|
|
 |
|
Viewing report
|
|
|
|
Mexico Information Technology Report Q4 2011
Business Monitor International, Oct 2011, Pages: 60
Business Monitor International's Mexico Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Mexico's information technology industry.
Market Overview:
Mexico's IT spending is forecast to grow at a compound annual growth rate (CAGR) of 10.2% over 2011- 2015, but with strong variation between sectors and regions. Mexico City and its surrounding area accounts for at least 50% of total IT spending in the country, but Mexico's underpenetrated south east and Pacific regions are expected to offer growth opportunities over BMI's five-year forecast period.
BMI projects that Mexican IT spending will grow by about 15% in 2011 to US$14.4bn. Government spending will be one area of opportunity in 2011 with a substantial information society budget and the rollout of national and local projects that had been delayed by an austerity drive. Interest in cloud computing has often exceeded vendor expectations after many of Mexico's large companies conducted cloud pilots in 2010.
IT spending is forecast to outpace GDP growth, with drivers including rising PC penetration and growing affordability, as well as US corporate demand for IT outsourcing. IT spending of 1.4% of GDP remains well below OECD levels and BMI projects that per capita IT spending will rise from US$132 to US$192 by 2015.
Industry Developments:
In 2011, the majority of the MXN86.4bn annual budget for Mexico's Ministry of Communications and Transport is expected to go towards its information and knowledge society division. According to the federally approved budget, in the first 30 days of 2011, 52.3% of spending was allocated to information and knowledge society initiatives.
Areas of spending at the federal level include integrated enterprise resource planning (ERP), back office systems, e-services platforms, and interfaces. Key national government IT spending areas include solutions to improve tax collection efficiency, improve health services, promote trade, and enhance security.
In April 2011, Mexico's tax administration body, the Servicio de Administracion Tributaria (SAT), announced that it had implemented a plan to bring its federal tax collection and investigation systems online. The new system will centrally manage the identities of 9mn taxpayers and 35,000 employees. The government has also introduced a new mandate requiring companies to integrate with SAT for real-time approval of electronic invoices.
Competitive Landscape:
2011 has seen a series of new cloud offerings from service providers. In June 2011, Mexican missioncritical services provider Kio Networks extended its cloud service portfolio with a new business-processas- a-service (BPaaS) offering. The new service, which involved an investment by Kio of around US$50mn, will be hosted at the company's recently opened datacentre in Mexico City, as well as other centres in Qeretaro and Santa Fe.
Particular areas of opportunity for cloud computing include banking and retailing as organisations in those fields look to save money on hardware investments. In Latin America, Japanese giant Hitachi Data Systems is hoping to gain a share of virtualisation opportunities through a collaboration with Microsoft aimed at creating unified virtualised environments.
Vendors are focused on opportunities in the small- and medium-sized enterprise (SME) sector. In 2010, leading enterprise software vendor SAP said SMEs were its fastest-growing segment for its Mexico and Central American division. Meanwhile, Dell has said that around 30% of its Latin American region revenues now comes from SMEs. In June 2011, Dell announced a partnership with CIT Vendor Finance to launch a preferred partnership financing programme in Mexico.
Computer Sales
Mexico's computer hardware sales are projected at US$6.7bn in 2011 and are projected to reach around US$9.7bn in 2015. There remains considerable potential as the current level of computerisation is low, with PC penetration estimated at less than 25%. Growing broadband penetration, including 3G mobile, will drive the PC market.
Significant growth opportunity now exists in provincial areas and second-tier cities, where multinational vendors are now trying to strengthen distribution. Mexico's under-penetrated south east region is expected to offer growth opportunities over BMI's five-year forecast period, particularly in the public sector.
Software
The Mexican software market is projected to reach US$2.7bn in 2011, from US$2.3bn in 2010, with imported software accounting for at least 80% of the total. One of the biggest trends in the SME segment is standardisation of back-office processes, while storage solutions are another growth area. A combination of enterprise objectives such as cost reduction and greater efficiency should drive more adoption of cloud services in 2011.
Software spending should have an upwards trajectory as the government turns its attention to overcoming Mexico's long-standing underinvestment in this area. The most popular applications remained basic ERP and supply chain management (SCM) solutions, while business intelligence and security software should provide growth opportunities, including more spending on networked security solutions.
IT Services
The IT services market is projected at around US$5.0bn in 2011. Despite continued economic uncertainties, the market should ultimately grow at a CAGR of 10.6% through to a value of US$7.6bn in 2015. Sectors such as government, telecoms, and financial services will provide the greatest opportunities for vendors over BMI's forecast period.
The increasing number of multinational companies operating in the market is an important driver for spending. Opportunities also exist in the SME sector, where companies are trying to use computing resources more effectively. Mexico is also becoming an increasingly important hub for provision of business process outsourcing (BPO) and other outsourcing services.
E-Readiness
The World Economic Forum's annual survey found Mexico continuing to make steady progress on network indicators. Mexico has climbed six places in the rankings to 49th. The report attributed the improvement to the adoption of more efficient electronic strategies for digital networks and infrastructure connection nationally and regionally.
The potential for new broadband technologies to take hold in Mexico is high, with fibre-optic infrastructure and WiMAX licences being auctioned since 2009. With the telecoms regulator, Cofetel, taking a more combative stance towards Telmex, BMI believes there is a good chance that new operators will enter the market and be responsible for strong growth.
E-Government
The 2008 UN e-government survey found that Mexico had the most advanced e-services development in Latin America, with a 'strong national government portal' that encouraged online consultations between government and citizens.
Recent state and municipal statistics have highlighted the gradual progress made in implementing egovernment in Mexico at federal and state level. In 2001, the government launched an e-government initiative that prioritised providing health, education, and other government services online, as well as the development of e-commerce. Since then, however, funding has rarely been sufficient for much progress to be made given the substantial task involved, and local governments are increasingly looking to launch their own initiatives. Many states are seeking funding from the private sector to plug gaps in public funding.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
