“So Near”: Mexico’s Potential as a Nearshore IT Services and Outsourcing Leader

December 8, 2009

1. Overview
In the same manner that Mexico has established itself as a nearshore manufacturing alternative to China, the country is also increasingly showing up on the radar screen of companies seeking a nearshore alternative to India for IT services or outsourcing related work. In fact and in the latest A.T. Kearney Global Services Index, Mexico ranked #11 (between Vietnam and Brazil) out of 50 countries surveyed and this ranking has not significantly fluctuated since the index’s inception in 2004 when the country ranked #14 out of twenty-five countries surveyed. However, does Mexico really have the potential to establish itself as the premier nearshore alternative to and even compete head-to-head with India?

In this research report, we will examine this potential by addressing the following questions about the Mexican IT services and outsourcing market:

  • What are the key characteristics and drivers for IT services and outsourcing markets in Mexico?
  • What is the government doing and not doing to encourage the growth of these markets?
  • What are the key operating factors, costs and risks to be aware of when outsourcing to Mexico?

2. Key Facts and Trends
Given its close proximity to and cultural affinity towards the USA along with its status as the second largest economy in Latin America, Mexico’s IT services and outsourcing industries have an enormous potential for growth. In fact:

  • Mexico is estimated to have a population of over 110 million people making it the second most populous country in Latin America after Brazil and the largest Spanish speaking country in the world. Mexico also has the second largest economy in Latin America after Brazil and the 11th largest economy in the world.
  • Just prior to the global downturn, market research firm Research and Markets estimated that Mexico’s total IT market generated approximately US$10.1 billion in annual revenues with 14% growth rates while outsourcing accounted for approximately US$1.6 billion in annual revenues with 35.2% growth rates.
  • Meanwhile, Mexican consultancy firm Select estimated the country’s outsourcing services industry accounted for 37% of IT sales (US$3.1 billion) at the end of 2007 and they estimated that outsourcing will account for over 50% of total Mexican IT market revenue (US$4 billion) by 2010.
  • In addition, Select expected data center services to remain the largest revenue source for outsourcing with revenues expected to grow from US$235 million in 2007 to US$370 million in 2010. Additional growth drivers identified by Select includes the applications management sector where revenues were expected to grow from US$193 million in 2007 to US$368 million in 2010 and the security services sector where revenues were expected to grow from US$64 million in 2007 to US$155 million in 2010.
  • Meanwhile, market research firm IDC identified the following five key growth areas (along with hardware) for the Mexican IT industry as a whole:

1. The enterprise management application segment due to the fact that many companies are starting to replace, upgrade, or expand their ERPs and are in need of new hardware infrastructure.
2. Security as large companies are beginning to invest in the physical security and protection of their data while middle market companies are starting to invest in managed security and smaller companies are now acquiring security software.
3. Services (excluding software) as many companies are now realizing that processes are needed in order to make their IT systems.
4. Mobility now that the use of laptops and other mobile devices are starting to move beyond the residential segment and into the corporate world.
5. Technology convergence as Mexico (like other countries) starts to follow existing global technology market trends.

  • Traditionally, the Mexican public sector has accounted for 11% of overall IT investments and the sector is a significant source of revenue for IT services firms. However, this figure dropped to 8% in 2007 due to an austerity decree that was meant to cut operational expenditures by 5% though the use of leasing and service contracts in lieu of purchasing. And while this policy has saved an estimated 26.2 billion pesos (US$4 billion), it left a number of public sector IT projects in limbo with many IT services vendors without the resources to position themselves to take on new projects.

Mexico Nearshore  Outsourcing

3. Market Characteristics and Factors to Consider
While the above facts and trends shed some light about the overall potential for the Mexican IT services and outsourcing industries, the following market characteristics and other factors need to be considered by any firm setting up a presence in or planning to outsource work to Mexico:

• Industry Structure
• Government Support
• Regulatory and Legal Structure
• Intellectual Property (IP) Protection
• Infrastructure
• Human Capital
• Operational Costs
• Quality Track Record
• Risk

3.1. Industry Structure: Immature but on the Radar Screen of Global Players
Today, there are over 2,000 Mexican companies delivering application development, consulting, systems integration testing, security, captive center and other IT related services in Mexico. In addition, there are a number of global IT services firms such as Infosys, Tata Consultancy and Wipro have set up IT service centers in the major Mexican IT service hubs of Mexico City, Monterrey, and Guadalajara to take advantage of their close proximity to the USA. However, local vendors still largely lack the size or maturity to undertake large-scale IT services or outsourcing related projects.

