Nearshoring

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Nearshoring in Mexico

Everything you need to know about Employee Contracts and HR Compliance in Mexico

Nearshoring (Services)

Nearshoring is the process of shifting production or delivery of business support activities, or other elements of an organization’s value chain, to third-countries in close geographic proximity to the country where the organization maintains its primary operations or consumer base. Benefits and goals of nearshoring usually include:

Geographic proximity

Cultural and linguistic similarities

Time-zone similarity

Reduction in hidden costs from shipping, transportation and freight

Reduced labor expense

Specialization and competitive advantage

MexInc assists companies to establish nearshoring operations in Mexico easily, quickly and efficiently, through a combination of solutions. Most companies looking to nearshore into Mexico seek to integrate the country into their value-added chains through labor integration in terms of production or delivery of services.

Deciding Which Process and Activities to Shift to Mexico

MexInc helps your company determine which activities and operations are a good fit to be integrated into Mexico based on talent availability, typical education levels, salaries and employment costs, and practical considerations.

Identifying Level of Autonomy for Mexican Operations

MexInc analyzes your company’s operations and provides an assessment as to how much autonomy should be allotted to local operations and can even assist with more advanced activities such as country manager recruitment, back-office processes, organizational assessments.

Mexican operations can be established in a primarily support function or as a whole new center of administration.

For example, companies like Hewlett-Packard have offices in Mexico that fulfill administrative and decision making functions for their entire global supply chain, exercising a significant level of autonomy. Conversely, other multinationals like HCL, rely on Mexico as a talentpool center, to provide support activities for clients and projects located in the United States or around the world. MexInc guides you in making this determination.

Deciding on an Employment Model

Most companies automatically assume that relocating to Mexico signifies lower labor costs. However, this is not always the case. Deciding on whether to use a direct-hire model, a PEO model, an independent contractor model, or a hybrid contractor model is of principal importance with varying implications and ramifications on labor costs and liability exposure.

MexInc can provide financial overviews and calculations for each model – determining what works and what won’t work – for your company to reach its overall goals and growth benchmarks. We utilize real-life data insights and personalized operations assessments.

Deciding on Salary and Employment Model

MexInc helps companies to determine what to pay local employees by providing salary and benefits studies. Not sure how much to pay, for example, a local fullstack developer with specific years of experience and using a particular development stack? MexInc can provide a salary and benefits compensation plan balancing your company’s growth needs and the realities of local recruitment.

Services Nearshoring in 6 Easy Steps

MexInc provides nearshoring study and assessment with detailed guidance

MexInc performs local incorporation of legal entity

MexInc performs corporate registrations for engaging in employment activities, such as social security registration, subcontracting registration and registration before tax authorities.

MexInc provides locates options for local office space and physical installations

MexInc provides recruitment services for local employees and staff

MexInc handles all on-boarding, payroll and Human Resources administration matters.

Ready to nearshore with MexInc?

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Benefits of Nearshoring with MexInc?

MexInc provides integrated nearshoring solutions: human resources, tax and legal services from a single provider

MexInc has integrated cloud-based solutions for human resources making running payroll a breeze

MexInc provides detailed guidance and investigations to assist you with the decision making process and provide the highest level of support for ensuring project success

Assistance with providing local office and establishment of physical operations

Over a decade of nearshoring experience

Bi-lingual staff

In-house recruitment services

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