Resources / Glossary & Guides
What We Mean When We Say…
Nearshoring terms, explained the Intugo way. Every term starts with the standard definition, so you know what it means anywhere. The blue box shows how it works when you build your team with us.
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Click any term to open the full explanation. The first one is already open so you can see how it works.
A
AguinaldoEmployment and complianceWhat it is: Mexico's mandatory year-end bonus. Employees receive at least 15 days' salary, paid by December 20.
How it works with IntugoWe pay it to your team on time. It's already built into the fully loaded monthly cost, so there's no surprise bill in December.
B
Bilingual Talent PoolTalent and teamsWhat it is: Professionals fluent in both Spanish and English.
Why does it matter?
A team with strong English joins your meetings naturally and talks directly to your customers. Instructions land the first time.
Where do you find it?
Mexico's major business hubs, including Hermosillo, Guadalajara and Mexico City, have deep pools of English-speaking professionals used to working with US companies.
| Communication | Customer Experience | Culture |
|---|---|---|
| Nothing lost in meetings or training | Natural conversations with US customers | Familiar with US business norms |
How it works with IntugoWe test English skills on every search, so your hires communicate clearly from day one.
BPO (Business Process Outsourcing)Operating modelsWhat it is: Contracting an outside company to run a business process for you, such as customer service or accounting.
What is BPO?
Instead of building a department, you contract a provider to run that process. In a traditional BPO, the provider's staff and managers do the work, often for several clients at once.
What gets outsourced?
Customer service, tech support, accounting, HR and data entry.
Why use it?
Trained staff and systems from day one, and fixed costs become flexible ones.
| Department | Common Functions |
|---|---|
| Customer support | Calls, email, chat |
| IT | Helpdesk, software support |
| Finance | Billing, payroll, reporting |
| HR | Recruiting support, data entry |
How it works with IntugoBPO-level savings without giving up control. The team is yours, and you run it. See Captive BPO.
Business ContinuityWorkspace and securityWhat it is: Planning that keeps a business running through disruptions such as power outages, internet failures or natural events.
How it works with IntugoBackup generators are standard at our offices.
C
Captive BPOOperating modelsWhat it is: A team that works only for one company and is run by that company, while a partner handles the setup and employment behind it.
How is it different from a regular BPO?
In a regular BPO the vendor runs the work. In a captive model, the team is yours: you choose the people, train them and manage them day to day.
Why choose it?
You get the cost and speed of outsourcing while keeping your own processes, culture and quality control.
| Traditional BPO | Captive BPO | |
|---|---|---|
| Who runs the work | The vendor | You |
| Who the team works for | Often several clients | Only you |
| Who picks the people | The vendor | You |
How it works with IntugoThis is our model. You build your own team in Mexico and run it your way. We do the heavy lifting: recruiting, employment, payroll, HR and the workspace.
ComplianceEmployment and complianceWhat it is: Following the laws and standards that apply to a business, such as labor, tax and data protection rules.
How is Mexico different from the US?
No at-will employment. Mexico requires formal contracts, federal healthcare contributions, a December bonus, and severance when someone is let go without justified cause.
How do US companies stay compliant?
By working through a local partner that acts as the employer and handles taxes and benefits correctly.
| Area | Common US Practice | Mexican Law |
|---|---|---|
| Termination | Often at will | Justified cause or severance |
| Healthcare | Company or private plans | Mandatory federal contributions |
| Annual bonus | Optional | Mandatory, paid in December |
How it works with IntugoAs the employer, we handle Mexican labor and tax compliance for your team: contracts, benefits, payroll taxes and terminations.
Cultural AlignmentTalent and teamsWhat it is: How closely a team's communication style, work habits and business expectations match those of the company they work for.
Why does it matter?
Teams that share your expectations need less hand-holding, and small misunderstandings don't pile up.
How it works with IntugoYour team works inside your culture, not ours. You train them on your values and processes from day one.
D
Data SecurityWorkspace and securityWhat it is: The physical and digital controls that protect sensitive information from loss, theft or misuse.
Why does it matter?
