Transitioning Tech Operations to Mexico: Key Insights

Build your tech team in Mexico, seamlessly

The trend of moving tech operations to Mexico is becoming a popular strategy for many American and international companies. The appeal of this move is evident, considering the significant benefits it offers such as cost-effective quality, lower labor costs, a large IT talent pool, a bilingual workforce, easy visa accessibility, a steady stream of engineering graduates, and time zone alignment. However, the process can be challenging due to Mexico's complex tax, labor, and regulatory policies, the difficulties in building the perfect team, and the challenges in providing complete visibility and maintaining strong engagement to retain such talent.

Mexico's labor market is large and diverse, with 1.4 million IT professionals. Impressively, about 45% of these individuals are proficient in English at a B2 level or higher. This is particularly beneficial as the Spanish accent is widely accepted in the US. Beyond the considerable cost savings—operations can be up to 70% cheaper in Mexico—there are also government incentives that include free trade agreements and support for startups.

This guide aims to offer a thorough understanding of how Mexico's labor market operates and how it can benefit your company. It covers essential topics such as employee benefits, salary insights that highlight the complexity of Mexico's tax laws, and a detailed look at the tech industry and the Mexican market. Through this guide, companies seeking to enhance their operational efficiency and expand their market presence can gain valuable insights into tapping into Mexico's vast resources.