Software Outsourcing in Mexico Report

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Software Outsourcing in Mexico Report

Let’s take a closer look at the advantages of software outsourcing in Mexico and how hiring talent here could revolutionize your software development team.

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Contents:

    Mexico at a Glance

    • Capital: Mexico City
    • Currency: Mexican peso (Mex$)
    • Time zone: GMT-5, GMT-6 & GMT-7
    • Population: 128.9 million
    • Software developers: 225,000+
    • Software development companies: 453 startups
    • Official language: Spanish
    • Democracy index: 5.57/10
    • Business climate: A4
    • Ease of doing business: 60/190

    Mexico is now a world leader in software engineer outsourcing. The key to this country’s success is its large, well-educated developer pool that’s ranked #2 worldwide in skills tests. Mexico is also known for its innovative startup community and proven outsourcing track record. In 2022, revenue for the software industry is expected to reach a whopping $3.6 billion.

    The Tech Ecosystem in Mexico

    Mexico has a first-rate tech scene that brings together IT programs, innovative startups, active developer communities and top outsourcing relationships. Here’s how Mexico’s tech ecosystem paves the way for excellent outcomes in software development outsourcing.


    Deep Tech Infrastructure

    Mexico is known for its robust, innovative tech ecosystem that includes government programs, tech parks and startup investments. Some top programs that make up its deep tech roots include:

    • 500 Startups LATAM: This program gives funding and mentorship to local startups across numerous industries.
    • Fondo Nacional Emprendedor: A government-run grant program to encourage entrepreneurs, especially in the tech industry.
    • Tuition-free tech universities: In recent years, Mexico opened 120 tuition-free tech universities to incentivize young people in STEM fields.
    • 20+ tech parks: Mexico has quite a few tech parks, including the Creative Digital City, Guadalajara Software Center, Apodaca Technology Park and Monterrey Technology Park.

    (Source: Statista)


    Mexico is also a hotspot for startups, with a total of 453 new ones as of 2022. While most are concentrated in Mexico City, both Monterrey and Guadalajara have become hubs for innovation as well. In addition, Mexico has achieved six unicorn companies in recent years, including:

    • Kavak (valued at $8.7 billion)
    • Bitso (valued at $2.2 billion)
    • Clip (valued at $2 billion)
    • Konfio (valued at $1.3 billion)
    • Merama (valued at $1.2 billion)
    • Clara (valued at $1 billion)

    The startup community here is known for its regular hackathons, such as Hack MTY. Developers in Mexico are also active with regular meet-ups with groups such as Agiles Mexico, Ironhack and Women Who Code.  

    Top Outsourcing Track Record

    (Source: Statista)



    Mexico is considered one of the best countries in Latin America to do business. With an ease of business score of 60, this country is known for its international partnerships and outsourcing.

    Specifically, Mexico’s ICT outsourcing surpassed $60 billion in revenue in 2021. According to experts, the software industry revenue alone will reach nearly $5 billion by 2026. These impressive numbers show that Mexico has a strong track record of software development outsourcing.

    In addition, tech brands have been maximizing the talent here by setting up offices in Mexico, including:

    • Netflix
    • Google
    • Microsoft
    • Amazon
    • Dell
    • Globant


    How do you hire a developer in Mexico?
    Get in touch with TECLA to get matched with top Mexican software professionals.

    The Mexican Software Developer Profile

    Mexico software engineers are some of the best and brightest in the world. Programmers here are the #1 most educated in LATAM and compete at a worldwide level, earning the #2 spot for the most skilled programmers in the world. Let’s go through what makes developers in Mexico ideal for IT outsourcing.

    Large Developer Talent Pool

    (Source: Statista)


    Second only to Brazil, Mexico has a massive developer talent pool with 225,000 developers. These numbers are sure to rise, as about 110,000+ engineers graduate in Mexico every year. This means Mexico will continue to have robust talent pools that U.S. companies can take advantage of.

    #1 Well-Educated in LATAM

    (Source: The World Bank – TCdata360)


    Mexico has the highest rate of engineering graduates in Latin America, with a rate of 25% of all tertiary degrees related to STEM fields.

    Mexico’s educational institutes are highly regarded as well, with six universities ranked in the top 50 in Latin America. Top institutions include the National Autonomous University of Mexico, Tecnologico de Monterrey, Benemerita Universidad Autonoma de Puebla, National Polytechnic Institute and more.

