Case study Mexico
-
Upload
usaid-ceed-ii-project-moldova -
Category
Business
-
view
1.514 -
download
0
description
Transcript of Case study Mexico
Subsecretaría de Industria y Comercio
Mexico’s Public Policy to Develop the IT-ITES Sector
CLAUDIA IVETTE GARCÍA ROMERO Director General for Domestic Commerce and Digital Economy [email protected] Tel. 52296100 Ext 34100 SUBSECRETARIA DE INDUSTRIA Y COMERCIO May 19 2011
Subsecretaría de Industria y Comercio
Agenda
1. Diagnosis of Mexican economy
2. Fostering the development of the IT-ITES
Sector
3. Main National Initiatives
4. PROSOFT Grants Found
5. Conclusions
Subsecretaría de Industria y Comercio
Gross Domestic Product 2010 (billons of usd)
Nowadays Mexico is the 14 largest Economy in the world. According to recent forecasts from PricewaterhouseCoopers and HSBC Global Research, it is estimated that towards 2050 Mexico will be ranked as the 7th or 8th Economy, over countries such as France, Italy, Canada, Spain and Australia.
Mexico is the 14 largest economy in the world
Subsecretaría de Industria y Comercio
Overachieving all expectations, the Mexican economy grew in a rate of 5.5% during 2010 showing the greatest dynamism over the last 10 years, fostered mainly by commerce which registered a growth rate of 13.3% and manufacture industry with a rate of 9.9%.
GDP of Mexico (anual growth %)
Mexico is in an expansion phase, the GDP reached a growth of 5.5%
Subsecretaría de Industria y Comercio
From 2010 to 2011, the investment of infrastructure in Mexico shows a growth of 77%, thanks to this, more than 15 thousand kilometers of highways have been modernized.
Infrastructure investment (thousands of millions of pesos 2011)
Mexico shows an increase of 77% in infrastructure investment
Subsecretaría de Industria y Comercio
Agenda
1. Diagnosis of Mexican economy
2. Fostering the development of the IT-ITES
Sector
3. Main National Initiatives
4. PROSOFT Grants Found
5. Conclusions
Subsecretaría de Industria y Comercio 1. The Economist Intelligence Unit), 2 IMCO; 3. McKinsey y London School of Economics) ; 4: Gartner
GDP1 IT’siscapableofraisingGDPupto5%
Countrycompe33veness2 Thereisaposi8vecorrela8onof92%betweentheadop8onofIT‐ITESandthecompe88venessofna8ons
Enterpriseproduc3vity3 TheuseofIT‐ITESalongwithhighlevelbusinessprac8cescanincreaseupto20%enterpriseproduc8vity
Knowledgeeconomy Knowledgeeconomyofferstheopportunityofcompensa8ngthedisadvantagesincosts,migra8ngtovalueaddedservices
Salariesandeconomicshed ITsectorsalariesare3to58meshigherthanmanufacturingsalaries
WhyfosteringthedevelopmentoftheIT‐ITESsector?
Subsecretaría de Industria y Comercio
At international level we can observe a positive correlation between the information technologies and the economic performance of economies.
¿Why thinking about Information Technologies?
Suiza
México
2.00
3.00
4.00
5.00
6.00
7.00
3 3.5 4 4.5 5 5.5 6 6.5 7
Com
petit
iven
ess
inde
x
Use of IT
Corelation between the use of IT and the competitiveness of economies
Source: World Economic Forum. Networked Readiness Index 2010 y Global Competitiveness Index 2010.
Switzerland
Subsecretaría de Industria y Comercio
Size of the global IT market
36%
64%
Global IT outsourcing market United States Rest of the world
Source: Gartner 2011, A.T. Kearney Global Location Index, 2011
The ICT global market for 2011 it’s estimated to be 3.6 TUSD • Approximately 25% of that total is produced through outsourcing • IT services and software represent 50% of the total expense
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
Global IT market
2009 2014
Subsecretaría de Industria y Comercio
High competitiveness and impact sectors
(Attract investment and industry development)
• Manufacture of transport equipment.
• Manufacture of machinery and equipment.
• Manufacture of electric and electronic devises.
• Miner (excluding petroleum and gas).
• Business Process Outsourcing.
• Food industry. • Health services • Tourism.
Development of local market (Continue to promote it’s
sane development)
• Commerce • Housing • Financial services
Develop of entrepreneurs and professionals
(Promotion for the creation of new enterprises)
• Agriculture, fruits and flowers.
