Gartner Research

SWOT Analysis: Mexico Is Emerging as a Global Services Destination

Published: 10 July 2007

ID: G00149306

Analyst(s): Cassio Dreyfuss, Allie Young, Ian Marriott, Frances Karamouzis


Mexico is one of several emerging countries effectively taking advantage of the continued growth in global sourcing. This research analyzes Mexico's strengths, weaknesses, opportunities and threats as a country destination for global services delivery.

Table Of Contents
  • Overview
  • Introduction
  • Mexico's Strengths
    • Time Zone for U.S. Buyers
    • Geographic Proximity
    • Cultural Affinity and Language
    • North American Free Trade Agreement Advantages
    • Government Incentives for IT Services
    • Competitive Risk-Adjusted Cost
    • Low Geopolitical Risk
    • Infrastructure
  • Mexico's Weaknesses
    • Critical Mass of Service Providers
    • Mexico Inc. "Brand"
    • Labor Pool Competencies
    • Scalability of Mexico's IT Services Labor Force and Labor Centers
    • Over-Reliance on the U.S. Economy
  • Opportunities
    • Maturing Local Providers
    • Government Support and the "Austerity Decree"
    • Springboard to the U.S. Market for Offshore (and Nearshore) Providers
    • Maturing Economies in Latin America
  • Threats
    • Fluctuating Economic and Regulatory Environment
    • Failure to Align the Education System, Government Policies and Industry Requirements
    • Perception of Mexico as Supplying Commodity IT Skills
    • Labor Rate Increases
    • Growing Dominance of BRIC Countries as Preferred Global Service Destinations
    • IP Protection, Privacy and Data Security Concerns

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