Understanding the Challenges of an Operation in Mexico
An operation in Mexico is defined by how well a location supports your business needs, not by choosing the most popular city. Key factors such as talent availability, operating costs, and regional business conditions vary significantly across the country.
For example, companies setting up an IT operation often consider Mexico City, which has one of the largest IT talent pools in Mexico—estimated at over 320,000 professionals (CBRE Tech Talent Scoring 2025). However, this scale comes with higher real estate and operating costs compared to cities like Guadalajara, which offers a mature tech ecosystem with generally lower office costs.
As nearshoring grows, companies planning an operation in Mexico need to think beyond location and focus on how the operation will scale, hire, and integrate over time. The points below outline the main factors that typically shape these decisions.
Talent Availability Across Mexico
Talent distribution is one of the most decisive factors in a Mexico operation.
Major hubs like Monterrey are known for their rapid growth in software and technical talent, with strong English skills, but competition and salaries are higher.
- Border cities such as Tijuana benefit from daily exposure to U.S. culture and bilingual environments, though operating costs tend to reflect that proximity.
Mid-sized cities often offer access to capable professionals coming from local universities, with less competition but more limited bilingual pools.
Rather than searching for a perfect location, companies benefit more from defining what their operation needs most: specific skills, faster hiring, or cost control.
Cost Structure in a Mexico Operation
Costs in a Mexico operation are influenced more by location-specific factors than by national regulations.
Labor costs vary by region and by how competitive the local market is.
- Taxes are largely consistent across Mexico, with only minor state-level differences.
- Real estate tends to be the main cost variable, especially in large cities like Mexico City or Puebla compared to cities such as León or Aguascalientes.
Smaller cities can offer meaningful cost advantages, but companies must balance savings with talent requirements and operational expectations.
Cultural Affinity in a Mexico Operation
Cultural familiarity plays a practical role in day-to-day operations, particularly in communication styles, management expectations, and training processes.
- Northern cities such as Ciudad Obregón often reflect stronger U.S. cultural influence due to geography, cross-border movement, and media exposure, which can reduce onboarding time for teams working with U.S.-based managers.
- Central and southern regions tend to follow more local rhythms, while still operating within professional norms common to international business environments.
Across regions, companies often find teams that value stability, learning, and long-term growth—qualities that support training and operational continuity.
Final Advice for Site Selection
Reliable local partners can simplify the setup process, but quality varies.
- Some providers focus on initial setup only, offering limited follow-up support.
- Others charge high fees for basic information without long-term involvement.
- Visiting potential locations and validating information directly often leads to better decisions.
Companies that treat site selection as a process—not a transaction—tend to build more stable operations.
Supporting Your Operation in Mexico
At Intugo, we support companies building small to big-sized operations in Mexico by connecting them with bilingual professionals and handling administrative services such as payroll, infrastructure and HR management. Clients retain control over their teams and processes while gaining our local structure to operate and grow.
Does Intugo help with site selection in Mexico?
Intugo supports companies during site selection by assessing locations from an operational and talent perspective and by facilitating workspace setup once a city is chosen.
Does Intugo only operate in specific cities?
Intugo has an active presence in four cities in Mexico. However, if a company chooses to establish an operation in a different city, Intugo can support the setup through local partnerships.
Can Intugo help secure office space in a new city?
Yes. When a company selects a city outside Intugo’s existing locations, we coordinate negotiations with co-working providers or office space operators to support different setups, including:
Co-working environments
Dedicated private offices
Exclusive floors within office buildings
