Nearshore Americas developed a veri interesting index, the Nearshore Value Index that aims to plug the gaps in terms of spotlighting locations that deliver the best value at the best price.
The objective of this index is to help decide where to invest in LatinAmerica and the Caribbean, since this is not an easy exercise, and in many ways, it shouldn’t be easy.
Selecting a new geo of course is only one part of a much larger strategic undertaking. Having the right management, building a savvy HR and talent strategy, understanding what things should really cost, and dealing with a wide range of issues, from labor codes to transportation, are all essential pieces to succeeding in new markets.
We are located at the very sweet spot of this index and can help you take the best decision!
Top Five IT/Software Value Destinations for 2023
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#1 Aguascalientes, México
A hidden gem for Mexican IT, located in the heartland of the country. While not as famous as other high profile tech hotspots like Querétaro, Guadalajara, Mexico City and Monterrey. Aguascalientes finds itself within a “Goldilocks zone” in terms of its size, pace of growth, tech capabilities and the attention it receives from international business.
The city also manages to strike a unique balance between low costs for talent and a great environment for foreign investment and the development of a tech ecosystem.
Aguascalientes might be small in terms of population, but it is growing rapidly. Today, it finds itself among the cities with the largest immigration frows in Mexico, precisely because of its status as one of the country’s fastest developing business destinations.
Strengths: Wages, investment environment, ease of doing business
Weaknesses: Population size, tech universities
#2 Guatemala, Guatemala
Central America is often overlooked as a source for great Nearshore IT. Flanked by Mexico’s and Costa Rica’s fame, Guatemala has been quitetly building an attractive tech ecosystem that stands out for its low costs, business friendliness and proximity to the US market.
In 2021, TCS launched operations in the country, a fact that underscores the quality that exists in the Guatemalan tech ecosystem and the potential of its people to grow their capabilities even further.
Given the increasing relevance of digital services for CX -an industry where the country also offers a lot of value-, we believe Guatemala is uniquely positioned to take full advantage of the increasingly busy intersection between BPO and ITO.
Strengths: Wages, flight distance to US, ease of business
Weaknesses: Tech universities, English proficiency
#3 Querétaro, México
Querétaro has already built a reputation as one of Mexico’s top destinations for foreign investment. The state is among the major players in the Mexican airspace, automotive and tech industries. That fact has propelled Querétaro’s ambitions to become a major tech hub in the country that now includes the two largest Azure Data Centers of Latinamerica.
Querétaro takes full advantage of its geographical position, which allows for prompt access not only to major US markets, but also, being located between Mexico’s three biggest cities (Mexico City, Guadalajara and Monterrey). This means that Querétaro can take full advantage of a college ecosystem which includes its local universities, plus the country’s top performing educational institutions (ITEMS, UNAM, IPN, ITAM, among others).
Strengths: Investment environment, wages, flight distance to US, Tech universities
Weaknesses: Population size
#4 Monterrey, México
Mexico’s premier manufacturing town is accelerating towards a digital future. Tech industrials have found a cozy landing place in Monterrey, a city that’s already famous for its entrepreneurial spirit, business environment and cl9oseness (geographically and culturally speaking) to the US.
Several relevant players in tech (infosys, Accenture, Softtek) have been working in the city for years, contributing to a decades-long journey towards the digitalization of the local economy. Globant and TCS joined the ecosystem recently, and smaller but strong contenders (like Simpat Tech and Onephase) are making waves locally and across the border, which is but a couple of hours away by land.
Though its fame has made it less affordable, more and more people are buying into the value offered by Monterrey.
Strengths: Investment environment, ease of doing business, flights to US
Weaknesses: Wages, population
#5 Buenos Aires, Argentina
Argentina’s capital remains a top contender for the right to be known as the Southern Cone’s tech champion. Buenos Aires has a healthy population size and a business environment which already has IT in its DNA.
The city’s tech credentials are undisputed. It is the birthplace of some of Latin America’s biggest names in tech (Mercado Libre, Globant, Ualá), as well as a growing pack of tech education and upskilling platforms (Henry, Digital House, CoderHouse, Microverse, among others).
Buenos Aires remains affordable in the face of Argentina’s long-running economic woes. International tech keeps moving in, and local tech keeps emerging, with the most successful moving outward into the global market.
Strengths: Investment environment, population size
Weaknesses: Flights to the US, ease of doing business, Tech universities