On a very pleasant business trip to Mexico, with the aim to extend Pentalog’s global coverage and respond to the growing needs of the platform in the United States, I came across a very large Mexican city that you don’t often hear much about. It’s a city that is growing rapidly and has strong connections with Silicon Valley: Guadalajara.
Being situated close to the United States, means Guadalajara is easily able to develop relationships with California-based start-ups and focus on cutting-edge technology.
Here in Guadalajara, I have found a little slice of heaven where, proportionally, front-end developers seem to be much more numerous than elsewhere and market prices slightly lower. That’s why we’ve chosen this city for our new Latin American development center, located in a time zone that is absolutely ideal for both our clients in Silicon Valley and New York. I even think our European clients might be interested in Guadalajara’s talent pool, which boasts perfect English skills and can offer EU clients new options for their ReactJS, NodeJS, and AngularJS needs.
How are prices determined for developers in offshore and nearshore areas?
There are four major components that determine pricing in these countries:
Global price pressure
Local economic growth
When compared with other nearshore zones, Mexico has quite a lot of potential to offer.
Mexico is a world leader in the number of computer science graduates it produces: 114,000 engineering graduates in 2015 compared with 120,000 in the United States (source: mexico-it.net)
Mexico’s per capita GDP is close to that of Romania, Bulgaria, and Russia, giving you an idea of the price pressure in the local economy. That pressure is moderate, making Mexico a “middle-cost” country.
Mexico can also take advantage of its exceptional geographic location: Guadalajara is one hour behind the East Coast of the United States, including New York, and two hours ahead of San Francisco. It doesn’t get better than this anywhere else in the world.
It’s a six- to seven-hour flight to Guadalajara from major cities on the East Coast, and less than four hours from San Francisco, which are reasonable travel times for Americans. Such proximity makes it easy to have regular exchanges between business partners, in line with how we like to work at Pentalog.
In the long term, our partnerships in Mexico will allow us to grow in the Americas, as Romania and, to a lesser extent, Moldova are currently doing in Europe. With Pentalog already earning 7 percent of its revenue in emerging markets.
Find out more about Pentalog’s geographical presence: our nearshore and offshore locations.