Mexico’s ICT sector has been experiencing strong growth in recent years, and this is caused by several factors such as an increasing number of IT professionals that are involved in developing the country’s IT infrastructure and as well as the number of new IT companies that are being founded in Mexico. At this moment, there are more than 600.000 IT professionals working within the industry, and each year the number is growing with 65.000 based on a report from Insights Technology.

Additionally, in 2020 a number of over 2000 IT companies were doing business in Mexico and based on reports from Forbes, they registered revenue of ~$140 bn. 

As for the business environment, in Mexico, it is very diverse as it brings together companies from every corner of the world. Since most of the multinational companies are located in Mexico City it is common to see a large Chinese telecom company in the same building as a large Spanish bank, opening the door to many multicultural interactions. The country has undergone significant economic reforms over the years, resulting in increased competitiveness and a more favorable investment climate.

Why You should consider working with Mexico IT Companies?

Having Guadalajara as the main IT hub, Mexico manages to attract all types of ICT companies of all types and sizes. To name just a few: Oracle, Intel and IBM invested, and opened representations in Mexico, which is a good indicator of a well-developed IT infrastructure. Mexican IT companies are taking advantage of the presence of US companies and implementing technologies and business processes from the neighboring countries, making them more competitive in the IT market. 

At the same time, local IT companies in Mexico tend to have the client's best interest at heart, they are highly creative in exploring solutions to a problem and even combine components that other places would not even try. In addition, customer service orientation tends to be better than what can be found in other countries.

What to be aware of when working with Mexican IT Companies

Despite its notable expansion, the IT sector in Mexico is still secondary to manufacturing. As more companies continue to view the country as an ideal location to offshore their IT services, the need for high-level IT professionals - such as engineers - will become even higher. 

The void created in the Mexican IT industry make companies vulnerable and unpredictable with potential clients, and developed issues such as piracy, lack of strong cybersecurity, rather a low project management. 

In addition, those who want to do business with local IT companies in Mexico should provide a clear scope and requirements in writing. Also, they should schedule regular, follow-up sessions to avoid deviating from the plan and to make sure goals are being met.

Are Mexican Companies Reliable?

In the past 5 years, Mexican companies have become important players in the global IT industry, registering progress of 8 positions and now ranking the top 20 biggest digital services providers. The main types of IT services Mexican companies export are Cloud Computing, E-government services, and Creative Services. Due to their contribution, Mexican IT companies are considered more reliable and affordable at the same time compared to other countries in the region, making Mexican-Based companies a balanced choice. 

How Mexican IT infrastructure relates to the neighboring countries

In the past 4 years, Mexico has taken as a reference the US IT industry, which allowed it to grow and develop, as well to attract an increasing number of international IT companies to its market. In spite of the continuous efforts, Mexico is still behind the US in terms of IT development, but on the other hand, it is considered probably the best IT option in Central America. The IT industry in Mexico performs relatively well compared to countries such as Brazil and Argentina, with a growing number of startups and a strong focus on innovation and technology adoption

Overall, Mexico is a good example of why it’s never too late to invest in IT, and how to do it to become competitive and looks like a promising destination for developing IT products and services, sourcing them out, or attracting investments in the IT industry.

What Makes Mexico Attractive For IT Businesses?

According to Francisco Avelar from SellNow Inc., Mexico is in the top 10 economies worlwide and it's the second largest market in Latin America. Mexico has close ties to very large economies such as the U.S., Spain, Germany, France and UK, just to name a few which allows it to receive large amounts of direct investments. Nowadays, the concept of nearshoring has gained traction and Mexico is the most suitable candidate for companies around the world that want to enhance their supply chains for the American market.

From another perspective, Shaun Oilund from Senor Data, states that Mexico is an attractive location for international IT companies due to its strategic location, competitive labor costs, and growing market opportunities. However, factors such as security concerns, corruption, and bureaucratic hurdles can also make the country unattractive for some businesses.

How Easy Is It To Open A New IT Company in Mexico?

Francisco and Shaun relate that starting a new business in Mexico can be quite difficult: The business climate in Mexico can be challenging for local entrepreneurs looking to start a new IT company. Factors such as complex regulations, limited access to capital, and high levels of competition can make it difficult for new businesses to thrive.

How Does the Mexican Government Support IT Businesses?

According to Francisco, the Mexican Public Sector spends hundreds of millions of dollars every year in technology. Therefore, these institutions are one of the most important customer segments for IT companies in the country. At the same time, Shaun adds that the Mexican government has implemented various initiatives to encourage the development of the IT sector, including tax incentives, investment promotion programs, and initiatives to expand access to broadband internet. 

