Expanding operations into Mexico has become an increasingly popular strategy for American companies. Mexico offers a unique blend of cost-effective labor, skilled professionals, and a beneficial location, making it an ideal destination for businesses to set up nearshore teams. Its proximity to the US allows for seamless communication and shorter travel times, making collaboration more efficient. The country also offers a skilled workforce, particularly in technology, manufacturing, and customer service, providing businesses with access to top talent. This is underscored by Mexico’s top-10 global ranking for engineering graduates, with over 220000 engineers entering the workforce annually. Additionally, operating costs in Mexico are generally lower than in the US while maintaining high-quality standards, making it a cost-effective option. Salaries for software engineers in Mexico are significantly lower: the median annual salary for a software engineer in Mexico City is about USD $50000 compared to USD $185000 in the US – it’s about 70% less, without a compromise on technical proficiency.
This growing trend is further supported by Mexico’s expanding IT outsourcing market, which is projected to grow significantly, from $17.8 billion in 2024 to $34.3 billion by 2030, indicating a strong demand for skilled technology professionals. With these advantages, coupled with trade agreements like the USMCA, American companies are increasingly drawn to Mexico for its strategic location, skilled workforce, and competitive operating costs.
Mexico’s blend of affordability, skilled talent, and geographic proximity makes it a strategic nearshoring destination for US companies looking to scale efficiently.
Exploring 12 examples of American companies with teams in Mexico, this article provides insights into the businesses leveraging these advantages and their motivations, offering a clearer understanding of the growing trend and its benefits.
IBM’s Guadalajara facility is a major innovation and development hub for Latin America, with a scale so significant that it has taken on a global role in key areas, such as the worldwide manufacturing of its Power Systems line. Guadalajara is often referred to as the “Silicon Valley of Mexico,” making it a natural fit for IBM’s operations. These teams not only cater to regional markets but also contribute to IBM’s global projects.
Intel’s decision to locate its research and development hub in Guadalajara is a clear signal of Mexico’s robust ecosystem of technical universities and government support for high-tech innovation. This proves the country can be a center for IP creation, not just labor, providing a direct pipeline of skilled engineers for globally impactful projects. For example, in Malinalco, Intel invited teachers to attend a 60-hour Intel Teach course presented in collaboration with the Latin American Institute of Educational Communication (ILCE). This training introduced pedagogic strategies such as project-based learning and effective use of technology in classrooms, enhancing teachers’ skills and ensuring a steady stream of skilled engineers working on globally impactful projects.
HP leverages Mexico’s mature industrial base to optimize its supply chain and hardware manufacturing. By using its Guadalajara operations, HP reduces shipping times and logistics costs, taking full advantage of the USMCA trade agreement to maintain its competitive edge in the North American market. The company’s commitment to fostering local talent has also helped it build a robust and sustainable operation in the region.
Microsoft chose Mexico City as a key hub to strengthen its foothold in the Latin American market. The city’s extensive talent pool, combined with its status as a major business center, makes it an ideal base for teams focused on regional sales, marketing, and the development of cloud and AI technologies for the entire region. The company’s teams focus on sales, marketing, and customer engagement across Latin America. Additionally, Microsoft partners with local organizations and governments to drive digital transformation initiatives in the region, including the development of cloud and AI tech. Its presence in Mexico reflects a broader strategy to strengthen its foothold in emerging markets while accessing skilled professionals.
Dell operates manufacturing facilities and customer service centers in Mexico, with Monterrey being a key location for its operations. These teams handle a wide range of tasks, including assembly, technical support, and logistics, ensuring smooth delivery of Dell’s products worldwide. Monterrey’s strategic location and skilled workforce make it an ideal base for Dell’s nearshore operations, helping the company maintain cost efficiency and operational excellence.
General Motors relies on Mexico’s world-class manufacturing infrastructure and skilled labor to produce vehicles and components for its global supply chain. The company’s long-term investment here underscores Mexico’s reputation for high-quality automotive production and its strategic role in meeting international market demand. The company also invests in training local workers, ensuring they meet the high standards required for automotive production. Mexico’s proximity to the US allows GM to maintain a streamlined supply chain while staying competitive in the global market.
Ford’s presence in Mexico dates back decades, with the company operating multiple facilities that produce vehicles and parts. Ford’s investment in Mexico reflects the country’s importance as a manufacturing powerhouse, particularly for the automotive industry. The company employs thousands of workers, providing them with opportunities to contribute to high-quality production while benefiting from advanced training and technology.
Honeywell has established engineering and manufacturing facilities in Mexico, focusing on producing high-tech components for its aerospace, automation, and safety divisions. The company benefits from Mexico’s cost advantages and highly trained engineers, who are crucial to developing innovative products. Honeywell’s operations also include research and development, further showcasing Mexico’s potential as a destination for technical and scientific innovation.
