Nearshore Software Development in Mexico: How to Benefit

Anastasia Stefanuk

Nearshore software development Mexico might not be the first thing that comes to mind when looking for dedicated developers. It is a new and rapidly growing outsourcing destination with many exciting opportunities.

Software development in Latin America is gaining more traction in terms of software development services, including Mexico, Brazil, Chile, and Argentina software development outsourcing. So what exactly makes nearshoring Mexico such a beneficial choice for international partners?

Let’s start with Mexico’s software development outsourcing market overview.

Nearshoring to Mexico is especially popular among US companies that always lack talent. Mexico is approximately close; there is little time difference, easy travel, and cultural overlapping. Nearshoring software Mexico is also beneficial in terms of mature infrastructure, governmental support, and good STEM education.

In 2019 the IT market worth of Mexico was estimated at $12.9 billion. Mexico software development also brings huge profit – IT services sales revenue in 2018 was about $9.25 billion.

Mexico is leading in Latin America in terms of STEM education, nearshore software development Costa Rica is also in demand. It has even outperformed the USA in the number of yearly graduates. IT outsourcing Mexico contributes to the country being the second economy in Latin America. And NAFTA agreement made Mexico nearshore software development even more attractive to the US and Canadian businesses.

The local IT market follows all the newest trends, including blockchain, IoT, cloud analytics, business intelligence, AI, and, of course, web and application development.

The country’s top industries include automotive, telecommunications, banking, finance, agriculture, and manufacturing.

Counry Profile

Time Zone: GMT-6

Average Monthly Rate: $1,470

Biggest Tech Hubs: Guadalajara, Mexico city, Monterrey, Tijuana, Querétaro, Cancún

Size of Talent Pool: about 223,400

Popular Technologies: Java, JavaScript, PHP, C#, C++, Python, Android

Nearshore Software Development Mexico: Pros and Cons

Many companies choose nearshore software development Mexico because of the prominent benefits the destination has to offer. But it is also worth considering that nearshoring Guadalajara or other city has also cons to it, like any other place.

Here are the main pros of Mexico software development outsourcing for enterprises:

• Mexico software outsourcing offers a wide talent pool and experienced professionals. The country graduates more STEM students than the USA. And education is hugely supported by governmental investment.
• Nearshore software development Mexico allows reducing costs as the salaries are lower than in the US, Canada, or the UK.
• English is pretty well-spoken among white-collar business professionals. It makes software development Mexico more convenient in terms of direct communication.
• The country invests in proper STEM education and technology parks. The economy is also quite stable; it is the second in Latin America after Brazil and 11^th in the world.
• US companies chose outsourcing software development to Mexico also because of the time and location convenience. It is easy to travel there, locals have a good understanding of American culture, and there is little to no time difference.

The advantages of nearshoring software development to Guadalajara or Cancun are quite convincing. But, before, you start to look for a nearshoring partner in Mexico, consider some disadvantages and risks this outsourcing destination has.

Cons of software development outsourcing 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 issues might occur in the border cities to IT hubs;
• Although Mexicans have an understanding of American culture in general, they are still quite different when it comes to labor. They are not very deadline-oriented and tend to treat deadlines more like a suggestion.
• Software development outsourcing to Mexico can be complicated in terms of local bureaucracy and legislation. Many times businesses have to partner with shelter companies or local providers.

If you decide to outsource software development to Mexico, you need to be aware of possible risks. After all, it is an important decision that will impact the success of the future project.

Alternative to Mexico Software Development Outsourcing

Some businesses might look for alternative destinations because Mexico isn’t comfortable for them in terms of location, price, or quality of labor. One of the rising outsourcing locations nowadays in Eastern Europe. It is much closer to the 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, great talent pool, and similar working ethics. Here are the main benefits of Ukraine for software development outsourcing:

• Exceptional skills. Ukrainian developers are known for their expertise and ability to tackle any project. They are 14^th worldwide according to TopCoder (Mexico is 22). 
• Ukrainian programmers have great English proficiency and similar work culture to Europe. They also are known for excellent STEM education, with about 16,000 graduates per year.
• Ukraine is located in Europe, making it very comfortable in terms of location and time difference for many international partners. It ensures direct communication between each SW development engineer and international companies, in-person meetings, and effective management.
• It is a world-recognized tech hub with 100 R&D centers from Forbes 500, and about 12,000 excellent IT companies.

Eastern Europe and Ukraine, in particular, is a great option, especially for the European partners. It is much closer in terms of location and cultural similarity than Mexico. And there is a great 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 professionals in programming.”

Software Development Outsourcing Mexico vs. Ukraine: Salaries Comparison

Another crucial benefit of Ukraine as an outsourcing destination is that it also helps companies reduce software development budgets. The salary rates here are not much different from Mexico; here is a comparison table.

*Rates are provided by the research done by our in-house Recruitment Team over local job boards

Attractiveness to EU Partners: Comparison of Ukraine and Mexico

To sum up all that has been stated before, have a look at the overall comparison of both destinations and their benefits to European partners:

Of course, the choice of outsourcing country depends on particular requirements and expectations of a company, as well their budget. The next step is to find an excellent local service provider to find you a dedicated development team. It helps to find talent quickly, scale up or down the team, and finish the project in time without any risks.

Mobilunity – Experienced Ukrainian Vendor

Mobilunity is a Ukrainian outstaffing company that has been providing excellent services for more than 10 years. We have more than 40 satisfied international clients that 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 top-profile developers for any project or technology you are interested in. Whether it is a cloud migration, web or mobile app development, ERP solution, or cybersecurity – Ukrainian programmers are ready to help.

Mobilunity offers reasonable prices, transparent cooperation, and excellent results.

Looking for the best nearshore software development in Mexico or Ukraine? Contact Mobilunity to start today!