Remote teams handle client data, financial records and company systems. A breach costs money, legal exposure and trust.
Which standards apply?
ISO 27001 for information security management, HIPAA for US healthcare records, SOC 2 for how service providers protect customer data, and PCI DSS for payment card data.
| Physical | Network | Operational |
|---|---|---|
| Biometric access, surveillance, clean desks | Firewalls, restricted websites | Background checks, NDAs, training |
How it works with IntugoISO 27001 certified, with infrastructure built to HIPAA and SOC 2 requirements. We already support HIPAA-compliant clients in US healthcare.
Dedicated On-Site OperationsWorkspace and securityWhat it is: A private office used by one company's team only, set up and branded as that company's own space.
When does it make sense?
When a team is large enough, or the work sensitive enough, that a shared floor isn't the right fit, and you want the space to feel like your own office.
How it works with IntugoWe do this. We find, equip and maintain a private office for your team, under your brand and culture, so it works like your own location in Mexico.
Dedicated TeamsTalent and teamsWhat it is: Professionals hired to work for one company only, under that company's processes and culture.
What is a dedicated team?
A team that spends all of its time on your business, unlike outsourcing where staff split time across several clients. They work as an extension of your in-house staff.
Why does it matter long term?
The team builds deep knowledge of your products and processes, so quality and speed improve the longer they stay.
| Shared Workforce | Dedicated Team | |
|---|---|---|
| Focus | Split across clients | Only you |
| Culture | The agency's | Yours |
| Selection | Chosen by the agency | Interviewed and chosen by you |
How it works with IntugoEvery hire works only for you. You choose your people and run their work. Start with a single hire and build to a full team.
E
EOR (Employer of Record)Employment and complianceWhat it is: A company that legally employs workers on another company's behalf, handling contracts, payroll, taxes and labor compliance.
What is an EOR?
The employee works for you day to day. The EOR is the legal employer on paper and handles the contract, payroll and local taxes.
When should you use one?
When you want to hire in another country without opening your own entity there.
| Client | Employee | EOR |
|---|---|---|
| Directs work and sets goals | Works for the client, paid through the EOR | Handles contract, payroll and compliance |
How it works with IntugoIt's one piece of what we do, not the whole thing. We're the legal employer for your team in Mexico, so you don't need an entity. You still choose your people and run their work.
F
FacilitiesWorkspace and securityWhat it is: The physical office space, equipment and services a team needs to work.
Why does a remote team need an office?
It's the hub for training, team building and the physical security international clients expect.
Why outsource it?
Leasing and running an office abroad means local real estate law, utility contracts and daily upkeep. A partner turns that into a managed service.
| Security | IT and Power | Day to Day |
|---|---|---|
| Biometric access, 24/7 surveillance, visitor logs | Business internet, backup generators | Ergonomic workstations, meeting rooms, break areas, cleaned daily |
How it works with IntugoOffices in Hermosillo, Guadalajara, Mexico City and Ciudad Obregón. Biometric access, 24/7 surveillance, visitor logs, backup generators and daily cleaning are standard. We handle the lease, IT and upkeep.
Full Control OperationOperating modelsWhat it is: An arrangement where the client directs the team's daily work and the provider handles the administration behind it.
What does it mean?
The team is in another country, but you manage their tasks, goals and methods. The provider handles payroll, compliance and the office.
Why does control matter?
It protects your culture and quality standards. Everyone follows your processes, with no third party in between.
How is it different from a shared responsibility model?
Both split the work between client and provider. In full control, the client owns everything about how the work gets done; the provider never supervises.
| Area | Client | Intugo |
|---|---|---|
| Work management | Assigns tasks, reviews quality, gives feedback | Stays out of daily work |
| Training and culture | Trains on its software and values | Provides a professional workplace |
| Administration | Approves hours and goals | Runs payroll, taxes and facilities |
How it works with IntugoThis is how every Intugo team runs. You set the priorities, the KPIs and the quality bar. We handle recruiting, employment, payroll and the workspace.
