City of the Sun, City of Commerce – Doing Business in Hermosillo

Why this nearshore city makes good business sense

Hermosillo is one of the fastest growing technology hubs in Mexico as a nearshore resource. Though known for its blazing red sunsets and arguably the best carne asada in Mexico, there is more going on in “the city of the sun” than meets the eye. What makes this beautiful city so attractive to high tech and commerce?

Capital City, Capital Ideas

Being the capital of the northern State of Sonora, Mexico, Hermosillo is the main economic and cultural center of the state and the region with 29 percent of Sonora’s total population. It is ranked third-highest city for quality of life in Mexico (Excelsior, 2012). Hermosillo is also home to the main campus of the State’s University: Universidad de Sonora, which is ranked among the top 10 of the 175 institutions of higher education in the country (CSIC, 2013). The university offers four career options in the IT area alone. Currently, of the 23,000 students in the engineering field of study, over 30 percent of these are related to IT.

In addition to a wealth of well-educated talent, the location of the state is a geographical advantage for American investors. There are six points of entry across the Sonora-Arizona border, and Hermosillo boasts one of Mexico’s international airports, namely HMO General Ignacio Pesqueira.

Soft Landings for Business

There has been a good amount of recent growth in Hermosillo. In 2012, Ford Motor Co. invested $1.3 billion dollars for the expansion of its Hermosillo Stamping and Assembling Plant. The aeronautics industry also has a strong presence here. The city is one of the most important clusters of the aeronautical industry in the country with 45 companies generating more than 7000 jobs. The main reason for this growth is that the local government recognizes the importance of foreign investment for the city’s economic future. They have implemented several initiatives to support this investment, such as the Soft Landing Program. This program is designed to help new organizations get started in the state by guaranteeing a simpler and quicker “landing” process.

Hermosillo has additional benefits for new enterprises provided by the Ley del Fomento Económico (the Law of Economic Development). There is ample availability of real estate for strategic projects with six industrial parks across the city. An excellent example of the government’s willingness to help foreign investors start new enterprises is the story of how the CEO and founder of nearshore software development company Tiempo Development, Cliff Schertz, opened a business in Hermosillo in only three weeks.This program offers logistic support, temporary offices and advice on paperwork to facilitate the startup process.

A Home for Nearshore Information Technology

The region’s IT industry is booming with more than 300 companies generating 5000 jobs in the state. These companies have taken advantage of the excellent workforce, IT educational programs, low operational costs, training, quality of life and infrastructure that Hermosillo has to offer. Much of this is due to the government’s focused efforts to promote the aeronautical and IT industries. The presence of companies like Lanix, nearsoft, Teleperformance and Tiempo Development is evidence of the success of this promotion.

About Tiempo Development

Tiempo’s nearshore business model has become hugely successful because we have been able to leverage the talent Mexico is fostering, making software development easier and more affordable. Our Mexico software development teams engineer powerful technologies that align with the goals and strategies of our customers for both their internal and public-facing development initiatives using our product lifecycle management framework called Tiempo Quality System or TQS. This proven combination of resources, process, technology knowledge, industry expertise, and strong leadership provides our customers with cost-effective solutions delivered quickly from a pool of highly successful Mexican STEM graduates and experienced engineers. Our technical focus includes Microsoft infrastructure and security such as .NET and MSSQLJavaLAMP and mobile application development. Find out more about outsourcing software development by contacting Tiempo today.


References

Special thanks to Luis Garcia S. for sharing the HMO Sign picture. To visit his flickr profile click here.

 


If you are interested in working with us or exploring the advantages of nearshore development for your business, please send a note to contact@tiempodevelopment.com. You might also find our case studies and services interesting.

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