Outsource to Compete in New Economic, Geopolitical Reality

In Mexico, there are, unfortunately, many conflicting opinions about the practice of outsourcing processes and services. These opinions are often rooted in customs, misinformation, lack of understanding, or inadequate guidance. However, nothing could be further from the truth, as this model offers numerous benefits. 

For this reason, I would like to use this platform to challenge such misconceptions. Incorporating outsourcing into an organization’s strategy, whether for processes, services, or the creation of goods, is an excellent alternative to address common challenges. These include a lack of competitiveness, inefficiencies, errors, mistrust, security issues, high employee turnover, skill gaps, and seasonal labor demands. Furthermore, outsourcing contributes to business flexibility.

Consider any organization, regardless of its size or industry, whether in energy, tourism, infrastructure, electromobility, automotive, chemical, financial, construction, pharmaceuticals, medical devices, commerce, education, electronics, logistics, agribusiness, information technology, textiles, mining, or others. Within the walls of such companies, there are critical and noncritical processes and services where the requisite expertise and capabilities may not always be adequate. This shortfall can prevent companies from focusing on their core business objectives. Accessing specialized resources for these critical and noncritical processes is essential for ensuring smooth operations and achieving the best possible outcomes for customers, employees, shareholders, suppliers, and the surrounding community.

It is a reality that shareholders, without exception, seek the highest possible return on investment. They recognize that certain processes within the organization require specialized attention, which may not be available internally. As a result, companies often face stagnation because they invest excessive time and resources in tasks unrelated to their core business objectives. This misalignment leads to inefficiencies and undesired outcomes.

This is where outsourcing presents an opportunity. Companies can outsource various processes, services, or goods creation, including complete functions in accounting, administration, payroll, customer support, manufacturing, inspection and quality control, IT management, marketing, research, sales, human resources, supply chain management, legal activities, and others.

Now more than ever, companies need to reduce costs, improve the quality of their products or services, mitigate risks due to a lack of qualified personnel, and enhance productivity. Outsourcing, as part of a business strategy, enables companies to address these critical elements and more.

Outsourcing is truly a global industry. It was first recognized as a business strategy in 1989 and became an integral part of business economies during the 1990s. The market is largely divided into two sub-industries: IT Outsourcing (ITO), which includes services such as cloud computing, web hosting, cybersecurity, and data backup; and Business Process Outsourcing (BPO), which covers human resources, operational and administrative functions like payroll, accounting, marketing, sales, customer service, technical support, engineering and maintenance, logistics, quality control, and manufacturing.

Outsourcing must increasingly become a strategic tool for organizations. Leading companies understand that outsourcing specific processes allows them to gain a competitive edge by accessing expertise or innovative technologies unavailable internally, delivering products or services more quickly, or reallocating resources to their most critical business areas. Outsourcing offers cost efficiency and greater workload flexibility.

Outsourcing processes, services, and goods creation is a globally practiced, regulated, and accepted business approach in Mexico. It involves engaging external firms to perform tasks that would otherwise be handled internally by the hiring company's employees. Without a doubt, this practice must become more widespread among Mexican companies to sustain growth, compete effectively in today’s globalized market, and adapt to the ongoing redesign of global supply chains. By doing so, businesses in Mexico can achieve better outcomes and take full advantage of the opportunities presented by the nearshoring of global supply chains to the North American region.