Mexico’s classical advantages as an IT outsourcing (ITO) and business process outsourcing (BPO) destination for US companies are clear: the country’s time zone alignment continues to set it apart from its competitors, it’s a member of NAFTA, and there is an affinity of business culture.

But where is Mexico falling behind in its advantages, and how can the country begin to improve its value proposition in order to bring in more investment?

Nearshore Americas recently published a whitepaper entitled ‘Mexico: Nearshore Leadership Amid Shifting Realities’, which highlights where US companies rank the benefits of the country when deciding whether or not to take the plunge.

Mexico qualities

The participant response to the question: What Are Mexico’s Most Attractive Qualities as an Outsourcing Destination?

Of those surveyed, 92% of respondents answered that Mexico’s proximity to the US was the most attractive quality, adding real weight to the positive perceptions of nearshoring. Cost is the second most important factor, followed closely by availability of talent, but turnaround time, ease of regulations and innovations each fall dead last in Mexico’s advantages, according to the report.

“As Mexico moves forward to 2020, the challenge for the BPO/ITO sector will be to demonstrate higher total value through greater degrees of innovation that will aid overall economic competitiveness,” states the report.

Mexico is in a prime position to improve its attractiveness with the development of mobile applications. These apps rely heavily on user experience and user interface design, which requires programmers to work seamlessly with stakeholders in order to ensure the best possible experience for the end user. Major time zone differences can frequently disrupt workflow, so the offshore development of mobile apps is riskier and exposed to poor results. Mexico’s position as a source of mobile app development is enhanced because of its time zone alignment and proximity to the United States.

The country is also well-positioned to prevent breakdowns in agile development, because, again, product quality suffers if there is poor client participation, something which the Mexico’s proximity can help alleviate.

Ultimately, if Mexican IT companies can innovate the way in which they leverage the many benefits of its neighbor status with the biggest market in the world, while also offering increased development turnaround time, Mexico is sure to see a healthy increase in outsourcing clientele from the US.