Introduction

Mexico is often the first country US companies consider when looking to hire abroad, and for good reason. With its geographic proximity to the US and shared cultural and timezone compatibility, Mexico offers a host of benefits to US companies looking to nearshore their development team, including significant cost savings and smooth communication.

Mexico boasts a booming tech industry, offering a large, skilled talent pool of 700,000+ developers, with ~130,000 tech graduates annually, and the country’s technology sector boasts year-on-year growth of over 10%.

Why is Mexico popular for tech hiring?

Mexico is popular for US tech hiring due to its geographic proximity and aligned time zones, alongside its large and growing pool of cost-effective and skilled talent.

Mexico shares time zones with the US, ranging from Pacific to Central Time, enabling real-time collaboration during normal business hours. This nearshoring approach avoids the communication delays and scheduling difficulties associated with offshoring to distant regions like Asia or Eastern Europe, leading to improved productivity and faster project delivery.

Mexican universities produce over 130,000 engineers and tech professionals annually, ensuring a steady stream of new talent. This growing workforce is proficient in technologies like AI and machine learning, and many professionals are bilingual and familiar with US business practices and work culture.

US companies can achieve substantial cost savings of up to 60% by hiring tech professionals in Mexico compared to domestic markets. The lower cost of living in major Mexican tech hubs means these competitive local salaries still provide a high quality of life for the employees, improving talent retention.

Trade agreements like the US-Mexico-Canada Agreement (USMCA) provide a stable legal framework that includes stronger intellectual property protections and simplified compliance requirements for cross-border operations. The Mexican government also offers tax incentives and support for the tech industry, including the development of numerous tech parks and innovation centers, which attracts foreign investment.

Finally, major US tech companies like IBM, Intel and Microsoft have established operations and R&D centers in major Mexican cities such as Guadalajara (“Mexico’s Silicon Valley”), Monterrey, and Mexico City. This corporate presence has fostered a mature local ecosystem with robust infrastructure and a strong culture of innovation and professional development.

How many developers are in Mexico?

Mexico has a large and growing developer pool, with estimates ranging from over 300,000 to over 700,000 software developers and IT professionals, making it a major tech talent hub in Latin America, second only to Brazil. This is fueled by strong educational investment and consistent annual engineering graduates.

Top cities to hire developers in Mexico

The leading cities for hiring tech professionals in Mexico include:

• Mexico City: The largest tech hub in Mexico, with huge numbers of professionals, startups, and major multinational companies, especially in fintech, e-commerce, and SaaS.
• Guadalajara: Known as Mexico’s Silicon Valley, with a strong base in software, app development, and electronics.
• Monterrey: A significant industrial and business center with a growing tech scene and a collaborative developer community, home to firms like Softtek.
• Querétaro: A growing tech city with a solid talent pool.
• Puebla: Offers a growing tech culture, lower cost of living, and emerging developer community.
• Tijuana: A key border city with strong ties to the US tech industry.

How does Labor Law work in Mexico?

All Mexican employment falls under the Federal Labor Law (LFT). Key clauses to note include:

• Mexican law strictly governs dismissals. For a “just cause”, employers can terminate with minimal liability, but otherwise any dismissal is presumed unjustified, triggering statutory severance.
• Employers must withhold taxes and social contributions, register hires with IMSS/INFONAVIT, and issue payslips/notices in Spanish.
• Since late 2020, any employee teleworking over 40% of their time must have a written, reversible agreement covering key requirements like the “Right to Disconnect”.
• No “voluntary” unpaid extra hours are permitted.
• 12 days paid vacation after 1 year of employment is required.
• Every worker must receive an annual bonus of at least 15 days’ wages, called Aguinaldo, by December 20th of each year.
• Employers handling recruitment directly must pay income tax (ISR), state payroll tax, IMSS (Social Security) and INFONAVIT (Housing Fund).

Mexican Labor Law can be difficult to navigate for US companies looking to hire in Mexico without the support of a specialist firm like HireDevelopers.com.

Is it hard to hire a developer in Mexico?

As a major tech hub, it can be hard to find highly skilled developers in Mexico that fit your budget. Mexico has a highly competitive tech talent market, with startups and small businesses struggling to compete with the salaries and benefits offered by major players in the region.

Talent retention can also be a challenge, with many developers looking to start their own companies as a result of Mexico’s strong startup culture.

As a result, many companies are turning to dedicated tech hiring platforms like HireDevelopers.com to simplify the process of hiring developers and tech talent across Mexico. These platforms offer a faster alternative to traditional hiring, offering thousands of pre-vetted engineers currently looking for new opportunities.

How much does it cost to hire a developer in Mexico?

PayScale reports an average base salary of MXN 425,954/year (USD $24,000) for software engineers, with a range of MXN 350k–600k per year for a mid-level engineer (USD $18k–$32k).

With pre-vetted platforms like HireDevelopers.com, companies can save up to 80% on salaries and hiring costs when hiring Mexican developers.

How to hire a developer in Mexico

The first step to hiring a developer in Mexico is to decide on a hiring method. Traditional hiring methods include local job adverts, LinkedIn job posts and using your professional network to identify potential candidates.

However, these methods are often time consuming and can be expensive. The median time to hire a developer is around 41 days, with the slowest 10% taking up to 82 days and 38% of companies reporting project delays due to recruitment problems, according to the Linux Foundation’s 2024 State of Tech Talent Report.

Alternatively, many companies are now turning to services like HireDevelopers.com to cut costs and speed up the hiring process. With HireDevelopers.com, you can hire Mexico-based developers at any price point and in just 24 hours.

You should also consider using coding challenges alongside a traditional interview during the hiring process – if you’re using a pre-vetted talent pool like HireDevelopers.com, this has already been done for you. Coding challenges allow you to assess problem-solving skills and coding expertise in a realistic, real-time environment.

If you need help putting together a job description or conducting a job interview, you can check out our helpful and comprehensive guides below. Alternatively, to cut your time-to-hire by 90% and unlock savings of up to 80%, get in touch and book your free HireDevelopers.com consultation today.

Why hire Mexican developers with HireDevelopers?

Hiring the right Mexican developer for your team is a huge undertaking, and the process can be intimidating, especially for startups and small businesses.

At HireDevelopers.com, our pre-vetted, global tech talent marketplace streamlines your hiring journey and cuts time-to-hire by over 90% without compromising on quality or stretching your budget. Receive a custom shortlist of top developers at any seniority level and at any price point within just 24 hours of your consultation.

Plus, we’ll handle all payroll, legal compliance and HR completely for free, giving you more time to start building with your new Mexico-based dev.

Get in touch today and start hiring top-notch Mexican developers in just 24 hours with HireDevelopers.com