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Newly Released Report Finds Mexico Business Services Sector Set to Outperform Expectations

Going Global: The 2012 Investor’s Guide to Mexico’s Business and Technology Services, published by the popular online business publication Nearshore Americas, probes the progress and challenges facing Mexico’s outsourcing sector.

 
PRLog - Jun. 6, 2012 - MEDELLíN, Colombia -- The recently released report entitled Going Global: The 2012 Investor’s Guide to Mexico’s Business and Technology Services, published by the popular online business publication Nearshore Americas, probes the progress and challenges facing Mexico’s outsourcing sector.  The report draws on buy/vendor-side interviews, various data sources, and proprietary market surveys; this comprehensive overview provides a detailed account of the Mexico professional services landscape and the trends that will impact the market in 2012.    

Positive Economic Outlook Sets Pace for Professional Services

Its timely release comes amid growing optimism over Mexico’s macroeconomic and political outlook.  GDP growth has averaged 3.5 percent over the last year and the IMF predicts slower but steady growth in 2012-2013.  A stabilized U.S. economy has also reinvigorated Mexico’s manufacturing exports and now looks to do the same for professional services.  Likewise, global demand for ITO and BPO services shows little sign of slowing.  Even though deteriorating conditions across the Euro Zone threaten economic growth in Asia, Mexico’s economic affinities lay more with the United States and Latin America.  As global enterprises look to achieve additional cost savings, Mexico’s strategic geographic location will likely channel more outsourcing contracts into the country.  

In response to these factors, Going Global notes that Mexico’s outsourcing industry is expected to grow by 10 to 15 percent in 2012, reaching 13 billion USD by year’s end.  Domestic demand for application services management, technology infrastructure, mobile application development, and software testing among other services represents roughly 60 percent of total industry revenues.  Driven by higher profit margins, domestic and multinational outsourcers will also look to aggressively expand their Mexico-based offerings in 2012.    

Government Initiatives Empower New Markets to go After IT Services

Mexico’s traditional locales for IT services including Mexico City, Monterrey, and Guadalajara will remain outsourcing hotspots in 2012.  Additionally, continued government support for the sector will push vendors and enterprises to seek out new geographies.  Since 2004, Mexico’s Ministry of the Economy has spent close to one billion U.S. dollars on an aggressive industry promotional strategy.  This funding has empowered cities like Queretaro, Hermosillo, and Aguascalientes to take a strategic approach toward promoting their regions and to fund training and education focused on information technology and business related fields.  

Telecommunications Costs and Labor Shortages Pose Conquerable Challenges

Despite the optimism, challenges to the market remain. Going Global identified conservative business attitudes as an inhibitor to IT innovation and entrepreneurialism in Mexico’s IT start-up culture.  Mexico’s business sector is also highly concentrated within a handful of state run monopolies and large business conglomerates.  This limits domestic market opportunities for the small-to-medium enterprise segment but also raises the cost of doing business.  Telecommunications in Mexico are among the most expensive in the OECD with 3G coverage limited to urban centers.  Labor force quality and availability is also highly variable across Mexico.  Despite that, with continued public and private sector cooperation, these challenges should not stand in the way of Mexico’s growing competitiveness in the industry.

About Nearshore Americas

Nearshore Americas is an independent online business news provider dedicated to expanding knowledge around the fastest growing IT services and business process outsourcing market in the world – Latin America. As one of the world’s leading online resources for the global services industry, Nearshore Americas is committed to providing high value information and data for business, finance, and IT leaders in the U.S. and around the world. Nearshore Americas is owned and published by US-based Next Coast Media – which also operates three other leading online news sites: http://globaldeliveryreport.com/, http://www.sourcingbrazil.com/ and http://bpooutcomes.com/. Visit Nearshore Americas to sign up for a free newsletter, and follow the brand through Facebook, Twitter and Linkedin.

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Source:Nearshore Americas
City/Town:Medellín - Antioquia - Colombia
Industry:Nearshore
Tags:mexico, Nearshore Industry, Investor Guide to Mexico, bpo, it services
Shortcut:prlog.org/11894136
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