How to add Mexico’s operational capabilities to Software Companies

Add nearshore capabilities or access the Latin America Market, leveraging Mexico’s soft landing options to reduce substantially setup costs and mitigate local risks. Start with a small temporary team or open a 300-employee Center of Excellence.

Proven across PE-backed software companies

✅ 50% Cost reduction vs other expansion strategies
✅ Productive operation within 45 Days
✅ Up to 80% reduction in shutdown cost exposure

Mexico's role in the North American IT IT industry

Mexico has become the preferred nearshore destination for North American B2B software companies looking to expand engineering, delivery, and support capabilities. It offers access to a deep and growing talent pool at a significantly lower cost base, while maintaining the proximity, time zone alignment, and travel convenience needed for fast-moving enterprise teams.

The country’s strong trade integration with the United States, including legal frameworks and IP protections, further reinforces its role as the leading nearshore platform for tech operations. This model has become increasingly common among private equity-backed software companies: recent research shows that more than 55% of the portfolios of 20 leading enterprise-tech PE firms have established a presence in Mexico through remote teams, Centers of Excellence, or regional sales offices.

Start and run operations in Mexico

Enterprise Software companies add Mexico’s Operational Capabilities using the Subsidiary-as-a-Service (SUBaaS) option, similar to the successful Shelter Model in the Manufacturing Industry that foreign companies have been taking advantage for more than 30 years. It avoids unnecessary expenses and risks, while lowering dramatically total costs, with total ownership from day one.

It resembles the as-a-Service model, as companies benefit from shared infrastructure. Like using AWS, the vendor economies of scale further lower costs and provides a faster time to value, scaling in size and functionality when needed, not before.

Besides the SUBaaS option, the BOT Model and Pilot Team are available as well

Customer examples

Nearshore Center of Excellence

A data and AI company providing a cloud-based Data Intelligence Platform wanted to establish a Center of Excellence in the region to support cutomers across North and South America. It had concerns about what scale the operation would need to reach in order to justify the investment and whether the local talent market could meet the demands of supporting Fortune 500 clients with business-critical solutions.

Board advisors recommended expansion strategies, including the as-a-Service model, which proved to be the best fit for the company’s conservative approach. This structure enabled the firm to begin with a 20-person Customer Experience team to validate assumptions and adjust execution. Over time, the company doubled its headcount and added a Sales Development support function, ultimately scaling to a 70-person operation., which enabled them to start with a 20 people Customer Experience team to validate assumptions and adjust their strategy, doubling the team and later adding a Sales development support team to grow to 70 people. The Mexico team was cost-efficient from day one, generating nearly $1M USD in savings over the first three years compared to a traditional setup. The as-a-Service model also enabled the operation to become productive six months earlier, allowing the organization to realize benefits significantly ahead of the original timeline.

Nearshore Office

A Software as a Service (SaaS) company for ecommerce platforms, hired remote talent using different vendors, instead of opening a new company s it assumed it was the only option for 3 people in Mexico. There were mishaps from the EoR platform and headhunting agencies, including execution gaps and inconsistent talent availability. The company explored alternatives for their current scale, that could also ensure a solid foundation for a future nearshore operation.

Following guidance from a similar company, it changed to the SUBaaS model. It set the right compensation structure and the best location for its goals. It gained faster execution on local initiatives, and access to top talent for pre-sales engineering and marketing functions. In the first year, the Mexico team operated as a 10-person extension of headquarters, later expanding to 25 employees. The structure remains agile and scalable, with the capabilities of a full organization at a fraction of the cost, with projected savings of $1.2M USD over the first three years.