Friday, March 12th, 2010

By Suvradeep Bhattacharjee, NSAM Contributor

The rise of Mexico as an sourcing destination should come as no surprise, but the next few years will determine Rendered Mexican Flagwhether the country has the right vision and the right strategies to cultivate new sourcing centers in under-developed, but potentially fertile BPO pockets.

The good news is Mexico continues to  ride the wave of Hispanic growth in the US. Outsourcing in Mexico is driven by one huge factor: the majority of the Hispanic population in US feels quite comfortable when they hear a Mexican accent. Almost 15% of  the US population is Hispanic. More than 64% of the Hispanics in the US are of Mexican origin. This power of sheer numbers is amplified by a feeling of nostalgia among the Mexican Americans towards their ancestral land.

“We’re making strong strides in IT outsourcing,”  – Jorge Zavala, TechBA Silicon Valley

Sub-Sourcing into Guatemala

Outsourcing in Mexico has reached a point of maturity where Mexico has started to use Guatemala as a nearshore location for its domestic Spanish-only calls. That sentiment is hear from Gustavo de la Peña , of Unifica Teleservices, a subsidiary of Marcatel, which is one of the leading telecom providers in Mexico. “We’ve started using Guatemala for domestic calls as it is almost 50% cheaper than here in Monterrey,” de la Peña said.

Ready for KPO?

Mexico is well poised to handle more complex outsourcing services. The country already has a booming contact center/ BPO industry with global players such as Teleperformance, Atento, TeleTech, Sitel co-habitating with strong local players such as Telvista, Axtel, b-connect, Konexo, Capta, Sertec and Unifica Teleservices.

With the strong emergence of Central America in the BPO space, Mexico has a tremendous opportunity to deliver more complex BPO services using the service bandwidth of emerging central American countries for simpler processes and its own internal resources for complex ones.

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