Outsourcing to Mexico – the rising star of nearshoring

Why you should steer your outsourcing to Mexico

It’s a fact – nowadays everyone is living digitally. Moreover, in a perspective made by Deloitte, nowadays to grow means to partner – or in other words to outsource. If your business is US-based, you should steer your outsourcing to Mexico.

Why Mexico? Because it is ranked as 13th by A.T. Kearney Global Services in Location Index and as 15th largest economy in the world and Goldman Sachs predict that in 2050, it will become the world’s fifth-biggest economy. Moreover, the are several other benefits that help companies of all sizes.

NAFTA membership and the FinTech Law

When it comes to the IT sector, the one in Mexico is ranked as the 2nd most valuable industry. The IT outsourcing industry has a total value of $12 billion per year. However, it’s estimated to keep increasing, especially since across the years, some of the largest development and IT companies oriented to open franchises in Mexico. Most of them are coming from Silicon Valley and New York, especially since Mexico holds proficient English speakers and qualified labor at all levels.

Furthermore, the NAFTA membership comes as an advantage for any US-based company that intends to steer their outsourcing to Mexico. The North American Free Trade Agreement allows the flow of non-tariffed goods and service while ensuring the protection of intellectual property rights (patent protection), as well as a strong IP regime.

Also, in 2018, the Mexican government passed a law that regulates and helps FinTech companies to prosper. After this regulation, the local FinTech industry has seen a 50% growth.

outsourcing to mexico

Why outsourcing to Mexico is the best choice for
US-based companies

  • Cost-effectiveness

In terms of rates, Mexico is considered a “middle-cost country”, with hiring rates similar to Eastern Europe, thus developers are much cheaper than the ones based in the US, yet with no sacrifice in regards of quality.

  • A rising nearshoring destination for the US

With 1 hour behind the East Coast and 2 hours ahead of the West Coast, Mexico is the best outsourcing choice for US companies. Because of the proximity, almost all of your working hours are in common. Additionally, all developers are fluent in English and also familiar with the culture and customs.

  • Constant flights

There are  64 airports available and more than 300 flights daily from Mexico to the US, with no travel restrictions. This way you can ensure smooth communication and on-site visits with your nearshoring team, making the collaboration run flawlessly.

  • Top-notch technical talent

Mexico has more than 120 universities and technical schools, becoming one of the world leaders in computer science graduates – more than 114,000 engineer graduates yearly, Mexico ranks close to the US. Moreover, UNAM (Universidad National Autónoma de México) is ranked #103 worldwide and is considered to be one of the best in Mexico.

Mexico grew and matured in the past years, becoming an essential destination for outsourcing, through its available talent, cultural and time-zone proximity and professionalism. Moreover, the shortage of IT&C labor and the amplification of Silicon Valley’s wage inflation made Mexico an efficacious and fruitful nearshore solution.

The most abundant IT outsourcing niches in  Mexico are:

  • Web Development: front-end and back-end
  • Mobile: iOS, Android
  • Graphics: design, media

Pentalog Guadalajara

Having US-based clients, Pentalog has seized Mexico’s potential. We have extended our global presence through Latin America, choosing Guadalajara as the home of our Delivery Center. Dubbed as Mexico’s “Silicon Valley, where major companies extended as well, Guadalajara has become in the past years a vivid center, crowded with tech talent and a high potential for becoming the next top nearshoring destination.

62% of Jalisco’s workforce is comprised of IT engineers.

As all of our Delivery Centers, Pentalog Guadalajara provides a wide, full-stack range of IT services, all of our developers being seasoned with more than a pinch of Agile. We can kick-off your project in 2 weeks and ramp-up the desired team in another 2.

In our tech languages portfolio, we boast with React, Node.js, Angular, Python, .NET, Azure, AWS, GraphQL, iOS, Android and UI/UX. Moreover, among the multiple industries we embraced, we can count MedTech, FinTech, IoT and many more others. Our team is on the verge of growth and ready to tackle all of your challenges.

Great Digital Products Aren’t Created By AccidentPentagility Means IT Excellence at Speed

Creating great software starts with a team that breaks down silos, anticipates risks and communicates openly.
Pentalog equips teams with modular rules and dashboards, to ramp up, scale and pivot quickly, with minimal friction.
We call this toolkit Pentagility, an agile governance methodology for building trusted client relationships.

About Pentalog

Pentalog is not only an outsourcing company – it’s a dedicated partner that will assist your digital product at all stages – from design thinking, consulting, outsourcing growth hacking to IT recruitment. Whenever you choose to work with any of Pentalog’s Delivery Centers you plug into an entire digital ecosystem, having the opportunity to access any of the aforementioned services.

On short, Pentalog provides:

  • Software engineering and digital product development on 3 continents – Central & Eastern Europe, Asia and Latin America
  • Agility, bred in the bone – 15+ years of 100% Agile project management
  • ISO 9001 certified software quality in our Romanian, Moldovan and Vietnamese Delivery Centers
  • A global team of 1,200 full-time Agile IT engineers
  • Strategic consulting – technology, security, DevOps
  • Innovation and growth marketing services
  • IT skills assessment, IT recruitment and freelancing services provided by SkillValue
  • A private tech community of 400,000 IT specialists
  • IT for equity services, provided by Pentalabbs (27 startup investments, with 3 successful exits)