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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

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