Cisco’s presence in Mexico includes engineering teams and customer support centers that cater to both regional and global markets. By leveraging Mexico’s growing pool of IT professionals, Cisco is able to develop innovative networking solutions and provide seamless technical support. The company also works closely with Mexican universities to recruit top talent, ensuring a steady flow of skilled professionals for its operations.
Oracle has offices in Mexico City and Monterrey, where teams focus on software development, cloud infrastructure, and regional sales. Mexico’s skilled IT workforce allows Oracle to maintain its position as a global leader in enterprise software solutions. By integrating local expertise with its global operations, Oracle is able to deliver high-quality products and services while expanding its footprint in Latin America.
Walmart is one of the largest employers in Mexico, with a workforce that manages retail operations, supply chain logistics, and customer service. The company’s distribution centers in Mexico play a critical role in ensuring that its extensive network of stores remains stocked and operational. Walmart’s investment in local talent and infrastructure reflects its long-term commitment to the region and its customers.
Amazon’s operations in Mexico include fulfillment centers, logistics teams, and customer service centers. These facilities are designed to support both the Mexican market and Amazon’s broader Latin American strategy. By leveraging Mexico’s skilled workforce and strategic location, Amazon ensures fast delivery times and efficient operations. The company’s investment in Mexico also extends to training programs and community development initiatives, reinforcing its commitment to the region.
Mexico has emerged as a premier destination for nearshoring, offering a combination of strategic location, skilled workforce, and robust infrastructure. Here are five top Mexican cities that have become hotspots for nearshoring:
Monterrey stands as one of Mexico’s most vital industrial centers. Its proximity to the US border – just a two-hour drive from Texas – makes it a strategic location for businesses aiming to serve the North American market efficiently. The city boasts a diverse industrial base, with significant contributions from sectors such as steel, cement, glass, auto parts, and brewing. Monterrey is home to transnational conglomerates like Cemex and FEMSA, underscoring its economic importance. In March 2023, Tesla announced plans to build a new gigafactory near Monterrey, marking a $10 billion investment that will employ thousands, further solidifying the city’s status as an industrial powerhouse.
Dubbed the “Silicon Valley of Mexico,” Guadalajara has established itself as the country’s main producer of software, electronics, and digital components. The city hosts major tech companies, including IBM, Intel, and Oracle, fostering a vibrant ecosystem for innovation and technology development. This thriving tech scene has made Guadalajara a prime location for nearshoring in the IT sector, attracting investments and talent from around the globe.
Querétaro has experienced remarkable industrial and economic growth since the mid-1990s. The city serves as a hub for industries such as IT, data centers, logistics services, aircraft manufacturing and maintenance, automotive, machinery, chemicals, and food products. Its strategic location and robust infrastructure have attracted multinational corporations, making it an attractive destination for nearshoring.
Tijuana offers unparalleled proximity to the US market, being just across the border from San Diego, California. The city has been a key player in Mexico’s maquiladora program, allowing for duty-free importation of raw materials, provided the finished goods are exported. Tijuana’s industrial landscape is diverse, with strengths in electronics, medical devices, and consumer goods manufacturing, making it a strategic location for nearshoring operations targeting the US market.
As the nation’s capital, Mexico City has the largest and most diverse talent pool, ideal for companies needing a wide range of specialized skills, from Al to FinTech, and which can accommodate a higher average salary compared to other hubs.
These cities exemplify Mexico’s strategic advantages in nearshoring, offering businesses opportunities to optimize operations, reduce costs, and access skilled labor while maintaining close proximity to the US market.
Do you have nearshoring needs?
Calling Mexico from abroad involves a specific dialing format, depending on whether you’re reaching a landline or mobile phone. The country code for Mexico is +52, which must be dialed after the international exit code of the caller’s country: For example, 011 from the US and Canada or 00 from most European countries.
Mexican phone numbers vary in length. Landlines typically have a two- or three-digit area code followed by a seven-digit number. Mobile numbers require a 1 after the country code when dialed from the US or Canada. For example, a call to Mexico City from the US would follow the format 011-52-55-XXXX-XXXX for a landline or 011-52-1-XXX-XXX-XXXX for a mobile phone.
With the rise of internet-based communication, many people now use apps like WhatsApp and Skype to call Mexico without needing to enter country codes. However, for traditional calls, understanding the correct dialing format ensures a smooth connection.