G
Global Capability Center (GCC)Operating modelsWhat it is: An offshore or nearshore center a company owns or controls, set up to handle core functions such as finance, IT, customer support or marketing.
Who builds one?
Traditionally large enterprises, because setting one up on your own means a legal entity, an office, a local HR function and a long runway.
How it works with IntugoYou get the same result, your own team under your control, without building it yourself. Start with one hire and grow from there.
H
HIPAAWorkspace and securityWhat it is: A US federal law that protects patients' health information (PHI) and sets rules for who can access it and how.
How it works with IntugoOur facilities and processes are built to HIPAA requirements, and we already support HIPAA-compliant clients in US healthcare.
Hybrid Operating ModelOperating modelsWhat it is: A work arrangement that mixes office days with days working from home.
How does it work?
Employees spend part of the week in the office and the rest at home. The office is the hub for training, team building and harder problems; home days are for focused work.
| Setting | Best For | Needs |
|---|---|---|
| Office days | Training, brainstorming, team lunches | Meeting rooms, fast network |
| Home days | Focused work, video calls | Secure laptop, VPN, home internet |
How it works with IntugoEvery team starts in the office. Once they're up and running, you can move them to hybrid, such as four days in and one day home, or fully remote. Your call.
I
IMSSEmployment and complianceWhat it is: Mexico's Social Security Institute (Instituto Mexicano del Seguro Social). Employers register employees and pay contributions that fund healthcare, disability and retirement coverage.
How it works with IntugoWe register your team with IMSS and pay the contributions. It's included in the fully loaded cost.
Integrated VendorThe Intugo groupWhat it is: A single long-term partner that provides several services under one relationship, instead of separate suppliers for each.
How is it different from a supplier?
A supplier sells you chairs or licenses. An integrated vendor runs your facility, payroll and compliance, and adapts as you grow.
| Who | Does What |
|---|---|
| Client | Sets direction, provides the work, manages the team |
| Integrated vendor | Provides the foundation, local expertise and administration |
How it works with IntugoWe carry employment, payroll, compliance and the workspace under one agreement. You direct the work, whether your team is one person or a hundred.
ISO 27001Workspace and securityWhat it is: An international standard for managing information security. Companies are audited and certified against it by an accredited body.
How it works with IntugoIntugo is ISO 27001 certified.
L
Legal Entity FrameworkEmployment and complianceWhat it is: The registered company structure in a country that can sign leases, hold employment contracts and meet local compliance.
Do I need my own entity in Mexico?
Not if you work through a partner whose entity employs the team. Setting up your own takes time, local advisors and ongoing filings.
How it works with IntugoYour team is employed through Intugo's Mexican entity, so you don't have to incorporate in Mexico.
LFT (Ley Federal del Trabajo)Employment and complianceWhat it is: Mexico's Federal Labor Law. It governs employment contracts, working hours, pay, mandatory benefits and termination.
How is it different from US employment law?
There is no at-will employment. Contracts are formal, benefits like the Aguinaldo are mandatory, and ending employment without justified cause means severance.
How it works with IntugoWe manage employment under the LFT, including documented warnings and terminations, so the record holds up if a dispute ever reaches the labor board.
N
NearshoreOperating modelsWhat it is: Moving work to a nearby country, usually one in the same or similar time zones.
What is nearshore?
Building a team in a nearby country instead of a distant one. For US and Canadian companies, that usually means Mexico.
Why choose it?
Same work hours and a similar business culture, so meetings happen live and answers come fast.
How does it compare?
Cheaper than hiring at home, and far easier to manage than a team on the other side of the world.
| Model | Location | Timezone Alignment | Cost Savings |
|---|---|---|---|
| Onshore | Same country | Same | Low |
| Nearshore | Nearby country | Same or very close | High |
| Offshore | Distant country | Major difference | High |
How it works with IntugoWe build your team in Mexico, close to home and at a lower cost. Offices in Hermosillo, Guadalajara, Mexico City and Ciudad Obregón.
Nearshore OperationOperating modelsWhat it is: The physical setup of a team in a nearby country: office, IT and daily workflow.
What is it?
