How Jalisco’s Thriving IT Ecosystem Launched Mexico’s Silicon Valley

For ages, Guadalajara was known as “Mexico’s second city.” Traversing through the state of Jalisco’s capital captivated visitors with sights of lush agave, stunning colonial architecture, and vibrant markets. Today, these classic images pair with visions of modern office buildings, new storefronts, and troves of budding entrepreneurs and IT professionals.

Jalisco is experiencing a new dawn as “Mexico’s Silicon Valley.” Vast public and private investments in technology, higher education, and infrastructure are allowing the region to take on a new personality as a global focal point for technology and logistics. Progress is coming at an ideal time for both Mexican and American businesses. While Guadalajara boasts more than 40 years of high tech experience, the race to develop and redevelop mobile applications has catapulted the region in recent years.

Mexico’s Emerging Silicon Valley

Jalisco’s IT boom owes itself to a variety of factors. Perhaps the foremost is the government’s commitment to creating and maintaining itself as a productive and relevant resource to the global economy. Among their core beliefs is that innovation is a crucial player in the effective interaction between higher education, the private sector, and public organizations. This conviction is at the heart of why the state is investing in world class talent and infrastructure.

The endowment makes sense, as Mexico enjoys a population with a median age of 27, and more than 20 universities offering state of the art engineering and IT courses.  Jalisco is also contributing to training programs for employees at the technical and professional level, bestowing a 100 percent tax discount for new companies established in the first year, and providing a 50 percent discount for new jobs created during the second year and the expansion process.

These perks have attracted both emerging startups and blue-chip American organizations. In 2016, more than 70 startups closed deals amounting to approximately $130 million – much of it coming from U.S. venture capital. These figures are only expected to increase. Guadalajara is now home to hundreds of high tech organizations, including Google, Facebook, HP, and Cisco.

While the region has enjoyed an uptick in technological advancement for years, one of the most recent and exciting developments is the establishment of Ciudad Creativa Digital, a smart-city urban environment that connects talent and technology to improve quality of life in the Guadalajara Metropolitan area. Equipped with the motto “the future belongs to those who dare to believe,” their concentration on mobile app development, CGI, and interactive media further position the state as a relevant IT hub.  

Jalisco’s Thriving Nearshoring Model

Rapid innovation has positioned Guadalajara and Jalisco as a world leader in nearshoring, a convenient cousin to the offshore model previously favored by American businesses. As offshoring costs and political tensions increase between the U.S. and countries like China and India, partnering with IT companies in Mexico continues to incentivize opportunities for American businesses.

Jalisco’s community of engineers still have the right skill set and service models, but lower costs than hiring local American talent. As a result, U.S. organizations can save on production costs while redeploying those resources in other critical areas of focus like marketing and sales.

Nearshoring also helps teams maintain the same language, work dynamics, and real-time communication. Efficient and streamlined units in the U.S. and abroad work as one, which boosts overall efficiency and delivery in the realm of mobile app development.

NearshorePlus for Software Development

If you are interested in working with a cost-efficient nearshore team that understands how to plan, design, and build mobile apps effectively, NearshorePlus by iTexico is Jalisco’s gold standard. Their outsourced software development system consists of skilled project teams, product development professionals, and budget experts. Each facet operates upon the flourishing nearshoring model, which reduces the cost, time, and risk it could take to send your service or product to market.

iTexico’s Guadalajara-based teams are ready to collaborate virtually, at your site, or one of your delivery centers. Let us show you how Nearshore can help your business meet their development goals.

Download our Free Guide to Nearshore Software Development in Latin America 

What's the total cost of outsourcing software development in the top three IT regions in the United States, versus outsourcing to Latin America?
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