The Impact on Tech Talent & Nearshoring Due to New U.S. Policies

In recent years, U.S. technology policies have undergone significant changes, directly impacting the global Information Technology (IT) industry. These modifications have created challenges and opportunities for companies and professionals in the sector, who must adapt to an increasingly regulated and competitive environment.

Impact on Mexico

Mexico has become a key player in the reconfiguration of the technology sector as a result of new U.S. policies. Restrictions on exports and technology controls have increased the demand for local manufacturing, driving the development of nearshoring in the region. Tech companies have begun relocating parts of their production and software development to Mexico to avoid the tariffs and trade barriers imposed by the U.S. on China.

According to the Inter-American Development Bank (IDB), nearshoring in Mexico could represent a growth opportunity of more than $35 billion annually in exports, particularly in sectors such as semiconductors, electronics, and software. Multinational companies like Tesla, Intel, and Oracle have announced expansions in Mexico to take advantage of proximity to the U.S. and the tax incentives promoted by the Mexican government.

Another relevant impact is the increasing integration of Mexican talent into the global technology industry. U.S. immigration restrictions, particularly the 30% reduction in H-1B visas, have led companies like Google and Microsoft to expand their development centers in cities like Guadalajara and Monterrey, where they find highly skilled engineers and developers at competitive costs. According to the Mexican Association of the Information Technology Industry (AMITI), the demand for tech talent in Mexico has grown by 20% over the past two years, representing a significant opportunity for professionals in the sector.

Export Restrictions and Technology Controls

Restrictions on the export of advanced technology have directly affected Mexico in various areas. Under the current U.S. administration, controls over the export of semiconductors, specialized software, and artificial intelligence have impacted the operations of Mexican companies that depend on U.S.-developed components and tools. This has created uncertainty in sectors such as electronic manufacturing and software development.

In 2023, the ban on the sale of advanced Nvidia and AMD chips to China had an indirect effect on Mexico, as several manufacturing companies established in the country depend on the global supply chain. According to the National Chamber of the Electronics, Telecommunications, and Information Technology Industry (CANIETI), the Mexican IT industry has had to diversify its suppliers and foster local innovation to reduce dependence on U.S. inputs.

Additionally, immigration restrictions have complicated technological collaboration between both countries. The reduction in H-1B visas has limited the mobility of Mexican engineers to the U.S., prompting tech companies to establish more operations in Mexico instead of relocating talent. While this has created opportunities in the country, it also presents challenges in training and retaining qualified professionals.

If you want to dive deeper into this article and learn about Impact of Tariffs on Technology and Tech Talent Nearshoring, click the link below and read our full blog post. Don’t miss it! https://isitatech.com/the-impact-on-tech-talent-amp-nearshoring-due-to-new-u-s-policies/