Topics In Demand
Notification
New

No notification found.

Mexico – LATAM’s Rising GCC Hub

December 29, 2023 526 0 GCC Talent & Skills

Mexico – LATAM’s Rising GCC Hub

Mexico has emerged as a top global talent hub in Znnov’s 2023 edition of its marquee COE Hotspots of the World report. Evaluating countries across 4 key factors of Software Engineering Maturity, Cost, Tech Talent Pool, and Ease of Doing Business, Mexico ranked among the top 5 locations. With strong technical universities producing over 110,000 STEM graduates yearly, a thriving start-up scene, presence of major tech companies, and favorable business policies, Mexico provides access to skilled technology talent and an attractive business climate. As more companies discover the deep talent pool and business-friendly conditions, Mexico is positioned to become a leading destination in Latin America for Global Capability Centers (GCCs) and tapping skilled engineering talent.

As 2023 draws to a close, companies worldwide face mounting economic headwinds. With fears of recession looming, slowing growth, and ongoing geopolitical tensions and wars, business leaders have difficult decisions ahead. Yet, one constant remains — the soaring demand for skilled technology and engineering talent drastically outpaces supply. Facing this global talent crunch, forward-thinking companies must look beyond the usual talent hubs in the US, Canada, Western Europe, and Asia. Emerging tech talent hotspots like Mexico offer fertile ground for securing the skills needed to innovate and compete.

According to Zinnov’s 2023 Global Capability Centers (GCC) Hotspots of the World report, Mexico has rapidly become one of the top 5 global tech talent hubs. For companies seeking resilience and growth, Mexico provides a rich talent pool for building world-class product, engineering, IT, and operations teams. By establishing GCCs in Mexico, organizations can drive innovation, accelerate digital transformation, and create a talent pipeline to power through market uncertainty.

In times of disruption, access to skilled talent makes all the difference. Mexico’s depth of technology and engineering aptitude offers a vital resource for companies worldwide. As we close out 2023, business leaders would be remiss not to tap into Mexico’s possibilities. The time is now to plant the seeds for future innovation and growth.

4 Key Factors Positioning Mexico as a Rising GCC Hub

1. Strong Tier-I Academic Institutions. Mexico houses over 1250 higher education institutions, that churn out 110K STEM graduates a year, including renowned technology schools like the Universidad Nacional Autonoma de Mexico, Technologico de Monterrey, and University of Guadalajara. Out of the 400 top universities in the LATAM region, Mexico has 63 of them, making it a strong education hub.  

2. Vibrant Start-up Ecosystem. The 582+ technology start-ups that have been incepted in Mexico, work across Enterprise SaaS, Fintech, e-Commerce & Retail, HealthTech, Edtech, and Transport Tech. Clara is the fastest fintech start-up to become a unicorn in Mexico, in just 8 months since its inception. This creates the perfect foundation to create a steady pipeline of digitally skilled talent.

3. Presence of Global Companies. Mexico is an R&D hub for global companies across verticals such as Automotive, Industrial, Software & Internet, Healthcare, and BFSI. Oracle, Lyft, and Microsoft have their engineering centers in Mexico, with Faurecia already having two R&D centers in the country, that focus on developing solutions for the Cabin of the Future and Sustainable Mobility. The Guadalajara Design Center (GDC) is Intel’s largest engineering center in Latin America, responsible for software development, advanced research in autonomous systems, and neuromorphic computing, and quantum computing.

4. Favorable Business Climate. Mexico passed a Fintech law, the first of its kind in LATAM, aimed at providing Fintech companies licenses to operate as financial institutions. Additionally, Mexico also offers SEZs, where the government forgoes income tax for the first 10 years, and offers a discount of 50% on income tax for the next five years. It also offers 0% value-added tax (VAT) for providing service to the investor and acquiring goods to use in the SEZ. Interestingly, setting up large engineering teams in Mexico, in comparison to the US, provides over 60% cost savings for global companies. This winning combination of business-friendly factors makes recruiting and scaling up operations painless in Mexico.

Turning Mexico’s Potential into Tech Leadership

Mexico is poised to become LATAM’s next great GCC hub for technology and talent. But the realization of this future rests on smarter collaboration between government, academia, and industry to set the stage for multinational investments to flow in. By learning from established tech and GCC ecosystems from around the world like India, Mexico can avoid pitfalls around runaway housing costs, commute times, and uneven growth. With care, foresight, and continued openness to fine-tune existing policies and regulations, there will be no stopping Mexico from becoming an emerging GCC hub.

Get your hands on the full COE Hotspots of the World report here.


That the contents of third-party research report/s published here on the website, and the interpretation of all information in the report/s such as data, maps, numbers etc. displayed in the content and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party research report/s published, are provided solely as convenience; and the presence of these research report/s should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these research report/s, you do so at your own risk.


Founded in 2002, Zinnov is a leading global management consulting and strategy advisory firm, with a presence in 10 global locations. Over the last 22 years, Zinnov has partnered with Global Enterprises and Fortune 2000 companies across their value creation journeys to develop actionable insights – across revenue, talent, innovation, scale, and optimization. Zinnov enables companies to develop and optimize a global engineering footprint through center setups, technology and functional Centers of Excellence (COEs), portfolio optimization, partnerships, and real-time data/ insights – through its unique GCC Accelerator Platform (GAP) offering. This multi-lever approach helps Zinnov’s clients achieve higher R&D efficiencies, innovation, and productivity via an immersive and highly networked model. Zinnov’s expertise also includes advising global PE firms in asset shortlisting, target evaluation, due diligence, and value creation for their portfolio companies through a globalization lens.



LATEST REPORTS

© Copyright nasscom. All Rights Reserved.