Thought Leadership

The Competitive Advantage in the Mexico BPO Sector

By: Victor Saenz, Director of Operations

Competitive Advantage in Mexico BPO Sector

Growing companies looking for ways to scale in a financially feasible way are wise to consider outsourcing their business processes and contact centers. To realize a positive impact on the bottom line, in addition to a host of other competitive advantages, the Mexico BPO sector offers an attractive option for companies interested in outsourcing. 

The Mexico BPO industry is among the largest and most mature in the world, with a total valuation of about $1.32B. In addition to a proven track record, Mexico holds three decisive advantages in BPO and contact center operations: 

Proximity and Affinity 

North America may be significant, but with only three countries sharing the continent, the U.S. shares lengthy borders with its neighbors to the north and south. The Mexican border stretches close to 2,000 miles, equating to proximity and an affinity between the two countries.  

The U.S. and Mexico share the same four time zones, positively impacting productivity from a contact center perspective since business can be conducted in real time. Mexico also celebrates many of the same holidays, so our countries share many of the same days off, which puts our workforce in sync. 

What may come as a surprise is that Mexico is also the number one destination for U.S. expatriates, with approximately 700,000 Americans living in the country as of 2020. This makes for the availability of a sizeable bilingual workforce in the country. 

Sharing thousands of miles of the border also eases travel between the two countries, which, for a company like DATAMARK, aids in information sharing and quality control. 

A Bilingual and Bicultural Workforce

DATAMARK, when it was founded over 30 years ago, had the foresight to locate its corporate headquarters in El Paso, Texas. The city of El Paso has the largest bilingual and bicultural workforce in the Western Hemisphere. It’s also only about 20 minutes from Ciudad Juárez, where DATAMARK’s first Mexican BPO and contact center offices are located. The proximity of El Paso to Ciudad Juárez is primarily advantageous because it allows the company to diversify its solutions to serve its customers better. For example, documents sent to the El Paso office can be quickly moved and processed at the Ciudad Juárez location at a much lower cost and more significant savings for our customers. 

All told the many benefits due to the countries’ proximity and affinity positively impact how customer service is perceived. Customer service is nowhere more critical than with outsourced contact centers, where customers expect to receive the highest quality customer support when interacting with your organization.

Language

It should be no surprise that Spanish is the second most spoken language in the United States after English. According to Forbes, 13 percent of the U.S. population speaks Spanish at home in the United States, with the U.S. ranking second behind Mexico itself in the number of Spanish speakers in the country. For contact centers and medical interpretation services where language and terminology are paramount to health, this significantly impacts the current and future need for bilingual Spanish/English speakers. 

¡Si! Hablo inglés

Another language advantage, likely due to proximity, is that many English speakers find it easier to understand people from Mexico who speak English, unlike other Spanish-speaking countries with powerful accents. This eliminates language barriers that can negatively impact productivity and feedback cycles.

Cost efficiencies

The most evident advantage of working with a BPO and contact center provider in Mexico is the cost savings realized by outsourcing work to the country. The Mexican government welcomes U.S. companies that establish offices in Mexico, offering tax savings for a lower cost of doing business overall. 

The most significant savings, however, is due to a much lower labor cost. By outsourcing BPO and contact centers to Mexico, companies can save as much as 40 percent less than their American counterparts. To many, this considerable reduction in the bottom line is reason alone to outsource work to Mexico. 

The DATAMARK advantage

DATAMARK has long recognized the many competitive advantages afforded by basing a portion of its BPO and call center workforce in Mexico. Where DATAMARK is unique in the industry is its dedication to continued customer satisfaction, which research has shown a direct correlation to employee satisfaction.

DATAMARK is very thoughtful in its hiring and vetting practices for new employees. The company looks for candidates interested in staying and growing with the company over the long term. DATAMARK presents a clear path to internal advancement for all company employees. This incentive to grow and thrive within the company leads to high employee retention rates and greater productivity. 

DATAMARK believes in developing strong customer partnerships based on consistency, transparency, and customer-centric philosophy. This has helped DATAMARK build trust among our many Fortune 500 customers who have remained loyal to DATAMARK for decades. 

Conclusion

DATAMARK has had a footprint in Mexico since 2013 and is here to stay. Currently, the company has about 1,500 employees located in two locations in Ciudad Juárez and a third in Chihuahua, with plans to expand our workforce by another 500 seats. DATAMARK will continue its efforts to invest in Mexico by expanding into other cities throughout the country with a projected year-over-year growth rate of six percent. 

About DATAMARK

Founded in 1989, DATAMARK, Inc. is a leading mid-sized Contact Center and Business Process Outsourcing (BPO) company headquartered in El Paso, Texas. 

Small enough to care yet big enough to serve the world’s leading brands, DATAMARK serves large enterprises and government agencies from its delivery centers in the U.S., Mexico, and India. 

DATAMARK offers a wide range of BPO services, including omnichannel, multilingual contact center services, document lifecycle management, loyalty program management, and finance & accounting outsourcing.

To learn more about our services and solutions, visit www.datamark.net.

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