Case Study:
Software Development
A Decade of Partnership
Internet Brands exemplifies the success of adopting a nearshoring strategy for software development teams, with Intugo as a support service provider in Mexico. In 2009, Internet Brands sought cost-effective PHP developers and found the perfect solution with Intugo. Starting with six developers, Intugo provided the necessary support, enabling Internet Brands to manage their Mexican team efficiently. By 2017, Demand Force, part of Internet Brands, expanded with a second operation in Hermosillo.
Presently, IB covers over 25 IT job profiles, from entry-level to executive management.
From Initial Collaboration to Expansion
Since partnering with Intugo, Internet Brands has increased its presence in Mexico. In 2017, the company established a second operational extension in Hermosillo and a third in Guadalajara, facilitated by Intugo. This expansion led Internet Brands to grow from six PHP developers to over 230 employees, covering more than 60 job profiles across three locations. Today, their Mexican operations include roles in accounting, customer service, tech support, project management, marketing, and senior positions such as Operations Manager and Technology Director. The support of Intugo has been crucial in ensuring seamless operations and the successful integration of new teams. This partnership has enabled Internet Brands to uphold high standards while achieving cost efficiencies.
Certainly, Intugo has been instrumental in addressing the talent acquisition challenges faced by Internet Brands. While IT salaries in Mexico can be comparable to those in the US, the primary advantage lies in the access to skilled professionals. Internet Brands, with locations in Argentina, China, Costa Rica, Germany, India, Mexico, and Italy, has three sites in Mexico facilitated by Intugo. They expanded their departments beyond IT, but within IT, they grew significantly. They expanded to include more than 25 different IT profiles. This expansion has been essential for maintaining and growing their operations.
The IT talent pool in Mexico is vast and growing, ensuring a steady supply of professionals.
Access to Skilled IT Professionals
Concurrently, Mexico’s higher education system is paramount to its IT talent supply. Top universities like UNAM and the Monterrey Institute of Technology produce thousands of IT graduates annually. In 2022 alone, over 120,000 students were enrolled in IT programs. This steady stream of graduates helps companies like Internet Brands find the skilled professionals needed to excel in the competitive tech industry. This talent pool offers a significant advantage for companies expanding IT operations in Mexico.
According to INEGI (National Institute of Statistics and Geography), in the second quarter of 2022, there were 1 556,105 people trained in computer sciences and Information and Communication Technologies.
Some Statistics:
Mexico experienced a 965% growth in AI companies between 2018 and 2024, surpassing the 550% average in LATAM
IT revenue services are projected to achieve an expected annual growth rate (CAGR) of 5.51% from 2024 to 2029.
- Starting in 2025, the IT sector is anticipated to grow by an average of 6% annually until 2027.