Due to its rapid expansion across a number of sectors and businesses, Mexico is quickly becoming a desirable innovation destination for American organizations. Many consider Mexico the new global technology development hub by now.
Mexico’s Technology Development Outlook
According to Frost & Sullivan, Mexico’s economy has the potential to grow by more than $245 billion in cumulative GDP through 2025 via increased investment in R&D, education, and a tech-enabled society.
Mexico currently features the largest fintech ecosystem in Latin America and serves as the gateway to Latin America for technological innovation. In fact, the country’s fintech law (Ley Fintech) went into force in 2018 and laid out regulatory sandboxes for fintech products and guidelines for crowdfunding, cryptocurrencies, and APIs. Due to the safety net provided by the regulatory framework, international investors are strongly attracted.
According to this report, the number of students enrolled in higher education has been rising consistently over the past ten years. In Mexico, the majority of high schools supported by the government are typically focused on the physical and mathematical disciplines. And this is where many young people who are good in math and science begin their quest to become professionals in order to improve their financial situation. Furthermore, a study carried out by the Mexican statistical office (INEGI) indicates that there are almost 1 million people with computer science and IT studies, consisting of 68% men and 32% female. In fact, the technology workforce in Mexico is growing three times faster than the average worldwide rate.
Mexico is one of the top exporters of information and communication technology equipment, the OECD claims. And, according to the World Bank, Mexico is Latin America’s top exporter of high-tech products, placing it on par with advanced nations in terms of technological advancement.
Mexico has invested significantly in infrastructure development. Thus, existing industrial areas in Mexico offer crucial services to businesses looking for foreign direct investment. The leading cities right now include Mexico City’s tech scene, Tijuana, Guadalajara, Monterrey, and others.
As in any industry, it’s fair to say that a variety of developments have combined to make Mexico a more appealing alternative, particularly for American businesses. We are in trying times in the US with an upcoming recession, and it’s time to look for better options. If you have nearshoring plans, contact us! We can assist you.
ITJ is devoted to serving fast-growing and high-value market sectors, particularly the Internet of Medical Things (IoMT), working with innovative medical device companies looking to improve people’s lives. With a unique BOT (build, operate, and transfer) model that sources only the best digital talent available, ITJ enables companies in the US to create technology centers of excellence in Mexico. For more information, visit www.itj.com.