Mexico’s STEM (Science, Technology, Engineering, and Math) workforce is growing rapidly—Mexican universities graduate over 110,000 engineers each year, which represents over 20% of all graduates. The depth of this talent pool has started to draw significant investments from major tech corporations and venture capitalists. Now, the cities of Monterrey in Nuevo Leon and Guadalajara in Jalisco are being called the “Silicon Valley of Latin America.”
Technological advancements have catapulted this sector’s growth. Reports find Mexico to be the biggest mobile app market in Latin America with app downloads growing 30% in 2021 compared to the year before. The IT industry in Mexico is also positioned as a high-quality software developer, benefiting the needs of aerospace manufacturing as well as financial industries.
Furthermore, with 38 IT clusters throughout Mexico, foreign direct investment continues to grow with several international companies announcing new data storage facilities. Queretaro has become the primary data center hub and contributes to over 65% of the data center facilities in Mexico.
In addition to the internet expansion in the IT industry, telecommunications equipment has consistently seen high growth. With the increase of digital security needs, mobile payments apps, and remote working, the IT industry has unlimited potential as to where it will grow next. Therefore, Mexico is becoming an increasingly favorable option for manufacturers deciding where to invest in future production.
All the factors that make Mexico attractive to industries like automotive and electronics, which have long histories in the country, apply to the IT industry in Mexico, namely, proximity to the United States and the lower cost of labor. But this industry, perhaps more than others, is poised to take advantage of the growing pool of highly skilled engineers that are pouring out of Mexico’s universities.
Regional and local governments are investing in the IT industry as well, by implementing and incentivizing programs that focus on STEM training. IVEMSA can help technology companies take advantage of incentive programs and tax benefits that will add to the cost savings of moving your operations to Mexico.
For instance, participation in the IMMEX program exempts foreign operators from the 16% VAT, a benefit that is automatically applied when working under the shelter umbrella. Additionally, the ability to scale production with the help of a shelter company allows manufacturers to quickly answer demand due to growing economic trends.
Since 2020, there’s been a quickly growing need for data center infrastructures, cloud computing, and security services, as well as business intelligence software to keep pace with market demand. Due to its close proximity, Mexico is in a position to support U.S. (and other foreign) manufacturers as they evolve and enhance the IT industry in the coming years, and partnering with a shelter company is the first step.
Many Mexican universities offer outstanding STEM programs, some of which are ranked higher than major U.S. universities. They produce a deep, highly skilled talent pool—at a lower cost. In many cases, businesses can save up to 50% on labor alone when operating in Mexico. And through our shelter model, we have a network of resources to help you recruit, hire, and train qualified employees based on your project needs.
Top tech companies, venture capitalists, and governments are investing heavily in Mexico’s growing IT sector. Many tech companies are forming partnerships with Mexico-based companies (which already number about 2,000). Moreover, with the advancement of mobile apps and increased cybersecurity needs, strict IP protocols are necessary. As part of the USCMA, Mexico upholds IP protection and enacts strict regulations regarding trade secrets and data information to protect your investment.
Because Mexico is so close to the U.S., with hundreds of daily flights and over 50 border crossings, it’s easy for corporate personnel to conduct site visits as needed. This ease of oversight increases product accuracy and operational flow. Additionally, technology is rapidly changing and time becomes a factor when maintaining a competitive advantage. The proximity between the U.S. and Mexico allows for quicker time to market for rising demands in the IT industry.
IVEMSA provides a suite of shelter services designed to help your company grow. We take care of all the administrative tasks and maintain the necessary permits and certifications necessary to operate in Mexico. Project launch is expedited with a startup time of three to four months, compared to the six or seven months when operating as a standalone entity. We’ll help you set up a shelter, find a site, recruit employees, and contract vendors for build-out. Then, our HR, Trade and Compliance, Accounting, and IT teams keep things running. Meanwhile, your company will maintain complete control over all equipment and processes.
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