you do not have to worry about not knowing the culture, laws, and regulations of the country where you will transfer your operations, as the outsourcing company will take care of payments to employees, utilities, suppliers, taxes, among others.

Nowadays Mexico is one of the most attractive countries for expansion or relocation of operations, due to its several advantages such as:

o Highly skilled and competitive labor costs

o High-quality infrastructure

o Free trade agreements

o Export incentive programs

o Low energy costs

Are you thinking of nearshoring or offshoring in Mexico?

Mexcentrix can help you. We assure you a successful and timely start of operations while providing strategic guidance in order to help your company reach its goals.