By Luke Bujarski
Despite an uncertain global economy, Mexico’s outsourcing idustry is expected to grow by 10-15 percent this year, amounting to roughly USD $13 billion by year’s end. ITO will represent around 60 percent of this revenue. However, getting the proper project to the right region within Mexico requires a keen understanding of how the country and the regions within it compare on critical attributes such as wage levels, skills, infrastructure and security.
Among the key findings:
Despite hurdles, Mexico’s outsourcing industry is expected to grow in 2012.Key areas where Mexico can add value include multimedia web development, mobile application development, gaming, and software testing. Challenges for Mexico include conservative business attitudes, high telecommunications costs, and a potential shortage of skilled English-speaking personnel in key outsourcing locales such as Mexico City, Guadalajara, and Monterrey.
There is little doubt that it will be hard for any future Mexican president to replicate the outsourcing-friendly record of outgoing incumbent Felipe Calderon. However, with the recent surge in the polls of the principal leftist candidate Andres Manuel Lopez Obrador, Ovum believes that the July election will provide an interesting and potentially negative twist for the outsourcing community. Obrador’s leftist, anti-business rhetoric from his last run at Mexico’s highest office will not have been forgotten by many, but should he win, outsourcers should not abandon Mexico wholesale and should wait to see how his policies impact the sector.