Nevertheless, a few local and cross border merger and acquisition deals have taken place involving Mexico based IT services or outsourcing vendors but so far none of these deals have been particularly eye catching. Moreover, the performance of the Mexican economy along with its services sector in general are closely tied the economy of the USA and hence, the initial credit crunch along with the USA economic downturn has and will continue to impact the ability of Mexico based IT services and outsourcing vendors to win new projects, raise capital for organic growth initiatives or carryout merger and acquisition deals.

Table 1. Selected Mergers & Acquisitions Involving Mexico Based IT Services or Outsourcing Vendors

Date

Buyer

Acquisition or Merger Target

Amount

March 2008 Hildebrando CrossHorizons Undisclosed
November 2007 ODESIA Group Resource IT group of companies (Resource IT de Mexico, Resource IT Software de Mexico, and Global Business Integration de Mexico) C$2 Million
November 2007 Hildebrando Sinapsis Technologies Undisclosed
November 2007 Grupo Carvajal Levicom Undisclosed

With that said, several local or regional IT services or outsourcing vendors are starting to emerge as industry leaders in Mexico (or for all of Latin American) with Monterrey based Softtek in particular leading the way. Although perhaps not a household name just yet, Softek was founded more than 25 years ago and helped pioneer the concept of Mexico and the city of Monterrey in particular as a nearshore alternative to India. Today, Softek is a leading provider of IT and BPO services with 17 of the 50 biggest corporations in the USA as clients and now has more than 5,000 employees based in Europe, Latin America and USA.

Other vendors to watch in the coming years include:

  • Hildebrando, a 20+ year old near-shore provider of systems integration, application development, BPO and captive center services, now has more than 2,000 employees and a presence in the Panama, Spain and the USA.
  • Neoris, a Miami headquartered subsidiary of CEMEX that was launched in 2000, is now the largest IT consulting and systems integration company in Mexico and the second largest in Latin America. In fact, Neoris now has more than 3,000 employees and operations in the US, Europe, Latin America, Africa and the Middle East.
  • Praxis, a 10+ year old provider of IT consulting, development, integration, and outsourcing services, now has more than 600 employees and a presence in Canada, Panama, and the USA.
  • World Software Services (represented by Internacional De Sistemas), a 23+ year old provider of near-shore IT consulting services, now has more than 1,200 employees and a presence in the USA, Europe and Latin America.

3.2. Government Support: Aggressive while NAFTA Offers Unique Benefits
To encourage investment in Mexico’s IT and outsourcing industries, the Ministry of Economy Mexico has created the Program for the Development of the Software Industry (PROSOFT) to aggressively promote both software and IT exports, attract foreign investors, support IT related education and training programs and create necessary legal framework to support the industries. Under the program, both foreign and local companies may avail of cash grants from the federal and state governments to cover up to 50% of the total cost of an IT related project while other incentives include tax credits of up to 30% of total R&D expenses, lower corporate taxes and no value added taxes (VAT) for exported services.

Moreover, the 1994 North American Free Trade (NAFTA) agreement between Mexico, Canada and the USA will allow Canadian and American companies to avail of benefits in Mexico that are generally unavailable in other countries. Under NAFTA, most tariff and other trade barriers between the three countries were lifted or eased. Furthermore, there are few if any visa hurdles when sending employees to Mexico as a special non-immigration status known as TN (Trade NAFTA) status was also created under NAFTA specifically for citizens of Canada, Mexico and the USA to work in each other’s respective countries for three year increments.

In addition to offering special incentives, the Ministry of Economy together with the National Chamber of Electronics, Telecommunications and Information Technologies or CANIETI (an industry association of IT companies in Mexico) created MexicoIT to assist foreign and USA based companies in particular to setup IT services and outsourcing operations in the country.

3.3. Regulatory and Legal Structures: Plagued with Problems but Slowly Moving Towards the USA System
While NAFTA helps to underpin the laws regarding foreign investment and trade, Mexico still utilizes the civil legal system that is characterized by a centuries old system of closed door and written inquisitions that are legacy of Spanish colonial rule. Hence, the country’s legal system is notorious for its corruption, abuse of defendants, opaque legal decisions and plenty of red tape that can easily drag the simplest court case on for years.

