Nearshore Mobile App Development in Mexico: Is It Absolutely Worth It? (Pros & Cons)

Nearshore Mobile App Development in Mexico:

Is It Worth It?

(Pros & Cons)

By Ronald Tuch

By Ronald Tuch

Nearshore Mobile App Development in Mexico

Today’s digital markets are all about trends that businesses, by default, must abide by. And to qualify to run in these digital races, businesses must have their mobile applications all set and ready to use. After all, 85% of consumers strongly prefer apps ahead of even mobile sites, not just regular sites.

If you’re a seasoned business owner, you’ve probably already considered mobile app development requirements and went as far as contemplating how to turn it into a cost-effective endeavor. Surely, considering outsourcing partners, like a nearshore company, for instance, was the answer.

Not surprisingly, nearshore software outsourcing to neighboring countries is a popular trend amongst international companies – one that you should consider if you haven’t already. As it stands, nearshore mobile app development in Mexico, in particular, is gaining a robust growth trajectory, showing a 10-15% growth rate annually.

In fact, this puts Mexico as the third-largest exporting country worldwide when it comes to IT services. So, in this post, we’ll tell you exactly all you need to know about nearshore mobile app development, especially in Mexico, so you can decide if that’s what your business needs.

What Is the Importance of Nearshore Mobile App Development?

Here’s the importance of nearshore mobile app development:

  • To put it simply, you’ll find no shortage of talent in any nearshore development team. Nearshore software development companies provide a wide array of senior application talents similar to those found in the U.S.
  • The lower demand and cost of living in outsourcing partner countries make this venture more affordable.
  • Software outsourcing provides reams of nearshore software development services, which include IT service providers, fractional CTOs, senior web front-end and back-end developers, system integration, agile development process technology consultants, and more.
  • Nearshore mobile app development means dealing with outsourcing partners that are nearby, which makes teamwork go faster, development cycles shorter, and provides a quality mobile app that’ll fare well in the digital markets. This is all achieved with the strong international partnerships that come with nearshore software development.
  • As indicated in a report done by Statista, offshore and nearshore software outsourcing revenue is projected to mark $460.10 billion, making it a highly substantial market volume.

The pros section of nearshore mobile app development in Mexico will also explain the importance of nearshore app development in detail.

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Why Nearshore Software Development in Mexico?

Mexican developer working on a mobile app

From a software developer’s perspective, the IT industry is flourishing, with world-top international companies like Uber, Microsoft, Cisco Systems, and SAP well-established within the app development scene in Mexico.

Moreover, the digital trade in Mexico is boosted by tech industry trends and practices. Java, JavaScript, Python, and C++ are among the most popular programming languages for Mexican IT engineers, and these are some of the most used programming languages for mobile apps and app developers in the US.

On top of that, nearshore mobile app development in Mexico is quite an encouraging software outsourcing model for hiring managers and business leads in neighboring countries due to Mexico having the world’s 14th-largest economy with a GDP growth of 3.1% during 2022.

This overall economic stability is perfect grounds for an app development company to have mobile app projects outsourced to skilled Mexican developers.

But in order to understand nearshore outsourcing better, you’ll need to know which countries to outsource mobile app development to. Here are the pros and cons of nearshore software development in Mexico:

7 Pros of Nearshore Mobile App Development in Mexico

pros of nearshore mobile app development in Mexico

That was more about the general benefits of Mexico’s IT industry. Now, here are more specific benefits of nearshore mobile app development in Mexico:

1. Cost-Efficiency

Hiring managers and business owners’ ultimate goal is to maintain cost savings as well as quality assurance. Nearshore mobile app development gives them just that: they provide their clients with a robust application development process.

2. Time Zone Convenience

It’s easy for third-party US businesses to work with Mexican software developers due to the overlapping time zones of the two countries. This facilitates the Mexican mobile app development process and, if necessary, makes business trips easier and faster for all parties involved.

Plus, nearshore mobile app development in Mexico, coupled with mobile app architecture, is a neatly structured method to create effective apps by pairing clients with quality mobile app developers who are in the same time zone as the client.

3. Skilled Talents

The Mexican government’s education-focused direction resulted in a significant rise in the number of STEAM graduates (15.5% in 2005 changed to 25.9% in 2022). Mexico mobile app development is, for the most part, a great success due to the large number of development teams who are knowledgeable on topics such as Flutter and React Native.

4. Stable Economy

Due to Mexico being a member of G20 and the OECD (Organization for Economic Cooperation and Development), the country’s overall economic stability further proves its status as a valuable software outsourcing partner.

5. Government Support

Mexico extends attractive incentives to boost foreign investment, and the software outsourcing model is a prime example of this, from funding opportunities to tax breaks to streamlined processes. Therefore, business operations are much more facilitated and straightforward.

Add to that the constant support of the Mexican government to the IT industry and the large software developer populace, which in turn boosts nearshore outsourcing.

6. Growing IT Landscape

Due to the developed infrastructure of the country and the IT sector’s dynamism (the IT industry is the third largest in the world and is growing by an annual rate of 10%-15%), nearshore mobile app development in Mexico is becoming more attractive to businesses seeking efficient nearshore solutions and a favorable fiscal environment.

