July 26, 2020
US companies have been outsourcing manufacturing to Mexico (including maquiladora relationships) for decades. But software development outsourcing to Mexico is relatively new.
There’s a lot to like about partnering with a team in Mexico. It’s close to the US, operates in overlapping time zones, and English is spoken by most IT professionals and engineers. Mexico graduates more engineers each year than North America – and these college-educated technologists have a strong cultural affinity with the US.
In 2018, Mexico received high praise from the global tech community for becoming the first country in Latin America to enact fintech regulations. Infrastructure is continuing to improve, with a huge increase in cloud computing by Mexican companies – increasing confidence in the country’s ability to provide reliable telecommunications, internet and power.
The low cost of living also means rates are low. Industry experts found you can outsource three to four developers in Mexico for the price of one on the domestic market, at an equivalent level of talent and capability.
Our Accelerance team toured Mexico to meet with existing partners and research new opportunities. First stop: Monterrey. Home to the Monterrey Institute of Technology (Tecnológico de Monterrey), this affluent city has one of the highest per-capita incomes in Mexico and major international companies including Accenture, Samsung, Toyota, Dell, Johnson Controls, LG and SAS Institute have a presence there.
Over the next week, we checked in with one of our existing partners, and met with new companies in Monterrey and Hermosillo, ranging from a boutique operation employing a couple of dozen engineers to larger, well-established businesses with 250 to 300 staff.
“There were core competencies across the board, but they all had a different flair,” says Kayla. One company specialized in IoT; another in web and mobile development; another in DevOps. “What struck me about Mexico was the more relaxed culture in the office, with a specific room where people can hang out and socialize, playing video games or ping pong.”
Mexico was hot – not just the temperatures, but the chilli sauces, too. On a day trip out of Monterrey, we drove an hour south to Saltillo, which has more of a hometown feel. In Hermosillo, a two-hour flight from Monterrey, we hiked up a trail overlooking the city, and stocked up on Mexican candy at a huge specialist party store.
We didn’t stop in Mexico City this time, but the capital city (with a metropolitan population of more than 21 million) is a strong drawcard for young high-tech talent and its startup sector has exploded over the past few years. Another hotspot is Guadalajara, in the south, dubbed the Silicon Valley of Mexico for software design and development, and R&D.
Outsource with Confidence with Accelerance
Accelerance travels the world to simplify your search for the best offshore and nearshore companies – we were extremely impressed with what Mexico has to offer. If you’re interested in outsourcing your software development, contact Accelerance to find out more.
For the latest analysis on outsourcing opportunities throughout Latin America, check out our 2022 regional guide.