Company size: ~60 employees
Headquarters: Brooklyn, NY, and Warsaw, Poland
Founded: 2016
With a track record of reducing the time-to-hire by 45% for clients establishing teams in Mexico, DevsData LLC provides a reliable and efficient entry point into the nearshoring market for businesses exploring nearshoring options in Mexico. With multiple offices across Latin America and in major IT hubs in Mexico, including Guadalajara and Monterrey, the company has earned a reputation as a trusted partner for organizations aiming to streamline operations. DevsData LLC has maintained a 5/5 rating on platforms like Clutch and GoodFirms, reflecting its commitment to exceptional client satisfaction.
DevsData LLC specializes in software development, delivering high-quality solutions for global corporate clients and high-growth startups. With a team that includes US-based in-house Google-level engineers, we ensure top-tier expertise across our projects. Our vetting process and technical interviews are designed and conducted by former Google engineers to ensure candidates meet the highest global standards. Over the years, DevsData LLC has successfully completed more than 100 software development projects for over 80 clients worldwide, including both established businesses and high-growth startups from the US and Israel.
Recently, DevsData LLC partnered with a financial institution to develop a custom ERP system designed to unify scattered tools like Jira and Excel into a single, streamlined platform. The solution aimed to enhance workflow efficiency, boost productivity, and improve internal collaboration. By working closely with the client’s team, DevsData LLC delivered a secure and optimized system tailored to the organization’s specific operational needs.
DevsData’s specialists bring over a decade of experience in software development, with particular expertise in Big Data and Machine Learning. This expertise is critical for American companies nearshoring to Mexico, as they look to build high-performance, data-intensive systems for their global operations, a key trend in the region. By leveraging advanced technologies and a rigorous approach to engineering, DevsData LLC helps businesses build scalable, high-performance systems tailored to their needs.
In addition to the development services, DevsData LLC offers specialized IT recruitment solutions, addressing one of the key challenges in nearshoring – securing top talent. The recruitment process is led by US-based recruitment specialists to ensure candidates meet high technical and soft-skill standards. With a database of 65000 pre-vetted candidates, the company has a government-approved recruitment license to provide tailored hiring solutions. This license ensures full legal and regulatory compliance, mitigating risk for companies when hiring in Mexico. Operating on a success-fee model, DevsData LLC ensures risk-free hiring with a guarantee period. Their rigorous recruitment process includes a 90-minute problem-solving challenge, ensuring top-tier candidates with exceptional communication skills are selected.
DevsData LLC’s adaptability, technical expertise, and client-focused approach make it an ideal partner for organizations seeking to harness the advantages of nearshoring in the region.
Do you have nearshoring needs?
To connect with DevsData LLC, email them at general@devsdata.com or visit their website at www.devsdata.com.
Address:
DevsData IT Recruitment LatAm
Parque Mariscal Sucre 9, Col. del Valle Centro,
Benito Juárez, CDMX, 03103, Mexico
latam@devsdata.comMexico’s combination of a skilled workforce, competitive costs, geographic proximity to the US, and favorable trade agreements has cemented its position as a prime nearshoring destination. Its growing IT sector, projected to expand from $17.8 billion in 2024 to $34.3 billion by 2030, reflects the rising demand for technology-driven solutions and highly qualified professionals. Companies across industries are capitalizing on these advantages to reduce operational expenses, speed up project delivery, and tap into a rich pool of talent without the complexities of long-distance outsourcing.
To fully capture these benefits, businesses need more than just a favorable location; they need the ability to identify the right talent quickly, ensure both technical and cultural compatibility, and navigate legal and operational requirements with confidence. The right partner makes this process seamless and significantly reduces the risks often associated with international hiring.
As major companies increasingly establish operations in Mexico, the country’s role as a nearshoring hub is reinforced by its cost efficiency, skilled talent, and seamless integration with US business ecosystems.
DevsData LLC combines deep expertise in software development with a rigorous recruitment process to connect businesses with vetted engineers who meet both technical and soft-skill requirements. Their structured approach mitigates hiring risks, accelerates recruitment timelines, and ensures teams are ready to perform from day one. For companies looking to leverage Mexico’s nearshoring potential, partnering with DevsData LLC provides the confidence and capability to turn opportunity into measurable results.
Start building your high-performing nearshore team in Mexico today! Connect with DevsData LLC by emailing at general@devsdata.com or visit their website at www.devsdata.com to secure the talent that will drive your next stage of growth.
Frequently asked questions (FAQ)
DevsData – your premium technology partner
DevsData is a boutique tech recruitment and software agency. Develop your software project with veteran engineers or scale up an in-house tech team of developers with relevant industry experience.
Free consultation with a software expert
🎧 Schedule a meeting
FEATURED IN
DevsData LLC is truly exceptional – their backend developers are some of the best I’ve ever worked with.”
Nicholas Johnson
Mentor at YC, serial entrepreneur
Categories: Big data, data analytics | Software and technology | IT recruitment blog | IT in Poland | Content hub (blog)