Team Shocase

Outsourcing to Mexico:
Risks, Ethical
Considerations, &
Mitigation Strategies
Syd (Syieda) Rasheed
Bolaji Gbadegesin
Tara Fields
Shravan Patil
Devoe School Of Business, Indiana Wesleyan University
Virtuous Business In Global Marketplace BADM 708-01B
Introduction
AGENDA
Risks/ Mitigations
Performance Metrics
Adaptation/ Learning
References
WHY OUTSOURCE?
KEY POINTS
•
Outsourcing as a strategic business tool.
•
Focus on Mexico as an outsourcing destination.
Overview of report structure: strategic fit, risks, ethical
considerations, continuous improvement
•
RISKS /
MITIGATIONS
STRATEGIC FIT: Alignment
with Business Objectives
•
Focus on core competencies (Korucuk et al., 2022).
Optimize operations, reduce costs, and enhance innovation (Gurtu &
Johny, 2021).
•
Benefits from specialized skills and technological advancements (Mei et
al., 2022).
•
QUALITY RISKS: Quality
Risks In Outsourcing
•
Differences in production standards and communication barriers (Pang
et al., 2021).
•
Mitigation Strategies:
•
Thorough due diligence and comprehensive contracts (Gurtu & Johny,
2021).
•
Regular audits and continuous improvement initiatives (Netish, 2023).
CULTURAL DIFFERENCES & CUSTOMS:
Cultural Considerations
Importance of professional attire and family values (International
Trade Administration, 2023).
•
•
Mitigation Strategies:
•
Ongoing cultural awareness training.
Establishing diversity compliance strategies (Business Practices in
Mexico – Santandertrade.com, 2024).
•
SECURITY, LEGAL, AND REGULATORY
COMPLIANCE: Concerns
•
Security, corruption, and employee safety (Villarreal, 2023).
•
Mitigation Strategies:
•
Robust security policies and cybersecurity measures.
•
Partnering with reputable businesses and including protection
clauses in contracts (Villarreal, 2023).
POLITICAL AND ECONOMIC INSTABILITY
Political Environment
Opportunities and challenges in Mexico’s political
landscape (Allianz, 2024).
• Mitigation Strategies:
• Diversifying outsourcing to minimize dependency.
• Routine risk assessments and investment in risk
insurance (Villarreal, 2023).
•
ETHICAL & ENVIRONMENTAL
CONSIDERATIONS:
Labor Practices
•
•
•
•
•
Preventing exploitation and ensuring fair wages (Di Marco,
2023).
Environmental Impact:
Risks of pollution and resource exploitation (Gómez-Sanabria et
al., 2022).
Ethical Strategies:
Code of conduct, ethical training, and environmental audits
(OECD library, 2024; Farrokhi Derakhshandeh et al., 2021).
CONTINUOUS
IMPROVEMENT &
MONITORING: Performance
Metrics
Key indicators: customer satisfaction, net promoter scores, churn
rates, etc. (Outsourcing KPIs, 2023).
• Feedback Mechanisms:
• Regular meetings, surveys, performance reports, and real-time
monitoring (10 Crucial Outsourcing, 2023).
•
ADAPTATION & LEARNING
Adaptation Strategies
•
•
•
•
•
Robust code of conduct and ethical standards.
Clear mission, vision, and values (IAOP, 2023; Gould, 2013).
Continuous Learning:
Regular review and update of strategies based on outcomes.
Effective communication, change management, and dispute
resolution (IAOP, 2023; Gould, 2013).
CONCLUSION
Outsourcing to Mexico offers cost and efficiency benefits but
requires careful risk management.
• Ethical practices and continuous improvement are key to longterm success.
• Embracing a virtuous business model grounded in integrity and
sustainability ensures ethical conduct and positive impact.
•
AGENDA
References
THANK YOU
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