Why Mexico needs to be on the tech company radar
Opinions expressed by Contractor the contributors are theirs.
Over the past year, we have witnessed a shift in professional and personal interactions, accelerated by the Covid-19 pandemic and supported by technological advancements. Applications, software and innovation strategies are evolving at an unprecedented rate, and if a company does not have access to the tools and teams necessary for an internal technology project, it may make sense to outsource it. There are of course various countries which offer such technological subcontracting.
According to the Organization for Economic Co-operation and Development (OECD), Mexico is one of the main exporters of information and communication technology equipment, a distinct advantage for this country at the dawn of the new decade. The North American country is also placing an increasing emphasis on education, in part to take advantage of increased digital accessibility, and it is also deploying support mechanisms for new businesses. The World Bank has announced that Mexico is Latin America’s largest exporter of high-tech products, putting it on a par with world leaders in terms of technological development.
Related: Google presents the first edition of a program to help Mexican SMEs sell online
Benefits of doing business in Mexico
• Proximity. The geographic proximity to the United States simply makes doing business easier, and language barriers are minimal (the majority of the Mexican population is fluent in English).
• Commercial agreements. Mexico has structural trade agreements with more than 45 countries, giving its markets access to more than 50% of global GDP. NAFTA, which will be replaced by the United States-Mexico-Canada Agreement, is expected to be endorsed by all parties. There are ongoing trade agreements that will allow access to 60% of the world’s markets.
• Investment. The Mexican government supports and attracts investors to the region, in part because of its macroeconomic stability, a thriving clientele and an increasingly skilled labor market. In recent years, the United States has become one of their main sources of foreign direct investment. Today, Mexico is attracting a growing number of global investors, which has enabled it to rank 15th in the world for direct investment.
Related: Mexico enters the top 10 of the UN list to attract foreign investment
• A diversified economy. Mexico’s GDP includes agriculture, industry, and services, among others, so finding a technology partner for, say, a software development project will be a straightforward process. The country has also expanded its technology offerings and is focusing on ways to improve business operational efficiency and manage risk.
• Infrastructure. The Mexican government has recently made significant investments in technology infrastructure, offering several advantages to companies looking to establish new operations there.
• A growing domestic market. The standard of living in this country of 130 million citizens has improved markedly since the NAFTA agreement of 1994, and economists predict that growth will continue to the point of becoming the world’s fifth largest market. by 2050.
As in any industry, if you are considering outsourcing any part of the commercial production, it is imperative that you do your due diligence and thoroughly research any potential partner, but it is fair to say that various developments have taken place. combined to make Mexico an increasingly attractive country, especially for technology companies.