How would using Mexico for outsourcing benefit U.S. businesses?

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litteacher8 | High School Teacher | (Level 3) Distinguished Educator

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The most significant benefit of outsourcing in Mexico is that Mexico shares a border with the United States.  Canada has a similar standard of living to the US, but some things are outsourced there too (such as film production).  Mexico has a developing economy, so things are cheaper.  Also, it takes less time to ship something from Mexico to the US, especially since sometimes it is just a few miles over the border.  Even the time zones are the same, which is great for communication (even if it prevents being able to work around the clock).

This had a great advantage in reduced cost and reduced risk compared to the projects given to the companies in distant foreign countries (offshore outsourcing). The developed countries prefer to provide their outsourcing projects to the organizations in neighboring countries.   (EzineArticles.com/3470150)

Outsourcing is sending part of a company’s operation to another country.  In America, you are going to have a large number of Mexican immigrants anyway.  Therefore your company probably already has some experience with Mexican culture and language, making outsourcing a little easier.

Clearly, companies have gotten the message.  About 95% of Mexico’s outsourcing clients come from the US. (sourcingline.com)

Mexico also has the added advantage of NAFTA membership allowing free flow of goods and services between the U.S., Canada, and Mexico. (sourcingline.com)

So there are very few disadvantages to outsourcing in Mexico, if you have chosen outsourcing as your method.

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