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Friday, May 29, 2009

MEXICAN OFFSHORING SINKING

By K.C.Bishope

At one time Mexico was high on the list for favorite areas for locating offshore facilities. It's close to the United States and lacks cultural barriers. Travel to and from the country and within its environs was easy.

But things have changed quickly in just a short time and now off shoring to Mexico has fallen out of favor.

There's been a tremendous amount of border violence and drug related crime during the past year. The result is that a lot of businesses in Mexico temporarily shut down which doesn't fare well since IT runs 24/7.

Add to that the swine flu epidemic which hasn't helped either. It has resulted in many workers staying home and schools and businesses shutting down. On top of that, Mexico has now imposed travel restrictions that make getting around to do business more difficult.

Even as we post this article, many vendors are going elsewhere to establish business and there's no assurance of when Mexico will regain its prominent offshore status.