5 Reasons for Outsourcing Software Development to Mexico

When it comes to outsourcing software developers, Mexico is widely recognized as a top resource for hiring exceptional talent from Latin America. But what sets Mexico apart? Mexico boasts a thriving technological scene, which includes numerous innovative startups, vibrant developer communities, and high-quality outsourcing partnerships. In short, Mexico is a great choice for software development outsourcing. 

So, let’s see why.

In today’s post, I’ll cover:

• 2022/2023 tech ecosystem in Mexico
• 4 key Mexican technology hubs
• Benefits of nearshoring software development in Mexico
• The best ways for outsourcing developers to Mexico.

By the end of this article, you’ll understand everything about outsourcing developers to Mexico. Let’s dive in and explore this location.

2022/2023 Tech Ecosystem in Mexico: A Quick Overview

Nowadays, Mexico is one of  the most technologically advanced economies in Latin America and the second largest in the region. According to Gartner, Mexico is projected to experience a compound annual growth rate (CAGR) of 9.5% between 2021 and 2025.

With that, it’s not a secret that this dynamic country offers numerous opportunities for software engineers to excel and prosper. 

To gain a better grasp of this phenomenon, I’ll cover:

• Mexico’s nationwide investment in software development.
• The abundance of talented developers.
• The three top unicorns that have been founded in Mexico.

Let’s take a closer look, shall we?

Mexico’s Nationwide Investment in Software Development

First of all, the IT outsourcing market in Mexico is expected to experience significant revenue growth from 2016 to 2027.

Why?

One of the things that really sets Mexico apart is its remarkable STEM education system. This movement strives to enhance the teaching of Science, Technology, Engineering, and Mathematics as the foundation for sustainable development and social well-being.

The numbers speak volumes: Mexican universities produce around 120,000 graduates in engineering disciplines every year, and they place a strong emphasis on skill expansion. 

On top of that, Mexico is home to renowned technical universities that rank among the top 50 in Latin America, including:

• National Autonomous University of Mexico (UNAM)
• Autonomous University of Nuevo Leon (UANL)
• Monterrey Institute of Technology (ITESM)

These universities nurture hundreds of future professionals each year who excel in their respective fields. And it’s not just empty talk; the Coursera Global Skills Report confirms the upward trajectory of technology skills proficiency in Mexico, ranking #2 in overall skill proficiency in LATAM.

Mexico demonstrates expertise in areas such as:

• Cloud Computing (91%)
• Web Development (86%)
• Probability and Statistics (83%)
• Computer Networking (76%)
• Mobile Development (68%)
• Data Management (55%)
• Software Engineering (55%)

Moreover, according to the 2022 Pentalog report, Mexico proudly holds the second-best position globally in terms of software developers and Mexico City takes the top spot for finding the best freelance developers.

The Abundance of Talented Developers 

There are countless educational opportunities available for Mexican developers. 

At this point, you might be curious: How many engineers are in Mexico?

Mexico has 700,000 tech professionals. This vast pool facilitates swift access for companies in search of specialized tech talent across a wide variety of technologies.

The 3 Key Unicorns Founded in Mexico

Mexico is home to a diverse landscape of companies, making it an attractive destination for global venture capital investment. In 2020, Mexico ranked second in the region for venture capital transactions, just behind Brazil. This success is exemplified by three unicorn companies based in Mexico:

• Kavak: Kavak is a platform for buying and selling cars, founded in 2016 in Mexico City by Roger Laughlin, Carlos García Ottati, and Loreanne García. It became Mexico’s first unicorn in October 2020.
• Bitso: Bitso is a cryptocurrency exchange platform, serving over two million customers in Mexico, Brazil, and Argentina. Users can easily engage in buying, selling, sending, and receiving Bitcoin and other cryptocurrencies. It became a Mexican unicorn in May 2021.
• Grupo Bursátil Mexicano (GBM): GBM is an investment platform that caters to both local and international institutions. With an impressive 35 years of experience, it became a Mexican unicorn in June 2021.