However and as the country’s prisons have filled from the recent crackdown on drug trafficking, Mexico is slowly introducing US-style elements into the country’s legal system in an effort to speed up trials and reduce the amount of corruption plaguing the system. These changes include public oral trials where victims and the accused will be able to confront one another before a panel of three judges while defendants themselves will now be presumed innocent until proven guilty (instead of the other way around). Moreover, the police will begin to use more forensics and fact-gathering investigative techniques while mediation, plea bargains and probation will be tried for the first time and become standard practice.

Nevertheless, these changes will take time to implement as all key stakeholders in the legal system will need to undergo further training and so far four states (Baja California, Chihuahua, Nuevo Leon and Oaxaca) have begun implementing the new trial system with its advocates intending to have all 31 states following it by 2016.

3.3.1. Legal Systems of the World

world Law
Credit: This map is a work by Javitomad.

3.4. Intellectual Property (IP) Protection: Better Than Most Developing Countries and Underpinned by NAFTA
The NAFTA agreement outlines minimum standards for the protection of intellectual property and enforcement is governed by the domestic laws of the country where IP rights are sought to be enforced. Furthermore, NAFTA requires that any civil action in Mexico must conform to the legal standards that are familiar with Americans and Canadians and hence, it could be said that foreigners enjoy a better measure of IP protection in Mexico than in most other developing countries.

Moreover, Mexico ranked #16 (between South Korea and the United Arab Emirates) out of 24 countries surveyed and ranked by their IP regimes in the 2009 TaylorWessing Global IP Index report. In fact, the report singled out Mexico in particular for improving its rank and position in the index with one explanation for these gains being the January 2009 creation of new and specialized first instance and appeal chambers to specifically hear IP cases (the report even noted that their creation could lead to further gains in future surveys). Nevertheless, it should be noted though that Mexico remains on the United States Trade Representative’s (USTR) Special 301 Watch List for 2008 without any particularly positive comments on recent developments regarding IP protection.

Table 2. The TaylorWessing Global Intellectual Property Index 2009
The Taylor Wessing Global Intellectual Property Index is based upon an analysis of surveys of senior industry figures globally plus an array of published empirical data.

globally plus an array of published empirical data.

Jurisdiction

Tier

GIPI Rank

GIPI Rating

Trade Mark Rank

Patent Rank

Copyright Rank

Design Rank

Domain Rank

UK

1

1

776

1

1

2

2

1

Germany

1

2

760

2

2

3

1

3

USA

1

3

751

6

3

1

5

2

Australia

1

4

748

3

4

5

6

11

Netherlands

1

5

745

4

5

4

8

6

Canada

2

6

737

5

6

11

4

5

Ireland

2

7

731

7

8

7

7

4

New Zealand

2

8

723

8

9

9

11

12

France

2

9

713

9

11

6

3

7

Singapore

2

10

708

10

7

8

10

8

Japan

3

11

690

12

10

10

9

9

Israel

3

12

679

11

14

13

12

13

Spain

3

13

661

13

16

15

14

14

South Africa

3

14

656

14

13

14

17

20

South Korea

3

15

638

16

12

12

13

10

Mexico

4

16

617

15

18

17

16

15

UAE

4

17

610

17

15

18

18

17

Italy

4

18

601

18

19

16

15

16

Turkey

5

19

585

19

17

20

24

23

Poland

5

20

574

20

20

19

22

24

Russia

5

21

567

21

21

21

19

18

Brazil

5

22

537

22

23

23

21

19

India

5

23

521

23

22

22

20

22

China

5

24

491

24

24

24

23

21

Source: http://www.taylorwessing.com/ipindex/getfile.php?file=global_ip_index_2.pdf

3.5. Infrastructure: Mixed but Telecommunications is Improving as Competition Rises
Compared with other developing countries and with much of Latin America, Mexico’s physical infrastructure is fairly developed. In fact, the country has the most extensive paved-roadway network in the region and the most number of flights to the USA for any foreign country while the Mexico City International airport is the largest in Latin America.

However, other statistics about Mexico’s infrastructure are mixed. While the mobile penetration rate has risen from 29.1 per 100 people in 2003 to 57 per 100 people in 2007, the number of households owning a personal computer (15 per 100 people in 2007) and are broadband internet subscribers is relatively low (4.2 subscribers per 100 people in 2007) even by Latin American standards and statistics may vary considerably from region to region within the country.

