Frank J. Casale
MEXICO - NEXT FRONTIER
To many buyers of sourcing services, Mexico is the next frontier. Literally a drive across the U.S. border, a short flight from most major airports – and a short connection for international flights, Mexico has emerged as a formidable player in the outsourcing marketplace.
It makes sense. The country graduates more IT professionals each year than any other Latin American market. Its culture and business community share many attributes with the U.S. and other Western markets. Its professional and technical employee base is educated, bilingual, young and growing. From cost-containment to risk mitigation to simply finding the right solution in a secure model, Mexico is a natural fit in any organization’s right-shoring strategy. That’s why we created the Mexico Microsite.
As always, The Outsourcing Institute is helping our membership and readers discover more about established, leading-edge and emerging markets in the sourcing category. And as always, we welcome your feedback on what you learn by visiting our site. Feel free to contact me directly with your thoughts, ideas or visions about outsourcing. This industry is so intriguing and fast-paced that we need your input to ensure we’re right there on the leading-edge.
Regards
Frank J. Casale
Founder & CEO
The Outsourcing Institute
© 2006 The Outsourcing Institute
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Articles
Mexico:
It's Close; It's Cheap
Americans tend to view Mexico as a Third World country, which is technically
the case. Less appreciated is Mexico's rank as the 11th-biggest economy in the world. With an important economy so close to
the U.S., it's no surprise that Mexico is a player in the global market for IT outsourcing services.
"There is a very large, educated, young population. There are plenty of people available for the work, including skilled
technical people," says Raymond Duran, an account executive in the Juarez, Mexico, office of GECIS Americas, an
outsourcing vendor that's part of General Electric Co.
"The talent pool is similar to the U.S. for a much cheaper price, at least a third the price," says Gary Taylor, controller for
KPMG International's Dallas Accounting Service Center, which outsources accounting services and some programming to
GECIS in Mexico.
Continue reading...
U.S. investors put faith in Mexico
A solid legal framework is essential if foreign investors are to continue lending their
support to the development of technology in Mexico.
One of the objectives of the Prosoft program - coordinated by the Department of the
Economy and overseen by Under-Secretary of the Department for Domestic Commerce,
Rocio Ruiz Chavez - is the introduction of norms such as digital signatures to protect against piracy. In addition, the proposed
digitalization of administrative processes such as electronic billing is designed to protect software owners as much as
companies themselves.
Microsoft, which is already a major player in the Mexican IT industry, is a strong supporter of the government's bid to reinforce
the legal structure.
"In order to create a healthy software industry, we have to protect intellectual property beyond the extent to which we do so
today," says Felipe Sanchez Romero, Director General of Microsoft Mexico.
Piracy is one of the biggest problems facing the sector - the Business Software Alliance, which has been measuring piracy
rates in the country, found that the rate in Mexico is around 55 percent, says Mr. Romero.
Continue reading...
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