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Summary: The future of software development is here: In Mexico. It is a treasure trove of skilled talents and innovation with a supportive ecosystem, which helps businesses to discover new-age possibilities and bring sustainable growth. In this guide, we’ll discover everything you should know about nearshore software development in Mexico. So sit and relax, and grab your coffee to enter into the nearshore software development world.
Nearshore software development in Mexico has seen a surge in popularity and is considered a great business practice.
Undoubtedly, IT companies have been facing many issues regarding outsourcing, including language and cultural barriers, real-time communications, time zones, high-quality standards, project deadlines, talent shortages, and more.
No matter how many problems need to be dealt with outsourcing, but nearshore outsourcing can help minimize these challenges by tapping the potential of the neighboring IT market.
It is quite intriguing to know that Mexico has been ranked third after the Philippines and India for software outsourcing and offshore services. That’s what makes Mexico a prominent nearshore opportunity among US companies.
Here in this blog, we’ll cover why Mexico is the best nearshore software development and how your business can avail benefits of the local market –
Market Overview of Mexico
Mexico with 129 million people population has made a buzz by becoming the second-largest economy in Latin America. It has created ample opportunities for businesses that want to skyrocket their working operations: that’s why it has become an attractive destination for businesses!
Several reasons, like the diverse economy, strategic location, and rich cultural heritage, indicate that Mexico’s international outsourcing marketplace is one of the fastest-growing markets. Almost 38 IT clusters are present, with around 400 outsourcing development IT companies in Mexico that provide diverse services such as engineering, software development outsourcing, Hi-Tech manufacturing, and more.
Not only this, but the government is also taking many initiatives to craft a high technology-based environment to become a prominent part of digital transformation.
What’s more? Mexico, in the next 5 years, is anticipated to reach a CAGR of 10.6% due to its Rapid adaptation of digitalization and innovation.
Is Mexico a Great Option to Do Business?
Nearshore software development in Mexico offers lucrative benefits to businesses due to its strategic location, large talent pool, etc. Here are some of the benefits to businesses to consider Mexico for outsourcing software development –
No Tax Charges
There are no charges on local or state corporate earnings; therefore, saving money is a lucrative benefit for businesses.
Special grants have been provided by CONACYT that aims to boost innovation and technology adoption. These grants are available to all company sizes, from startups to large enterprises.
World Bank has ranked Mexico as one of the highest scores in 2020 Doing Business in transaction transparency.
There are free trade agreements with a magnitude of jurisdictions such as Columbia, Japan, Switzerland, Israel, Norway, Costa Rice, EU, etc.
What Reasons Make Mexico a Great Outsourcing Choice?
Mexico gives great advantages to businesses due to its strategic location. As it is located in North America, it can be convenient to nearshore software development in Mexico for us companies. They can directly execute face-to-face meetings so that they can build seamless communication and enhance corporate culture. For example, reaching from San Jose to Guadalajara via plane in 4 hours is a convenient option.
Reduce Labor Expenses by 50%
Nearshore mobile app development in Mexico can be an effective solution for the US IT market as they hire Mexican tech talent at lower costs with uncompromised quality services. Businesses can save their expenses by 50% with Mexico’s tech talent. For example, Mexico’s average salary would be $ 46000; in the US, it would be $ 97000.
Similar Time Zones
Mexico nearshore software development is preferable because of the overlapping time zones such as UTC-6, UTC-7, and UTC-8 with the USA. For instance, the San Francisco American IT hub has an almost aligned time zone with the Mexican Tech Centre, which helps remote and in-house teams to communicate seamlessly in real-time and quickly solve issues.
Developed IT Infrastructure
From launching a 5G mobile network in 2021 to developing AI-based cutting-edge technology to build 20 Tech Parks to three Mexican IT powerhouses, the Mexican government has taken the initiative to improve local IT infrastructure.
Track Record of Top Outsourcing to Mexico
One of the major countries in Latin America is Mexico with a business score of 60. It is also renowned for its outsourcing capabilities and international collaborations. Let’s look at some of the statistics to gain some valuable insights:
The Global Information and Communication Technology (ICT) market in Mexico is growing at a CAGR of 10.3%. It is quite fascinating to know that the valuation in 2020 was USD 26.76 billion and is expected to reach USD 43.66 billion in the year 2026.
