Software​ ​Industry​ ​Growth​ ​in​ ​Mexico

10/29/2017 03:07 pm ET

Mexico​ ​has​ ​sustained​ ​a​ ​strong​ ​economy​ ​highly​ ​fueled​ ​by​ ​its​ ​manufacturing​ ​industry​ ​during recent​ ​decades.​ ​Its​ ​many​ ​factories​ ​"maquiladoras",​ ​manufacture​ ​products​ ​in​ ​great​ ​scale​ ​for the​ ​U.S.​ ​and​ ​other​ ​markets.​ ​Mexico​ ​is​ ​the​ ​13th​ ​largest​ ​export​ ​economy​ ​in​ ​the​ ​world​ ​and​ ​the 11th​ ​largest​ ​economy.​ ​

Throughout​ ​the​ ​beginning​ ​of​ ​the​ ​information​ ​age​ ​in​ ​the​ ​90's​ ​and​ ​the first​ ​decade​ ​of​ ​the​ ​21st​ ​century,​ ​Mexico​ ​lacked​ ​a​ ​presence​ ​in​ ​the​ ​software​ ​development industry​ ​mainly​ ​because​ ​it​ ​was​ ​a​ ​new​ ​field​ ​and​ ​still​ ​lacked​ ​leadership.​ ​Also​ ​because​ ​tech talents​ ​generally​ ​fled​ ​to​ ​other​ ​countries.​ ​It​ ​was​ ​not​ ​until​ ​this​ ​decade​ ​that​ ​Mexico​ ​has​ ​set​ ​a strong​ ​foot​ ​into​ ​the​ ​global​ ​software​ ​development​ ​industry,​ ​having​ ​today​ ​quality​ ​firms​ ​and leaders​ ​contributing​ ​value​ ​to​ ​this​ ​industry​ ​and​ ​the​ ​economy.​ ​

Take​ ​Metric​ ​Impact,​ ​a​ ​world class​ ​software​ ​development​ ​firm​ ​based​ ​in​ ​Mexico​ ​city.​ ​The​ ​firm​ ​offers​ ​full​ ​stack​ ​development services​ ​for​ ​high-end​ ​systems​ ​demanded​ ​by​ ​its​ ​customers​ ​in​ ​Mexico​ ​and​ ​across​ ​the​ ​globe. When​ ​we​ ​asked​ ​Pepe​ ​Kamel,​ ​Metric​ ​Impact's​ ​CEO,​ ​about​ ​his​ ​thoughts​ ​on​ ​the​ ​growth​ ​of​ ​the industry​ ​in​ ​Mexico​ ​he​ ​humbly​ ​said​ ​"As​ ​Andreesen​ ​once​ ​said​ ​'software​ ​is​ ​eating​ ​the​ ​world',​ ​so it​ ​is​ ​really​ ​not​ ​about​ ​Mexico,​ ​every​ ​growing​ ​economy​ ​should​ ​have​ ​quality​ ​software development​ ​companies​ ​in​ ​their​ ​core.​ ​For​ ​us,​ ​it​ ​has​ ​been​ ​very​ ​rewarding​ ​to​ ​be​ ​part​ ​of​ ​the transformation​ ​of​ ​this​ ​industry​ ​in​ ​Mexico,​ ​which​ ​now​ ​proudly​ ​owns​ ​a​ ​space​ ​in​ ​the​ ​global​ ​tech scene."

The​ ​software​ ​industry​ ​is​ ​growing​ ​and​ ​evolving​ ​at​ ​a​ ​fast​ ​pace.The​ ​ship​ ​has​ ​sailed​ ​in​ ​this industry​ ​and​ ​seems​ ​like​ ​Mexico​ ​got​ ​itself​ ​a​ ​good​ ​seat​ ​in​ ​it.​ ​This​ ​situation​ ​provides​ ​evidence that​ ​it​ ​is​ ​the​ ​passion​ ​and​ ​the​ ​minds​ ​of​ ​the​ ​people​ ​inside​ ​the​ ​companies​ ​the​ ​ones​ ​who​ ​truly shape​ ​and​ ​transform​ ​the​ ​future.

The​ ​demand​ ​for​ ​Mexican​ ​talent​ ​in​ ​the​ ​software​ ​industry​ ​is​ ​highly​ ​aggressive,​ ​the​ ​truth​ ​is​ ​that companies​ ​are​ ​currently​ ​paying​ ​$US​ ​2,000​ ​​ ​referral​ ​fees​ ​just​ ​to​ ​attract​ ​qualified​ ​staff.​ ​Also, regions​ ​in​ ​the​ ​north​ ​of​ ​the​ ​country​ ​strongly​ ​push​ ​the​ ​competition​ ​and​ ​attract​ ​foreign​ ​capital​ ​by employing​ ​Mexicans​ ​who​ ​remotely​ ​serve​ ​companies​ ​operating​ ​in​ ​other​ ​countries,​ ​but​ ​mainly in​ ​the​ ​United​ ​States.​ ​In​ ​a​ ​labor​ ​scenario,​ ​which​ ​has​ ​been​ ​transformed​ ​in​ ​the​ ​last​ ​10​ ​years. Further,​ ​there​ ​is​ ​another​ ​type​ ​of​ ​software​ ​production​ ​potentially​ ​very​ ​important​ ​for​ ​Mexico because​ ​of​ ​the​ ​importance​ ​of​ ​its​ ​electronics​ ​industry​ ​exports,​ ​which​ ​is​ ​the​ ​production​ ​of software​ ​as​ ​an​ ​input​ ​of​ ​manufactured​ ​electronic​ ​devices​ ​by​ ​the​ ​industry​ ​known​ ​as ("embedded​ ​software"),​ ​either​ ​in​ ​the​ ​form​ ​of​ ​direct​ ​production​ ​by​ ​the​ ​brand​ ​company​ ​itself like​ ​IBM​ ​or​ ​Hewlett​ ​Packard​ ​or​ ​its​ ​subcontractors,​ ​or​ ​its​ ​main​ ​contractors,​ ​such​ ​as​ ​Solectron. It​ ​is​ ​a​ ​type​ ​of​ ​production​ ​of​ ​the​ ​electronic​ ​industry​ ​and,​ ​in​ ​Mexico,​ ​the​ ​export​ ​electronics industry​ ​is​ ​a​ ​very​ ​large​ ​one.

A​ ​final​ ​question​ ​regarding​ ​the​ ​global​ ​software​ ​industry​ ​that​ ​I​ ​want​ ​to​ ​address​ ​is​ ​the​ ​one​ ​of​ ​the international​ ​trading​ ​and​ ​transfer​ ​of​ ​software.​ ​These​ ​are​ ​very​ ​important​ ​points​ ​to​ ​address​ ​in government​ ​decisions​ ​because​ ​of​ ​the​ ​very​ ​vital​ ​nature​ ​of​ ​(especially​ ​of​ ​"packaged" programs)​ ​for​ ​the​ ​operation​ ​of​ ​the​ ​electronic​ ​equipment​ ​at​ ​a​ ​global​ ​scale,​ ​and​ ​concern​ ​of​ ​the high​ ​concentration​ ​and​ ​specialization​ ​of​ ​software​ ​production​ ​in​ ​just​ ​a​ ​few​ ​countries. Policymakers​ ​will​ ​need​ ​to​ ​take​ ​a​ ​look​ ​at​ ​this​ ​to​ ​avoid​ ​breach​ ​of​ ​international​ ​trade agreements​ ​in​ ​the​ ​software​ ​industry.

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