Over the years, the world has been moving toward digitization, with most tasks or processes becoming automated. However, the Covid-19 pandemic accelerated this move, which has led to a higher demand for tech talent. Tech companies are persistently looking to hire the best talent in this competitive market, which has had some negative impacts, including hikes in wages.
However, nearshore onboarding is a promising hiring process that eliminates some of these bottlenecks while offering a larger talent pool. So, what has made nearshoring software development to Mexico a good decision for U.S.-based tech companies?
Large Talent Pool
Mexico’s large talent pool is among the many reasons it can bridge the tech talent gap in the U.S. Finding people with the exact skills you’re looking for is hard when outsourcing IT work. However, if you have a large pool of talent, you’ll have better chances of finding the talent you need.
The Mexican government’s recent infrastructural and educational improvements have resulted in more people having the resources and tools to expand their skills. To show its resolve to end its shortage in technology talent, the Mexican government opened 120 tuition-free specialist technology universities between 2006 and 2012. Every year, over 130,000 engineers graduate in Mexico. With its talent pool of over 700,000 developers, Mexico has become a hotbed of software engineering talent within Latin America.
Cost-Effective Labor
It is undoubtedly true that labor costs form a considerable part of any company’s budget. Therefore, finding a way to lower these costs ensures that more money can be used to develop and expand your business. Nearshoring software development to Mexico has proved to be an effective way of cutting down payroll costs with no compromise on quality.
Software developers can be categorized into junior, intermediate, mid-level and senior developers. This is based on their experience, and the more experience a software developer has, the higher their salary. Regardless, the average salary of a remote software developer from Mexico is far less compared to that of a developer in the U.S.
For instance, the average salary for a mid-level or intermediate software developer or engineer is about $3,156 per month in Mexico. A person with the same skill level earns $10,154 per month in the U.S.
This means that by nearshoring software development through an established company to Mexico, you save about 67% in labor costs, while still getting quality services. This has made labor costs one of the primary reasons companies are interested in Mexico’s nearshore opportunities.
Avoiding Language And Cultural Barriers
The U.S. and Mexico share a long border, meaning that the two cultures have merged to some extent. Therefore, there is a reduced chance of the clash of cultures that typically occurs whenever software development teams from extremely different cultures work together. This shared cultural awareness allows the team members from the two countries to minimize misunderstandings and become more cohesive.
When hiring remote workers, language barriers also are a problem. However, although the two countries have different official languages, most people on both sides of the borders are fluent in Spanish and English. This minimizes the chances of mistakes in software development, reduces delays and makes communication relatively easier.
Final Thoughts
The recruitment and retention of nearshore teams is set for complete transformation as more software development companies take advantage of remote software development and outsourcing. This will enable tech companies in the U.S. to benefit from the ever-growing tech talent pool within Mexico.
When working with a nearshore team, keep the following best practices in mind:
1. Treat your nearshore team like they are part of your internal team, not like outside contractors.
2. Work with a company that has a strong U.S.-based executive team that understands both cultures and can help solve challenges or productivity issues quickly.
3. Check Glassdoor reviews for the company you are working with to see how their employees like working for their company.
Nearshoring software development work to Mexico has a lot of benefits, especially for U.S. tech companies. Leveraging this practice will help these companies maximize their profits while shipping quality software products.
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