Nearshore Americas will unveil a new Ebook illustrating how US companies can address the talent shortage at home by building a strong IT engineering team in Mexico under build-operate-transfer (BOT) model.
Titled “Build Operate Transfer 2.0”, the Ebook says remote-working has become a new normal in this Covid-19 era and that Mexico is the perfect fit for those looking to overcome the challenges of offshoring.
The Ebook was created by Nearshore Americas in association with US-Mexican company providing software development and IT services company, Digitalhype.
Mexico’s Value Proposition
Over the past decade, Mexico’s IT services and BPO industry has grown beyond Guadalajara and Monterrey, with Aguascalientes and the greater Bajio region increasingly evolving into new tech hubs. Meanwhile, the country’s capital Mexico City remains a hotbed of tech enterprise, and southern cities like Merida are also making waves.
For the American firms looking to hire software developers directly, Mexico offers numerous options. Remember, the cost of hiring a software engineer in the United States is seven to eight times higher than in Mexico.
Mexico has more than 200,000 software developers, with the number of STEM graduates increasing by the year. It also graduates more engineers each year than the US, with most recent data putting the figures at 130,000 per year in Mexico against 100,000 per year in the US.
The tech industry in Mexico has been growing at a steady pace due to this sound educational foundation. In 2021, venture capital transactions in the tech sector grew by 58%, while the amount invested into Mexican tech startups during the first four months of the year jumped 158% on the same period in 2020.
Unlike an offshore location like India, Mexico has both proximity and cultural affinity with the United States. Guadalajara is just two hours ahead of major western US hubs like San Francisco, and one hour behind eastern cities like New York.
In addition, Mexico has free trade agreement with the United States and Canada (USMCA), meaning companies seeking services from Mexico are legally protected.
Unlike other parts of Latin America & the Caribbean, Mexican infrastructure has been able to withstand the mass move to work from home that the pandemic forced.
The Ebook also sheds light on several key factors, such as business climate in the Mexican states close to the US border and incentives offered to foreign companies, in addition to narrating all the features of BOT model.
As explained in the Ebook, there are multiple advantages when utilizing the BOT model in the Nearshore. It speeds product development, and cut costs, as well as providing the structure to expand operations into new geographies. In outsourcing, the primary beneficiary of the BOT relationship is the internal team of the client organization, which can tap into the talent available in the new locations of the service provider.
To access the Ebook and learn insights on the BOT model, click here.