Nearshore mobile app development in mexico: advantages, challenges, and cost

If your mobile app is an integral part of your business operations, you know the challenges of finding the right team to develop and upkeep your software. The search for quality mobile app developers, coupled with the pressure to get products to market quickly, can lead to rushed hiring decisions and poor results. Nearshore mobile app development in Mexico can help you overcome these challenges.

What is nearshore mobile app development?

Nearshore app development is a software outsourcing model where businesses outsource their mobile app development requirements to companies located in neighboring countries. Based on geographic proximity, a large number of USA-based companies choose Mexico as their Software outsourcing partner.

According to a report by Clutch, in 2022, 35% of all mobile app development projects outsourced to Mexico were from the United States, 20% were from Canada, 15% were from Brazil, and 10% were from the United Kingdom. Nearshore solutions for mobile app development offer businesses the opportunity to save money and time without sacrificing quality.

Why nearshore mobile app development in mexico?

Mexico has emerged as a popular destination for nearshore software outsourcing due to its fast-growing IT sector, governmental initiatives and location. The country is home to 38 IT clusters comprising 400 software engineering outsourcing companies.

Some important facts that explain why Mexico is a popular choice for nearshore software development are:

• The IT industry in Mexico is expected to grow at a compound annual growth rate (CAGR) of 10.6% over the next five years, reaching a market volume of $3.92 billion in 2023.
• The country provides lucrative offers to international companies, such as no obligation to pay local or state income taxes on corporate earnings.
• Mexico is an active member of the G20, the OECD (Organization for Economic Cooperation and Development) and the Pacific Alliance, thus capable of offering overall economic stability to its outsourcing partners.
• As per the US-Mexico-Canada Agreement (USMCA) effective since 2020, there is a specific chapter on digital trade, allowing for cooperation in developing and integrating the digital markets of the three countries.
• Mexico has also established fintech regulations to ensure user protection, contributing to the country’s overall attractiveness for nearshore software development.

The US and Mexico have a close and lasting business relationship, making it an even more attractive location for nearshore development.

Top 7 advantages of nearshore mobile app development in mexico

Working with software engineering outsourcing companies from neighboring countries enables businesses to tap into a diverse range of software development skills and experience, which ultimately helps them create an innovative and successful end product.

Overall, nearshoring is the ideal choice for businesses planning to outsource their app development needs in 2023 and beyond.

So, let’s read the top 7 benefits of nearshore app development in Mexico.

Cost-effectiveness

Nearshore mobile app development in Mexico is significantly less expensive than in its neighboring countries such as USA and Canada. The lower cost of living and salaries make nearshore outsourcing an affordable alternative for businesses. For example, the average app developer pay in the United States is $110,140 per year, while the average app developer pay in Mexico is $35,000 per year. This means that businesses can save up to 70% on developer salaries by outsourcing their mobile apps to Mexico.

Convenient time zone

Mexico’s time zones overlap with those in the US, making it easy for US-based businesses to work with Mexican teams and make potential business trips faster and more convenient.

Cultural fit

Mexico’s cultural compatibility with the USA makes it an ideal location for businesses looking for software engineering outsourcing requirements. Mexican professionals are known to be good team players who are prone to long-term commitment, making them easier to manage. Additionally, the common language and culture between Mexico and the United States reduce misunderstandings and promote effective communication.

Government support

The tech industry receives strong support from the Mexican government, which provides numerous incentives to encourage foreign investment, such as tax breaks, funding opportunities, and streamlined regulatory processes. As a result, starting and operating a business in Mexico can be a more straightforward process.

Growing IT landscape

Mexico has become a significant IT hub and an attractive option for businesses looking for nearshore software development. The country’s IT services industry is the third largest in the world and has been growing at an annual rate of 10-15%. Mexico’s strategic location provides easy access to USA markets. The IT industry in Mexico is diverse, with expertise in software development, cybersecurity, cloud computing, and innovative startups driving technological advancements.

