IT Outsourcing in Mexico – The Best Choice for Software Development in Latin America

Why Choose Mexico as an IT Outsourcing Destination

IT outsourcing in Mexico is an idea worth exploring if you’re looking to hire skilled software engineers at competitive rates.

Mexico has rapidly grown into a globally competitive market in the information technology outsourcing industry and a dynamic business hub, offering a convenient location and time zone for clients in both Silicon Valley and New York.

The country is the second-largest economy in Latin America and among the world’s 15 largest economies. According to Kearny Global Services Location Index, in 2019, Mexico was number 11 of the 50 best countries to provide IT.

Consider outsourcing to Mexico as an alternative to the shortage of tech talent in your country. Many American and Canadian companies have already migrated toward Mexican software development specialists – they’re highly tech proficient, cost-effective, fluent in English, and have a similar culture.

IT Outsourcing in Mexico

Mexico’s talent pool is impressive: there are currently around 500,000 IT professionals, and the numbers are continually growing as more Mexicans get engineering degrees – even more than Canadians or Germans! As the country continues to invest in STEM education and encourage the IT industry, by 2035, Mexico is on track to become one of the world’s top 20 countries for post-secondary education.

Reasons for Outsourcing Software Development to Mexico

  • Cost-Effectiveness: Mexico is a “middle cost” country with lower hiring rates for developers than the U.S. Mexico’s rates are similar to Romania, Moldova, Poland, and Ukraine for their ReactJS or AngularJS needs.

Average daily rates per Front-End & Back-End Developers in several outsourcing locations:

IT ProfileMexico
Nearshore
(Latin America)
United States
Onshore
Romania
Offshore
(Eastern Europe)
Moldova
Offshore
(Eastern Europe)
Vietnam
Offshore
(Asia)
Mexico
vs
United States
Front-End/Back-End DeveloperUSD 360
/ day
USD 1,200
/ day
USD 445
/ day
USD 360
/ day
USD 255
/ day
70 %

Companies can save up to 70% in labor costs when nearshoring to Mexico, depending on profile type and seniority.

  • Proximity to the US is the most important reason for outsourcing software development to Mexico. There are more than 300 daily flights from the U.S. to Mexico, with no travel restrictions and short-haul flights, saving you time and money when meeting face-to-face with an outsourced team (compared to an Asian IT Outsourcing destination). Besides the ease of travel, cultural similarities with the U.S., a convenient time zone difference, and English proficiency make Mexico a favorable choice for both East and West Coast clients, as it allows interaction with the outsourced teams during almost all their working hours.
Timezone DifferenceMexicoRomaniaMoldovaVietnam
US East Coast-1+7+7+11
US West Coast+2+10+10+14

According to the ″Mexico: Nearshore Leadership Amid Shifting Realities″ whitepaper, Mexico is the top country in Latin America for ease of doing business. Highlighting the key factors for American companies that have outsourced to Mexico, proximity emerged at the leader by a large margin.

Mexico most attractive qualities as an outsourcing destination

  • Technical Talent. With more than 120 universities and technical schools, Mexico is a world leader in computer science graduates, and the world’s third-largest exporter of IT services behind India and China. In 2015, the country produced 114,000 engineering graduates compared to 120,000 in the United States.
  • NAFTA membership provides an added advantage for any American company wishing to outsource its IT to Mexico. The North American Free Trade Agreement (NAFTA) allows the flow of non-tariffed goods and services. It also protects intellectual property rights (patent protection), as well as a strong IP regime.
In conclusion, Mexico is becoming an undeniable water well of resource for US businesses, given the IT&C labor shortage and intense wage inflation in Silicon Valley, making the nearshore delivery model an effective solution for them.

Mexico is a niche IT outsourcing destination, particularly in web development (front-end and back-end), mobile (Android / iOS), and graphics (media, design).

A chart outlining the demand for technical skills in Mexico, provided by Nearshore Americas, shows a strong need for Java, JavaScript, Android, iOS and .NET.

Demand chart technical skills mexico

Pentalog Guadalajara

Extending its global presence in Latin America, Pentalog has launched a Delivery Center in Guadalajara, Mexico’s “Silicon Valley.” Guadalajara is the main producer of software, electronic and digital components in Mexico and comprises 62% of Jalisco’s IT workforce.

We have projects in multiple fields, including mobile development, IoT, data science, machine learning, SaaS, health, education, business, MedTech, FinTech, and more. Our team of IT specialists is constantly growing and is eager to take on new challenges.

Pentalog Guadalajara provides full stack IT services, project kick-off in just two weeks, and quick team ramp-up of development teams in an Agile environment in another two weeks.

Our programmers are versed in a wide range of technology tools and frameworks: React, Python, .NET, Azure, AWS, NodeJS, Angular, GraphQL, Golang, iOS/Swift, Android/Kotlin, UI/UX. They’re also experienced in mobile apps, Lean, DevOps methods, and Agile methodologies.

Pentalog’s Guadalajara teams have a high level of seniority and a valuable tech expertise on projects in multiple sectors.

PENTALOG_Outsourcing_to_Mexico

Guadalajara is a little slice of heaven where, proportionally, there are a higher number of front-end developers than other countries, with slightly lower market prices.

See what happens when React and Industrial Engineering Meet.

Outsourcing IT services in Guadalajara, especially to Pentalog’s delivery center, comes with some interesting perks:

  • Excellent service quality at competitive prices
  • The cultural affinity of IT professionals versed in the American way of doing business
  • Accessible scaling of large teams that comes with cost advantage

Discover all the advantages of outsourcing IT services in Guadalajara.

About Pentalog

Pentalog is a one stop shop for design thinking, UI/UX, code nearshoring, tech consulting, growth hacking, and IT recruitment.

Pentalog provides services in:

  • IT engineering and lean product development in Eastern Europe, Asia, and Latin America
  • Strategic consulting (technology choices, security auditing, etc.)
  • UX/UI design and growth marketing services
  • IT skills assessment, IT recruitment and freelancing services by SkillValue
  • Startup funding services by Pentalabbs
  • Access to 1000+ Agile IT engineers and a talent pool of 300,000 IT specialists
  • 100% Agile project management
  • ISO 9001 certified software quality.