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24 May 2021

How to Employ Mexican Nearshore Software Developers

Mexico, the USA’s next-door neighbor, is known for its diverse and delicious cuisine, beautiful ancient ruins, and white sand beaches. Home to 128 million people, Mexico is also a top choice for companies looking to hire top-level software engineers in Latin America.  

Software development in Mexico & Hiring Nearshore Developers

Mexico is home to many top software engineering firms, ranging from small and well-known consultancies like Codebay and Teravision to large multinationals like Oracle. Mexico is also home to large financial institutions like BBVA, Santander, and HSBC Mexico. These have strong software engineering divisions, and many software engineers in Mexico work with financial institutions at some point in their careers. As with many countries, software engineers in Mexico tend to be based in the largest cities: Guadalajara (home to the majority of the country’s developers), Ciudad de Mexico (the capital), and Monterrey, though there are plenty of talented developers scattered throughout the country in less populous areas, as well.

It’s interesting to note that different cities in Mexico tend to specialize in different languages and areas of expertise. For example, the best full-stack developers, as well as front- and back-end developers, can be found in Guadalajara. If you’re looking for QA engineers in Mexico, Monterrey is a good bet. If you’re looking for the best web and mobile developers in Mexico, the Ciudad de Mexico is a good place to start.

Why You Should Hire Developers in Mexico

Hiring developers from Mexico presents a strategic advantage for businesses looking to enhance their technological capabilities while ensuring cost-effectiveness and quality. Mexico has emerged as a prominent nearshore development destination for several compelling reasons:

Proximity and Time Zone Alignment

One of the primary benefits of working with Mexican developers is their geographical proximity to the United States and Canada. This proximity facilitates smoother collaboration and communication due to minimal time zone differences, allowing for real-time interactions and faster decision-making processes. It ensures that project milestones are met with greater efficiency, enhancing productivity and reducing time-to-market for new products and services.

Cost-Effective Talent

Mexico offers access to a pool of highly skilled developers at a significantly lower cost compared to their counterparts in the U.S. and Canada. This cost advantage does not come at the expense of quality; Mexican developers are well-known for their technical proficiency, creativity, and innovation. Businesses can leverage this cost-effectiveness to scale their development teams, optimize their budget, and invest savings into other critical areas of their operations.

Cultural Affinity

Mexicana and other nearshore developers share a cultural affinity with U.S. and Canadian businesses, which is a crucial factor for seamless integration into existing teams. This cultural alignment minimizes misunderstandings and fosters a collaborative working environment, thereby enhancing team dynamics and project outcomes.

Strong Educational Background

Mexico has a robust educational system with numerous universities and technical institutes focusing on engineering and technology, producing a steady pipeline of talented developers. These institutions often collaborate with the tech industry to ensure that the curriculum is aligned with current market demands, thereby equipping graduates with the skills and knowledge required to tackle contemporary technological challenges.

Growing Tech Ecosystem

Mexico's tech ecosystem is vibrant and rapidly growing, supported by government initiatives, investments in technology parks, and a flourishing startup scene. This dynamic environment encourages continuous learning, innovation, and entrepreneurship among Mexican developers, making them well-versed in the latest technologies and development methodologies.

Overall, hiring developers from Mexico offers businesses a unique blend of advantages, including cost savings, talent quality, cultural compatibility, and strategic geographic location. These benefits make Mexico an attractive destination for companies seeking to augment their development capabilities and drive digital transformation initiatives effectively.

Most popular languages and technologies in Mexico

Among the top languages and technologies used by developers in Mexico are: 

Other languages and technologies used in Mexico:

Average English level of developers in Mexico

ef epi index mexico developers

One of the benefits Mexico has, given its proximity to the US, is that developers tend to have excellent English. Many are even native speakers, meaning you can expect a seamless level of communication in your working relationship. Another major advantage is cultural overlap with the US. Because many Mexican software developers have worked with US companies in the past, they are generally familiar with US working conventions and tend to adapt quickly to their new teams. One good way to understand the nuances of the average English level of Mexican developers is to check the EF EPI Index. Currently, Mexico has a low English proficiency as the national average - but this is not the average for most young educated professionals. 

