Tech Talent Shortage Poses Challenges for Mexico's IT Sector

The shortage of qualified tech personnel in Mexico's Information Technology (IT) sector has reached critical levels, with organizations facing increasing difficulty in finding workers with the necessary skills. 

According to a study by Manpowergroup, the talent shortage in the IT sector has intensified over the past three years, reaching 68% in 2022, 73% in 2023, and projected to hit 79% by 2024. This trend underscores a significant demand for tech talent that is surpassing the available supply in the country.

Carlos Bueso, director of Experis Mexico, the Caribbean, and Central America, highlighted the challenges facing the sector, stating, "The scarcity of talent in the sector TI has intensified in the last three years. In 2022, said sector presents a scarcity of talent of 68%, which grew to 73% in 2023, and for 2024 will reach 79%, which tells us that the demand for talent tech is surpassing the offer with which the country counts."

The IT sector leads in the difficulty of filling job vacancies, surpassing Consumer Goods and Services with a 72% talent shortage, while Finance, Logistics, and Automotive industries face a 69% shortage. The pandemic has reshaped the landscape of sought-after positions, with the role of Data Analyst emerging as the most requested and challenging to fill. This strategic position involves collecting, processing, and analyzing large datasets to identify patterns, trends, and relationships crucial for decision-making.

Despite the talent shortage, Mexico boasts a substantial reserve of tech expertise, including over 700,000 software developers and 3 million STEM professionals registered between 2020 and 2021, contributing to an estimated 1.8 million tech talent pool. Approximately 80% of this talent is concentrated in five specific regions: Jalisco, Monterrey, Mexico City, State of Mexico, and Querétaro, which serve as key hubs for technology investments.

Blanya Correal, Managing Partner, TAMIM Human Resources Consulting, highlighted challenges related to the growth in informal labor, which, while contributing to increased formal employment through nearshoring, predominantly involves basic labor. "We are not competitive in technical labor; in fact, companies still struggle to find the specialized talent required, and that's why in Mexico, we continue to compete with basic labor", Correal says.

Recent reforms, such as the elimination of outsourcing, changes in vacation policies, regularization of remote work, significant increases in minimum wages, and the potential reduction of the workweek from 48 to 40 hours, are putting pressure on small and medium-sized enterprises. These changes make it challenging for businesses to survive and pose a threat to increasing informality in the labor market.

To address the escalating tech talent shortage, Experis recommends a balanced approach that combines innovation with human development. The emphasis is on providing training for the use of new tools and platforms while advocating for the inclusion of more women in technology-related professions. Carlos Bueso stressed the importance of human talent in the technology sector, stating, "When we talk about technology, we cannot overlook that human talent is the most important. People working with these platforms create value, so maintaining a balance between technological platforms and human development will be crucial in Mexico in the coming year."