	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 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.

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

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.

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.

Resources

ISPs

http://www.alestra.com.mx

http://www.axtel.com.mx

http://www.cablevision.net.mx

http://www.maxcom.com.mx

http://www.megacable.com.mx

http://www.telmex.com

Regulators / Government

http://www.cofetel.gob.mx

http://www.sct.gob.mx

Chambers / Associations / Government Programs