Reshoring and Cloud: Mexico is Key in Job Relocation
Cloud infrastructure, particularly when combined with ‘reshoring’ and ‘nearshoring’, has positioned itself as the ideal solution for companies seeking to optimize resources, reduce operating costs and quickly adapt to changes in demand.
In this article, we will explore how this movement benefits Mexico, the implications of cloud services, and why Mexico is a key piece in this ecosystem.
Reshoring and the impact of the cloud in Mexico
In recent years, reshoring and nearshoring (the relocation of production processes close to the U.S. market) have transformed the global strategies of companies, especially in the technological and manufacturing sectors.
In fact, over 90% of manufacturing companies in North America have relocated at least part of their production processes or supply chain in recent years.
These phenomena, combined with the migration of workloads to the cloud (cloud computing), are driving a major change: the shift of these workloads from China to the United States. Meanwhile, Mexico is positioned as a strategic destination for these operations, thanks to its geographical location and competitive costs.
What is reshoring and how does it relate to the cloud?
Reshoring refers to the tendency of companies to move operations and manufacturing processes to their home countries or nearby regions. This occurs due to factors such as:
- Rising costs in Asia.
- Supply chain disruptions (for example, the COVID-19 pandemic accelerated this problem).
- Tax incentive policies in the United States and Mexico.
This is where cloud technology plays a role, as it allows businesses to move and manage data, applications, and services across global servers.
When these workloads migrate from Asia to the Americas, cloud infrastructure becomes a critical solution to ensure:
- Faster processes.
- Reduced operating costs.
- Optimized connectivity.
Mexico: Strategic Destination for Relocation
One of Mexico’s primary advantages as a destination for relocating workloads is its proximity to the United States. This proximity not only allows for a significant reduction in transport times, but also reduces logistics costs.
For example, a shipment that may take weeks from Asia can be completed in days from Mexico, ensuring a more efficient supply chain with less risk of interruption.
Additionally, other factors that make this country a competitive option are:
- Trade agreements (USMCA): facilitating the flow of goods and services.
- Skilled labor and affordable costs: an attractive combination for foreign companies.
- Technological development: Mexico has invested in digital infrastructure, with multiple data centers and advanced connectivity.
Technology services to maximize impact
As companies migrate their operations to Mexico and adopt cloud-based strategies, having advanced technological tools is essential to ensure the success of this transition.
Today’s dynamic and complex digital environments increase the risk of connectivity disruptions, performance issues, latency, and network vulnerabilities.
This is where the observability services offered by Ikusi play a crucial role:
Identify problems before they escalate
By monitoring networks in real time, businesses can detect anomalies, connectivity interruptions, or application failures before they impact operations.
For example, if a company experiences latency in a connection between its data center in Mexico and its headquarters in the United States, it must have a tool that can quickly locate the cause, whether it is a problem with the Internet service provider or an internal configuration error.
Ensuring operational continuity with reshoring
Modern technology environments often rely on multiple interconnected systems, such as cloud applications, private networks, and on-premises servers. Certain tools allow companies to map these systems and anticipate risks, ensuring operations are not affected by unexpected failures.
For example, an e-commerce company can ensure that its platforms are always available, even during traffic spikes.
Optimizing customer and end-user experience
A well-monitored network not only benefits internal operations, but also end customers. Businesses that rely on digital platforms, such as banking apps or streaming services, can ensure a seamless, uninterrupted experience.
Example of application
Consider a manufacturing company that recently relocated its operations from China to Mexico and adopted cloud solutions to manage warehouse inventories and production metrics. Using Ikusi Observability, this company can:
- Monitor connectivity between its plants in Mexico and distribution centers in the United States (Inventory Management: ‘Just in Time’ – JIT).
- Anticipate and resolve potential communication failures between cloud applications and local systems.
- Ensure that inventory information is always up-to-date and accessible in real time for strategic decision-making.
Reshoring and migration of workloads to the cloud are trends that are redefining global strategies. Mexico is in a prime position to capitalize on these movements, offering a blend of competitive costs.
At Ikusi, we offer the Cloud and Observability solution you need to ensure maximum visibility and performance of your cloud services. Contact our experts for immediate assistance.