TECLA

Nearshore Software Development in Mexico Report

Contact Us
Nearshore Software Development in Mexico Report

Let’s take a closer look at the advantages of nearshore software development in Mexico and how hiring talent here could increase your profits without sacrificing the quality of your products and services.

Ready to start nearshoring your software development in Mexico?

Contents:

    Watch a Video Summary of the Report:

    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 development nearshoring and outsourcing. The key to this country’s success is its large, well-educated developer pool, ranked #2 worldwide in skills tests. Mexico is also known for its innovative startup community and proven outsourcing track record. In 2023, revenue for the software industry is expected to reach a whopping $3.9 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 nearshoring.



    Deep Tech Infrastructure


    Mexico is known for its robust, innovative tech ecosystem, which 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 Mexican government-run grant program encouraging 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.

    A bar graph with the amounts of startups per Mexican province. Mexico City is number one with 230 startups out of 453 in the country.

    (Source: Statista)


    Mexico is also a hotspot for startups, ending 2022 with a total of 453 new ones as, and the number will keep increasing in 2023. While most are concentrated in Mexico City, both Monterrey and Guadalajara have also become hubs for innovation.. 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 Nearshoring Track Record

    A bar graph showcasing Mexico's increasing outsourcing track record until 2026

    (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 market.

    Specifically, the overall revenue generation for ICT in Mexico is estimated at US$ 181.27 billion between 2022 to 2026. These impressive numbers show that Mexico has a strong nearshore software development track record.

    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 start nearshoring your software development in Mexico?
    Get in touch with TECLA to and start building your very own team of engineers in Mexico.


    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 with years of experience to back them. Let’s go through what makes developers in Mexico ideal for IT nearshoring.

    Large Developer Talent Pool

    A graph showcasing the developer talent pool in Mexico compared to other Latin American countries. Currently Mexico is number 2, following Brazil.

    (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. tech companies can take advantage of.


    #1 Well-Educated in LATAM

    Linear chart showing Mexico's top education records. Mexico has the highest rate of engineering graduates in Latin America.

    (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

    World ranking showing Mexico as number 2 in top tech talent, below Moldovia.

    (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 (38%)
    • machine learning (20%)
    • probability and statistics (83%)
    • data management (55%)
    • statistical programming (50%)

    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


    Still wondering why you should nearshore your software development in 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), meaning developers may have up to a full 8 hours of overlap. This is highly advantageous to boost real-time collaboration amongst team members, 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 a 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 brainstorming 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: Benefits of Nearshore Software Development Services in Mexico

    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.


    FAQ's About Nearshore Software Development in Mexico

    Why Outsource to Mexico?
    In addition to its excellent talent, Mexico is a top-tier software outsourcing destination because it promotes collaborative processes. Amongst the top benefits are Overlapping Time Zones with the US and Canada, Cultural Proximity, and Ideal Agile Development.
    Is Mexico good for IT outsourcing?
    Yes, Mexico is a great destination for IT outsourcing. It has a well-established tech industry, a large pool of skilled professionals, and a favorable business environment.
    What U.S. companies do business in Mexico?
    Tech brands have been maximizing the talent here by setting up offices in Mexico, including Netflix, Google, Microsoft, Amazon, Dell and Globant.
    How Many Software Developers Are in Mexico?
    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.
    How to Recruit Mexican Developers?
    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

    Nadia Hlebowitsh

    How Much Are Developers in
    LatAm Making?

    2024 LATAM Tech Compensation Report
    Checkmark
    Thank you!
    E-book Sent!
    Something went wrong! Please try again
    By submitting, you are agreeing to our privacy policy
    Looking For Top Software Engineers And Tech Talent?
    Contact Us
    Categories
    Insights
    TECLA
    Recruiting
    TECLA
    Case Studies
    TECLA
    LATAM Reports
    TECLA
    Management
    TECLA
    Go to Top
    America Map
    TECLA
    Checkmark
    Checkmark
    Checkmark
    By submitting, you are agreeing to our Privacy Policy and Terms of Service
    Thank You!
    Someone from our team will be in touch within 24 business hours.
    Something went wrong while submitting, please try again
    TECLA

    Get Our 2024 LatAm Salaries Report!

    Checkmark
    Checkmark
    The report has been emailed to you
    Oops! Something went wrong while submitting the form.
    X
    X
    X
    America Map
    Ready?
    Meet Elite, Vetted, Tech Talent in
    Latin America
    How can we help? Let us know and we'll be in touch ASAP!
    Checkmark
    Checkmark
    Checkmark
    By submitting, you are agreeing to our privacy policy and terms of service
    All Set!
    We'll get in touch in less than 48 hours
    * Something went wrong! Please try again
    software-outsourcing-mexico-report
    8
    X