In addition, Mexico’s ranking in IT readiness surveys has also been mixed. In the 2009 E-readiness report from the EIU, was Mexico was ranked 40th (between Poland and South Africa) out of 70 countries profiled and was also ranked as the runner up to Chile for the E-readiness of its business environment and for consumer and business adoption among Latin American countries. However, Mexico ranked 67th (between Panama and Bulgaria) out of 134 countries surveyed for networked readiness by the World Economic Forum’s Global Information Technology Report 2008-2009 with the report noting that Mexico fell nine spots from its 2007 ranking and that the country suffers from an overregulated market environment, low R&D investment, a poor-quality educational system and rather low rankings for ICT readiness and usage by both individuals and the business sector.

Table 3. The Economist Intelligence Unit’s (EIU) E-readiness Rankings and Scores (2009)
The Economist Intelligence Unit (EIU) assesses the world’s largest economies on their ability to absorb information and communications technology (ICT) and use it for economic and social benefit. Mexico’s ranking (#40) was ahead of Brazil (#42), Argentina (#45), the Philippines (#54), China (#56), India (#58), Vietnam (#64) and just about all other Latin American countries except for Chile (#30). However, it was behind the rankings for Malaysia (#38) and several Central and Eastern European countries.

2009 Rank (of 70)

2008 Rank

Country

2009 Score (of 10)

2008 Score

33 30 Greece

6.33

6.72

34 35 United Arab Emirates

6.12

6.09

35 33 Hungary

6.04

6.30

36 36 Slovakia

6.02

6.06

37 37 Latvia

5.97

6.03

38 34 Malaysia

5.87

6.16

39 41 Poland

5.80

5.83

40 40 Mexico

5.73

5.88

70 69 Azerbaijan

2.97

3.29

Source: http://graphics.eiu.com/pdf/E-readiness%20rankings.pdf

Table 4. The Networked Readiness Index 2008–2009 Rankings
The World Economic Forum’s Networked Readiness Index takes into account the presence of an ICT-conducive environment and the degree of preparation needed to use ICT along with its actual use by individuals, the business sector and the government. While Mexico’s ranking (#67) was ahead of Vietnam (#70), the Philippines (#85) and Argentina (#87); it was behind the rankings for Malaysia (#28), China (#46), India (#54), Brazil (#59) and some Central and Eastern European countries.

2008–2009 Rank

Country/Economy

Score

64 Colombia

3.87

65 Uruguay

3.85

66 Panama

3.84

67 Mexico

3.84

134 Chad

2.44

Source: http://www.insead.edu/v1/gitr/wef/main/fullreport/index.html

However and by far the biggest disadvantage for Mexico in the past regarding infrastructure is the near monopoly enjoyed by the fixed-line operator Telmex, which operates 92% of the country’s fixed lines and controls much of the country’s telecom infrastructure; and Telmex, which controls 72% of the country’s mobile market. This near monopoly has long given Mexico some of the highest telephone charges and lowest teledensity rates among OECD countries while anti-trust and other efforts against Telmex have largely proved unsuccessful.

Recently though, foreign competition, technological trends and the global economic downturn have helped to bring prices down to levels enjoyed elsewhere in Latin America. Furthermore and in an effort to create a more level playing field, the government is planning to sell access to fibre-optic cables installed to monitor the country’s electric grid – giving both smaller telecommunication players and consumers alike an alternative to Telmex. These plans are expected to further reduce long-distance rates in much of the country while also significantly improving internet access for much of the population.

3.6. Human Capital: Qualified but Lacking in Significant Numbers
According to MexicoIT, Mexico’s IT services industry employs an estimated 500,000 IT professionals and attrition rates are in the 5-12% range. In addition, 121 Mexican universities were identified to be teaching global industry requirements and the country is said to have the highest IT undergraduate workforce in Latin America (+100,000) with as many as 30% of current undergraduates enrolled in IT related fields and close to 65,000 new IT professionals entering the workforce from either universities or technical schools every year. In addition, literacy rates are relatively high for Latin America and there are abundant numbers of non-IT professionals (such as lawyers and CPAs) entering the workforce every year who can be employed by BPO type operations (although the extent of the professional workforce may vary from region to region).

However and despite these statistics, Mexico’s public education remains in poor shape in part due to a stranglehold on education by the teachers’ union and the fact that the country only spends roughly one-seventh of what USA schools spend per student (approximately US$1,522 compared with $10,071 a year). Moreover, many Mexican children (especially those in the countryside) must work to support their families and hence only 47% of students who enter vocational high schools will graduate while the graduation rate for college-prep high schools is only 60% (verses 75% for the USA).

