Mexico emerges as new hub for Indian IT companies operations

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BENGALURU: Mexico is becoming a popular destination for customer experience management (CXM), which improves customer interactions across various channels. TCS and Infosys have been operating in Mexico for more than 10 years.

LTIMindtree recently launched a 100-seat facility in Mexico City. HCLTech, which started its operations in Mexico 14 years ago, increased its presence in Guadalajara two years ago. The company plans to hire 1,300 people in the next two years to boost its current workforce of 2,400 people in the country. GlobalLogic, a Hitachi Group company, opened a new engineering and sales center in Mexico. The centers are located in Guadalajara and Mexico City.

Infosys BPM also provides both BPM (business process management) and IT services from Monterrey in Mexico and expanded its operations in Mexico City. It has more than 500 professionals serving more than 50 customers in areas such as customer service, finance and accounting, sourcing & procurement, sales, and fulfilment. It established its centre in 2007.

Mexico’s benefits include geographic proximity and cultural affinity to both the US and Canada. US IT research advisory Everest Group said Mexico has a global services talent pool of nearly 197,000 full-time equivalents (FTEs). The workforce has strong multi-language skills in English, Spanish, French and Portuguese.

GlobalData’s report said the global CXM market was valued at $14 billion last year and is expected to grow at a CAGR of 15.2% between 2023-2030.

Everest Group has ranked service providers in each region as premier providers and these include Atento, Concentrix+Webhelp, Konecta and Teleperformance that have a large presence and multi-city footprint. Proven providers are those with credible delivery presence and moderate to low scale of operations in the function. These include TCS, Genpact, Alorica, Conduent and Foundever among others. Promising providers have a single-city delivery footprint, but with potential for future growth include Wipro, Cognizant, Tech Mahindra and DXC.

“Mexico has seen a surge in the CXM market, and the IT-ADM sector is also growing significantly, especially as it leverages highly skilled engineers emerging from Mexican universities,” said Parul Jain, vice president in the global sourcing team at the Everest Group. Service providers have access to a vast talent pool of 150,000 graduates every year. Everest’s research showed that Mexico City and Guadalajara offer a significant talent pool and deep-tech infrastructure. “With a global services talent pool of nearly 197,000 FTEs, Mexico continues to lead technology services delivery in Latin America. Mexico serves as a hub for US firms to set up more cost-effective centers,” she said.

The IT-ADM (application maintenance development) services delivered out of Mexico are also gaining traction. These players include Accenture, Atos, Capgemini, Cognizant, DXC Technology, Endava, EPAM, GlobalLogic, Globant, HCLTech, IBM, Infosys, NTT DATA, Infosys, TCS and Tech Mahindra.

Source: Times of India