1. Program for the
Development of the
Software Industry,
PROSOFT
Sergio Carrera Riva Palacio
Director General of Domestic Commerce and
Digital Economy
Ministry of the Economy
Government of Mexico
2. Mexico’s Economy Overview
Total population: 104 million
GDP: 625 BUSD (world’s 10th economy)
U.S. second trade partner (Canada 1st)
Largest FTA’s network worldwide (including NAFTA,
EU, and Japan)
4th country in number of airports and 1st in daily
flights to and from the U.S.
7th exporting economy
Ranked 5th in per-capita foreign direct investment
received
Largest spanish speaking population (U.S. – 5th)
Best country in Latin America in terms of
technological accomplishment, according to the
UN
3. PROSOFT
Mexico’s IT industry policy
Goals (2013)
To accomplish an IT services annual production level
of 15 billion USD
To reach the OECD’s average IT expenditure as an
economy
To position Mexico as the leading IT powerhouse in
Latin America
4. PROSOFT – Mexico’s IT industry policy
Strategies
1. Promotion of exports and investments in the sector
2. Enhancement of human capital capabilities
3. Adequation of the digital economy legal
framework
4. Development of the IT domestic market
5. Stregthening of the local industry
6. Achievement of world class process capabilities
7. Promote cluster development countrywide
5. State governments participating in
PROSOFT
Aguascalientes
Baja California
Guanajuato
Jalisco
Morelos
Nuevo León
Puebla
Sinaloa
Sonora
Yucatán
6. Mexico’s ITES industry value offer
Human capital
Highest IT undergraduate level workforce in Latin America
(+100,000)
30% of current undergraduate total enrollment in IT related
fields
Abundant non-IT undergraduate level workforce for BPO
and call centers available nationwide (lawyers, BA’s,
CPA’s, HR)
Infrastructure
Broadband services available nationwide
World class telecommunications services in main cities
Sectoral experience for multinationals
Manufacture
Financial services
Government
Telecommunications
7. Mexico’s ITES industry value offer
Total project cost
advantage Quality and
Legal framework
(nearshore approach) process capabilites
•Reduced flight cost •3 CMM-5, and +15 •Electronic signature
and time compared to CMM-4 and 3 and invoice
the Asian region companies
(+53 currently •Data protection and
•Enhanced productivity engaged in model privacy
in the solution of real implementation and
time problems assesment) •Intellectual property
rights
•Smaller amount of •ISO-9000 adoption
professionals at widely spread •In all cases, the
customer’s facilities legal framework is
compatible with U.S.
legislation
8. Mexico’s ITES industry value offer
Country Cultural
Environment Affinity
•Political stability •Compatible business
environment and legal
•Low geopolitical risk framework
•NAFTA •Deep knowledge of
(investment protection, the American
IPR, visas, market consumer
access)
•Direct access to the
•Preferential market U.S. Hispanic market
access with the U.S.,
Canada, EU, Japan,
and Latin America
9. PROSOFT support for export oriented
companies
Manpower training and
certification
Software & equipment
Infrastructure
Cash grants on Process implementation and
a 50% basis certification
of total costs for: Standards certification
Technology transfer and royalties
Supplier development programs
Education/training tailor-made
programs with universities
Additional grants from State governments apply
10. PROSOFT incentives for foreign
companies establishing ITES
operations in Mexico
The same type of cash grants given to export
oriented companies apply
Tax breaks for R&D activities
Local governments incentives (availability differs
from state to state):
1. Payroll & Estate tax exemption
2. Preferential rates for land acquisition or leasing.
3. Simplified red tape
11. PROSOFT grants – Sep/Dic 04
221 69
Companies qualified for grants: Projects supported
95 companies engaged in improving
their process capabilities Cash grants
worth 20 milion USD
+1,200 IT professionals engaged in
training and certifications
+ 200 professionals engaged in PMI
training and certification
5 facilities for operations in
embedded software, semiconductor &
hardware design, and multimedia
content development supported
12. Concluding remarks
Nearshore approach
Compatible legal framework and
1. Mexico’s ITES value offer has business environment
advantages over other options: Political stability
Competitive total project cost
Tailor-made programs to develop
supplier capabilities
2. Mexico’s workforce pool for BPO
activities is abundant and readily
available nationwide
3. Mexico’s IT industry has extensive
experience working with
U.S. based companies
13. Program for the
Development of the
Software Industry,
PROSOFT
Sergio Carrera Riva Palacio
Director General of Domestic Commerce and
Digital Economy
Ministry of the Economy
Government of Mexico
