American companies have traditionally outsourced work to India, Eastern Europe, and Asia. But in recent years, the U.S. has relied less on traditional partners and begun working closely with its neighbors by outsourcing to Mexico. When it comes to technology, Mexico has a strong labor force of well-trained software developers and IT specialists. Here are details on why Mexico has become a hotbed for outsourcing.
Cost Advantages
Many small businesses in America cannot afford an in-house software development team at U.S. labor rates, which is why they outsource for a lower cost. While a Senior PHP developer in the U.S. typically earns $58 per hour, the same position in Mexico pays $12/hr. Similarly, U.S. Senior JavaScript developers earn $57/hr while the job pays $14/hr in Mexico. You get the same quality work at a much lower price by outsourcing to professionals in Mexico.
Strong Tech Talent Graduates
Mexico has invested well in its education system, accounting for over 113,000 tech grads per year. In 2015, Mexico’s output of STEM graduates was comparable to its northern neighbor. The nation now ranks number six in the world at producing computer science graduates, which amounts to 13,000 students per year. The government is further investing in developing the nation’s IT industry so that graduates have jobs. It’s possible to customize your outsourced team of tech talent based on recent graduates or more experienced talent.
Developed Infrastructure
The Mexican government has committed to technology and has a mature infrastructure that attracts international talent buyers. Currently, over 300 flights are conducted daily from the U.S. to Mexico. On top of that, the rise of business parks throughout Guadalajara has made the area the epicenter of Mexico’s tech industry. As Mexico’s “Silicon Valley,” Guadalajara is home to many high-end software engineers and developers. These professionals sell their talent to the global marketplace with Northern America being a top target market.
Real-Time Collaboration
It’s easy for American businesses to communicate in real-time with remote teams in Mexico for collaborative efforts because the U.S. and Mexico share the same time zones. In that sense, it’s easier for a U.S. firm to collaborate with a team in Mexico than in India. As for meeting in person, it’s a much shorter flight for Americans to travel to Mexico than across the Atlantic or Pacific Oceans. There’s also less of a language barrier since many Americans speak Spanish and many Mexicans speak English.
Low Staff Turnover
There is a low attrition rate among Mexico’s software development and IT companies compared with other nations. Working with the same personnel over time helps yield consistency and mature output. Less money is spent on training when the same remote workers can be retained and become familiar with their clients’ infrastructures. In general, consistency in outsourced teams contributes to long-term sustainability, allowing for more predictable budget planning.
Pro Service Delivery
The agile delivery services found in the U.S. are matched by Mexico’s just as speedy services. As a result, Mexico is increasingly attracting work from other nations because of its rapid advancements in computer technology and high-speed broadband accessibility. These systems are helping to make service delivery more efficient, as Mexico-based firms are comparable to American equivalents on timescales, deliverables, and processes.
Conclusion
Many benefits exist in outsourcing to Mexico for companies around the world. Not only does Mexico have a mature infrastructure that supports new technological development, but it also has well-educated tech talent ready to create new software programs for clients around the world. Lower costs allow companies to do more with their technology budgets to strengthen their productivity and revenue streams. Find out more here about opportunities to outsource software development to Mexico.