There is something on the horizon that might just transform the economic relationship between Mexico and the U.S. And it’s not a wall. In fact, it is more of a digital pathway. It’s the growing pool of tech talent up for grabs in Mexico’s thriving cities, as well as lucrative partnership opportunities. Hiring LATAM Software developers has become a growth strategy for many companies.
Mexico has made a conscious effort to infuse and support the growth of tech industries within its borders and become a breeding ground for highly skilled software engineers, software developers, Python programmers, and more.
Because of this effort, several tech hubs sprouted throughout the country and infused their institutions—such as the prestigious Tec de Monterrey—with resources for better and more hands-on training. Several cities in Mexico have reached considerable recognition as respected IT hubs becoming sought out tech centers. As a company that specializes in partnerships across the border, we have studied closely the ecosystems and salary variations in Mexico’s most competitive IT cities.
Our 2023 Tech Salaries Report —compiled through research and interviews with thousands of developers— looked at five cities and the competitive salaries for software engineers that can save U.S companies up to 68%.
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Benefits of Hiring LATAM Software Developers in Mexico’s Tech Hubs
Some of the best cities for web developers and other tech professionals are scattered throughout Mexico. While each city is different and has its own unique demographics of web developers, full stack, front stack, and back end developers, there are common benefits across the board for U.S companies:
- Close proximity: Guadalajara and Mexico City are a mere five-hour flight from New York or Seattle. Tijuana and Monterrey are across the border. Yucatán is easy to access from Miami and Houston. This means the time zones are similar and allows for easy communication and collaboration.
- All cities have a growing talent pool of English-speaking developers. Mexico graduates about 130,000 developers a year—more than the U.S.
- Mexico graduates thousands of qualified software engineers, software developers, web developers, and executive leaders every year from prestigious and well-established institutions already working with U.S companies and other top players.
- Top-of-the line talent for less than Silicon Valley rates. The average monthly salary for a senior Full Stack Developer in Mexico is $4,631 USD compared to the average $9,122 USD in the U.S.
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#1 Guadalajara — The Leading Software Producer in Mexico
It’s no longer a well-kept secret that Mexico’s second-largest city harbors a developing and growing talent pool of software developers, software engineers, and even web developers. The tech boom in the city is not an accident but the result of many years of investment and foundation setting. This has made Guadalajara a great place to outsource and hire a skilled software developer.
According to the Smithsonian, the tech rise of Guadalajara took decades to brew. It began as early as the late 60s and early 80s when companies like Kodak, Motorola, IBM, Hewlett Packard, and Siemens placed some of their operations in the country. Now Tesla and Salesforce are weighing the possibility of Jalisco being a center for some of their operations as well.
While it was at first a search for cheap manufacturing, it embedded itself into the culture and slowly the people of the city began adopting tech-related industries and manufacturing as a common career path. It was then the corporations began working with local universities to expand tech-related courses.
Guadalajara and Its Unique Developer Demographics
As outlined in a recent article, Guadalajara also has other benefits. So, what makes Guadalajara special? Let’s take a look.
- In Guadalajara and the surrounding areas, we see a high density of Full Stack Developers, UX/UI Designers, Front End Developers, Back End Developers, and Mobile Developers. (for specific salary information download our report)
- Guadalajara is the best software producer in the country
- Leading producer of electronic and digital components
- Various initiatives have infused the city with funding and encouraged international companies to build teams there
- Leading engineering school that graduates thousands of qualified candidates every year
- A creative and vibrant culture ready to innovate
According to Mexico Tech Salaries Report 2023, the average salary in Guadalajara, Jalisco for IT professionals is $45,924/ yr
# 2 Monterrey — Mexico’s Investment Magnet
Not far from the U.S. border, this hidden gem of a city is home to some cool cultural happenings and natural landscapes. The city is also Mexico’s second largest industrial center with the highest per capita income in the country. Much like Guadalajara, Monterrey is focused on tapping into the great potential in technological development and has taken time to invest, build, and foster various aspects of the tech industry.
Its approach is different from its southern counterpart, Guadalajara, as it works to form a more multifaceted industrial base and is better known for its focus on innovation, design, and investment.
Monterrey has unique initiatives that pull together entrepreneurs and feed the city’s ecosystem. Some of the companies taking part include IBM, Neoris, Alfa, Arca Continental, Banamex, Cemex, and the well-known Tec de Monterrey, University of Monterrey, and Autonomous University of Nuevo Leon.
Monterrey and Its Unique Developer Demographics
Like Guadalajara, Monterrey has its own unique characteristics as a city and as a technological hub. Its geographical location and culture have a lot to do with it. Let’s take a look at its characteristics:
- A high concentration of Full Stack Developers, Back End Developers, Quality Assurance Engineers, and Solution Architects. (for specific salary info download our report)
- Known as the investment magnet— has a vast industrial sector
- The strategic advantage of cross-border knowledge and shared culture
- Home to dozens of research and development teams
- Houses elite universities ITESM and UDEM
- Attracts a variety of industries including tech giants, car manufacturers, and more
According to our Tech Salaries Report 2023, the average salary in Monterrey, Nuevo Leon for IT professionals is $38,160 / yr
#3 Mexico City — Cultural, Political, and Economic Capital
As Mexico’s industrial, cultural, and professional center, a city that is home to 21 million people, thousands of businesses, and companies, Mexico City has its own unique advantages as a tech hub. As the center of much goings-on in the country, the capital has always been known as a high-energy and fast-moving place that embraces change and innovation.
The spurt in tech in Mexico City can be attributed to various factors including an adaptive economy, high interest in new technologies, government initiatives, and a fast-growing tech ecosystem, as well as being a lucrative private investment hub.