Fully developed IT infrastructure

Mexico has become a global outsourcing hub in the past decade, thanks to its modern infrastructure. The Mexican government is actively working on enhancing transportation, IT, and energy projects, with a budget of over $14 billion (USD) announced in 2020. A developed infrastructure allows Mexico to support stable supply chains, further strengthening its position as a prime destination for software development outsourcing.

Access to skilled talent

Mexico’s education-focused governance over the last decade has led to a considerable increase in STEM graduates in the country, starting from 15.5% in 2005 to 25.9% in 2022. The country has a vast pool of talented developers who are proficient in using the latest technologies such as React Native and Flutter in mobile app development. Driving innovation through Mexican app development is a strategic move for businesses looking to tap into a talented and cost-effective workforce.

Challenges & risks of nearshore software development company in mexico

While Mexico has several advantages that make it a desirable location for the nearshore software development process, it is not without its challenges and risks.

• Bureaucracy Challenges: The Mexican government has a complex bureaucracy and legal system, which can make it difficult to set up and operate a business in the country.
• Protracted Hiring Process: The recruiting process in Mexico can turn into an inefficient model, due to factors, such as the lack of a relevant workforce and the high turnover rate among mobile app developers.
• Cultural and Language Barriers: There can be some cultural and language barriers between Mexican and USA businesses, which can make it difficult to communicate seamlessly on projects.

Despite these challenges, nearshore software development in Mexico can be the right choice for businesses to build a high-quality app solution on an optimal budget. By hiring from some of the most reputable nearshore software development companies in Mexico, businesses can mitigate these challenges and take advantage of the many benefits that Mexico’s IT outsourcing industry has to offer.

Choosing the right nearshore development partner in mexico

Finding the right software development outsourcing partner is one of the most critical decisions businesses must make. The right nearshore software development company in Mexico can help you bring your app to market faster while partnering with the wrong company can cause delay or even complete failure of the project.

Here are a few important steps businesses must consider while searching for the best nearshore software development services provider company in Mexico.

• Experience: Make sure the company you choose has experience in building apps for your industry or similar niche.
• Skills: Ensure that the outsourcing partner has developers with the most relevant skills in line with your project specifications.
• Communication: Check if the nearshore software outsourcing company understands the significance of effective communication during the app development process.
• Portfolio: Once you have a few outsourcing companies shortlisted, study the company portfolio for each. This includes studying their previous projects, case studies and reviewing their client references. For more insight, one can also plan a visit to the company to meet the development team and understand their approach.
• Culture: It is essential that the nearshore software development company in Mexico has the same business values and culture that you expect to meet the end goal.

By implementing these steps, you can enhance your chances of finding the right nearshore mobile app development partner in Mexico for your project.

How much does nearshore app development in mexico cost?

The price range for developing a mobile app in Mexico can fluctuate based on many factors like the app’s complexity, the development team’s experience, and the time given to complete the project. However, the cost of software development falls somewhere between $20,000 and $100,000.

Nearshore vs. Offshore mobile app development

Nearshore development may be the better option if you require higher quality and quicker delivery with better communication and a reliable partner. However, offshore development may be more beneficial due to the lower cost and larger talent pool.

Both outsourcing models have their pros and cons. The right option for you will depend upon your specific project requirements. At the end, the goal is to find an app development team who is capable of executing your project specifications and delivering successful outcomes.

Key takeaways

• Nearshore mobile app development in Mexico is a cost-effective and time-saving option for businesses looking to outsource their app development needs.
• Mexico has a strong IT industry with a pool of highly talented and experienced developers.
• The Mexican government is supportive of the IT outsourcing industry and offers a number of incentives to attract international investments.
• Businesses face many challenges and risks when they choose nearshore mobile app development in Mexico, but these can be mitigated by working with the right app development company.

Frequently asked questions