The above ICT numbers are impressive. Isn’t? It shows that outsourcing to Mexico has a strong nearshore software development track record. Additionally, its track record of outsourcing capabilities attracts many tech giants, which in turn can enable them to maximize their tech talent by setting up their offices here. Some popular tech giants are Google, Netflix, Globant, Dell, etc.
Time Zone Overlapping: Mexico and US
The time zones in the United States and Mexico overlap with each other, which indicates that some regions in both countries share the same time. It becomes convenient for businesses for seamless coordination and communication. For instance, some areas in the US and Mexico have the same time, which is in close proximity to each other.
There are three time zones.
The Mexico Pacific time zone is one hour ahead of that of the US.
2. Central Time Zone
In this zone, the Mexico and US Central time zone coincides with each other.
3. Eastern Time Zone
The Mexico eastern zone is one hour behind the time zone of the eastern US.
The time zone overlapping can make Mexico a great option for Nearshore software development.
Nearshore Development Hubs in Mexico
Nearshore software development outsourcing hubs in Mexico are the places where US-based and other companies outsource their business services and process by setting up their operations in Mexico.
These herbs are strategically situated in the regions across Mexico so that the countries in the proximity of Mexico can leverage several benefits, including time zone proximity, reduced labor cost, cultural compatibility, developed IT infrastructure, vast talent pool, etc.
Some IT hubs across Mexico are Monterrey, Mexico City, and Guadalajara.
It is situated in the Northeast of Mexico, known for its highly talented workforce, business-friendly environment, and strong economy. According to the data, it constitutes 10% of the country’s GDP, and when it comes to exports, it constitutes 11%. Monterrey is undoubtedly one of Mexico’s fastest-growing and most modernized cities. It has shown tremendous growth, with a whopping 188% surge in tech companies in the last 20 years.
Some of the Tech companies that have established their set-up in Monterrey are :
Mexico City has shown growth in the upcoming years and become successful in seeking the attention of many international IT companies due to its talented workforce and lower labor cost. Due to its advanced infrastructure and the city’s strategic location can make it a good option for outsourcing software development. What else? This city market is a growing market and seems to be a bigger market than the total sum of other Spanish-based markets in Latin America
Tech giants have started to build their offices in Mexico City :
It is famously known as Mexican Silicon Valley and a gem of Latin America’s software industry. With an incredible tech ecosystem and innovation, it can be the superior business choice for startups and tech companies. It has become a top spot for outsourcing due to its talented workforce and effectively gaining its government’s attention, which can help them get more investment and resources. More than 130000 software engineers graduated, making it rich with highly talented engineers.
Tech giants have had their presence in Guadalajara :
The Average Salary of Developers Based on Technology
|Modern technologies||Average Salary of Developers in the US||The average salary of developers in Mexico from Gleexa|
|Python||$175,000 – $195,000||$63,000 – $90,000|
|Java||$152,000 – $175,000||$66,000 – $86,000|
|PHP||$135,000 – $145,000||$56,000 – $72,000|
|iOS||$150,000 – $182,000||$68,000 – $94,000|
|Android||$150,000 – $185,000||$66,000 – $85,000|
Conclusion: Are You Ready to Hire Developers in Mexico?
No wonder Mexico is the fastest growing IT outsourcing economy that helps companies to outsource talented developers at affordable pricing. Along with skilled talent, it offers excellent cultural affinity, similar time zones, seamless communication, and anticipates exceptional business opportunities.
Let’s start your software development journey with Gleexa, IT Outsourcing Solutions has a vast pool of developers who can help you accelerate your business operations and processes with top-notch solutions at unbelievable pricing.
Why outsource nearshore mobile app development and Mexico?
Due to the vast talent workforce, Mexico also provides incredible benefits to businesses, including time zone proximity, cultural compatibility, infrastructure, seamless business communication and collaboration, reduced labor cost by 50%, and so on.
Which US company leverages Mexico for its business operations?
Many tech Giants do great business in Mexico by expanding their offices and maximizing their talent. Some companies are Microsoft, Amazon, IBM, Google, Honey well, TCS, HP, Intel, Wipro, HCL, Oracle, etc.
What is the procedure for recruiting developers in Mexico?
Gleexa is a leading software development outsourcing company with a large pool of experienced Mexican software engineers who help you stand in the competitive landscape. As Mexican developers are well-adaptive to US workplace culture and, therefore, capable of providing the best IT industry solutions.