Mexico is increasingly becoming the go-to destination to outsource software development for companies based in the US and Canada. As employers turn to distributed teams, Mexico makes an ideal destination for companies looking to expand their technical teams.
The country is home to hundreds of thousands of skilled IT professionals. Its four time zones align with major cities like New York, San Francisco, and Toronto. And with a budding culture of innovation, it's the ideal hub for outstanding tech talent.
Here are some reasons why your company might consider hiring software engineers in Mexico.
1. Mexico Is Home to Highly Skilled IT Professionals.
Every year, 130,000 engineers graduate in Mexico. Plus, there are an estimated 700,000 developers already working in Mexico today. This makes the country a prime location for software engineering talent.
This is largely thanks to the Mexican government’s investment in Science, Technology, Engineering, and Mathematics (STEM) education. In the early 2000s, the government opened 120 tuition-free technology universities to boost Mexico’s competitiveness in the global market.
The strategy has proven successful. About 25% of all Mexican university graduates major in STEM. In 2021 alone, there were 3 million professionals working in STEM fields. About a quarter million students graduated with STEM degrees in the same year.
All this is great news for your growing tech business, signaling a wider talent pool of highly-skilled IT professionals.
2. The Country Has a Strong Culture of Innovation and Robust IT Infrastructure.
Mexico is actively nurturing a culture of innovation, investing in robust IT infrastructure to make it happen.
Right now, there are 38 IT parks across Mexico. In fact, Guadalajara in western Mexico is quickly making a name for itself as the “Silicon Valley” of Mexico.
Mexico's federal government and the Massachusetts Institute of Technology (MIT) have invested heavily in turning Guadalajara into a Creative Digital City. Now, the city hosts a multitude of local and international IT companies coupled with strong infrastructure to support their operations.
This innovative spirit is not localized to Guadalajara only. Mexico ranks 3rd in Latin America on the Global Innovation Index, and 58th globally. It is also close to the top of the digital maturity index, making it one of the best hiring locations in the region for tech-driven companies.
Overall, this bodes well for companies looking to hire global IT talent in Mexico. The mindset of innovation among Mexican developers and a strong network of motivated peers yields an environment ripe for exceptional technical talent.
3. It Is Easy to Align Communication and Company Values with Your Global Staff in Mexico.
One of the big advantages of hiring staff in Mexico is its North American location. Local time zones align nicely with those in Canada and the US. This makes it a lot easier to communicate with team members, streamline processes, and collaborate on projects.
- Southeast Mexico: Quintana Roo is located in Eastern Standard Time (but doesn't observe daylight savings). New York City and Toronto are also in EST.
- Central Mexico: The three main powerhouse economies of Mexico are located in Central Standard Time. This includes Mexico City (the capital), Guadalajara (the innovation capital we mentioned earlier), and Monterey (one of the richest economies in Mexico). Dallas, Chicago, and Winnipeg are also in CST.
- Pacific Mexico: This area includes states like Chihuahua and Sonora, and follows Mountain Time — same as Phoenix and Calgary.
- Northwest Zone: Finally, Baja California is in the Pacific Time Zone, just like San Francisco, San Diego, Seattle, and Vancouver.
In addition to easily aligning collaboration times, it is easy to organize face-to-face meetings if necessary. Flights between Mexico, the US, and Canada are abundant and relatively inexpensive. So, it’s easy to bring your teams together when they need some face time.
Finally, many professionals in Mexico speak fluent English. But hiring Spanish-speaking talent is also a big advantage if you are trying to break into Spanish-speaking markets.
4. You Can Save Money on Your Payroll While Hiring Some of the Global Top Talent in Mexico.
We understand that budgeting is crucial when it comes to human resources. Global hiring can help you save money on your payroll and hiring in Mexico is no exception.
For example, the average salary for a software developer in Mexico is about US $40,000 per year according to Glassdoor. This is less than half compared with the US, where a software developer might earn an average salary of US $95,000. This can represent big savings for your business.
Of course, you’ll need to carefully consider how much it costs to hire an employee in Mexico before making the leap. Some things to keep in mind are Mexico’s required Christmas bonus, payroll taxes, benefits, paid time off, and so on.
How Can I Hire a Software Engineer in Mexico?
The benefits of hiring a software developer in Mexico are clear, but how does a company go about it? To legally hire in Mexico, you’ll need to establish an entity in the country. This can be a bit of a legal nightmare.
Another option is to go through an Employer of Record (EOR) like Borderless.
Hiring in Mexico through an EOR is rather straightforward. The EOR takes care of all the legal aspects of hiring — contracts, payroll, benefits, and so on. This saves you the headache of understanding local processes while ensuring compliance with Mexico’s labor laws and regulations.
Want to learn more? Book a demo with Borderless today and begin your journey in global hiring.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
