U.S. Business Turns to Mexico's Growing IT Industry as Nearshore
Outsourcing and Investment Option

MexicoIT Initiative Bolsters Burgeoning Sector With
Quality Certification, Foreign Investment Incentives.

MEXICO CITY, June 26 /PRNewswire/ -- An increasing number of U.S. companies are discovering the benefits, quality and bottom-line efficiencies of Mexico's true nearshore information technology (IT) and business process outsourcing (BPO) solutions. Ranked by the United Nations as the strongest Latin American country in technological achievement, Mexico is experiencing rapid growth as a global IT player. To encourage that growth, the country's industry, supported by the Ministry of Economy, has launched MexicoIT -- an initiative to broaden awareness of and enhance the competitive advantage among Mexico's technology companies.

MexicoIT supports an aggressive agenda to maintain global quality standards, support technology education, encourage investment and promote Mexican IT services and partnerships to U.S. and global businesses. MexicoIT is supported by the Ministry of Economy and executed by Mexico's National Chamber of the Electronics, Telecommunications and Information Technology Industry (CANIETI).

"Many Fortune 500 U.S. companies are expanding their business by investing in Mexico's IT services or partnering with Mexican IT outsourcing companies," said Eduardo Ruiz Esparza, president of CANIETI. "Several global leaders in finance, manufacturing, trade and pharmaceuticals already operate global and regional IT services from Mexico. And, Mexico's list of partners grows every day."

Benefits: Quality, Proximity, Security, Cultural Affinity
Gartner, Inc., the world's leading IT research and advisory company, published a paper titled "Qualitative Indicators of Country Suitability" in which countries such as China, India, Israel, Poland, Hungary and Mexico were evaluated. In the report, Mexico stands out as a beneficial destination for investments in technology, due to factors such as language and cultural affinity, data and intellectual property security, government support, infrastructure strength, educational system, and political and cultural stability. The report sited Mexico's growing software and IT services development sector, nearly 500,000 IT professionals, 121 universities teaching global industry requirements, and close to 65,000 new IT professionals graduating from university or technical schools each year.

"Beyond the built-in free trade and travel benefits afforded by NAFTA, Mexico's IT industry is attractive to American companies who want to leverage the time and financial efficiencies of outsourcing closer to home," Esparza said. "Similarly, global companies with a U.S. customer-base find Mexico's time zone and proximity to the U.S. helpful in maintaining high levels of U.S. customer satisfaction."

Investment Incentives
Financial opportunities granted by the Mexican government to those who invest in Mexico's technology industry include tax credits for research and development (R&D), a reduction of corporate taxes and no value added tax for exported services. IT firms established in Mexico can receive cash grants of up to 50% of the total cost of their project and tax credit of up to 30% of the total R&D expense. Companies wishing to establish IT service operations in Mexico are eligible for incentives that may minimize initial investment.

MexicoIT
MexicoIT is a joint venture between the Mexican Ministry of Economy and the Mexican IT industry. The initiative introduces global companies to Mexico's world-class quality, innovative, low cost and secure IT solutions and also highlight the benefits of investing in Mexico's IT industry.

For additional information, visit: http://www.mexico-it.com

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