Nearshoring in Mexico: Enhanced Efficiency and Cost Optimization

Nearshoring has become a strategic approach for companies seeking to optimize costs while maintaining high levels of efficiency and collaboration. By selecting geographically closer outsourcing partners, businesses can ensure better alignment with their time zones, enhancing real-time communication and operational integration.

In a strategic move to optimize costs and improve efficiency, the client, a leader in digital marketing, embraced nearshoring by partnering with Aeries. This approach not only aimed at cost reduction but also facilitated better alignment with the Pacific time zone, enhancing real-time communication and operational integration.

Challenges: Strategic Cost Reduction and Business Continuity

The client wanted to reduce operational costs while ensuring the alignment of potential partners with the Pacific time zone for seamless day-to-day operations. Additionally, there was a critical need to establish a reliable business continuity planning (BCP) site to maintain operational continuity during disruptions.

Aeries’ Solution: Strategic Location and Operational Excellence

After a comprehensive market analysis, Aeries strategically selected Mexico as an ideal nearshore location, complementing its established operations in India. This choice capitalized on Mexico’s significant talent pool, cost-effectiveness, and its proximity to the client’s primary market. Guadalajara, chosen for being a tier-2 city, offers services at comparatively lower costs, further enhancing the strategic advantage.

Establishment of the Mexico Global Capability Center (GCC)

1. Operational Setup: The GCC in Guadalajara is dedicated to global Technology and Service Delivery operations, adhering to the high standards of Aeries’ US operations. The center not only complements but also extends the geographic reach established with the India team.

2. Talent Acquisition Strategy: The recruitment strategy in Mexico includes mandatory office attendance for specific roles along with flexible remote or hybrid options, effectively optimizing talent recruitment while maintaining cost efficiency and high performance.

3. Human Resources Integration: To foster a supportive work environment, HR policies, payroll, and benefits have been aligned with the client company’s standards, establishing robust HR processes for the new team.

4. Infrastructure Development: Aeries has established robust office spaces and IT systems, creating an environment that supports efficient workflows and aligns with global operational standards.

5. Continuous Operational Support: Aeries continues to provide operational management support, focusing on process improvements and enhanced communication strategies to ensure seamless integration and ongoing efficiency.

Additionally, the Mexico site serves as a BCP site, offering redundancy for core operations across the US and India GCC, ensuring continuous service during any disruptions.

Results: Significant Achievements and Operational Improvements

• Cost Savings: Achieved a remarkable 53% reduction in costs.
• Talent Onboarding: Successfully onboarded over 50
• Employee Retention: Demonstrated superior retention, with attrition rates at 7% compared to the local average of 15%.
• Efficient Onboarding: Average time to onboard new hires is 4 weeks.

Conclusion: Setting a New Benchmark in Nearshore Operations

The establishment of the Mexico GCC has set a new benchmark in cost optimization and operational efficiency in nearshoring. As the center evolves, it promises to drive further innovations and sustain the client’s competitiveness in the digital marketing sector. This strategic initiative highlights Aeries’ commitment to delivering substantial operational improvements and achieving strategic business goals.

Capabilities Overview of Aeries’ Mexico GCC