Outsourcing IT Remote Teams to Mexico

22 May 2020

Outsourcing IT Remote Teams to Mexico

by Sngular

Outsourcing IT remote teams to Mexico is a good strategic decision for many companies. Mexico’s strategic positioning makes it an important hub for software development and outsourcing partner in the United States, Canada, and other Latin American countries. 

Yet, it is not only the geographical proximity to the United States and Canada that makes Mexico an ideal place to create development teams. It is also the great influence the rest of Latin America as one of the most mature economies of the region. This has given Mexico a clear competitive advantage over many other Latin American countries creating excellent opportunities for attracting talented developers.

Furthermore, Mexico offers a stable economy with the second-largest economy in Latin America and the 15th largest in the world. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, trade has tripled to the U.S. and Canada. The forthcoming United States-Mexico-Canada Agreement (USMCA) will continue to ensure that Mexico, the U.S., and Canada have great trade understandings with each other. 

There are many other factors that make Mexico a great place to outsource IT remote Software Development projects. Let’s review some of them:

Cultural Connections

Mexico has always had an undeniable cultural affinity with its neighbors to the north. Given the proximity, there is a blend of cultures that helps reduce possible disagreement between teams.

In software development projects, this proximity and cultural connection facilitate communication and relationship building between teams. In those projects that require daily interaction, especially those using an agile methodology, familiarity with the culture allows flexibility, collaboration, creativity, and efficiency. 

Geographical Proximity & Same Time Zone

The geographical proximity gives Mexico a great advantage over more remote places, like India. Mexico offers the possibility of real-time collaboration as their time zones overlap perfectly with the U.S. and Canada. 

The biggest time difference there can be from any place in the U.S., for example, is a two hour difference. That means people and businesses in Mexico usually have the same work hours as their neighbors. This makes a big difference in the levels of productivity and efficiency, facilitating and strengthening the communication between all team members.

Furthermore, this closeness is not only exclusive to remote collaboration but also facilitates travel. The excellent flight connections from Mexico to the U.S. or Canada make short trips for coordination possible. 

Great IT Talent

Mexico is a country with a large pool of IT professionals and leading universities, such as the Instituto Tecnológico de Monterrey. The country’s more than 120 universities and technical schools graduate more than 100,000 Mexican developers every year. The universities’ investment in Computer Science and STEM-related careers has allowed the growth of stem graduates in recent years. This will provide a robust pipeline of college graduates for years to come.

Furthermore, there is a great innovation ecosystem, represented by many successful startups that have helped digitize the country at great speed. Large companies worldwide have also heavily invested in promoting the digital transformation of the country. These investments are visible in the shifts and improvements of products and services in recent years. 

Competitive Salaries

Mexico offers a low cost of living and. Therefore, the country offers more competitive salaries and cost-effectiveness for software development projects.  IT professionals in the U.S. and Canada are known worldwide for their excessive rates. Not to mention the tremendous competition to attract the best talent in countries with high levels of IT PRO shortage, making the development of IT projects unfeasible.  

Mexico offers more competitive salaries for software development projects. Having IT professionals from Mexico City, for example, can be a huge competitive advantage.

Furthermore, some big IT companies such as Oracle and Amazon are looking to expand their operations into Mexico with remote teams. More international companies are looking for offshore software development IT teams and tech support directly in Mexico. This increase in investment will drive innovation and efficiency improvements in the industry.

Want to know how our Agile Connected Teams can help your organization with a remote team in Mexico? Answer these five questions.

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