Outsource to Mexico?
Whenever we hear of outsourcing we think of India and China. Manufacturing went to China and services to India. However life is no longer a cakewalk for firms of these countries. Firms in countries like Mexico are mounting a rising challenge to everyone else.
I wasn’t really aware of the details of Mexican outsourcing industry, except for the fact that from a USA point of view – its cheap, its near. I didn’t even know about any outsourcing company from Mexico.
Recently I came across a Mexican firm which outsources manufacturing, and became more and more interested in their industry. I’ll give you a small glimpse of this company as a case study, if you will. Its called NAPS – North American Production Sharing. If you are a US based enterprise, its services may be of interest to you if you are willing to outsource to mexico.
They bill themselves as providers of manufacturing services. Its not like you building a factory in China. Its like you have somebody do everything for you. You do get oversight and control over the operations, including processes, quality, intellectual property, etc. Its very similar to the offshoring industry in IT.
You provide raw materials, factory equipment and know-how, and they take care of setting up facilities, operations, quality, productivity, compliance to local laws and regulations, shipping, and labor. Basically they take care of your headache so you can sleep well at night.
Here’s a neat graphics from their site to illustrate an example
While Europeans still prefer India and China for its outsourcing needs, Mexico is campaigning to position itself as the natural option for US.
With persistent human rights complications in China and rising cost of Indian operations, Mexico is now a clearly attractive option for US enterprises. Expertise and services offered by firms like NAPS are the engines driving this phenomenon.