Mexico’s IT Industry Is A Trusted Partner To U.S. Companies
Mexico has a vast, diverse pool of talent working for innovative companies throughout the country. The nation ranks fourth among global destinations as a service location and has a growing software and IT services sector that includes nearly 500,000 professionals. Each year, more than 120 universities graduate nearly 65,000 new IT workers — and some 115,000 engineers.
In addition to sharing a border with the world’s strongest economy, Mexico shares a cultural affinity with the United States that is unmatched in Latin America. In an industry where agile software development and constant collaboration have become critical, Mexico’s shared time zones enable real-time solutions and easy information exchange between U.S. clients and providers in Mexico. Its geographical proximity reduces the cost and time for air travel, too, allowing executives to make quick trips without scheduling headaches.
The regulatory benefits and incentives are plentiful as well. Doing business with Mexico includes a defined framework of legal and IP protection (through NAFTA), and companies that establish IT-service firms are eligible for incentives that will minimize their initial investment. Those who invest in Mexico’s tech industry get tax credits for R&D, receive a reduction of corporate taxes, and face no value-added tax for exported services. IT firms established in Mexico can receive cash grants of up to 50% of the total cost of their project and a tax credit of up to 30% of the total R&D expense.