These companies, along with Mexico’s thriving tech ecosystem, showcase the country’s potential as a significant player in the global market.

4 Key Mexican Technology Hubs 

Mexico boasts several cities with a wealth of highly skilled engineers. Among them, these stand out as the top contenders:

Guadalajara

It is a vibrant technology hub in Mexico. 

Guadalajara offers seamless connectivity with over 300 direct flights to the U.S. Moreover, it’s only an hour behind New York on the East Coast and two hours ahead of San Francisco.

Remarkably, Guadalajara has secured the bid for Digital Creative City, a significant achievement provided by the United Nations Educational, Scientific and Cultural Organization (UNESCO). Additionally, the city has witnessed a remarkable influx of college graduates pursuing STEM disciplines.

Guadalajara proudly boasts a diverse pool of skilled professionals, including full stack developers, UX/UI designers, front-end and back-end developers, and mobile engineers.

Mexico City

Mexico City, a bustling hub of technological innovation, is right up there with Brasilia and Sao Paulo in Brazil. It’s a thriving epicenter for entrepreneurs and venture capitalists, making it the perfect destination for startups.

This city has it all when it comes to startup support. With its abundance of incubators, accelerators, and co-working spaces, there are tons of opportunities for collaboration and networking. Not to mention, big tech players like Google and Microsoft have set up offices here too.

Mexico City also boasts exceptional institutions and a flourishing venture capital industry, attracting talented software developers on the hunt for exciting career prospects. You’ll find a diverse pool of professionals here, from full stack developers to solution architects and everything in between.

Monterrey 

It is a burgeoning city in northern Mexico, with an advanced tech industry and highly educated software developers. 

Renowned companies like IBM, Microsoft, and Accenture have established offices in this city.  Monterrey is also expanding its network of research centers and universities that prioritize technology and digital innovation. This makes it an attractive destination for U.S. companies, especially considering its convenient location near the Texas border.

In Monterrey, you will find top-tier full stack developers, back-end developers mobile engineers, and web developers.

Tijuana 

Tijuana is an attractive destination for U.S. companies seeking to outsource software development for a variety of reasons.

Mostly vitally, Tijuana is near large U.S. cities, as it shares a border with California and is only 20 miles away from San Diego. Additionally, Tijuana operates in the same time zone as those cities, making communication and collaboration easier. 

Software developers in Tijuana are well-versed in American culture, representing one of the major tech hubs in Mexico. 

The city boasts excellent universities such as the Autonomous University of Baja California and the Polytechnic University of Baja California, which produce highly skilled tech talent. 

U.S. companies such as Uber, Microsoft, Pixel2Canvas, True Games Interactive, Samsung, and YouTube are some of the well-known players in the city.

Overall, Tijuana is dedicated to cultivating high-quality tech talent, with tech firms like BuscaCorp and co-working incubators such as Bit Center contributing to the positive economic and cultural landscape.

Benefits of Nearshoring Software Development to Mexico 

You already know that Mexico is a promising territory when it comes to hiring exceptional software developers. Yes, that’s a clear advantage. But perhaps you’d like to know the other benefits of working with software developers from Mexico. 

The key advantages of outsourcing to Mexico are:

• Time zones overlap with U.S.
• Cost-effective labor.
• Avoidance of language & cultural barriers.
• English-proficient workforce. 
• Growing tech talent pool. 

Overlapping Time Zones 

Mexico shares the same time zones with a significant portion of the United States, with only a one to three-hour difference for those that don’t overlap. Having similar time zones is a crucial requirement when hiring software developers through IT outsourcing. It enables companies to work synchronously and engage with their employees in real time. This results in enhanced efficiency in communication and collaboration among team members.

Cost-effective Labor

Software developer salaries in Mexico are considerably lower than  salaries in the United States.

