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The Complete Guide to Leveraging Mexico's Nearshoring Advantage for Data Teams

In the rapidly evolving global business landscape, nearshoring has emerged as a strategic approach for companies seeking to optimize their operations, tap into skilled talent pools, and enhance their competitive edge. And when it comes to nearshoring, one country stands out as a powerhouse in Latin America: Mexico.

With its impressive combination of a skilled workforce, geographical and cultural proximity to the United States, and a stable economic and political environment, Mexico has cemented its position as a premier nearshoring destination. The statistics speak for themselves: In the first quarter of 2023 alone, Mexico has attracted over 50 nearshoring-related investments, amounting to a staggering 13 billion dollars. To put that into perspective, this accounts for a remarkable 70% of the foreign direct investment captured by the country in the entire year of 2022.

This blog post delves into the advantages that nearshoring data teams in Mexico offers for American companies, shedding light on the reasons behind this substantial surge in investments. From cost savings and access to a skilled talent pool to time zone compatibility and efficient collaboration, Mexico has positioned itself as a strategic partner for American businesses seeking to optimize their data operations.

So, join us as we explore the remarkable rise of Mexico as a nearshoring powerhouse, and uncover how American companies can leverage this trend to unlock new opportunities, drive innovation, and propel their success in the ever-evolving digital landscape.


Comparison with offshoring and onshoring

Nearshoring is often compared to offshoring and onshoring. Offshoring is the practice of outsourcing work to a company or team in a country that is far away. Onshoring is the practice of bringing work back in-house.


Nearshoring has several advantages over offshoring. First, nearshoring companies are typically located in countries with similar time zones, which makes it easier to collaborate and communicate. Second, nearshoring companies often have a better understanding of the local market, which can be beneficial for businesses that are targeting customers in that market. Third, nearshoring companies can often provide the same level of quality as onshore companies, but at a lower cost.


Mexico as a nearshoring destination


Mexico has emerged as a popular nearshoring destination for American companies, especially in the realm of data teams. Here are a few reasons why Mexico stands out:

  • Geographical proximity to the United States: Mexico shares a border with the United States, providing convenient access for travel and enabling real-time collaboration between teams. Proximity facilitates face-to-face meetings, site visits, and efficient project coordination.
  • Similar time zones for real-time collaboration: Mexico operates in the Central Time Zone (CT), Mountain Time Zone (MT), and Pacific Time Zone (PT), depending on the region. These time zones overlap with several parts of the United States, making it easier to schedule meetings, coordinate work, and ensure prompt responses.
  • Cultural affinity and ease of communication: Mexico shares strong cultural affinity with the United States due to historical, economic, and social ties. This cultural proximity fosters effective communication, reduces language barriers, and facilitates understanding of business objectives and expectations.
  • Well-developed IT infrastructure and technology ecosystem: Mexico has made significant strides in developing its IT infrastructure, creating a conducive environment for technology-based operations. The country offers reliable internet connectivity, advanced telecommunications networks, and access to cutting-edge technologies, enabling seamless collaboration and data-driven initiatives
  • Availability of skilled and cost-effective talent pool: Mexico boasts a substantial pool of highly skilled professionals, including data scientists, data analysts, machine learning engineers, and software developers. The country's emphasis on education, especially in STEM fields, has contributed to a strong talent pipeline. Moreover, labor costs in Mexico are often more competitive compared to the United States, enabling cost savings without compromising quality.

Advantages of Nearshoring Data Teams to Mexico

There are a number of advantages that American companies can enjoy by nearshoring their data teams to Mexico. These advantages include:

