Strategically located in the heart of Mexico, Aguascalientes is the #1 IT/software value nearshoring destination for foreign tech companies. What’s even more appealing, is that this city has seen an incredible 200% FDI growth for the past decade, solidifying its position as a key investment hub in the country. But how does this impact software development in Aguascalientes, and how can your business benefit from this tech gem?
I’m David Gomez, Lead IT Recruiter in LATAM at Alcor, a leading tech R&D accelerator. We help US tech product companies with establishing software development centers across Mexico, other Latin American countries, and Eastern Europe. Thanks to our 360-degree approach, our clients enjoy the perfect blend of tech recruitment, Employer-of-Record services (EOR), and operational support, scaling from 0 to 100 Silicon Valley-caliber developers in just one year.
In this article, I’ll explore the unique features of Aguascalientes’ tech market, provide a salary comparison of software developers in Aguascalientes and other Mexican hubs, and outline the benefits this location offers to foreign companies. As a bonus, you’ll discover my “pro tip” on how to leverage all its advantages and succeed in expanding into this growing tech hotspot.
So, let’s get right to the point!
Software Development in Aguascalientes Overview
Emerging tech market
Today, Mexico is rapidly becoming a prime technological hub in Latin America, with the IT services market growing at a steady pace of 5.51% annually, forecasted to reach $23.2 billion in 2029. Small but mighty, Aguascalientes alone reached a historic milestone in FDI last year, surpassing $36 billion and making a significant contribution to software engineering in Mexico. Approximately 87.5% of these investments were driven by powerhouse economies like Japan, the United States, and Germany, further solidifying Aguascalientes as a magnet for global capital.
International presence
Currently, 72 local and 260 foreign companies from automotive, technology, agribusiness, logistics, Industry 4.0 development, aerospace, electronics, biomedical, agtech, and clean energy industries actively drive the growth of the software development industry in Aguascalientes. Among them are Texas Instruments, Capgemini, Semtech, and Bosch. The latter, for instance, contributed $221.2 million toward Industry 4.0 technology, focusing on automation and innovation in production processes, solidifying Aguascalientes as a hub for cutting-edge technology and manufacturing. Moreover, global companies such as Nissan Motor Company and Continental AG have established their own R&D centers and nearshore operations in the region.Why is Aguascalientes drawing so much attention? One key reason is the booming semiconductor manufacturing industry, complemented by advancements in AI, cloud computing, blockchain, and Fintech. In 2024, the“Roadmap: Opportunities for Semiconductor Nearshoring in Mexico” report identified Aguascalientes as one of the most active states in the semiconductor supply chain, both nationally and internationally.
Tech initiatives
Another equally important reason that explains the growing presence of product and software development companies in Aguascalientes is initiatives like Innovatia IT Cluster and MxTI, a national organization in Mexico connecting regional software and tech clusters like Monterrey, Estado de México and previously mentioned Innovatia IT Cluster, which fosters innovation and collaboration within the tech sector in the region.
Does Tech Business Nearshore to Aguascalientes?
Thanks to the #6 position in national competitiveness, which evaluates the ability of Mexico’s 32 states to generate, attract, and retain talent and investment, Aguascalientes is increasingly becoming a preferred destination for doing business and opting for software development outsourcing. But will Aguascalientes keep pace and become one of the top destinations for IT nearshoring in the future? Absolutely! Here’s why:
Expanding tech talent pool
Currently, the city boasts a young and modern pool of 10,000 tech professionals, which grows by nearly 10% each year. One key driver of this growth is the 55.6% lower cost of living compared to Monterrey, encouraging developers to choose Aguascalientes as their preferred place to live and work.
High-quality STEM education
The city has 12 universities offering 22 college majors dedicated to tech sciences. They make up 33% of the state’s higher education programs and focus on science, engineering, mathematics, and technology. Special attention is given to programs in software development, AI, telecommunications, computer sciences, microprocessors, and robotics engineering. Local higher education institutions produce around 2,600 tech graduates annually,contributing to the growing number of software engineers in Aguascalientes’s workforce.
Advanced training courses
Apart from top-notch STEM higher education institutions, the city is home to various postgraduate programs in Computer Software and Data Science offered by Universidad Autónoma de Aguascalientes (UAA) and Instituto Tecnológico de Aguascalientes (ITA). Complementing this strong foundation, a dynamic network of additional courses and coding bootcamps are being developed in collaboration with renowned brands like Google, Devf, Tecnolochicas, Codelledge, and Edge Hub. Another vivid example is the state’s alliance with tech giant IBM, which will train students in cutting-edge technology that is tailored to meet Industry 4.0 demands.