The practical side of nearshoring: where the team sits, the tech they use and how their day runs.
How is it set up?
You need an office, secure internet and full local compliance. Most companies use a local partner so they can focus on training and directing the team.
What roles fit best?
Roles that need constant communication, such as customer service, accounting, marketing and software development.
| Phase 1: Plan | Phase 2: Set Up | Phase 3: Launch |
|---|---|---|
| Define goals, roles and infrastructure | Prepare office, network and legal | Hire, train and start work |
How it works with IntugoWe handle the office, the IT and the local rules. You lead the team.
O
OffshoreOperating modelsWhat it is: Moving work to a distant country, often with a large time difference.
What is offshore?
Hiring a team far from home, such as in India or the Philippines. Costs can be low, but the team usually works while you sleep.
What's the trade-off?
Lower cost, but less overlap in working hours, so questions and handoffs often wait a day.
How it works with IntugoWe're nearshore by design. Your team in Mexico works your hours, so you get the savings without the overnight wait.
OnboardingTalent and teamsWhat it is: Bringing new hires into a company's culture, tools and expectations.
Why does it matter?
People who know what's expected make fewer mistakes and stay engaged.
How long does it take?
One to two weeks for straightforward roles, up to a month for specialized ones. Your managers lead the training, so the team learns your way of working.
| Week | Focus | Activities |
|---|---|---|
| 1 | Orientation | Culture and tool setup |
| 2 | Process training | Tasks, software, rules |
| 3 | Shadowing | Watching experienced staff |
| 4 | Integration | Independent work with feedback |
How it works with IntugoPaperwork, payroll and workspace are ready before day one, so your training starts right away.
Operational ScalabilityTalent and teamsWhat it is: The ability to grow a team and its infrastructure as demand grows, without losing efficiency.
How does nearshoring help you scale?
Your partner already has the talent network, space and legal framework, so adding people doesn't mean new leases, new entities or new equipment purchases.
| Assess | Recruit | Deploy |
|---|---|---|
| Identify the need for more people or space | Source and interview through the partner's network | Desk, equipment and payroll ready for new hires |
How it works with IntugoStart with a single hire and build to a full team. One client grew from 1 employee to 57.
P
PayrollEmployment and complianceWhat it is: Paying employees in local currency, with the right tax withholding and mandatory benefits.
How does it work?
US companies usually can't pay Mexican employees directly without a local entity, so an Employer of Record runs payroll in pesos under Mexican law.
What makes Mexican payroll complex?
Mandatory items the US doesn't have: IMSS (federal healthcare), INFONAVIT (housing fund), profit sharing (PTU) and the Aguinaldo year-end bonus.
| Component | In Mexico |
|---|---|
| Base salary | Paid in pesos by direct deposit |
| IMSS and INFONAVIT | Mandatory employer contributions |
| Aguinaldo | Year-end bonus, at least 15 days' salary |
| ISR | Federal income tax withheld and paid |
How it works with IntugoWe run payroll end to end: salaries, taxes and mandatory benefits, paid accurately and on time.
PCI DSSWorkspace and securityWhat it is: The Payment Card Industry Data Security Standard: security requirements for any organization that stores, processes or transmits card data.
How it works with IntugoWe've supported fintech clients. Ask us how a team handling card data would be set up.
Per-Station Coworking ModelWorkspace and securityWhat it is: Paying for office space by the desk, with workstations, internet and upkeep included, instead of leasing a whole office.
Why per station?
You pay only for the seats you use, so the space grows or shrinks with the team.
How it works with IntugoThis is how our workspace works: a monthly workstation fee per seat. If an employee works remotely, the fee drops off.
PTU (Profit Sharing)Employment and complianceWhat it is: Mexico's mandatory profit sharing. Employers distribute 10% of their taxable profit among employees each year.
How it works with IntugoAs the legal employer, Intugo administers PTU for your team.
R
Remote Operating ModelOperating modelsWhat it is: A work arrangement where employees work from home full time, connected through digital tools.
Why go remote?
A wider talent pool and lower costs, with no office to rent or maintain.
How do you manage it?