As well here are some examples of governmental programs that aided the local IT sector in Mexico: 

• Red Compartida: The Mexican government launched the Red Compartida project, which aims to create a wholesale 4G LTE mobile network infrastructure across the country. This project involves significant investments in telecommunications and provides opportunities for IT sector growth.
• Digital Agenda for Mexico: The government has implemented the Digital Agenda for Mexico, which includes various initiatives and investments to promote the development of the IT sector. This agenda encompasses improving internet connectivity, digital inclusion, e-government services, and fostering innovation and entrepreneurship in the digital economy.
• Technology Parks and Innovation Centers: The government has supported the creation of technology parks and innovation centers across the country, such as the Guadalajara Technology Park and the Monterrey Technology Park. These initiatives provide infrastructure and resources to promote IT development, research, and innovation.
• Conacyt's Support: The National Council for Science and Technology (Conacyt) in Mexico has provided grants, scholarships, and funding opportunities to support research and development in the IT sector. These initiatives aim to strengthen technological capabilities and human resources in the field of information technology.
• Startup and Entrepreneurship Programs: The Mexican government has implemented various programs to support startups and entrepreneurship in the IT sector. These programs provide funding, mentoring, and resources to help tech startups grow and thrive.
• Digital Skills Development: To enhance the IT sector, the government has invested in initiatives to develop digital skills among the population. This includes promoting computer science education, coding boot camps, and vocational training programs to prepare a skilled workforce for the digital economy.

Mexico's IT Talent Pool

Mexico's talent pool is incredibly rich and it is comprised of highly creative and talented people who usually speak English in addition to Spanish and are also proficient in Microsoft productivity tools and coding. At the same time, the local talent pool in Mexico is characterized by a large number of skilled IT professionals, including software developers, engineers, and project managers. Many Mexican workers are attracted to the IT industry due to its high growth potential and competitive salaries.

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This article was created together with prominent figures and professionals coming from reputable Armenian IT companies. Special credits: Francisco Avelar and Shaun Oilund

Node Js is a JavaScript runtime environment that allows developers to run JavaScript code on the server-side. Unlike traditional server-side technologies like PHP or Ruby, which are typically used for handling server tasks, Node.js enables developers to use JavaScript for both client-side and server-side development. Below we’ll dive deeper into the types of projects built with it, and how companies can leverage it for their projects:

Node.js is built on the V8 JavaScript engine from Google, making it incredibly fast and efficient. It uses an event-driven, non-blocking I/O model, which makes it ideal for building scalable and real-time applications. Node.js is particularly well-suited for projects that require high concurrency, such as web applications, APIs, chat applications, streaming services, and more. It has a large and active community, which has led to a rich ecosystem of libraries and packages available via npm (Node Package Manager), simplifying development tasks.

As for the type of projects that can be built using Node.js, we can name the following:

1. Web Applications:  Many web applications are built using Node.js, often using web frameworks like Express.js. These applications can range from small personal websites to large-scale, enterprise-level platforms.
2. APIs (Application Programming Interfaces):  Node.js is commonly used to create RESTful APIs that allow different services or applications to communicate with each other. This is essential for building services that provide data to mobile apps, websites, and other clients.
3. Real-time Applications:  Node.js is favored for real-time applications, such as chat applications, online gaming, and collaborative tools. The event-driven architecture of Node.js is well-suited for handling multiple concurrent connections.
4. Streaming Services:  Media streaming platforms and services that deliver audio and video content use Node.js to efficiently manage and serve media files to users.
5. IoT (Internet of Things):  Node.js is used in IoT projects to handle data collection from sensors and devices, process that data, and communicate with cloud services.
6. Serverless Functions:  Node.js is a popular choice for building serverless functions or AWS Lambda functions due to its lightweight and quick startup times.

Node.js is a versatile technology that can be effectively utilized in both smaller and larger projects, but its suitability hinges on several key factors.

For smaller projects, Node.js offers distinct advantages. Its event-driven, non-blocking I/O model allows developers to rapidly prototype and develop applications. This makes it an excellent choice for creating functional prototypes, minimum viable products (MVPs), or simple web tools swiftly.

Node.js's efficiency in handling I/O operations can lead to responsive user experiences, which is valuable for small-scale applications like personal websites, blogs, or straightforward web tools. Moreover, Node.js itself is lightweight, making it suitable for projects with minimal hardware or resource requirements. It doesn't impose significant overhead, making it a cost-effective option.

Node.js is also well-suited for serving as a backend for Single-Page Applications (SPAs), handling API requests, and serving static files efficiently. Its ability to use JavaScript both on the server and client sides can reduce development costs by enabling code reuse and a single development skill set.

For larger projects, Node.js remains a compelling choice for various reasons. Its ability to handle a large number of concurrent connections positions it favorably for projects with high traffic and user loads. It's designed to scale efficiently, allowing it to distribute workloads across multiple servers or containers, making it scalable and robust.

In larger applications with complex functionality, Node.js can be employed to build microservices that communicate efficiently with each other. This modular approach enhances maintainability and facilitates development on a larger scale.

Node.js's event-driven nature also makes it an ideal candidate for larger projects requiring real-time features. It excels in managing multiple simultaneous connections, making it suitable for applications such as messaging platforms, online gaming, or collaborative tools.

Additionally, Node.js continues to offer development speed advantages regardless of project size, which can be particularly valuable in meeting tight project deadlines.

Furthermore, for larger projects with JavaScript as the primary language on both the frontend and backend, Node.js facilitates streamlined development processes, code sharing, and collaboration among teams working on different parts of the application.