Affordable salaries
By choosing Aguascalientes for outsourcing software development, you could save up to 60% compared to specialists in the US, who charge significantly higher rates for the same expertise. But is this location truly more cost-effective than others in Mexico? Here’s a handy cost comparison table for software developers from Aguascalientes, alongside other Mexican cities and San Francisco, specially prepared for you by my team!
| Gross Annual Salary Ranges for Senior Software Developers | ||||||
| Position | Aguascalientes | Tijuana | Guadalajara | Monterrey | Mexico City | San Francisco |
| JavaScript Developer | $51,600 | $52,800 | $52,800 | $54,000 | $56,400 | $147,000 |
| Python Developer | $57,600 | $58,800 | $61,200 | $62,000 | $63,600 | $165,000 |
| .NET Developer | $56,400 | $57,600 | $60,000 | $60,000 | $61,800 | $158,400 |
| AI Engineer | $68,000 | $68,400 | $70,200 | $72,000 | $72,000 | $166,000 |
| Blockchain Developer | $72,000 | $75,000 | $73,800 | $75,600 | $78,000 | $153,000 |
| Mobile Developer (iOS/Android/Xamarin) | $64,800 | $66,000 | $64,800 | $67,800 | $69,000 | $151,800 |
| Average | $61,800 | $53,100 | $63,800 | $64,200 | $66,800 | $156,800 |
As you can see, Aguascalientes has the lowest salaries for tech developers in Mexico. For instance, an equally skilled and experienced Python specialist earns $57,600 in Aguascalientes and $62,000 in Monterrey, while the software engineer salary in Mexico City for a similar position reaches $63,600. At first glance, this might seem like a minor difference. However, hiring not just one but several specialists can quickly add up to tens of thousands in overspending. That’s why building a software development team in Aguascalientes is the smart choice.
Want to learn more about the pros and cons of software development in Guadalajara?
Find out more in our latest article!
Strategic location
Situated in the heart of Mexico, Aguascalientes boasts a prime location that bridges the country’s two major economic hubs—Monterrey and Mexico City. Moreover, with just a 2-hour time difference from San Francisco and 1 hour from New York, hire software developers in Aguascalientes offers American companies a seamless pathway to efficient product development and effortless team collaboration.
Business incentives
Ranking #1 among 32 Mexican locations for ease of doing business, Aguascalientes offers a highly favorable business environment. Various business initiatives, such as tax reductions for tech companies employing over 100 workers, provide a strong incentive for local growth. These are further supported by access to loans and grants through the Aguascalientes Economic Development Financing System and support programs from the Mexican Development Bank, all aimed at boosting investment and innovation while enabling cost-effective software development services in Aguascalientes.
Considering the key benefits and low salary rates offered by software engineering in Aguascalientes, one essential question arises: how can your business capitalize on these advantages and thrive in this emerging tech market? A traditional software outsourcing strategy? I’ve got a better idea!
Simpler Than Nearshoring Software Development to Aguascalientes
When exploring Mexico’s IT staff augmentation models or traditional outsourcing, many tech businesses encounter tricky pitfalls such as hidden costs, limited control over the team and development, and even data breaches. For this reason, Alcor came up with a game-changing alternative: the software R&D center solution.
Unlike traditional outsourcing models, Alcor’s R&D center ensures:
- Zero buy-out fees: The team is fully yours from day one without extra costs or complicated procedures.
- 40% cost reduction: Helps you save up compared to traditional outsourcing.
- No need for a legal entity: With our own office in each location, we save you time and reduce administrative burdens.
- Dedicated team: Full integration and direct management of hired devs that work seamlessly as your in-house team.
- Transparent pricing: With no markups or hidden costs, so you always know what you’re paying for.
And there’s more! Alcor’s R&D center solution encompasses:
- Comprehensive EOR: We manage developer onboarding and offboarding, handle payroll and taxes, ensure full compliance with local laws, protect your IP rights, and provide 24/7 support from a dedicated key account manager.
- Full-cycle tech recruitment: From sourcing candidates and conducting pre-screening to organizing HR interviews and hiring developers, we streamline the recruitment process to bring you the right talent.
- Full operational support: We assist with office space search and rental, provide necessary hardware, and offer any other back-office support you need.
This way, you can focus on what matters most—building your software product—while we handle the rest.
As we did for People.ai. The Alcor team set up a fully compliant R&D center in just one month and recruited 25+ software developers with rare skill stacks. Plus, thanks to the support from our Account Managers, People.ai enjoyed a full range of payroll, taxes, accounting, and benefits management, as well as 100% protection of their IP rights.
Leading companies like Sift, BigCommerce, Tonic Health, Dotmatics, and others have also leveraged our turnkey solution—are you still waiting? Schedule a call with Alcor and get ready to conquer new heights in Mexico or any other LATAM or EE location with your own R&D center!
References on Software Development in Aguascalientes
- Nearshore Americas
- Mexico Business News
- Statista
- Mexico Now
- ProMexico Industry
- Innovatia
- Me Life Elsewhere
- Mexican Talent for Economic Growth and Nearshoring Report
- Lider Empresarial
- World Bank