Hire tech talent in Mexico

Published on
Feb 27, 2024
Written by
Juan David Rodríguez
EDITED by
Lisa Dahlgren
Read time
6 Minutes
Category
Talent Insights

Mexico has the largest IT industry in Latin America, with rapidly expanding tech talent pools, over $21 billion in exports, and a unique laboring culture that makes it a great place for IT organizations. The government is investing in, and multinational tech firms and VCs are heavily investing in the country's growing IT sector. Mexico has become a benchmark for assembling, aviation, and fintech enterprises globally, and American companies can capitalize on Mexico's surplus of tech talent, with the cost of talent acquisition being 30-40% lower than in the US or Canada. Kavak, one of Mexico's prodigies, has produced revenue even during the pandemic, grown significantly since its foundation, and aims to expand its business to emerging markets outside the region.

The largest IT industry in Latin America is located in Mexico. The country’s tech talent pools are rapidly expanding, graduating over 110,000 engineers each year. With over $21 billion in exports per year, Mexico is the 3rd largest IT exporter globally. With proximity to the US and relatively lower labor costs, this country has become a great place to take advantage of the highly-qualified workforce with a unique laboring culture that will make any IT organization thrive in this competitive business. This article will talk about the perks of hiring tech talent in Mexico and how to do it.

talent from Mexico
Soumaya Museum. By Arturo Meza Olivares

Mexico is a great attraction for foreign investment

Mexico's government is well aware of its workforce's excellent reputation, and that's why the region is now investing in STEM (Science, technology, engineering, and math) training. The country’s IT outsourcing industry has grown at an average 10% annual rate for the past years, and foreign companies are constantly seeking labor opportunities thanks to incentive programs and tax benefits.

Mexico has demonstrated its ability to support tech and economic growth in the region. Moreover, many international tech companies are creating bonds with Mexican organizations, mainly because of the surplus of talent pools. Tech giants like Cisco and Intel have already established headquarters in the region. Multinational tech firms and VCs are also heavily investing in the country's growing IT sector due to highly qualified employees with an excellent work culture.

Mexico’s Tech Hubs

The cities of Guadalajara and Monterrey are being named the Latin America Silicon Valley because private businesses, local government, and academic institutions are working along to position the cities as major IT hubs worldwide. Since 2012, IBM and HP have had a presence in the region, generating over $100 billion. And local startups like Jüsto and Konfío have received more than $150 million from investors.

tech talent in Mexico
Monterrey. By Mike Foster

The country is already home to 600,000 people who hold IT positions and 2,000 IT companies approximately. While some of those companies are established and well-known firms, most of them are startups. One of Mexico’s prodigies is Kavak, which has produced revenue even during the pandemic. This startup has grown since its foundation in 2016 at an average of 25% per month! Now, Kavak has a $4 billion valuation in the market.

Currently operating in Mexico and Argentina and close to starting operations in Brazil, Kavak is seeking expansion in all Latin America over the next 12 months and aims to expand its business to emerging markets outside the region. In April 2021, CEO Carlos García said: “Crossing the Atlantic is one of our ambitions. (...) We see a lot of markets in Europe, in Southeast Asia, and in the Middle East where we could have significant value.”

Top Talent in Mexico’s Universities

For the Mexican government, tech education is of the utmost importance. In order to be competitive at a global scale where technical proficiency is a requirement, Mexico has destined more than the 6% of its GDP towards the improvement of academic institutions since 2010. In contrast, countries like Russia, Switzerland, or Australia have destined lower investments towards their academic growth.

tech industry in Mexico
Guadalajara. By Peter Arreola

Not only the country produces diverse talent pools at a lower cost than you’ll find within the US, but also a lot of Mexican universities offer highly standardized STEM programs that rank higher than major US academic institutions. As a result, foreign investments are developing the offshoring IT industry in Mexico because the people they employ possess high skills to perform tasks that require a high level of technical expertise.

Proximity and Geopolitical Advantages of Mexico

First, the country’s time zones align with US work hours, enabling real-time collaboration compared to other tech hubs globally. The Mexican culture shares remarkable things with the American way as well. More than a country known for its hardworking people, approximately 12% of the Mexican population is bilingual, which means that over 15 million people speak English.

Mexico City. By Germán Rojas

Even though there’s uncertainty with the diplomatic relations between the neighboring countries of the US and Mexico, private companies of each parties are very interested in keeping favorable conditions while doing business due to the profitable revenues they have been achieving while working together. As the US tech industry continues to grow exponentially, tech companies will keep looking for ways to supplement the demand of the tech workforce, and Mexico will have an essential role in this process.

Tech Infrastructure in Mexico

As stated by the Mexican Internet Association, the country will have 84.1 million internet clients by June 2021. Due to its impressive 4G (And future 5G) network, Mexico is positioning itself as a benchmark for assembling, aviation, and fintech enterprises globally. By the end of 2020, Mexico had more than 126 million dynamic remote lines, with 80% being in metropolitan zones, and thanks to the United States–Mexico–Canada Agreement (USMCA), there’s a new window opening for the development of ICT (Information and Communications Technology) firms.