Software engineering education for Mexican developers

Software engineers and coders in Mexico come from a variety of backgrounds, but often acquire their education through one of these: 

How to hire developers in Mexico

Even with its large developer population, competition is fierce for the best programmers in Mexico. A few places to find and hire software engineers in Mexico are:

Outsourcing or nearshoring firms: 

Hire through a firm like Blue Coding which has established networks of developers in the region and understands the local laws and regulations.

Referrals: 

Request referrals from colleagues or contacts in Mexico. Some of the most successful developers we’ve placed on projects have come to us via referrals from our best developers. 

Job boards: 

There are a huge number of job boards in Mexico where you might be able to locate talent, such as Computrabajo, Jooble for software engineers, OCC Mundial, and Opcionempleo (to name a few). You might need to post in Spanish!

Online communities: 

It’s common for developers to gather and participate in social media groups on platforms like LinkedIn and Facebook. Check out local Facebook groups of developers in Mexico to see if you are able to post jobs there, but keep in mind you may need to check the rules to see whether posting jobs is allowed and what format you must follow. 

Networking and local events: 

In most major cities throughout Mexico, especially Guadalajara, Monterrey, and Ciudad de Mexico, there are a variety of in-person events that can be a great place to meet software developers. The best way to find these events is generally via referrals, joining local development groups, or platforms like Meetup.com.

Engagement models for hiring software developers in Mexico

Hire through an outsourcing or nearshoring firm: 

Nearshore development firms can help you hire developers in Mexico without having to handle the bulk of the work. These companies have a deep understanding of Mexico’s local regulatory landscape, as well as the tax and HR concerns that can arise when hiring developers abroad. Most of these companies are able to offer several engagement models, including staff augmentation and custom development, and some may also offer recruitment and direct placement services. 

Hire directly through GEO or PEO: 

Global employment organizations and professional employment organizations are often used by large companies that are looking to establish a foothold in a new region. They use local legal entities, through which they can hire software engineers as employees for another organization. The fees usually charge the total cost of employee salary, benefits and other costs plus a fee of 10% or more.

Hire Mexican developers using freelancing platforms: 

Platforms like UpWork, Freelancer.com, or Fiverr will facilitate payments and time management, but you need to make sure you and your contractor are following all relevant employment and tax laws to ensure you are shielded from legal liability. One downside to these platforms can be that it’s challenging to evaluate candidates before beginning work, so you may have a few misfires before finding the right developer(s). 

Hire directly as a contractor: 

Another way to hire is to simply contract a developer directly. Many contractors in Mexico are accustomed to working as contractors with US companies. It is important to ensure that the contractor is following all relevant local laws and reporting their taxes correctly to avoid legal liability from your organization’s perspective. 

Establish a local company: 

If you are building a larger team, you may want to create a local subsidiary of your company in Mexico through which you can hire all of your Mexican employees. This will allow you to be compliant with all local laws and regulations around employment and taxes. 

Average software developer salaries in Mexico

Mexico, and in particular the larger tech hubs like CDM, Guadalajara, and Monterrey, can have slightly elevated costs of living compared to the rest of Latin America. Due to the high demand for talented software engineers, it is not uncommon to find top engineers in Mexico asking for salaries comparable to some areas of the US. For remote companies looking to hire in Mexico, these ranges will give you an idea of how much to pay experienced developers with high English levels:

Certain technologies, such as Ruby on Rails, may be even more expensive to hire for because of the increased demand in recent years. 

If you are hiring through a third-party firm, keep in mind that there will be a 30% to 50% increase in the rates described above. 

Looking to Hire Software Developers in Mexico?

At Blue Coding, we have been working with developers in Mexico since 2010, and have a broad network of great software developers, project managers, QA engineers and designers that we can connect you with. We offer both staff augmentation and direct placement services, and have a thorough vetting process to ensure that we only introduce engineers who are the right fit for your team. If you would like to have a conversation about how we can help you hire developers in Mexico, book a free strategy call here!

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