Nearshore software development in Mexico may not be the first thing that comes to mind when looking for dedicated developers. It is a new and fast growing outsourcing destination with many exciting opportunities.
Latin America is gaining more traction in terms of software development services, including software development outsourcing to Mexico, Brazil, Chile and Argentina. So what exactly makes Mexico’s nearshoring such a beneficial choice for international partners?
Let’s start with the overview of the software development outsourcing market in Mexico.
Nearshoring in Mexico is especially popular with US companies that are always lacking in talent. Mexico is roughly close; there is little time difference, easy travel and cultural overlap. Nearshoring Mexico software is also beneficial in terms of mature infrastructure, government support, and good STEM education.
In 2019, the value of Mexico’s IT market was estimated at $ 12.9 billion. Software development in Mexico also brings huge profits: revenues from IT service sales in 2018 were approximately $ 9.25 billion.
Mexico is a leader in Latin America in terms of STEM education, even nearshore software development is in demand from Costa Rica. It has even surpassed the United States in the number of annual graduates. Mexico’s IT outsourcing helps make the country the second largest economy in Latin America. And the NAFTA agreement has made nearshore software development in Mexico even more attractive to US and Canadian companies.
The local IT market follows all the latest trends, including blockchain, IoT, cloud analytics, business intelligence, AI and, of course, web and application development.
Major industries in the country include automotive, telecommunications, banking, finance, agriculture, and manufacturing.
Time zone: GMT-6
Average monthly rate: $ 1,470
The largest technology hubs: Guadalajara, Mexico City, Monterrey, Tijuana, Querétaro, Cancún
Size of the talent pool: about 223,400
Nearshore software development Mexico: pros and cons
Many companies choose nearshore software development in Mexico because of the significant benefits the destination has to offer. But it’s also worth considering that proximity to Guadalajara or another city also has drawbacks, like any other place.
Here are the main benefits of software development outsourcing in Mexico for business:
- Software outsourcing in Mexico offers a large pool of talented and experienced professionals. The country has more STEM students than the United States. And education is hugely supported by government investment.
- Nearshore software development in Mexico helps reduce costs as salaries are lower than in the US, Canada or the UK.
- English is spoken quite well among white-collar business professionals. It makes software development in Mexico more convenient in terms of direct communication.
- The country invests in adequate STEM education and technology parks. The economy is also quite stable; it is the second in Latin America after Brazil and 11th in the world.
- US companies have chosen to outsource software development to Mexico also for the convenience of time and location. It’s easy to travel there, the locals have a good grasp of American culture, and there’s little or no time difference.
The benefits of nearshoring software development in Guadalajara or Cancun are quite compelling. But, first, start looking for a nearshoring partner in Mexico, consider some drawbacks and risks this outsourcing destination has.
Cons of outsourced software development in Mexico:
- Overall, nearshore software development in Mexico is quite safe. But there is still a reasonable level of risk that has to do with crime rates and gun violence in the country. These problems could occur in border towns to IT hubs;
- Although Mexicans have an understanding of American culture in general, they are still quite different when it comes to work. They are not very deadline oriented and tend to consider deadlines more as a suggestion.
- Outsourcing software development in Mexico can be complicated in terms of local red tape and legislation. Many times companies have to collaborate with host companies or local suppliers.
If you decide to outsource software development to Mexico, you need to be aware of the possible risks. After all, it is an important decision that will have an impact on the success of the future project.
Alternative to outsourcing for software development in Mexico
Some companies may seek alternative destinations because Mexico is not comfortable in terms of location, price or quality of work. One of the growing outsourcing locations in Eastern Europe today. It is much closer to EU partners and can offer excellent development teams at reasonable prices.
One of the main outsourcing countries in Eastern Europe is Ukraine, as it has a booming IT market, a large talent pool and a similar work ethic. Here are the main advantages of Ukraine for outsourced software development:
- Exceptional skills. Ukrainian developers are known for their experience and ability to tackle any project. I’m 14th worldwide according to TopCoder (Mexico is 22 years old).
- Ukrainian programmers have an excellent knowledge of English and a work culture similar to that of Europe. They are also known for excellent STEM education, with around 16,000 graduates per year.
- Ukraine is located in Europe, which makes it very comfortable in terms of location and time difference for many international partners. It guarantees direct communication, face-to-face meetings and effective management.
- It is a globally recognized technology hub with 100 Forbes 500 R&D centers and approximately 12,000 excellent IT companies.
Eastern Europe and Ukraine in particular are a great option, especially for European partners. It is much closer in terms of location and cultural similarity than Mexico. And there is a large talent pool of experienced programmers to choose from.
For example, one of Mobilunity’s clients, Steffen Bernhardt, noted that So outsourcing to Ukraine gives you access to incredibly skilled developers:
“Mobilunity helps us solve important projects with perfectly selected high-potential programming professionals.”
Software Development Outsourcing Mexico vs. Ukraine: comparison of salaries
Another crucial advantage of Ukraine as an outsourcing destination is that it also helps companies reduce their software development budgets. The salary rates here are not very different from Mexico; here is a comparison chart.
|Position||Ukraine – monthly salary||Mexico – monthly salary|
|PHP junior||$ 1,000 *||$ 863|
|Medium PHP||$ 2,000 *||$ 1,440|
|Java junior||$ 1,000 *||$ 1,020|
|Central Java||$ 2,000 *||$ 1,900|
|.NET junior||$ 1,000 *||$ 890|
|.NET means||$ 2,000 *||$ 1,760|
|Junior python||$ 1,000 *||$ 1,200|
|Half in python||$ 1,800 *||$ 2,150|
|C # junior||$ 500 *||$ 1,100|
|C # in the center||$ 2,000 *||$ 1,830|
|Android junior||$ 1,000 *||$ 1,100|
|Android Center||$ 2500 *||$ 1,900|
* Rates are provided by research done by our internal recruiting team on local job boards
Attractiveness for EU partners: confrontation between Ukraine and Mexico
To summarize everything that has been stated before, take a look at the general comparison of both destinations and their advantages for European partners:
|Time zones overlap||GMT-6||GMT + 2|
|Size of a tech talent pool||223.4000||200,000|
|Knowledge of the English language||Low, 82d worldwide||Well, 44th Worldwide|
Of course, the choice of country outsourcing depends on a company’s particular requirements and expectations, as well as its budget. The next step is to find an excellent local service provider to find a dedicated development team. It helps to quickly find talent, increase or decrease the team and complete the project on time without risk.
Mobilunity – Experienced Ukrainian seller
Mobilunity is a Ukrainian company that has been providing excellent services for more than 10 years. We have more than 40 satisfied international customers who have achieved business success with the help of dedicated developers.
Our long-standing partners include XPLG (Israel), Paidy (Japan), ICUC Social (Canada), Esurance (Switzerland) and Zenchef (France). We know exactly how to find the perfect high-profile developers for any project or technology you’re interested in. Whether it’s cloud migration, web or mobile app development, ERP solution or cybersecurity, Ukrainian programmers are ready to help you.
Mobilunity offers reasonable pricing, transparent collaboration and excellent results.