  • Cost savings: As mentioned above, the cost of labor in Mexico is significantly lower than in the United States. This can save American companies a significant amount of money on their data team costs. For example, a data scientist in the United States can earn an average of $120,000 per year, while a data scientist in Mexico can earn an average of $50,000 per year. This means that American companies can save up to $70,000 per year by nearshoring their data team to Mexico.
  • Access to high-quality talent: Mexico has a large pool of highly skilled data professionals. These professionals are well-educated and have experience working with a variety of data technologies. For example, Mexico has over 100 universities that offer data science programs. This means that American companies can have access to a large pool of highly skilled data professionals when they nearshore their data team to Mexico.
  • Reduced risk: Nearshoring data teams to Mexico can help American companies reduce their risk. This is because Mexico is a stable country with a strong economy. Mexico has a GDP of over $1.2 trillion and a GDP growth rate of over 2%. This means that American companies can be confident that their nearshoring project will be successful and stable in Mexico.
  • Improved customer service: Mexican data professionals are typically available 24/7 to support American customers. For example, American companies can have their data team in Mexico work overnight to process data so that it is ready for American customers by the time they wake up.
  • Regulatory and legal considerations: Mexico has similar data protection regulations to the United States. This ensures that American companies' data is protected when it is processed in Mexico. For example:

The right to privacy: Individuals have the right to control their personal data.

The right to access: Individuals have the right to access their personal data that is held by a company or organization.

The right to rectification: Individuals have the right to have their personal data corrected if it is inaccurate or incomplete.

The right to erasure: Individuals have the right to have their personal data erased if it is no longer necessary for the purpose for which it was collected.

The right to object: Individuals have the right to object to the processing of their personal data.

The right to data portability: Individuals have the right to receive their personal data in a format that is easy to use and share.


In addition to these common regulations, Mexico also has a number of specific data protection regulations that are not found in the United States. These include:

  • The Federal Law on Protection of Personal Data Held by Private Parties: This law regulates the collection, use, and disclosure of personal data by private companies.
  • The General Law on Transparency and Access to Public Information: This law regulates the disclosure of public information by government agencies.

How to Implement Nearshoring Data Teams in Mexico

  • Evaluating business needs and project requirements. Before implementing nearshoring for data teams in Mexico, it is crucial to evaluate your business needs and project requirements. Consider the specific skills and expertise required for your data projects, the scope and timeline of the work, and any compliance or regulatory considerations. By assessing these factors, you can identify the specific roles and responsibilities you need from a nearshore team in Mexico.
  • Finding the right nearshore partner or service provider. Finding the right nearshore partner or service provider is essential for a successful implementation of nearshoring data teams in Mexico. Look for service providers with a strong track record in data-related services, experience in nearshoring, and a solid reputation. Consider their expertise in the specific technologies and tools your projects require. Conduct thorough research, read client testimonials, and seek recommendations to ensure you choose a reliable and competent partner.
  • Establishing effective communication channels and workflows. Effective communication is crucial when working with a nearshore team in Mexico. Establish clear and efficient communication channels to facilitate regular updates, feedback, and collaboration. Leverage technologies such as video conferencing, project management tools, and instant messaging platforms to bridge the distance. Define communication protocols, meeting schedules, and reporting structures to ensure smooth information exchange and alignment between your local and nearshore teams.
  • Developing a strong working relationship and team integration.To maximize the benefits of nearshoring data teams in Mexico, it is essential to develop a strong working relationship and integrate the nearshore team seamlessly into your operations. Treat the nearshore team as an extension of your in-house team, fostering a sense of collaboration, trust, and shared goals. Promote open and transparent communication, encourage knowledge sharing, and facilitate opportunities for team members to interact and build relationships. Establish regular virtual meetings, organize occasional on-site visits, and create opportunities for team members to work together on joint projects. By nurturing a cohesive and integrated team environment, you can unlock the full potential of nearshoring in Mexico.


In the fast-paced world of business, nearshoring has become a strategic choice for companies looking to optimize their operations and leverage skilled talent pools. Mexico has emerged as a powerhouse in nearshoring, offering a unique advantage for American companies seeking to enhance their data teams. With its geographical proximity, cultural affinity, and well-developed IT infrastructure, Mexico provides an ideal nearshoring destination.

At Arkon Data, we specialize in providing nearshoring data teams for American companies. Our experienced professionals, cost-effective solutions, and seamless collaboration ensure that your data operations are optimized and your goals are achieved. With Mexico's skilled talent pool and advantageous time zones, we offer a compelling opportunity to drive innovation and stay competitive.

Don't miss out on the advantages of nearshoring in Mexico. Contact us today to explore how our nearshoring data teams can unlock new opportunities, streamline your operations, and propel your success in the digital landscape.


Together, let's leverage Mexico's nearshoring advantage and take your business to new heights.