This combined with the fact that Mexico already has a much smaller population and labor pool than India or China to draw upon, means that setting up a team of thousands in a short period of time would be very difficult. Moreover, Mexico’s pool of fluent English speaking IT and other professionals is considerably smaller than that of India with unverified (Internet) estimates of the English speaking population to be close to 5 million or roughly 5% of the country’s total population. Nevertheless, many educated Mexican professionals are bilingual and this is a particular advantage when IT or outsourcing projects from the USA require both English and Spanish language skills.

However, Mexico still has rigid and cumbersome labor laws and regulations that generally make it difficult and costly to hire and especially fire employees while the rules themselves tend to favor labor unions in any negotiations with employers. Efforts to introduce any type of reform by both the current and the former president have largely stalled due to strong opposition from powerful public sector unions.

Table 5. Mexico’s IT Workforce (2000 to 2014)
mexico's IT Workforce

Source: http://partnersmarket.com/downloads/MexicoITGS2.pdf

3.7. Operational Costs: Higher than India but the Gap is Small
While Mexico has a more expensive operating environment than India, IT services and outsourcing firms will find that the cost gap between the two countries is not particularly large. In fact, Business Week recently pointed out that an engineer’s salary in Mexico will start at around US$12,000 per year and although the hourly rates in India are 25% to 30% lower, when adding the indirect costs of high Indian staff turnover, travel to and from the site and communicating with colleagues half a world away, the cost gap closes to approximately 15% to 20%.

Moreover and despite a long history of high and volatile inflation together with an unstable Peso that collapsed in 1994, Mexico has managed to largely attain both price and currency stability over the past decade through sound fiscal management policies. In fact, average annual consumer price inflation has fallen from 35% in 1995 to only 3.6% in 2006 and has largely stayed in the low single digits for the past several years. However, the global economic downturn and a slowdown in political reforms have caused the Peso to depreciate by one fifth of its value during the first half of 2009 when compared with the same period in 2008 – putting the country on the radar screen of manufacturers and outsourcers alike who are looking for further cost savings.

Table 6. Exchange Rates (Peso:US$)
peso US Exchange Rate

3.8. Quality Track Record: Proximity has its Benefits
As a relatively new player in the IT services and outsourcing industries, Mexico still has a ways to go before building up a track record for quality. However, Mexico’s close proximity to the USA allows for more collaboration and much better control over the work outsourced to third party vendors based there or to a shared services center set up in the country. Moreover, many Mexico based IT services and outsourcing vendors have experience working with USA based clients and according to PROSOFT, 3 have CMM-5 certification, 15+ have CMM-4 and 3 certification and 53+ firms are engaged in model implementation and assessment while ISO-9000 certification and adoption is widespread.

Hence and while the local IT services and outsourcing industries along with the local labor workforce may not be as developed as India’s, Mexico is well positioned to move up the value chain. In fact and in an effort to improve the quality of the local IT workforce, 25 educators from universities in Monterrey recently spent eight months studying the training methods used at the Infosys campus in Mysore India.

3.9. Risk: Moderate but the Perception of Lawlessness is rising (and for Good Reason)
Mexico along with other Latin American countries have traditionally offered a more stable exchange rate and inflationary environment for USA based companies and given that it is not uncommon for some outsourcing source and destination countries to experience shifts of 30% or more in exchange and IT labor rates, this relative stability makes the entire region an attractive destination for outsourcing USA based work. Moreover, Mexico itself generally follows a pro-market economic policy and for better or for worst, it has an economy closely tied to that of the USA while membership in NAFTA underpins the country’s legal and regulatory policies towards foreign investment.

Nevertheless and as noted in the latest EIU risk assessment for Mexico, the country faces significant macroeconomic risks and has already been badly hit by the recession in the USA with the economy set to shrink by up to 7% in 2009. And although the pace of the decline has slowed to 1.1% in the second quarter from 5.9% in the first quarter, poverty is rising while unemployment has soared to 6% and a further 13% of the labor force is considered to be underemployed.

In addition, the EIU also noted problems with the Mexican legal system together with institutional shortcomings that continue to undermine the enforcement of regulations and laws while efforts to reform the country’s complex tax system, further privatize and reform the energy sector and to increase the flexibility of the labor market remain stalled. Furthermore and although President Felipe Calderón remains popular, his political party suffered seriously losses to the former ruling party (the PRI) in the July midterm elections and his ability to introduce new reforms will largely depend upon the approval of opposition parties in Congress.

