Picture this: The sun setting over the skyline of Mexico City as a lively group of tech enthusiasts and recruiters come together to share ideas, stories, and laughs in the heart of a rapidly emerging tech hub. Last week, that was us at Plugg Technologies, meeting with our team and some of our incredible consultants in this vibrant city.
Mexico City is quickly emerging as a hotspot for recruiting top-tier software engineers, captivating first-time visitors and long-time admirers alike. For our team, the city’s dynamic energy, rich culture, and warm hospitality were undeniably unforgettable. Even for those like our company President, Ruben Santana, who considers it a second home, the allure of Mexico City’s flourishing tech environment continues to impress. This shared experience underscored the reasons why this city is becoming an increasingly attractive destination for recruiting tech talent.
I wanted to take a moment to share some highlights from our exciting trip. But before I give you a behind-the-scenes look at some of our adventures (including our Operations Manager’s first taste of chapulines—toasted grasshoppers!) Let me list the reasons why Mexico City has captured our attention as a tech-talent hotspot—and why it should capture yours too. Here are the top 8 reasons Mexico City is the next tech-talent goldmine:
1. Large and Growing Tech Talent Pool
To start, it’s important to know that Mexico City is more than just a bustling metropolis—it’s a wellspring of tech talent. With over 500,000 IT professionals, many of them software engineers, the city boasts a thriving tech workforce. Each year, Mexico produces more than 130,000 new tech graduates, fueling a constant stream of fresh talent that keeps the energy and innovation flowing. Throughout our trip, it was easy to spot this growing presence of tech professionals, evident in the abundance of coworking spaces, tech incubators, and startup offices popping up all over the city.
2. Strong Technical Education
Next up, and something I’m personally impressed with—Mexico City boasts a strong technical education system. Let’s take a moment to talk about the universities here. With 360,000 students enrolled and over 130,000 of that aforementioned fresh tech-talent graduating every year, it is no wonder why Mexico City is teeming with IT professionals. And trust me, these folks know their stuff!
Take Universidad Nacional Autónoma de México (UNAM), for example. It offers top-tier programs in computer science, engineering, and technology, earning the #1 spot in Mexico for engineering and technology and ranking #104 globally!
Not to be outdone is the renowned Instituto Tecnológico de Estudios Superiores de Monterrey, or Tec de Monterrey (ITESM). Founded in 1943 by visionary industrialists in Monterrey and modeled after the US’s own pride and joy in tech education, the Massachusetts Institute of Technology (MIT), Tec de Monterrey is an educational powerhouse. It’s not just the top private university in Mexico—it’s ranked among the top 200 universities worldwide, with an impressive network of 35 campuses across the country. Tec de Monterrey stands as a beacon of innovation and learning, right in the heart of Mexico City.
3. The Growing Startup Ecosystem
The city’s startup ecosystem is not one to sleep on – over 350 active start-ups and an annual venture capital investment of over $100 million. Clearly, Mexico City encourages and embraces innovation. Areas like Roma and Condesa have become known for their concentration of startups and tech companies, giving these neighborhoods a distinct entrepreneurial vibe that our team was happy to see.
A diverse array of meetups are hosted in the many different Coworking spaces throughout the city. From Google and Facebook Developer Circles to the healthcare meetup Hacking Health, everywhere you look is more evidence of this booming Startup Ecosystem.
4. Cultural Compatibility and Time Zone Alignment
Mexico City’s close proximity to the US offers some significant advantages:
– Similar time zones (CST/EST)
– Cultural affinity and familiarity with US business practices
– High English proficiency among tech professionals (over 80% in the industry)
You can say goodbye to late-night meetings and hello to real-time collaboration.
And after spending time here with the team this week, I want to add another little gem to this list: The locals are some of the warmest and kindest people I’ve ever met, with enthusiastic energy and a deep sense of hospitality that’s hard to find elsewhere. The strong sense of community here creates an incredibly welcoming environment. These are exactly the kind of people you want on your team.
5. Government Support for the Tech Industry and a Push Towards AI
The Mexican government is making strategic moves to support the tech industry, rolling out the red carpet for growth. They’ve introduced initiatives like tax incentives for R&D and launched programs to enhance digital skills. One standout initiative, ‘Habilidades Digitales para Todos,’ aims to train 20 million Mexicans in digital skills by 2025. This commitment to fostering innovation creates the ideal environment for your next hiring spree.
And in the world of AI, Mexico is not being timid. Since 2018, Mexico has been at the forefront of AI innovation in Latin America, setting itself apart with the launch of its National AI Strategy. As the first nation in the region and the tenth worldwide to establish a formal AI framework, this showcases the country’s commitment to advancing this technology. The Latin American Artificial Intelligence Index highlights Mexico’s flourishing AI landscape, with the country impressively ranking 5th globally in AI-related patent registrations.
6. Diverse Tech Stack Experience
In a 2023 survey, the Mexican Software Industry Association found that Mexico City’s software engineers often come with a diverse tech stack experience.
Here’s a breakdown:
– 85% are proficient in Java
– 78% in JavaScript
– 72% in Python
– 68% in C#
– 60% in SQL
These techies are playing with a full deck of coding languages. With expertise in everything from Java and Python to SQL, Mexico City’s tech professionals offer a wide range of skills, giving businesses the flexibility to build diverse and robust technical teams.
7. High Retention Rates
Another standout reason for hiring from Mexico City’s IT Talent pool is that the revolving door of tech professionals turns much slower here. Companies report higher retention rates among Mexican software engineers compared to other outsourcing destinations. A study by Tecnológico de Monterrey found that software engineers in Mexico City stay with companies for an average of 3.5 years—much longer than the 2.1 years seen in Silicon Valley.
I personally think this ties back to the strong sense of community I mentioned earlier. Whatever the reason, that’s the kind of loyalty worth investing in.
8. More Bang for Your Buck
If all the above isn’t enough, let’s get down to what always grabs attention – your bottom line. Your IT budget could see some serious relief. One of the biggest advantages of hiring tech talent in Mexico is the cost factor. You’d be amazed at how much US companies can save by hiring from Mexico City. To give you a perspective, a senior software engineer here can expect to earn between $30,000 and $50,000 annually. Compare that with the $120,000 to $150,000 you’d shell out in tech heavyweights like San Francisco or New York!
Conclusion:
So, what’s the big takeaway from this list? Mexico City offers a rare combination of top-notch talent, affordability, and cultural alignment, making it an ideal location for forward-thinking companies looking to expand their teams. The advantages of hiring tech talent in Mexico are apparent. It’s talent-rich, cost-effective, technically strong, and culturally compatible. I am not surprised to see more and more forward-thinking engineering and tech leaders tapping into this dynamic, rapidly expanding market.
Now, as promised, here’s a behind-the-scenes look! I’ll leave you with a few snapshots before signing off.
And as always, feel free to reach out to Plugg Technologies with any of your LATAM nearshoring questions. Whether you’re curious about how this tech advantage can benefit you or just wondering what chapulines actually taste like, we’re here to help.
