FAQs

Q: Can Vangtel manage my offshore operation in Mexico?

A: Vangtel does not engage in subcontract operations or directly manage core business functions/competencies. We provide comprehensive outsourced support, or "Shelter" services, which allow companies in the Contact Center, Business Process Outsourcing (BPO), and IT Industries to operate their own facility in Mexico at reduced expense and risk. Further, our clients maintain full control of their outsourced business processes and data.

Q: What are my responsibilities under Vangtel's Shelter Program?

A: Performance of all core business functions such as customer service, marketing, management, or IT-related activities are the responsibility of our clients.

Vangtel provides service in the following areas:

* Human Resources Management & Administration
* Payroll Management Services
* Accounting Services
* Customs Compliance
* Facilities Management
* Procurement Services (MRO items)
* Workplace Safety and Compliance (OSHEA-EPA)
* Government and Community Affairs
* Information Services
* Client Courtesy Services
* Consultation Services

Q: Compared to other offshoring options, what are the advantages of operating under Vangtel's Shelter program in Mexico?

A: Contracting with a full-service outsourcer is preferable for operations that require limited man hours or staffing as well as limited direct control over quality and outcome goals.

• Joint ventures are often beneficial for firms that partner with Mexican firms with pre-established sales channels.
• While wholly-owned subsidiaries may be the best vehicle for organizations with the highest control requirements.

Vangtel’s Shelter Program is the option of choice;
for companies seeking to enter into a Nearshore cost reduction plan with a trusted partner who will manage all support business functions while you focus on core business processes and achieving production and ROI goals. A further benefit with Vangtel is you will not have the traditional hurdles of setting up a business enterprise in a foreign country.

Q: Are other countries more attractive for offshoring than Mexico?

A: When all the variables are analyzed together, Mexico offers many compelling advantages over Offshore or global operations:

• Significant labor savings over many parts of the world
• Close Proximity to the U.S. - Access via a short one hour flight from Phoenix
• Same time zone as the U.S. - Pacific Standard Time
• 190 miles south of the border
• Cultural affinity and ties with US
• The best telecommunication infrastructure in Latin America
• The largest school system in Latin America
• Clear Spanish and a large bilingual labor pool
• Political and currency stability
• Pro trade and Pro Business government ties to the US
• Extremely reduced risk of terrorism and other geopolitical issues

Q: Is it better to set up operations in larger cities or along the US-Mexico border?

A: Vangtel is located within Mexico’s interior, in Hermosillo, Sonora. The interior of the country has a stable, well-rooted population, with many universities in the area. Hermosillo, the capital of the State of Sonora, is a mid-size city with a population of 700,000+ people. Strong family ties make turnover rates in this community lower than those typically experienced along the border, or in bigger towns.

Q: Have costs in Mexico risen over the last few years?

A: Mexico's economy has benefited from political and economic stability. While wages have increased over the last few years as compared to India, Phillipines, or even Brazil; Mexico and Vangtel are extremely competitive when one considers:

•  The wages in Mexico are lower than the U.S. due to the job scarcity.
• The cost of management travel to set up operations and maintain relationships with on-site managers and suppliers is significantly less than to more traditional locations around the globe. You will not have to cross a single dateline or get up at 2:00 a.m. to manage your operations!
• The potential increased risk and cost of your supplier becoming your competitor, or the loss of intellectual property to outsourcers, is significantly reduced with Vangtel since you retain control over all proprietary data and functions.

Q: How does Vangtel reduce my risk and expense?

A: Vangtel’s Shelter Program is managed in the United States by Offshore International, Inc., in Tucson, Arizona. Vangtel Mexico provides all shelter services to firms with whom it signs contracts. Companies minimize risk of operating in Mexico since all contracts are sign in the US and are within the US legal framework. Further, Vangtel provides facilities, thereby eliminating the need for expensive capital investments.

Q: What kind of organizations derive the most benefit from Vangtel's Shelter Plan?

A: Companies managing their own call center, BPO, or software development operations can establish a profitable and stable operation in Mexico. Corporations with little or no prior international experience can quickly begin work in Mexico’s low cost market. Those seeking to save on wage and salary expenses will quickly realize savings, and continue to benefit over time.

Q: What sets Vangtel apart from other providers of similar services?

A: Vangtel is the first company in Mexico to offer shelter services to non-manufacturing companies. Vangtel's parent company, The Offshore Group, is the #1 provider of shelter services in Mexico, with 15,000 employees and is the largest employer in Sonora. Vangtel has incorporated this successful business model and is now the premier provider to the rapidly expanding service and development markets in the United States.

Q: How does Vangtel bill its clients?

A: All invoicing is done from the U.S. through Offshore International, Inc. Vangtel charges its customers market rates for leased space, and charges a negotiated Goods and Services Fee that is based on labor hours. All purchases, charges, and costs incurred in Mexico, from payroll, utilities, customs fees, transportation costs, and Mexico purchases are forwarded to the client on a straight pass through basis (no mark up).