Clear workflows, regular video check-ins, and a local partner handling payroll and compliance.
| Infrastructure | Leadership | Administration |
|---|---|---|
| Secure laptops, chat tools, clear workflows | Regular check-ins, clear deadlines | Payroll and benefits through a local partner |
How it works with IntugoTeams start in the office, then can go fully remote once you're ready. We keep handling payroll and compliance, and the workstation fee drops off.
RPO (Recruitment Process Outsourcing)Talent and teamsWhat it is: Hiring an outside firm to run all or part of a company's recruiting: sourcing, screening and presenting candidates.
How is it different from a staffing agency?
An agency fills one-off openings. An RPO acts as your recruiting team on an ongoing basis.
How it works with IntugoRecruiting is built in. We source and screen candidates in Mexico; you interview them and make the final pick.
S
Site SelectionWorkspace and securityWhat it is: Choosing where to place a team based on local talent, infrastructure, cost and other factors.
How it works with IntugoWe'll help you choose between our offices based on where the talent for your roles is strongest.
SOC 2Workspace and securityWhat it is: An audit framework from the AICPA. An independent auditor reports on a service provider's controls against five trust services criteria: security, availability, processing integrity, confidentiality and privacy.
How it works with IntugoOur infrastructure is built to SOC 2 requirements.
Statutory Social Benefits AdministrationEmployment and complianceWhat it is: Registering employees with the Mexican authorities and paying the benefit contributions the law requires.
What does it cover?
Registration and contributions for IMSS (social security and healthcare) and INFONAVIT (housing), plus legally required benefits like the Aguinaldo and vacation premium.
How it works with IntugoWe register your team and handle every mandatory contribution. It's all built into the one fully loaded monthly cost we quote per employee.
T
TetakawiThe Intugo groupWhat it is: A long-established shelter services provider for foreign manufacturers in Mexico, and Intugo's sister company.
What is a shelter?
A model that lets foreign manufacturers operate in Mexico without their own legal entity. The shelter handles HR, customs, facilities and compliance; the manufacturer brings its equipment and know-how.
How is it related to Intugo?
Same corporate heritage and infrastructure. Tetakawi serves manufacturing. Intugo brings that foundation to office teams, such as back office, contact center, accounting and IT.
| Shelter Service | What's Covered |
|---|---|
| Human resources | Recruiting, payroll, benefits |
| Customs and logistics | Importing materials, exporting goods |
| Facilities | Industrial parks and offices |
| Legal compliance | Mexican environmental and labor rules |
How it works with IntugoIntugo is built on the same foundation, applied to office teams instead of factories.
TimezonesWorkspace and securityWhat it is: The regional standard times that decide when teams in different places are working.
Why do they matter?
They decide when your teams can actually work together. A big gap means waiting a day for answers.
What works best for US companies?
Mexico. Guadalajara and Mexico City are on Central time; Hermosillo and Ciudad Obregón are on Mountain time. Mexico skips daylight saving, so the gap shifts an hour in summer, but the workday still overlaps with most of the US.
| Location | Timezone | Overlap with US Hours |
|---|---|---|
| Mexico | Central and Mountain, no daylight saving | Full or near-full; 0 to 3 hours difference |
| Eastern Europe | EET | 2 to 4 hours |
| India, Philippines | IST, PHT | Minimal to none |
How it works with IntugoShifts are set around your business hours, so your team is online when you are.
TurnoverTalent and teamsWhat it is: The rate at which employees leave an organization and have to be replaced.
Why does it matter?
Every departure takes knowledge with it, and you pay to recruit and retrain while the team covers the gap.
How do you reduce it?
Competitive pay, a good workplace, and making the remote team part of your company culture.
| Cost of High Turnover | What Keeps People |
|---|---|
| Higher recruiting costs | Competitive pay and benefits |
| Lost knowledge | A respectful culture |
| Delays and low morale | Inclusion in company meetings and events |
| Constant retraining | Room to grow |
How it works with IntugoWe benchmark pay so your offers compete, and each team has an Intugo account manager looking after the employee side.
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