By James Bargent
General Motors has shocked the outsourcing industry with its announcement to radically cut external IT projects. The U.S. auto giant has talked of reducing its IT outsourcing to just 10 percent from the current 90 percent. What could be the reason behind such a move? Is it political, philosophical or just a business plan? At present, 90 percent of GM’s IT services are outsourced to vendors such as HP/EDS, IBM, Capgemini
Mexico may receive as much as $20 billion in foreign direct investment this year, 11 percent more than a prior forecast, as the second-biggest Latin American economy’s low wages and proximity to the U.S. draw producers.
“Companies are looking for the best place to invest,” Economy Minister Bruno Ferrari said in an Aug. 19 interview in Los Angeles. “It’s obvious that Mexico has been that place for North America.”
Mexico has manufacturing costs 25 percent lower than the U.S., is producing more engineers than other countries and is signing free trade pacts with nations like Colombia, Ferrari said. The expected $20 billion compares to $18 billion estimated earlier this year by Finance Minister Ernesto Cordero.
Mexican economists have also boosted their forecast for FDI, as the foreign investment is known, in the most recent central bank survey Aug. 1, saying the that country …