Outsourcing? Here’s What you Need to Know About Mexico’s Infrastructure First

Mexico’s Infrastructure and IT Services is rapidly expanding and doesn’t appear to be slowing down anytime soon. Mexican President, Enrique Pena Nieto, has offered ample support from the Mexican government by committing to an investment of US $300 billion on infrastructure, communications, and transportation over his six-year term, ending late next year.

Last year was one for the books for Mexico´s infrastructure industry. The Mexican government made its development a major priority. The current administration’s National Infrastructure Program (NIP) for 2014-18 delineated a total investment target of $7.75 trillion pesos for a total of 743 projects in six strategic sectors (communications and transport, energy, water, health, urban development and housing, as well as tourism).

According to the Mexican Construction Industry Chamber (CMIC), the construction sector grew 2% last year. This year it’s predicted to grow up to 1.5%. This growth can be attributed to the private sector’s continuing investment in commercial and residential building projects. Energy, Telecommunications and most importantly, Fiscal Reforms, create a variety of opportunities for infrastructure investment to be explored.

The Different Ways Mexico is Making an Infrastructure Investment

Mexico’s infrastructure has been quickly advancing over the last decade, and it’s included advancements across the board. Here’s how the nation has been moving its infrastructure forward:

1. Travel

This increase in spending includes US $4.6 billion that the government has committed for infrastructure through 2018. Mexico has been rapidly expanding the Mexico City airport. The country has also been investing more in the development and building of roads – four major highways were recently completed in 2014.

The Mexico City New International Airport (NAICM) is being built to replace the existing Benito Juarez International Airport. Mexican President Peña allocated $9.2bn for its construction in September 2014. It is one of the world’s largest airport infrastructure projects and is expected to be Latin America’s biggest airport.

2. Telecommunications

Well over half of Mexican mobile phone users now have a smartphone, (compared to just 6% back in 2010). The Android operating system dominates the quickly growing smartphone market of 54.4 million users.

So what about Telecommunications Infrastructure? Mexico’s 2014 telecom reform targeted boosting competition through regulation to reduce the monopolistic practices of dominant players.

The result? Internet usage is expanding dramatically. In 2015 it approximately 75.4 million people, (63.5% of Mexico’s population), used a mobile phone. Sound low? It isn’t, that’s actually up from less than half of the population using cell phones back in 2010.

In fact, AT&T joined FUNED last year to support Mexican women building careers in STEM. The Mexican Foundation for Education, Technology and Science (FUNED) is a non-profit organization founded in 1993 by Mexican entrepreneurs and started operations in 1994. It is authorized by the Tax Administration Service. The popular American brand joined the cause to help close the gender gap ever present in both American and Mexican job markets.

In Mexico, almost 80% of all engineering jobs are still held by men. This trend started with the nuclear family, where most children are brought up to accept their pre-existing gender roles.

To break the trend, AT&T is partnering with FUNED to shape a new generation of driven women who are passionate about science, technology, engineering and mathematics. AT&T is contributing about $75,000 to support five young women in Mexico in earning Master’s Degrees in STEM.

“At AT&T we collaborate with more than 84 thousand women worldwide. They are executives, engineers, vendors, lawyers, and specialists of all sectors who lead the transformation of connectivity. This is why we are very conscious of how relevant it is to promote the next generation of Mexican female leaders,” said Cristina Ruiz de Velasco, Executive Director of External Affairs, AT&T Mexico.

“Through FUNED, AT&T has found a great collaborator to take successful students into prestigious universities around the world. We’re proud to be part of this initiative,” she added.

3. Connectivity between Mexico and the United States

Did you know there’s a significant fiber-optic connectivity between the United States and Mexico AMX-1, The America Movil Submarine Cable System-1 (that connects seven countries including Mexico and the United States), the Americas Region Caribbean Ring System (ARCOS-1), COLUMBUS II, and MAYA-1, are four undersea cables that connect straight from Florida to the Yucatan peninsula on the Mexican mainland.

Additionally, Mexico announced the fifth-fastest internet connection speeds in the Americas, only behind the United States, Canada, Uruguay, and Chile. (Mexico and Chile are still tied in reporting broader coverage than any other Latin American countries.)

Second only to Brazil, Mexico has nearly 14.2 million unique IPv4 addresses in Latin America today.

As Mexico’s infrastructure and economy continues to grow, so does the development talent there. Since 2012, an average of 130,000 engineers and technicians have graduated from Mexican universities and specialized high schools annually. This total outnumbers students graduating in the same areas in Canada, Germany, and even Brazil, which has almost twice Mexico’s population.

Recently, the number of engineers surged from 1.1 million to 1.3 million. There were nearly 29,576 science graduates in Mexico in 2015, with a total enrollment of 193,243. So it’s no surprise that our development talent continues to grow across our four office locations.

Ready to talk?

Click here to schedule a meeting with our team to learn how we can partner with you to keep your innovation moving faster.

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. 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 MSSQL; Java, LAMP and mobile application development. Find out more about outsourcing software development by contacting Tiempo today.