Complete guide to outsourcing: what it is and how it works in Mexico

Understand the outsourcing, what it is and how it is a great bridge between workers and companies with open vacancies, is of the utmost importance to understand one of the most widely used labor schemes today. Here I explain its benefits, examples and its regulations in Mexico.

You may or may not have experience in the field, but surely you have heard about outsourcing, a much debated concept in the Mexican labor scene lately. Join me and I will explain in detail.

Outsourcing: what is it?

In its literal translation, outsourcing refers to obtaining benefits from some external provider, but for modern workers in many countries around the world, the concept is clear: contracting through an external company to which employees will provide their services directly. Similar to outsourcing, but not necessarily its synonym.

Although outsourcing has been charged with a conflictive connotation in our country, due to its multi-debated legal situation and with several reforms in its regulation, It is a tool designed to meet the need for specialized labor in a more agile way. It is a convenient scenario both for companies —mainly large and medium-sized, with the ability to pay for these specialized services— and for workers.

This model has become a positive alternative when companies have vacancies or needs that cannot be satisfied with the infrastructure or the elements that they have inside. It is about opening opportunities to many people who, like the company, could be looking to meet their own needs, that is, they are looking for work and have not found it directly.

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What is the purpose of outsourcing?

The objective of outsourcing is to make available to the contracting institutions, the personnel and the talent that it requires.

This tool aims to be the instrument of alliance between companies (the contracting parties and those seeking this service). The objective is to satisfy needs quickly and directly.

Outsourcing can be used, whether they are creative, focused on finance, technical support and many more areas. In Mexico, for example, 39% of workers are outsourced in the media sector, and 41% in the banking sector.

How outsourcing works: examples of areas that use it the most

In the simplest way explained, outsourcing is the outsourcing of services that a company hires; These services require specific technical knowledge, which is required by companies, but neither is it a pillar or a fundamental part of their main business.

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In Mexico, about four million people are working through outsourcing, and since the beginning of the century they have doubled their influence within the represented labor force, since from 8.6% in 2003, they reached 17.3% in 2018, as dictated by . Of course, these numbers are in full transformation, and that is due to a reform that we will address later.

There are several jobs that are commonly offered through outsourcing. Among those who use this model the most are:

  • Customer Support
  • Marketing
  • YOU
  • Cleaning, dining and security services
  • accounting systems
  • Human Resources

I explain each example a little more in detail.

Customer Support

The famous call centersor , are characterized by organizing their structures through the figure of outsourcing.

These centers belong to very large, multinational companies and need a large number of collaborators, which is why they decide to subcontract their staff.

Marketing

Creative, planning, communication strategies and even design services also appear among the outsourcing options.

Although of course, it should not be confused with simply hiring a service, such as hiring a marketing agency that is paid for a campaign.

YOU

All the personnel who usually help us with our computer equipment, access and those who guide us when this kind of problem arises, are also among the services that are most often provided via outsourcing.

It is an area with a high specialization required, so there are usually few positions for many interested people.

Cleaning, dining and security services

Several of the maintenance services within companies are covered by outsourced workers.

These positions usually have a lot of flexible hours and certain recruitment characteristics that facilitate adaptation. These jobs are considered specialized services.

accounting systems

The accounting areas will always be led by specialized people, so the preference in the business world is to cover them with experts through outsourcing.

Even the outsourcing model facilitates the work for this type of area, because in peak periods linked to fiscal requirements (such as the ), it is possible to have personnel who only work during that period.

Human Resources

As it is an extremely strategic area for organizations today, among whose missions is group cohesion, emotional salary, feedback, etc., some companies prefer that professionals who are experts in the field handle this issue.

This is an area that frequently resorts to the benefits of outsourcing, a great ally for recruiting the human factor.

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Situation of outsourcing in Mexico

What is outsourcing in Mexico? What is the legal situation of this contracting model? Surely these are questions that you have asked yourself —as a result of the recent reform it underwent— so its implementation changed. Here we explain it in short steps.

First, let’s talk about when the figure of outsourcing entered the Mexican market: 2012. The federal administration of that period presented a reform that, after its approval, allowed outsourcing and the conditions as they have existed until now.

But recently, the current government (2018-2024) presented a reform that, when approved by the Chamber of Deputies in April 2021, and published in the Official Gazette of the Federation, became more relevant.

Outsourcing reform in 2021

The 2021 reform prohibits outsourcing to meet the needs of the predominant economic activity of contracting companies. Therefore, it is not that it has completely disappeared, but rather that it has been regulated more severely.

Now, outsourcing in Mexico is only valid for contracting specialized servicesand that they are also not part of the corporate purpose or the main economic activities of the organization that is benefiting from that work or labor.

What articles and regulations did this reform modify? amended, added and repealed various provisions of the Federal Labor Law; of the Social Security Law; of the Law of the Institute of the National Housing Fund for Workers; of the Fiscal Code of the Federation; of the Law on Income Tax; the Value Added Tax Law; the Federal Law of Workers in the Service of the State, Regulation of Section B) of Article 123 of the Constitution; and of the Regulatory Law of Section XIII Bis of Section B, of Article 123 of the Political Constitution of the United Mexican Statesin terms of Labor Subcontracting.

This means that companies can continue to hire by outsourcing, but only to cover your needs in specialized services, such as those listed abovenot for the bulk of its staff or key positions in the main economic production.

Another of the most relevant regulations of said reform is that it obliges companies that serve as contractors to be registered with a public registry, a registry that must be renewed every three years.

In summary

So now you know, outsourcing is a very useful tool for the coverage of specialized services in Mexico. Large and medium-sized companies must now adapt to the new regulations.

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The reform left subcontracting in our country under restructuring, but under an adequate scheme, with the necessary conditions that provide the opportunities and the precise talent that organizations and workers seek. Let’s see a brief summary so that everything is much clearer for you.

What is outsourcing?

It is a tool designed to meet the need for specialized labor. It is the employment relationship between the contractor who signs the employee and the contractor who benefits from the services.

It is mainly used by large and medium-sized companies.

What is the purpose of outsourcing?

The objective of outsourcing is to make available to contracting institutions the personnel they require. It is a tool to establish alliances between companies and thus meet needs quickly and directly.

How does outsourcing work?

It works with three parties involved: a company that contracts specialized services, another company that offers said services (contractor), and the employee that performs the work necessary to fulfill these services. It is an outsourcing of the work, with the aim of better quality and attention.

What are common examples of outsourcing?

  • Marketing
  • YOU
  • Cleaning, dining and security services
  • accounting systems
  • Human Resources

What is outsourcing in Mexico?

The most recent reform that regulated the implementation of outsourcing in Mexico brought greater filters and control. Now it is only valid to apply this model to subcontract specialized services, and that are also not part of the corporate purpose or the main economic activities of the organization that is benefiting from the work or work.

Now that you know more about outsourcing, what it is and how it works, you will understand why it is of incredible importance for the hiring of services and talent for all types of companies. Without a doubt, relying on him when the situation warrants it will be a key decision for your business.

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