Mexico has become a popular choice for outsourcing software development. The country is no longer a hidden gem for software outsourcing or nearshoring due to its proximity to America, its latent talent and the important ecosystem IT companies need.
The demand for high-quality talent in the tech-sector is higher than the supply all around the world. Mexico benefits from a strong labor force, mature infrastructure and competitive wages. The advantage of geography also plays a role in the success of software development in the country.
Proximity is one of the reasons why software development in Mexico has excelled over the past five years. The country is a few short hours from the United States and has overlapping time zones. This means a development team in Mexico can work during the same hours as in-house employees. Contrast this with India, where teams may be on opposite ends of the day.
The similar time zones between Mexico and the United States allow U.S. companies the opportunity to have daily meetings with their extended teams in Mexico during business hours. If there is a need for face-to-face time, the proximity allows businesses to take direct flight into Mexico. As a result, Mexico has become an attractive option for US companies.
Mexico has been producing enough STEM graduates in the last few years, with the country ranked among the top 20 nations in terms of the highest number of tertiary students. More tertiary student enrolment in STEM creates enough graduates. The Ministry of Innovation, Science and Technology in Guadalajara supports the quadruple helix initiative, where graduates are equipped with knowledge and skills to flourish in the IT industry.
The Mexican government has invested in education and talent development through a strong education system. More than 120 universities and technical schools in the country graduate thousands of students with IT-related degrees every year. With U.S. companies struggling to find talent, Mexico offers a viable option to get a skilled IT workforce from Mexico. Companies working with a nearshore team in Mexico can scale up and down on demand.
Along with private developers, the Mexican government has invested in business and technology parks to transform the country into an active creative digital hub. Several technology parks have been opened in the country, including the Guadalajara Software Center, the Apodaca Technology Park and the Monterrey Technology Park. These technology investments have responded to the increasing demand for talent as businesses look to tap into the growing infrastructure and talent.
Infrastructure has improved in the last decade as evidence of cloud computing usage. The government has invested resources and support in innovation, creating an environment for foreign investment. Tech companies such as Amazon have expanded operations to Mexico due to the mature infrastructure while recruiting local talent. Guadalajara has emerged as a Silicon Valley of Mexico.
Cultural affinity is a major factor in the growth of software development in Mexico. The country's proximity to the United States means most Mexicans have acclimated to U.S. culture. They are plugged into U.S. politics, entertainment and other aspects, such as watching US television, listening to US bands, and rooting for US-based teams. Mexican citizens interact and connect with friends from the United States, which reduces the risk of cultural clashes when sharing power and responsibility.
This familiarity with U.S. business culture allows businesses to outsource to their southern neighbors. For example, Mexico is defined by a customer-focused mindset that emphasizes tangible results, efficient time management, flexibility and responsive communications. Additionally, agile software development and methodologies are widely preferred among Mexican developers. Agile puts more value on collaboration and human interaction, which is an important aspect of nearshoring investments.
The cultural affinity also means most white-collar Mexican business professionals can speak perfect English, including IT professionals and engineers. English language fluency is a crucial factor for many US companies, as they don't want to deal with language barriers that could affect proper communication.
Mexican software and IT providers take service delivery seriously. The software developers are not afraid to ask questions to seek clarification regarding different aspects of the work, which allows them to deliver professional and quality work. Because of this high level of professionalism in delivering tasks, businesses consider it a go-to destination for software development.
Simultaneously, there is low staff attrition in Mexico compared to other regions where competition for talent among international firms is fierce. It offers lower programmer rates with a level of talent and capability equivalent to domestic options. Companies providing web apps to consumers outsource some software development services to keep development costs down. In the United States, this has become a routine, with nearshoring to Mexico the most common practice.
Nearshoring software development into Mexico has contributed to the industry growth in the last five years. The country is considered a safe investment for outsourcing software development. A combination of factors such as the talent pool, infrastructure, and proximity to the United States has attracted more internal brands looking to offshore software development. If you want to learn more about software development, Sonatafy offers one-stop solutions to software development needs.