Guadalajara. By Kevin Reyes

Nowadays, American companies have an incredible opportunity to capitalize on Mexico’s surplus of tech talent. The cost of talent acquisition is 30-40% lower than in the US or Canada. Nevertheless, companies like Teilur Talent manage the hiring process, from recruiting and payroll to international contract compliances. The organization's only job is to interview top candidates and pick the best fit for their culture and long-term goals, and Teilur Talent takes care of the rest.

If you're a CEO or Founder of an innovative startup that is looking for great tech talent, Teilur Talent is the right solution for you!

Teilur Talent is the top IT recruiting and staffing firm in Latin America and you can access to our exclusive network of top Engineers, Software Developers, Product Designers & Data Experts by clicking here.

Need help with cost expectations? 

Costs vary depending on the final offer our candidate accepts. 80% of what you pay goes to the candidate, and the remaining 20% is our fee. We’ve put together some examples of price ranges with all fees included, to help you establish clear pricing expectations for the services we offer.

Pillars
Colombia
Argentina
Mexico
Brazil
Group 1. Coordinators, data analysts, tech sales

$1,500 - $2,000

$1,500 - $2,000

Group 2. Product, designers, growth marketers

$2,000 - $3,500

$2,000 - $3,500

Group 3. Developers and Sr. tech talent (4+ years)

$3,500- $5,000

$3,500- $5,000

Group 4. Sr. software & data engineering (7+ years)

$5,500- $8,500

$5,500- $8,500

1:1 recruiting support

via integration

Talent focus
Pillars
Colombia
Argentina
Mexico
Brazil
Group 1. Coordinators, data analysts, tech sales

$18,000 -$24,000

$18,000 -$24,000

Group 2. Product, designers, growth marketers

$24,000 -$42,000

$24,000 -$42,000

Group 3. Developers and Sr. tech talent (4+ years)

$42,000-$66,000

$42,000-$66,000

Group 4. Sr. software & data engineering (7+ years)

$66,000-$102,000

$66,000-$102,000

1:1 recruiting support

via integration

Talent focus

*Transparent pricing refers to understanding how much a company takes as a percentage of how much a client pays for hired talent. These prices are estimates and always depend on the final offer the candidate takes.

Need help with cost expectations?

Our hiring costs vary depending on the candidate's accepted offer. Use our calculator to estimate costs for different roles.

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At Teilur, Inc, we are committed to accuracy and fairness in all our content. Our discussions and comparisons, particularly those concerning other businesses in the recruitment industry, are grounded in the best interpretations made by our dedicated staff, based on publicly available information. We hold a deep respect for the unique qualities of each organization within our field and strive to offer valuable insights rooted in our core beliefs about the recruitment industry's workings. If you encounter any factual inaccuracies in our content, we encourage you to reach out to us at content-research@teilurtalent.com with the specific URL in question. Your feedback is invaluable, and we are committed to reviewing and addressing your concerns.

Got questions? We've got answers.

1

How is Teilur Talent different from other tech recruiting companies in LATAM?

At Teilur Talent, we take a mission-focused approach to recruiting, ensuring that our candidates are aligned with your company's vision and goals. Unlike other tech recruiting companies in LATAM, who may focus solely on technical skills, we prioritize the cultural fit and dedication of our team members to your company. For this reason, we do not support project contractor or freelancer roles. Instead, we focus on fully devoted team members who will help you achieve long-term success. If you are looking for freelancers to complete one-off projects, you probably are better off going to companies like fiver.com, toptal.com or upwork.com.

2

How does Teilur Talent attract and retain the best talent compared to other companies?

At Teilur Talent, we offer our candidates competitive salaries that are 2x to 3x higher than what tech companies would pay locally. This allows us to attract top talent and retain highly motivated and loyal team members. Additionally, we focus on finding candidates whose values align with the purpose, visoin, and mission of our clients. This approach ensures that our engineers and tech talent are not just coding and completing task—rather, they become part of a greater purpose, which gives them meaning and helps us attract and retain the best talent.

3

What are the typical tech roles that Teilur Talent recruits for?

At Teilur Talent, we specialize in recruiting for a wide range of tech roles that are typically in high demand. These include positions such as DevOps engineers, QA analysts and engineers, back-end and front-end developers, data scientists, product managers, business developers, and technical sales positions. Essentially, we recruit for most roles that are needed in B2B and B2C tech-focused businesses.

4

What are Teilur Talent's fees and pricing structure?

At Teilur Talent, we believe in transparency. We charge a flat rate fee of 20% of what the client pays. This way, our clients know exactly what they are paying for and how much the candidate gets. As an example: If a client hires a software engineer for $60,000 per year ($5,000 per month), Teilur's monthly fee would be $1,000 (20% of $5,000). We don't believe in hidden fees or unwanted surprises, so we disclose all costs upfront to both candidates hired and companies. When exploring other alternatives, make sure they are transparent about their pricing. We believe this is paramount for the benefit of all parties involved in this new era of remote work.

5

What is the candidate screening process at Teilur Talent, and how do you ensure a good fit for my company?

At Teilur Talent, we take candidate screening very seriously. We use a multi-layered approach to find the best candidates for our clients, starting with screening thousands of candidates from our internal and proprietary networks. We leverage AI technology to assess whether a candidate matches the technical skills required for a given job opening. We also perform additional personal evaluations to ensure that the candidate has the soft skills, culture fit, and English language skills required to excel in their new role. Our rigorous screening process ensures that only the best candidates make it through to our clients, saving them time and helping them find the best talent for their teams.