Article at a glance:
- Mexico holds great potential as an offshoring destination, given its low costs, proximity to the United States, fast-growing pool of university graduates, and promising domestic market.
- But a dearth of IT vendors, costly infrastructure, and a talent pool limited suitability for positions in multinational companies are among the factors keeping Mexico from realizing a considerable opportunity created by globalization.
- Mexico must continue to focus on its proximity advantage to other North American markets. The country also needs strong government commitment to address both talent shortages and the regulatory and infrastructure issues that impede its attractiveness.
Note: This article includes translations in Portuguese and Spanish.
This article contains the following exhibit:
- Exhibit 1: Mexico holds sizable market potential.
- Exhibit 2: Mexico scores poorly in such areas as attractiveness of living environment and costs for telecommunications and power.
This article is part of a McKinsey Quarterly special report on offshoring in Latin America. To read the other articles, please select from the following choices:
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