Internet and IT Services

An Expert's View about IT and Telecommunications in Mexico

Posted on: 30 Jun 2012

Mexico is following a strong trend to have a service-centric IT industry where most technologies will be offered under a service contract or lease.

Internet and IT Services A Top Export Prospect for Mexico June 2012 Trends in the Internet Market 2009 2010 2011(e) Total Market Size 2,074 2,302 2,558 Total Local Production 2,074 2,302 2,558 Figures are in millions of U.S. dollars Source: The Competitive Intelligence Unit; COFETEL All other figures are estimates. Trends in the IT Services 2009 2010 2011(e) Total Market Size 2,484 2,957 3,331 Total Local Production 2,691 3,203 3,608 Total Exports 828 985 1,109 Total Imports 621 739 832 Imports from the U.S. 250 298 337 Figures are in millions of U.S. dollars. Source: Select, projected figures (includes training, maintenance, implementation and outsourcing). All other figures are estimates. The IT services & outsourcing market in Mexico continues to show great opportunities given the increased implementation and renovation of IT infrastructure in all types and sizes of organizations, both in the private and public sectors. Mexico is becoming an attractive market for U.S. technology products in the IT services industry. Further Mexico is becoming a stronger global player in the Business Process Outsourcing (BPO) markets, developing IT hubs around the country to offer IT, software development, call center, high-tech manufacture and engineering services to users in industrialized economies in North America and Europe. The Mexican market overall, suffered in 2009, but bounced back in 2010. It is estimated that the IT and telecom market in Mexico will be worth over US$37.2 billion, whereas in 2008 it was worth almost US$40.4 billion. Mexico is following a strong trend to have a service-centric IT industry where most technologies will be offered under a service contract or lease. We are seeing a growing interest of Software as a Service (SaaS) or Infrastructure as a Service (IaaS), and Platforms as a Service (PaaS). The main driver for users to support this new business model is cost reduction in areas that are not mission critical and represent cost without value added and Top US ospects 2 Export Pr in Mexico 2012: Internet and IT Services offer commodity services. Due to the cost reduction attribute of IT services, this segment of the industry was the least affected in 2009 with the economic downturn. Back to top Best Products/Services Demand of IT services will grow in to service contracts in different areas such as: • Security Services • Training (bundled with an overall solution) • Tailored Software Applications • Leased Infrastructure (NOCs, SOCs). • Wireless Applications (mainly focused on mobile broadband, such as TV) • Maintenance • Consulting and IT/Systems Integration • CATV Network Applications • Business Intelligence Software As mentioned above, technology as a service will be the predominant business model for users and suppliers. SaaS, IaaS, and PaaS will provide the best opportunities. Also, the general technology trends are present in Mexico where new opportunities will arise. These are: • Web 2.0 • Social Networks • Cloud Computing and Network Terminals Using Web-Based Applications • Virtualization • Online Advertising • Mobile Broadband • Green IT • IT & Healthcare Back to top Opportunities The main opportunities for IT solutions (products and services) are those sectors that are intensifying the use of IT and include: healthcare, transportation, security, manufacturing, energy, retail and financial services. Both public and private organizations are good targets of opportunity. Top rt 3 US Expo Prospects in Mexico 2012: Internet and IT Services Currently the strongest driver for IT is government at every level (local, state and federal). They seek solutions to increase transparency, effectiveness and communication with citizens. Governments also have relatively large budgets to plan, design and implement technological tools. Most public agencies will seek to forego capital investments (CAPEX) and identify IT service providers that can integrate turn-key solutions under a lease contract. Small and Medium size Enterprises (SMEs) are also represent a growing opportunity given that they seek much simpler solutions and thus, require less maintenance and administrative handling of accounts. Back to top Resources ISPs • • • • • • Regulators / Government • • Chambers / Associations / Government Programs • • • • • • Top ects et 4 US Export Prosp in Mexico 2012: Intern and IT Services For More Information Please contact Jesus S. Gonzalez, Commercial Specialist for the internet and IT services industry at the U.S. Commercial Service in Mexico at or (11-52-55) 5140-2627. You can also visit our website at The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 30 June 2012

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