Thousands of graduates from the country’s tech schools flock to Mexico City as the center of startup opportunities, investment opportunities, and home for international companies. Many outside investors and companies see Mexico City as the gateway to the rest of Latin America and why companies like Uber, Google, and Facebook have set up shop in the Mexican capital. Other ventures like Startup Mexico, an organization founded by Marcus Dantus, are backed by the local and federal governments and attract entrepreneurs.
Mexico City and Its Developer Demographics
Known as Mexico’s cultural and innovation center, the capital has a lot going on. Some of its unique characteristics include:
- With more than half of the total IT workforce, Mexico City has a high concentration of all roles. The ones that stand out the most are Full Stack Developers, Back End Developers, Mobile Developers, Project Managers, and Web Developers.
- An economy centered around financial and professional services
- Home to renowned IT school—Instituto Politecnico Nacional (IPN)
- A bridge from North to South America — Gateway to Latin America
- Software growth in the region in 2019 was 9%
- A slew of public and private tech initiatives
According to our Tech Salaries Report 2023, the average salary in Mexico City for IT professionals is $47,520/ yr
#4 Tijuana — From party town to a tech hub
Tijuana’s reputation is often thought of as a party town sin-city type place, but it has worked to shift this image into a more serious industrial center. According to the Financial Times, the city has strategically used its prime location to take advantage of investment opportunities and become a strategic partner of the U.S. and its tech industry.
Its proximity to California’s Silicon Valley offers companies a high-level of skill with Mexican prices, which allows for more opportunities and fostering creativity. Places like the Bit Center, which houses about 65 companies under one roof continue to grow and see more companies joining in.
Tijuana and Its Developer Demographics
- This border city mainly has a high density of Full Stack Developers and Back End Developers.
- Tijuana’s aerospace industry employs more than 11,000 skilled professionals.
- The Autonomous University of Baja California and the Polytechnic University of Baja California are home to most of the IT graduates in the city.
- TJ’ has the potential to become the gateway to the California market because it is more affordable to live here and work in the US.
According to our Tech Salaries Report 2023, the average salary in Tijuana, Baja California for IT professionals is $33,672 / yr
#5 Merida — A rising tech star in the Caribbean
It is very unusual to see a tourist capital like the Yucatán Peninsula, most recognized for its paradisiacal destination Cancun, to become a tech destination. But this city has invested in six high-impact incubators, four accelerators, four technology transfer offices, and at the Polytechnic University of Yucatan, where there are three careers focused on meeting the needs of the technological future: big data, data analysis, and robotics.
The region not only graduates more than 1,600 IT professionals but also attracts senior talent from crowded cities looking for a better quality of life by the turquoise beaches.
Yucatán and Its Developer Demographics
- A high concentration of NodeJs Developers, UX/UI Designers, CSS, and iOS Developers
- The Autonomous University of Yucatan is considered one of the top five public universities in Mexico, and one of the Top 100 in Latin America.
- large base of more than 4,000 IT professionals in executive and commercial roles.
- It’s the 4th city with the highest English proficiency.
- Yucatán is characterized by having one of the lowest turnover rates of all cities with an average 4% rate.
According to our Tech Salaries Report 2023, the average salary in Merida, Yucatan for IT professionals is $35,868 / yr
The Startup Generation — How Investment in Technology Sparked Mexico’s Entrepreneurial Spirit
Mexico’s push for technology education is supported by government programs and investments. It has generated a unique entrepreneurial climate and Mexico’s startup scene and innovative companies. Just like the U.S has had a rich tradition of startups since the 1990s, Mexico’s startup boom started around 2010. For example, an entity named Fondo de Fondos launched Mexico Ventures I. This is a type of investment vehicle that injects capital directly into startups and national VC funds.
Before all of this, however, Mexico was already showing promise in the growing IT sector and in the realm of intellectual talent and creativity.
Since 1994, the government has wanted to diversify Mexico’s economy and thus used NAFTA to kickstart other ventures including manufacturing. This boosted the GDP of the country and encouraged the government to seek ways in which they could keep the wealth in the country and, at the same time, invest in a more viable future.
Tec de Monterrey’s Educational Initiatives — Adapting Education for Modern Needs
One of the country’s most well-known tech schools is Instituto Tecnologico de Monterrey, which has 26 campuses throughout the country. In 2019, it announced that it was fully implementing a new teaching model that incorporates vocational and hands-on training directly into the curriculum.
The initiative, called Tec21 was originally launched in 2013 as a pilot program and is now being expanded. The program partnered with local tech companies and gives students the opportunity for a real learning experience and on-the-job training as they cultivate and hone their skills. Some of these companies include IBM, HP, and T-systems.
With this training, students are thrust into a working environment that requires real solutions to challenges and quick innovation. This produces a competitive and adaptable workforce of software engineers.
One of the main benefits is attracting international and U.S companies to set up shop around these tech hubs and take advantage of the burgeoning creativity and innovation. At the same time, Silicon Valley has become a very expensive place to grow a company and many large enterprises are seeking equally competitive teams without the massive overhead.
Hire LATAM Software Developers in Mexico’s Flourishing Tech Ecosystem
Because of the potential and excitement surrounding the tech industry, Mexico’s software developers have been known to possess unique qualities. Mexican software engineers have superior technical training and are taught to be creative and resourceful. The best cities for software engineers 2023 are in Mexico. It includes some of its leading tech hubs, but —given the country’s embrace of remote work— great talent is found across the country.
Here at CodersLink, we research and understand the changing ecosystems in these dynamic Mexican cities in order to find the right software developer for a hiring company. We have established connections that allow us to understand where the best software engineers are and how they can help growing companies compete in the fast-growing market.
What cities or countries have you considered hiring software developers? Let us know in the comments.