Over the years, digital transformation and globalization have significantly impacted business operations, further intensified by the rise of remote work. Consequently, companies have increasingly started to use the “nearshore operation” strategy in foreign countries, with Mexico being the preferred choice for US companies. Despite cultural and linguistic differences, Mexico aligns well with US business practices and culture. Establishing nearshoring operations in Mexico allows companies to benefit from favorable wage structures and economic conditions, boosting their bottom lines.
Building effective teams in the US, where employees work physically in the same space, is challenging due to a limited labor market and high turnover rates. Offshore locations providing back office services from distant points require more effort to ensure mutual understanding and workflow continuity. In contrast, nearshoring in Mexico offers a more favorable environment. Teams can be structured remotely while remaining culturally and geographically accessible. Mexican nearshore facilities operate in similar time zones to US businesses and have a deep cultural understanding of their counterparts, facilitating smoother and more efficient operations.
So far and so close: Maximizing synergy and efficiency in nearshore operations:
Thus, a team in a nearshore operation works synergistically. In this circumstance, feedback flows faster, control over back office activities is increased, and the results, as a consequence of all of the above, tend to be better. On the other hand, if a face-to-face meeting is needed to reinforce a strategy or correct a deviation, travel time to a nearshore operation in Mexico is reasonable and transit time is shortened.
However, when choosing a nearshoring model, it is necessary to know that there are some best practices to keep in mind for this type of partnership to succeed.
The difference between a nearshore operation partner and a service provider
1.- The first issue to consider is that it is not about choosing a provider.
The issue is finding a true nearshore partner that is aligned with the purpose of your company and has the following:
- A proactive approach
- An ability to detect points of pain and opportunity.
- The ability to demonstrate experience in projects similar characteristics to your needs.
- A size commensurate with your company’s requirements.
2.- From the beginning of the project, the scope and expectations must be perfectly established
This is another element that differentiates a provider from a partner:
- A nearshore partner will do what they are instructed to do (or, at least, what they can interpret).
- A true partner will actively participate in the construction of solutions that fit your company’s needs.
3.- Communication is a crucial point:
- It is important that all parties know the objectives and the impact of the project on the organization.
- Meetings must be regular and with a clear agenda to get the most out of them.
- Those responsible for the project and workflow are available when necessary.
4.- Transparency is essential
Collaboration is essential. A nearshoring partnership is a collaborative effort. To establish a nearshore operation in Mexico, both parties must have the ability to work with one another in a coordinated fashion.
Agility as a base for a nearshoring operation
Another essential characteristic in a partner that collaborates with your company under the nearshoring model is the ability to:
- Adapt to new business needs.
- Manage risk.
- Deliver services quickly.
- Perform tasks with high levels of quality and productivity.
- Form an effective and responsive leadership team.
Managing a multidisciplinary remote team can be challenging, so the nearshore partner must have experience handling diverse situations and establishing effective decision-making procedures. Once decisions are made, the partner should lead their execution, ensuring timely and quality-oriented service delivery without friction. When the right partner is chosen, Mexico’s nearshoring model is cost-effective, delivers superior results, and attracts top talent. This model functions smoothly without cultural misunderstandings or the need to operate outside the home office’s working hours, building a remote team that brings expected results closer to home.
