In 2025, U.S. technology companies are increasingly establishing operations in Mexico, leveraging two strategic models to do so: Build-Operate-Transfer (BOT) and À la carte Business Process Outsourcing (BPO). Both models are helping companies expand with reduced risk, faster timelines, and better access to skilled talent—all while taking advantage of Mexico’s strong nearshoring momentum.
Why Mexico is the preferred nearshore destination for tech
Mexico offers a unique combination of geographical proximity, skilled talent, cost-efficiency, and business-friendly conditions. This is not just theory—recent market data shows its rapid transformation into a technology hub for North America.
- 40% growth in Mexico’s Information Technology (IT) sector over the last decade, according to the Mexican Ministry of Economy and the Mexican Association of the IT Industry (AMITI).
- Over 4,500 IT companies currently operate in Mexico.
- 20% increase in office space occupied by IT companies in just the past three years (SiLA Market Analytics).
- Tripled industrial real estate footprint by IT firms over the same period.
- $5+ billion in software service exports in 2023, with Guadalajara standing out as a key software development hub.
- Strategic corporate presence from global leaders like Oracle, Cisco Systems, IBM, Uber, and Softek, many of which occupy premium-grade office space, signaling long-term commitment to infrastructure.
- 80% of industrial space occupied by IT companies is concentrated in Tijuana, Guadalajara, Monterrey, and Mexico City.
Why tech giants are investing heavily in Mexico
The country’s appeal goes beyond low labor costs.
Key factors include:
- Strategic location – Same time zones as major U.S. cities, enabling real-time collaboration.
- Cost savings – Up to 40–53% lower employment and operational costs compared to the U.S., without compromising quality.
- Skilled bilingual talent – Robust STEM graduate output from Mexican universities, culturally aligned with U.S. markets.
- Robust infrastructure – Nationwide fiber-optic network, industrial parks, and high-spec office facilities.
- Trade advantages – Under the USMCA (T-MEC) and 13 other trade agreements covering 46 countries, Mexico offers tariff and duty advantages unmatched by many global destinations.
- Ease of doing business – Ranked as one of the most business-friendly low-cost countries by the World Bank in 2020.
Recent high-profile investments illustrate the momentum:
- Foxconn announced a $27 million investment in Jalisco in early 2025 to expand AI server manufacturing—adding to the $690 million it has invested in Mexico over the last four years to supply Amazon, Microsoft, and Nvidia.
- Major U.S. banks, e-commerce platforms, and AI firms have expanded operations in Monterrey, Guadalajara, and CDMX, leveraging nearshoring to secure supply chains and speed up delivery cycles.
1. The Build-Operate-Transfer (BOT) Model: Structured Expansion
What is BOT?
BOT is a three-phase model where a local partner builds and operates your offshore operation until it’s ready for transfer to your ownership.
- Build – Infrastructure setup, talent acquisition, compliance, and HR frameworks are handled by the partner.
- Operate – The partner manages daily operations, ensuring KPIs, service quality, and compliance.
- Transfer – The operation is transferred to you once it reaches maturity and stability.
Why BOT is ideal for U.S. tech firms:
- Risk mitigation – No need for a large initial investment; operational risk is absorbed by the partner during early stages.
- Cost efficiency – Employment costs in Mexico can be up to 53% lower than in the U.S., even in highly skilled tech roles.
- Speed – Avoids long setup timelines by leveraging the partner’s established infrastructure and networks.
- Talent access – Direct entry into Mexico’s most competitive IT hubs—Guadalajara, Monterrey, Querétaro, and Mexico City—without having to build recruiting pipelines from scratch.
- Scalability – You control the pace of scaling and the timing of the transfer.
2. À la carte BPO: Flexibility on demand
While BOT focuses on creating a permanent, owned operation, À la carte BPO provides custom, modular services to meet specific business process needs without committing to full operational transfer.
Advantages of À la carte BPO for U.S. tech companies:
- On-Demand Scaling – Ramp services up or down quickly to meet project needs.
- Specialized Expertise – Access niche skills like cloud migration, cybersecurity, data analytics, or multilingual customer support.
- Lower Upfront Costs – No need to invest heavily in infrastructure or HR systems.
- Speed to Market – Rapid deployment for urgent projects or market expansions.
Popular BPO services in Mexico include software development, help desk and IT support, quality assurance, application maintenance, and back-office processing.
BOT vs. À la Carte BPO: Choosing the right model
|
Model |
Best for |
|
BOT |
Companies aiming to establish a permanent, self-owned nearshore operation. |
|
À la carte BPO |
Businesses needing flexible, project-based support or niche expertise without long-term ownership. |
Many U.S. firms start with BPO services to test Mexico’s capabilities and then transition to BOT as they expand and seek full control.
Case example: Hybrid expansion path
A U.S.-based SaaS company entered Mexico via BPO for customer support, later expanding into software development and QA through BOT, eventually owning a 300-employee nearshore center in Monterrey. This allowed them to control IP, align culture, and reduce annual operating costs by 45%.
The bottom line: Mexico’s tech ecosystem is built for U.S. growth
With 40% IT sector growth in the past decade, a base of 4,500+ tech companies, and billions in annual tech exports, Mexico is no longer just a low-cost option—it’s a strategic innovation partner for U.S. businesses.
Whether you choose the structured BOT model for building permanent operations or flexible BPO services for targeted needs, Mexico offers a mature, scalable, and cost-efficient ecosystem for your expansion plans.
Next step:
Evaluate your business goals, operational needs, and growth timelines to determine whether BOT, À la carte BPO, or a hybrid approach will deliver the best ROI for your nearshore strategy.