The annual salary range for semi-senior software developers in Mexico ranges from $48,000 to $86,388, depending on experience and tech stack. Comparatively, U.S. software developers earned a median annual salary of $120,730 in 2021, with the bottom 25% earning $90,870 and top 25% earning $151,960.

This translates to significant cost savings without compromising quality. As a result, many U.S. companies are attracted to Mexico’s outsourcing opportunities.

Avoidance of Language and Cultural Barriers 

The fact that Mexico and the United States share a border highlights their cultural similarities. But there are so many other reasons why Mexican software developers are such a terrific match for U.S. companies.

First, Mexico is known for its collectivist society. Basically, this means that developers there are all about making long-term commitments to the companies they work for. And that commitment carries over to each project, where they consistently deliver top-notch work and are excellent team players.

So, when you hire software developers from Mexico, you can rest assured that they’ll quickly adapt to your workforce and projects. Their ability to seamlessly integrate and contribute is invaluable.

English Proficient Workforce

Overcoming language barriers can present challenges when hiring remote workers. 

However, it’s important to note that while Spanish is the official language of Mexico, a significant number of professionals are fluent in both Spanish and English. This is especially true for software developers with experience in international companies. 

By leveraging this skill, companies can foster smoother collaboration and achieve more successful outcomes.

Growing Tech Talent Pool 

Last but not least, Mexico’s tech talent pool is constantly expanding thanks to its strong focus on education and investment in technology infrastructure. This growth ensures a steady supply of experienced software developers, creating an impressive talent pool. 

Mexico boasts numerous government initiatives that support the tech industry,  including:

• 500 Startups LATAM: This program offers funding and mentorship to Spanish-speaking companies across various industries.
• Fondo Nacional Emprendedor: This program encourages entrepreneurship, particularly in the tech sector.
• Mexico has created 120 tuition-free specialist technology universities to inspire young people to enter STEM fields.
• Mexico has over 20 tech parks (i.e. Creative Digital City, Guadalajara Software Center, Apodaca Technology Park, and Monterrey Technology Park).

The Best Ways to Source Mexican Software Developers

When it comes to outsourcing IT engineers in Mexico, it’s absolutely crucial for companies to exercise due diligence. But, how can you find the right talent within your budget and meet those pesky deadlines? I have  some recommendations. 

As the founder of a tech staffing company, my experience has taught me the following best practices:

• Develop a strong employer brand.
• Identify passive devs and leverage Mexican job boards.
• Give talent matching platforms a go.
• Leverage the expertise of IT outsourcing companies with an HQ in the country.

Develop a Strong Employer Brand 

Taking care of your employees’ well-being is crucial to enhancing their experience and productivity in every project. Yet, employer branding is about more than just keeping your employees on track. It’s about extending your company’s good reputation to job seekers.

With a strong employer brand, your in-house developers want to spread the word about your culture and recommend your company to other developers.

But how? To establish a strong and compelling employer brand, consider these tips:

• Craft your employer brand story and share it through webinars, hack-a-thons, testimonials, and other recruitment marketing assets. 
• Incorporate this brand narrative into your job ads and career page, emphasizing the positive aspects of your company culture. Highlight the values that make your organization stand out.
• Adopt an authentic tone and take a developer-first approach. Understand the needs and emotions of your target audience, so you can foster a connection that resonates with them.
• Prioritize a seamless onboarding process that effectively communicates your company values and culture from day one. This will set the foundation for a successful developers’ integration.

Identify Passive Devs and Leverage Mexican Job Boards

Identifying passive candidates involves seeking out experienced Mexican talent, even if they are not actively looking for new opportunities.Keep in mind that these professionals are already employed, so it’s crucial to ensure job descriptions are clear and highlight the unique benefits your company can offer.

