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The latest industry insights & news from CCSI, Specialists in Establishing Contact Centers in Mexico for Debt Collection, Customer Service, Sales, BPO and more.

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Mexico Has The Lowest-Cost Advantage For United States Businesses

Mexico Has The Lowest-Cost Advantage For United States Businesses

Cost might not be the only factor in play when choosing a nearshore outsourcing option to do business in another country. But, we must accept that it always matters for business decisions like this.

From 1996 to its final edition in 2016, KPMG conducted an analysis that provides insights of doing business in countries around the world, especially in North America, Europe and Asia-Pacific. It studied the cost of 4 sectors in 10 countries, examining factors such as labor cost, transportation cost, utility cost, cost of capital and taxes.

On its last study, Mexico is the number 1 lowest-cost country in this study. This research shows that Mexico’s business cost advantage over the US stands at 22.5 percent, higher than at any point in this decade.

This analysis studies 4 corporate sectors, including Digital Services, R&D Services, Corporate Services, Manufacturing. Mexico ranks first among the 10 countries in all sectors. But, it sees its greatest cost advantage relative to the US in the corporate services sector, with a cost index of 47.2.  Costs in Mexico are 52.8 percent lower than in the United States. Mexico sees higher cost savings for lesser-skilled clerical and administrative staff relative to highly skilled professional and technical staff, driving its greater cost advantage in the corporate services sector.

Source: KPMG

Foreign investment in Mexico tends to focus on the manufacturing sector, but Mexico also presents a strong value proposition for back office operations.

- Oscar Silva, Global Location and Expansion Services, KPMG in Mexico

Support services include corporate shared services centers providing centralized accounting, customer call center and internal IT support functions. Much like the administrative services provided by Call Center services international, where we will manage your nearshore call center within our existing facility and corporate structure in Mexico. Learn more about CCSI's existing corporate structureprofessional personnel, facilities and IT resources to administrate your Nearshore Call Center.