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Internet and IT Services

TRENDS IN THE INTERNET MARKETS

 

2009

2010

2011(e)

Total Market Size

2,074

2,302

2,558

Total Local Production

2,074

2,302

2,558

Figures are in millions of U.S. dollars

Source: The Competitive Intelligence Unit; COFETEL

All other figures are estimates.

TRENDS IN THE IT SERVICES

 

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

http://www.amiti.org.mx

http://www.anatel.org.mx

http://www.canieti.org.mx

http://www.canitec.org

http://www.nic.mx

http://www.nyce.org.mx

Regulators / Government

http://www.cofetel.gob.mx

http://www.sct.gob.mx

Chambers / Associations / Government Programs

http://www.amiti.org.mx

http://www.anatel.org.mx

http://www.canieti.org.mx

http://www.canitec.org

http://www.nic.mx

http://www.nyce.org.mx

For more information please contact:

Jesus Gonzalez

Commercial Specialist

U.S. Commercial Service

U.S. Embassy Mexico City

Email: jesus.gonzalez@trade.gov