Software Sector

An Expert's View about IT and Telecommunications in Mexico

Posted on: 2 Dec 2012

Mexico has the largest software market in Latin America and is among the top 10 worldwide.

Software Sector In Mexico Mexico has the largest software market in Latin America and is among the top 10 worldwide. Its growth is expected to be 12% annually from 2011 to 2015, outpacing general IT market growth.. Market overview The domestic market is valued at approximately US$2.3 billion, the 23rd largest in the world, and could reach US$2.7 billion, according to the World Information Technology and Services Alliance 2010 report. The industry has grown at an average annual rate of 9% from 2003 to 2010 according to the Mexican Ministry of Economics. It has reorganised itself to become more competitive, including more than 200 companies that employ more than 160,000 people in the country. Despite this, more than 80% of software is imported. This industry is regionally based, and the main software clusters are located in and around Mexico City and three technology parks in Monterrey and Guadalajara, Mexico’s version of Silicon Valley. The largest demand for software comes from the government. Other priority areas for software are the public and financial sectors, which demand accounting, economics and security software. The chemical industry and the healthcare industry, in both its public and private spheres demands software for patient information, pharmacy services and medical inventory. In terms of growth potential, these areas and the demand by SMEs are seen as the ones with the most potential. The Mexican government has acknowledged that the software sector is a priority, through the establishment of the Program for the Development of the Software Industry (PROSOFT). The ambitious goals of PROSOFT include reaching a production level of US$5 billion of software development and related services, to equal the IT expenditures of the OECD countries (currently 4.3% of GDP) and to become Latin America's leader in the software development and related services sector. Key opportunities Thanks to the PROSOFT program and the Mexican government's commitment to the continuing growth of the industry, foreign IT firms established in Mexico can receive cash grants of up to 50% of the total cost of their project and tax credit of up to 30% of the total R&D expense. By implementing these strategies, Mexico will offer the following business opportunities to British companies: ξ Patient information, pharmacy services and medical inventory software ξ Demand for basic ERP ξ Supply chain management solutions ξ Integral administration and accounting suites ξ Inventory control hotel administration packages ξ Point-of-sales applications ξ E-business solutions and computer-aided manufacturing applications Latest export opportunities in Software Latest export opportunities - Mexico Getting into the market AMITI - The Mexican Information Technology Industry Association, in collaboration with the Ministry of Economy Agency, acts as promoter and gives access to resources granted by PROSOFT, thus interested companies can go to AMITI and obtain resources. Companies from the software sector can find the local support of CANIETI – The National Chamber of Electronics, Telecomm and Information Technology, an organisation of public interest, autonomous, with legal personality that comprises over 900 affiliates throughout Mexico, grouped to defend and guard the rights and interests of the industry. There are some certifications required in the sector such as CMMI (Capability Maturity Model Integration), CMM (Certification for Meeting Management) and Moprosoft (Process Model for Software Industry). There are also 302 registered development centers evaluated in a quality process in 21 states in Mexico. More about doing business in Mexico Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Luis Calette, Trade & Investment Officer. Tel: +52 (664) 615 8046 or email: ξ Ana Gallardo, Trade & Investment Officer. Tel: +52 (664) 615 8046 or email: Contact your local international trade team Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Expo tecnologia de negocios 2013 20-22 February, 2013 ISUM 2013 March 2013 ITT Expo 2013 10-12 September, 2013 Latest events Mexico Latest events – Software and Computer Services Useful links More about OMIS and other UKTI services for exporters
Posted: 02 December 2012

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