7. Flexible Collaboration

As mentioned earlier, nearshore development teams will adjust to your time zone, allowing effective communication and enabling cooperative efforts between all parties involved.

6 Cons of Nearshore Mobile App Development in Mexico

cons of mobile app development in Mexico

With that said, it’s not all sunshine and rainbows. As with any business venture, nearshore mobile app development in Mexico also has some potential downsides. Here are the main cons to consider:

1. Bureaucracy Challenges

Despite the established robust fintech regulations and regulatory framework in Mexico, the Mexican government has a bureaucratic legal system which can present a couple of setbacks to anyone looking into Mexican app development.

While there are statistical figures, like Mexico ranking 60th in the World Bank’s 2020 Doing Business report and 107th for ease of starting a business, these figures don’t negate the fact that nearshore mobile app development in Mexico still is quite the bureaucratic ordeal.

Hiring a Mexican development team, for example, involves registering with the Mexican Social Security Institute (IMSS) as well as the tax authority (SAT).

2. Delayed Hiring Process

Unfortunately, any nearshore software development company based in Mexico struggles with the software development hiring process. This is due to the high turnover present among software development applicants. Additionally, finding the right development team with the required skillset for a mobile app project at any given time will prove difficult.

3. Language Barrier

The English language is widely used globally to achieve economic cooperation in the market, and yet, you might find linguistic obstacles as you deal with Mexican development teams on a daily basis. Combining this with the high turnover rate, many nearshore development partners will find themselves considering local or offshore hiring.

4. Cultural Differences

Well-established nearshore software development partners promise seamless cooperation with their quality mobile app developers. However, sometimes, business owners might find cultural misalignments that’ll affect work expectations and practices. This might possibly leave the enduring business relationship between partners strained.

5. Security Concerns

Projects outsourced to software development teams in Mexico raise questions regarding data security and user protection. While these fintech regulations are established within these business operations, experts still have concerns about user protection.

6. Logistical Hurdles

This is one of the most significant factors to think of when considering a nearshore software development company. Logistical and coordination-related issues will pop up when you’re dealing with app developers who are located elsewhere. These logistical hurdles must be accounted for and prepared for.

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Should You Proceed with Nearshore Mobile App Development in Mexico?

With that said, you’ll need to consider 2 main factors before making an informed decision on this topic: your goals and your budget.

Define Your Goals

It’s important to take into consideration the intention of the software you need developed and how it aligns with your business goals. Consider the features you’re looking for within the software/app and how this aligns with your business goals. Make sure to know your intended user base well and how such a project will be beneficial for them.

With these factors highlighted, be sure that the nearshore app development company you deal with will meet these requirements.

Budget and Value

Nearshore app development is within the budget of most business owners, but you must ensure that the nearshore solutions you’re seeking are within budget. Ensure you’re getting a quality product that matches the amount you’ll pay.

Consider an Alternative Nearshore Software Development Company

Consider augmenting your team with a highly-skilled All-Win Solutions developer from Nicaragua

The many pros of Mexican software development outsourcing don’t always outweigh factors like the pesky logistical hurdles or the prolonged hiring process that can put your plans to a halt. What’s more, you might find yourself paying more than your money’s worth.

Luckily, there’s an alternative solution: many businesses outsource mobile app development to LATAM countries. Nicaragua, for instance, is a great spot for app development outsourcing. With growing economic activity and lax taxation policies, you’re likely to increase your corporate earnings and worry less about taxation on dividends.

In addition, it’ll be relatively easy to move your funds abroad and even get a Nicaraguan passport for seamless communication.

In 2022, The GDP in Nicaragua has increased by a substantial 10.79%, rising up to $15.67 billionfrom $14.15 billion in 2021. Most of this surging GDP comes from the services industry.

All in all, these factors combined make Nicaragua a new and ripe spot that meets all your mobile app development requirements.

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Looking to develop your next software mobile app? Why not try a risk-free 2-week trial with a developer handpicked by All-Win Solutions? Augmenting and facilitating your mobile app development projects is just a few clicks away!

Frequently Asked Questions

How Much Does It Cost To Develop an App in Mexico?

You’re looking at a cost that ranges from $20,000 to $100,000. This depends on a number of elements, such as the experience of the development team being hired, how complex the software you need to develop, and the timeframe of such a project.

How Does Nearshore Differ From Onshore and Offshore?

Offshore means outsourcing to a company that’s far away from yours. The Philippines, for example, can be an offshore software outsourcing partner to the U.S. Onshore is outsourcing projects to talents within your country. It’s usually the most expensive option. Nearshore is outsourcing to a country with a similar time zone, culture, and work practices.

Are There Better Alternatives to Mexico for Finding a Nearshore Software Development Company?

There are other more compelling alternatives to Mexico, such as Brazil, Argentina, Colombia, Nicaragua, Chile, Uruguay, and Costa Rica. You can make your choice based on your company goals, the type of software you need developed, and your budget.

What’s the Best Country in LATAM for Mobile App Development?

This will vary depending on your budget, the time you’re willing to wait for hiring, how complex your targeted software mobile app is, the required corporate earnings, and much more. However, all in all, the best country in LATAM for mobile app development is Nicaragua.

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