Mexico’s recent economic reforms are changing the way companies report their financial transactions, with BPO firms armed with greater knowledge of finance and technology seeing rising demand for their services, finds the latest White Paper by Nearshore Americas.
Across the country, a large number of businesses are looking for tools to streamline their financial reporting system. “This is occurring in the private sector and public sector, in organizations big and small. Domestic and foreign firms that get it right will be the leaders in the years to come; and those who ignore these changes do so at their peril,” the paper states.
The major cause of this change is the country’s General Law on Government Accounting (GLGA), which came into force in the second half of 2012. Under the GLGA, government agencies of all levels must implement technology systems that allow them to produce transaction records in real time. “Systems should allow state and local governments to produce financial reports regularly as a condition for receiving funding from Federal sources,” the paper says.
Aside from the legislation, global economic pressure also demands a different way of doing business, and higher political accountability. With the country’s legal framework evolving to foster greater transparency and competition, the time has come for Mexico’s information technology industry to put to use its skill and innovation.
“Change is likely to be unstoppable,” said Carlos Vela Treviño, an associate in the Mexico City offices of global law firm Baker & McKenzie. “The introduction in Mexico of corporate legislation for different private equity investment vehicles is nurturing an entrepreneurial ecosystem, where a new generation of managers and shareholders are willing to interact with international private funds on a transparent and open financial reporting basis.”
In the near term, the paper notes, India may continue to have the largest software factories, but we might see more and more Mexican project managers, subject matter experts, architects and business users defining global projects.
“These are big jobs, and will directly boost manufacturing for a wide range of goods and products,” stated the paper, quoting Gustavo Parés, partner and CEO of Financetech.
With the ability to dive into data and have it presented on dashboard for quick reporting, organizations in Mexico’s financial services industry can better and more quickly assess risk.
Over the next five years, Mexico will be implementing its National Digital Strategy to promote the adoption and development of Information and Communications Technology (ICT).
These and other initiatives within the Digital Strategy – particularly those focused on improved delivery of education services – are launching Mexico into the 21st century, and support a broad range of entrepreneurial initiatives, with the wide adoption of electronic payments expected to radically change how business is done in the country.