Once you have crafted a compelling job description, it’s time to create a strategy that focuses on the interests of Mexican developers and the networks of which they are already part. Here are some recommendations for leveraging these resources:

• Utilize key engineering social media channels such as LinkedIn, X (formerly Twitter), and Instagram to promote your company and tech job openings. 
• Make use of job boards. Popular job boards like Indeed, Bumeran, Buscojobs, CompuTrabajo, and Glassdoor are essential for reaching Mexican engineers.
• Launch a digital advertising campaign that highlights the position and includes a clear call to action to encourage applications (“Apply now”). If you are specifically targeting Mexican software developers, consider adding “Mexican software developers” to the title.
• Allocate time for networking. While it may seem tedious, attending Mexican conferences can provide valuable opportunities to network with potential candidates, share information about open positions, and even conduct quick interviews. This allows you to connect with exceptional engineers who may be open to exploring better opportunities beyond their current roles.

Overall, identifying passive candidates opens the door to finding senior Mexican software developers who are a cultural fit for your company. Yet, if you find yourself short on time to quickly and efficiently filter through the best candidates, there is a focused solution available: AI talent matching platforms. Let’s get into it in the next section.

Tip! Mexican job boards can also be used to find candidates who are actively looking for new opportunities. It’s always beneficial to have a list of top-notch developers, and these job boards can help you discover outstanding talent among job seekers.

Give Talent Matching Platforms a Go

AI recruitment tools like tech talent platforms have become a game-changer in the recruiting process because they help to:

• Find the right, pre-vetted Mexican tech talent with a solid skill-set.
• Streamline the hiring process.
• Save hiring teams significant time and money.
• Reduce time-to-hire.
• Minimize the risk of mis-hires.

But to find the right tool for you, it’s important to refer back to your recruitment goals and interview process. For instance, tech outputs provided by the best platforms are a fantastic asset to speed up candidate screening, but combining them with an efficient selection process can lead to even more efficient hiring.

Want to learn more about tech talent matching platforms? Take a look at our AI talent platform post.

Leverage the Expertise of IT Outsourcing Companies With an HQ in the Country

Finding top-tier Mexican candidates can be a lengthy process, and even then finding the perfect fit can be challenging. But it’s not all doom and gloom.

This is where IT outsourcing companies from Latin America can be invaluable.

Let me explain why.

Latin American tech talent companies have access to software engineers with expertise in a wide range of technologies. Whether you’re looking for a React developer from Mexico or a Ruby on Rails rockstar with over 7 years of experience, tech talent partners have got you covered.

But, you may wonder: Why are Latin American IT outsourcing companies particularly advantageous? 

The answer is simple: these teams of top tech recruiters have a deep understanding of the local culture and have direct access to Mexico’s industry-leading talent hub, allowing them to quickly attract exceptional candidates.

What’s more, these agencies excel at engaging seasoned developers, fostering their commitment and motivation through a remarkable talent experience. This is especially important for Mexican talent, known for their dedication, ambition, and team-oriented personalities.

In a nutshell, tech talent agencies are your go-to partners for:

• Conducting skill-based and culture-fit interviews.
• Enhancing talent retention by nurturing developers’ commitment to each project.
• Managing all administrative tasks, including benefits and salaries, with utmost efficiency.

Mexican Software Developers + Tech Talent Partners = Long-Term Success

Acquiring the right talent is the most important key to growth. 
Hiring was — and still is — the most important thing we do.
Marc Benioff, Chairman, Founder and CEO of Salesforce

One of the keys to successfully hiring developers is to focus on a market that guarantees success. Mexico offers a promising talent hub worth considering.

In this post, we explored how hiring Mexican software developers can be a valuable solution to overcoming challenges in tech team growth and retention. 

So… Here’s the thing – finding great talent from Mexico doesn’t happen overnight. It takes a solid talent sourcing and retention strategy to keep candidates engaged. We understand that implementing such a strategy can be time consuming, especially if you don’t have in-house expertise in talent recruitment and retention.

But, don’t worry. If you’re looking for a tech talent partner who specializes in connecting elite U.S. companies with top Mexican developers, you’ve come to the right place. Book a free consulting call with us today!