In today’s global market, businesses are always looking for ways to maximize profits without sacrificing talent. One area of business in need of a talent pipeline is technology, specifically software development. According to Code.org, there are currently more than 505,000 open tech positions nationwide, with only a touch under 64,000 graduates in the United States as of last year. With so much demand and so little supply, companies have begun seeking tech talent in the south.
However, few would have guessed that tech talent was moving as far south as Latin America. With international media outlets fueling a negative view of Mexico, it has come as a bit of a surprise to many that such a pipeline could be filled with Mexican resources. Regardless, Mexico is on the tech scene and making quite the impression.
Why is the US seeking tech talent in the south? Here are seven reasons why Mexico has become a go-to for tech talent:
Mexico graduates more engineers than the United States
The World Economic Forum reported more than 113,000 engineering graduates in Mexico in 2015. Recent political and social efforts have promoted higher education in a country where one-third of the population is under the age of 25. Nearshore Americas reports that these improvements have helped make Mexico the fourth-largest IT service provider.
Mexico’s investment in entrepreneurs and startups fuel a rich tech ecosystem
In 2014, the Mexican government disseminated more than $658 million to 620,000 entrepreneurs and startups. These efforts were a concentrated effort to bolster the economy and position Mexico as a competitor in today’s growing tech market. These initiatives have created more than 73,000 jobs, contributing to an expanding IT workforce.
Recently enacted regulations will help guarantee ethical business
Mexico has recently passed fintech laws to help ensure ethical business as part of the growing tech industry. In 2018, Congress passed laws to help stabilize the financial industry and prohibit money laundering through greater regulations. The law is also intended to increase confidence around issues such as crowdfunding, secure payment methods, and cryptocurrencies.
Mexico has been showing significant economic growth
In fact, recent GDP numbers indicate that Mexico holds the 15th spot, not far behind Canada which currently ranks at number 10.
Mexico has been targeted by Internet retail giant Amazon
If the presence of Amazon can be seen as any indication of growth, then Mexico is set to continue its ascent. Amazon has recently set its sights on Mexico and is introducing elements into the market to support the economic growth of the country. Among these initiatives is a rechargeable debit card for those without a bank account, a new distribution center located in Mexico, and the launch of Alexa.
Mexico’s shared border and time zones make it an ideal partner
Mexico has a unique opportunity to supply tech talent to the United States given the business advantages offered by a shared border and time zones. Unlike other countries known for outsourced tech services, Mexico has the benefit of being a geographical neighbor, simplifying issues of travel, mailing and other operational necessities. Shared time zones also help alleviate issues with opposite work schedules that are frequently reported as a problem with outsourcing.
Mexico’s adoption of technology is soaring
With Mexico’s economy showing significant improvement, more users have access to technology. According to Tiempo Development, more than 50% of the population now possess smartphones, compared to only 6% less than 10 years ago (2010). The reduction in prices have also caused a surge in computer ownership, with software sales expecting to reach $5 billion in 2019.
Mexico may just be the supply solution for our tech demand.