    World-Class Tech Talent

    (Source: 2022 Pentalog Report)


    Given Mexico’s strong tech educational system, it’s no surprise that software engineers here are highly skilled. According to Coursera’s developer skills tests, Mexico has earned top rankings in areas such as:

    • data analysis (99%)
    • mobile development (94%)
    • probability and statistics (72%)
    • operating systems (55%)
    • statistical programming (54%)

    In addition, Mexico is ranked #2 in the world for best developers by the 2022 Pentalog report, which is based on specialized SkillValue tests. Specifically, Mexican developers scored #1 in the world for Python and C/C++ programming. Overall, Mexico has exceptional talent that competes at the global level.

    Build a powerful software development team with talent from Mexico. Leverage our pool of top engineers at TECLA today.

    Why Mexico-U.S. Collaboration

    Why outsource to Mexico? In addition to its excellent talent, Mexico is a top-tier software outsourcing destination because it promotes collaborative processes. Here’s why Mexico is well-equipped to produce top software development outcomes.

    Overlapping Time Zones

    Mexico shares time zones with the U.S. (Pacific, Mountain and Central), which means developers may have up to a full 8 hours of overlap. This is highly advantageous to boost real-time collaboration, especially when it comes to meetings, feedback and iterating products. In addition, Mexico has the advantage of being close by geographically. Most flights to Guadalajara, for example, are within 5 hours of major U.S. cities.

    Cultural Proximity

    Mexicans generally have good working knowledge of U.S. culture, especially regarding the workplace, deadline expectations and quality standards. Though Mexico’s English skills aren’t rated highly on the EF EPI index, developers in Mexico tend to have excellent communication skills. With their cultural know-how, these engineers are able to build strong relationships with U.S. companies.

    Ideal for Agile Development

    Mexico is also ideal for streamlining agile processes. With nearby time zones, cultural know-how and more, developers in Mexico achieve highly efficient, real-time collaboration. These engineers are able to build better products through stand-up meetings, real-time feedback and brainstorm sessions.

    Software Engineer Salary in Mexico

    Although Mexico has elite development talent, it doesn’t come at a steep price. Software developer salaries in Mexico are cost-effective, especially compared to the U.S. and Europe. The relatively low level of Mexico software engineer salaries offers companies a great opportunity.

    Salary Range Based on Popular Technologies

    Of course, the final cost of hiring Mexican developers will depend on their specialized skills and level of experience. Here’s what companies can expect when hiring for popular technologies and more specialized areas in Mexico.

    Technologies Average Salary for Equivalent (Top-Rated) U.S. Talent Rates of Top Developers from Mexico on TECLA platform
    Python $175,000 - $195,000 $65,000 - $92,000
    JavaScript $165,000 - $185,000 $67,000 - $92,000
    Node.js $165,000 - $185,000 $62,000 - $85,000
    Ruby $175,000 - $200,000 $72,000 - $100,000
    PHP $135,000 - $145,000 $58,000 - $75,000
    Java $152,000 - $175,000 $68,000 - $88,000
    iOS $150,000 - $182,000 $71,000 - $95,000
    Android $150,000 - $185,000 $65,000 - $88,000

    Summary of Mexico Software Outsourcing Benefits

    The IT Ecosystem

    Software Developer Profile

    Mexico-U.S. Collaboration

    Cost of Hiring Mexican Devs

    • Deep tech infrastructure
    • Innovative developer community
    • Top outsourcing track record
    • Large developer talent pool
    • #1 well-educated in LATAM
    • World-class tech talent
    • Overlapping time zones
    • Cultural proximity
    • Ideal for agile development
    • Affordable developer salaries


    Overall, Mexico is one of the best software outsourcing destinations in the world. Besides its large candidate pool and top tech educational system, Mexico also boasts of excellent cultural know-how and agile collaboration.

    As you look for outstanding developers for your IT needs, Mexico may be the perfect fit. To make the most of talent here, leverage our pool of vetted Mexican software engineers at TECLA and empower your software development team to do more.Mexico is an excellent software outsourcing destination that has topped rankings worldwide. Its huge talent pool includes developers who are highly educated and skilled, especially in Python and C/C++. Not to mention that Mexico shares a border with the U.S., which means professionals here have a deep understanding of U.S. workplace culture.

    Nadia Hlebowitsh

    By 

    Nadia Hlebowitsh

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