Mexico: Leading a Digital World

In recent years, Mexico has taken the leading edge as the technology hub of Latin America with unprecedented growth in its tech industry. Major investments by State and Federal governments to large technology centers and local initiatives to encourage scholarship in STEM fields has proven to be an effective driver in this growth.

With the United States and Mexico sharing a border, Mexico’s northern region is seeing major investments from U.S. tech companies. Although the cities of Monterrey and Hermosillo have gained considerable growth to their tech sectors, the “Silicon Valley of Mexico” is in Guadalajara.

Growth of Advanced Technical Centers in Guadalajara

The City of Guadalajara hosts more than 20 corporate campuses and 100 software companies[1]. The local and city governments of Guadalajara have attracted the attention of massive international companies like Sony, Viacom, Walt Disney, and Comcast, interested in the country’s fast development of advanced technological centers.

One major technical project under development is the Ciudad Creativa Digital. The center promises advanced co-working spaces, developmental and research labs, and other sponsored resources to encourage technological creativity and innovation[2]. The center is projected to generate 2 billion dollars in exports within the next 5-10 years, further building Guadalajara’s tech-fueled economy[3].

Prestigious Universities in Monterrey

Fueling the growth of Mexico’s tech industry are its surging rates of computer science and IT-related graduates. According to the World Economic Forum’s “Human Capital Report”, in the past 5-years, Mexico’s engineering graduates almost doubled with 113,944 graduates in 2015[4].

Monterrey is home to one of Latin America’s many prestigious universities, the Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM). The university is ranked 9th amongst Latin American Universities by the Quacquarelli Symonds World Rankings and it offers 7 degree plans in computer science and IT-related studies[5].

ITESM also offers a joint master’s degree in information technology and software management with Carnegie Mellon University. In introducing the program, Heinz College stated “Tec’s excellent reputation across Latin America and strong ties to industry are a major draw. For the Heinz College’s new School of Information Systems and Management, the dual degree program opens up doors to a host of opportunities.”[6]

History of Strong Business in Hermosillo

Hermosillo is the capital city of Sonora, Mexico, and is one of the major cities with the longest history of business growth for U.S. investors. In recent years, Ford Motor Co. made a $1.3 billion investment in its stamping and assembly plant in Hermosillo[7]. The city is just 300 miles from Phoenix, Arizona and is home to over 50 aerospace manufacturers and other technology-centered industries.

The city is also home to 12 Universities that support a rich technology startup culture. ITESM also has a branch in Hermosillo, Instituto Technologico de Hermosillo, which provides much of the Sonora’s skilled workforce.

Major investments in Mexico’s tech industry have cemented its position as the technology hub of Latin America. Mexico’s close proximity to the United States has spurred corporate interests in its growing skilled workforce and local software development centers, making it a major competitor in a digital world.

Tiempo Development is a nearshore software development firm with locations in Guadalajara, Monterrey and Hermosillo. We offer pre-built teams of skilled software engineers who are trained in utilizing the latest Agile methodologies. Learn more about how Tiempo Development the advantages of a nearshore business model and Agile methodologies by downloading our Agile and Nearshore as Methodology Whitepaper!

[1] Matt B. “Digital transformation underway in Mexico’s tech hub”. Cisco. http://newsroom.cisco.com/feature-content?articleId=1752407&type=webcontent

[2] Conrad E. “Beyond The Maquiladora”. Tech Crunch. http://techcrunch.com/2015/03/26/beyond-the-maquiladora-a-look-at-mexicos-startup-scene/

[3] “What benefits will it offer?”. Cuidad Creativa Digital. http://ccdguadalajara.com/en_US/

[4] “The Human Capital Report 201”. World Economic Forum. http://reports.weforum.org/human-capital-report-2015/the-human-capital-index/?doing_wp_cron=1458914607.4227669239044189453125

[5] “Instituto Tecnológico y de Estudios Superiores de Monterrey”. Top Universities. http://www.topuniversities.com/universities/instituto-tecnol%C3%B3gico-y-de-estudios-superiores-de-monterrey

[6] “Dual Degree with Tecnológico de Monterrey”. Heinz College at Carnegie Mellon University. http://www.heinz.cmu.edu/news/news-detail/index.aspx?nid=849

[7] Tomas S. “Ford to invest $1.3 billion in northern Mexico plant”. Reuters. http://www.reuters.com/article/us-ford-mexico-idUSBRE82T0X220120330

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