However, the biggest risk faced by Mexico is a continued deterioration of or perceived deterioration of the country’s security situation due to rising drug related violence and crime. In fact, the Council on Foreign Relations has estimated that drug related deaths rose from 2,500 in 2007 to 4,000 in 2008 while the Mexican media places the figure at above 5,000 for last year. Moreover, the EIU noted that Mexico’s kidnapping rate is higher than the rate for Brazil and second only to Colombia (although kidnapping gangs do not single out foreigners). And while the strength and visibility of certain armed left-wing rebel groups has diminished in recent years, their very existence could still pose a security risk as social unrest is likely to rise as the local economy continues to feel the effects of the global economic downturn.

However and although much of the recent upsurge in violence is concentrated in border regions while armed rebel groups have tended to operate in more remote areas of the country, many observers from outside of Mexico are increasingly under the impression that the country is one step away from complete lawlessness. In fact, a February 2009 article in Business Week has even suggested that the surge in murders and crime linked to drug trafficking is starting to solidify the country’s reputation as a risky outsourcing site.

Table 7. Economist Intelligence Unit (EIU) Mexico Risk Assessment (April 3, 2009)
The EIU concludes that the operating risk of doing business in Mexico is moderate. However, the EIU notes in particular that security risk is high due to rising violent crime.

RISK RATINGS

Current

Current

Previous

Previous

Rating

Score

Rating

Score

Overall assessment

C

46

C

44

Security risk

D

64

D

61

Political stability risk

B

40

B

35

Government effectiveness risk

C

54

C

54

Legal & regulatory risk

B

40

B

40

Macroeconomic risk

C

60

C

60

Foreign trade & payments risk

B

25

B

21

Financial risk

C

46

C

42

Tax policy risk

B

25

B

25

Labor market risk

D

61

D

61

Infrastructure risk

C

41

C

41

Source: Economist Intelligence Unit (EIU)

4. Conclusion
Although both India and China have much larger populations and domestic economies, Mexico’s closer proximity to the USA gives it a distinct advantage as a near-shore destination for small and medium scale work outsourced from the USA. Moreover, strong government backing along with a legal and regulatory environment underpinned by NAFTA gives the country a further advantage over both nearshore and more distant offshore locations. However and by far the biggest threat to Mexico’s future as a leading nearshore outsourcing hub and even a competitor to India is the country’s perception for lawlessness and violence stemming from drug trafficking. If Mexico can overcome these perceptions and further increase the depth of its talent pool, the country has the potential to not only solidify its position as the leading nearshore IT services and outsourcing hub for the USA but to also compete head-to-head with India for business from the USA market.

References
1. “New Report Finds that Mexico’s Internal IT Market is Growing a Shade Below 14% While its Outsourcing Services is Growing at 35.2%.” Business Wire. February 13, 2008.

2. “Outsourcing Services to Contribute 50% of Total IT Sales in 2010.” Business News Americas. May 29, 2008.
“Outsourcing Services to Contribute 50% of Total IT Sales in 2010.”

3. “IT Industry Set to Grow 13.8% to $12US.5 Billion.” Business News Americas. June 13, 2008.

4. “Govt to Boost IT Investment Levels This Year.” Business News Americas. February 25, 2008.

5. “Govt to Boost IT Investment Levels This Year.”

6. MexicoIT (www.mexico-it.net)

7. “Mexico: Business Is Standing Its Ground.” Business Week. April 20, 2009.
8. “U.S. Business Turns to Mexico’s Growing IT Industry as Nearshore Outsourcing and Investment Option.” US Newswire. June 26, 2007.

9. “Mexico Country Report 2008.” Economist Intelligence Unit (EIU).

10. “Talking and saving: Competition comes to Mexican telecoms.” The Economist. August 22, 2009.

11. “Program for the Development of the Software Industry, PROSOFT” Powerpoint Presentation delivered by Sergio

12. Carrera Riva Palacio, Director General of Domestic Commerce and Digital Economy, Ministry of the Economy (www.mexiconearshore.com/Prosoft.ppt).

13. “U.S. Business Turns to Mexico’s Growing IT Industry as Nearshore Outsourcing and Investment Option.” US Newswire. June 26, 2007

14. “Mexico’s objective: Better education = better jobs.” USA Today. May 1, 2008.

15. “China’s Eroding Advantage.” Business Week. June 15, 2009.

16. “Mexico Country Report 2008.” Economist Intelligence Unit (EIU). September 2009

17. “Mexico Is a Growing Destination for Information Technology Services; Global Inflation and Currency Fluctuations Shake Up Sourcing Market.” Market Wire. May 19, 2008.


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