Labor costs are on the rise in the United States. Companies continue to struggle to attract and retain top talent in an evolving environment. With the implementation of technology that permits employees to work anywhere globally, Mexico has emerged as a top destination for administrative services.
Advantages to Source Administrative Services in Mexico
1. Lower Costs
Mexico represents substantial cost savings on administrative positions like personnel management, customer service, accounting/finance, purchasing, billing, among others. When administrative services are consolidated into shared service centers, a company can see 15-25% overhead cost reduction in addition to the labor cost savings that Mexico represents.
2. USMCA
Jobs that stay in the North American region benefit the North American region. In fact, 40 cents of every dollar of Mexican export into the United States, whether goods or services, benefits the United States. Mexican jobs directly create U.S. jobs through upstream or downstream supply chains, software, and technology, web services, etc.
3. Multinational FDI
International corporations continually invest in Mexico due to its many benefits in talent, creating increased international experience among its 55 million employed professionals. Many professionals have international certifications and compliance standards knowledge as well as diverse systems and software experience.
4. Top Talent
Mexico has sustainable and professional talent, of which the average age is just 29.4 years old. Mexico boasts some of the top universities in Latin America, adding new careers according to market needs, such as data science, automotive design, robotics, and other STEM fields. With practical work experience as an integral part of many degrees, students graduate ready to apply their fresh ideas to global settings.
5. Productivity
A workweek in Mexico consists of 48 hours, and depending on the industry, is distributed over 5 or 6 labor days of the week. Expanded labor hours translate to effective communication and productivity.
6. Bilingual
As part of major university careers, many students take classes in English. Additionally, sharing almost 2,000 miles of border with the United States has shaped the bilingual abilities of native Mexicans by adapting them to bicultural life. Mexico is positioned to compete globally, whether requiring business English or looking to serve Hispanic markets throughout the world.
7. Time Zones
Mexico shares 3 time zones with the United States, which makes doing business across borders stress-free. With the continual implementation of technology permitting employees to work remotely, multicultural teams integrate seamlessly and enrich corporations with multicultural talent.
8. Cultural Similarities
Mexico shares many similarities with the United States, such as the drivers of personal success in society, personal restraints, and their pragmatic outlook to the future. In those areas that make Mexico unique (inequality, collectivism, and uncertainty avoidance), a more hands-on approach to management style has proven to be effective in maintaining productivity.
About Prodensa
Prodensa is a project management and advisory firm with 35 years of experience serving multinational clients on their international footprints.
Our Administrative Services provide solutions for sourcing top talent in Mexico with an expanded search for international or hard-to-find positions trained on corporate processes and software. Shared service centers are growing at an impressive rate in Mexico due to their ability to combine isolated administrative teams of multi-site operations, promoting efficiencies and cost reductions. Business Process Services take over key activities and functions within an organization, giving the responsibility experts that apply industry best practices that translate to improved outcomes.
Contact us to learn how our technology-driven administrative services can enrich your company and provide increased productivity and cost savings.
About the Author
Robin Conklen, Commercial Director.
Originally from the United States, Robin Conklen has been collaborating with Prodensa since 2012, leading different business development strategies and specializing in Mexican talent costs and culture.
Supporting the advisory services of Prodensa, Robin shares insights and best practices for competitive manufacturing operations in Mexico, including site selection for specific talent needs, implications of cultural differences, turnover costs, and retention programs.
Robin is dynamic and leads the investigation and analysis of research-based programs and market trends, transforming big data into best practices for Prodensa clients seeking a productive and profitable workforce in Mexico.