What Is Nearshore Outsourcing? Definition and Benefits


What is nearshore outsourcing? Can it really benefit my company? How do I know if this is the best solution? Many questions arise when trying to decide what is best for our business. It is not an easy task to manage a company, since it requires documentation and a few advisors to know you are really making the best decision. Fortunately, we are here to help.

Nearshoring & Outsourcing

Nearshoring is a concept that has gained a lot of attention in recent years. It consists of a company setting their operations in a nearby country in order to reduce manufacturing costs. By operating in a foreign but close country, they can significantly save money since labor and services costs are lower than the country of origin.

Outsourcing consists of hiring a third party to provide products or services usually performed or made by a department inside the company. In the manufacturing world, outsourcing is when a company transfers their productions processes to another one.

The nearshore outsourcing strategy is usually applied by U.S. companies. They know that manufacturing in Mexico will represent a low investment, while earning many benefits. Remember that maquiladoras in Mexico do not pay certain taxes or duties thanks to the IMMEX program, which makes it more profitable for foreign investors.

Nearshoring in Tijuana

Tijuana is one of the best cities for nearshore outsourcing. Its closeness to three international airports and four ports guarantee a fast delivery, and its strategic location makes it an unbeatable place to manufacture. In minutes you can travel from San Diego to Tijuana; if you set up a company in this city, the logistics will improve and the results of your production will be better.

The maquiladora program offers many benefits for foreign companies, but the incentives in Baja California and Tijuana can get better because of the programs that seek to benefit the industry. Companies get to decide the type of operating model that is better for their twin plant, and organizations like ours, Tijuana EDC, can provide relevant information and advice to help investors make a decision.

We are happy to help investors get to know all the advantages of nearshore outsourcing in Tijuana, as well as recent data, results, graphics and more. Contact us if you are interested in doing business in Mexico, and we will give you the best professional service.