• Physical devices, Software • Investigation and
development services (I + D)
• Architecture, engineering and design services
• Music, movies, radio and television
Envi
ronm
enta
l Sus
tain
abilit
y (C
lean
tech
nolo
gies
)
Development platforms (Assure the development of platforms through the adequate regulation, bigger competition and investment)
1.Infrastructure 2.Telecomunications 3.Educational services
IT services are considered an strategic sector for Mexico
Subsecretaría de Industria y Comercio
• Human Capital volume • Geographical location • Government support • Software industry
maturity • Alignment of efforts
S Positive
loca
l
Positive
Fore
ign
Mexcio´s IT Sector - SWOT
o • Local market potential growth • Trade Agreements • Entrepreneurial culture • Development of high
expertise services supply
W Inte
rno
Negativos
T • Local market
articulation • Quality of Human
capital • Industry – academic
links • Financing for
industries
• New players • Foreign financial crisis • Human Capital leeks • Mexico’s international image • Commercial policy in • Protectionist commertial policy
in international market sectors • Continuity of strategies
loca
l
Fore
ign
Negative Negative
Subsecretaría de Industria y Comercio
2002 2006 2008 2010 2012
PROSOFT Launch:
Public policy
PROSOFT Grants Fund
Deployment platform
Productive chain
consolidation
PROSOFT 2.0
Innovation and
technology development
World class
player
10 Year Vision
2004
Subsecretaría de Industria y Comercio
Exports and investment
Human Capital
Legal framework
IT use diffusion
Productivity & Innovation
Standards and Marturity (Quality)
Funding access
• 15,000 MUSD
Production level
• 2.3% TI/PIB
IT Market
• Latin American Leader
Awareness
• 625,000
Employment
Long Term National Public Policy - PROSOFT 2.0
Subsecretaría de Industria y Comercio
Human Capital
• Mexico FIRST • IT Talent • Labor standards
Investments and exports
• Mexico IT • IT Link
Productivity & Innovation
• Clusters • Innovation • IT Technology
Roadmap • Technology
parks
Maturity and Quality
• MoProSoft • PSP/TSP
initiative
Financing
• PROSOFT fund
• Warranty fund • Risk Capital
IT use diffusion
• IT user projects • Government
purchase power
• Trust seal for electronic commerce
Legal framework
• Personal data Protection Law
• Homologation framework
• NOM 151 – Data messages safeguard
PROSOFT 2.0: Strategies and impact tools
Subsecretaría de Industria y Comercio
2,785 enterprises 27 IT Clusters 90,000 annual
graduates
600,000 employees
303 centers with quality levels 24 IT parks
5% annual rotation
IT/GDP expense =1.7
4.15 BUSD exports
Mexico’s IT Industry Profile
Subsecretaría de Industria y Comercio
IT services exports
• In 2010, Mexico’s IT exports were 38% of it’s production, with an estimated growth rate of 16.6% for 2011.
Fuentes: (1) Gartner, (2) Estimación, Elaboración propia con datos de Atkearney y Select
5.00 5.82 6.34 5.90 6.72
1.99 2.51
3.16 3.72 4.15
0
2
4
6
8
10
12
2006 2007 2008 2009 2010
Local market and IT + BPO exports (BUSD)
Mercado Interno Exportaciones
1% 13%
19% 14%
Subsecretaría de Industria y Comercio
2002 2011 Compa
nies 2095 2785
0
500
1000
1500
2000
2500
3000
IT Companies
2002 2011 States 4 32
0
5
10
15
20
25
30
35
States
2002
2011
Growth Rate -1% 13%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
Growth Rate
2002 2011 IT-BPO Exports 200 4,150
0
500
1000
1500
2000
2500
3000
3500
4000
4500
IT-BPO Exports
Achievements (1/2)
Subsecretaría de Industria y Comercio
2002 2011 Quality Certifie
d Centers
4 303
0
50
100
150
200
250
300
350
Quality Certified Centers
2002 2011 IT
Clusters 0 27
0
5
10
15
20
25
30
IT Clusters
2002 2011 IT
Parks 0 24
0
5
10
15
20
25
30
IT Parks
2002
2011
Graduates 65,000 90,000
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Cience&Tech Graduates
Achievements (2/2)
Subsecretaría de Industria y Comercio
Mexico in the global market
Analyst Recognition on MEXICO Gartner Mexico ranks as the fourth largest producer of IT services,
after India, the Philippines and China Gartner Mexico is the only Latin American country to obtain a rating
of "very good" in the evaluation of cost, when other countries had achieved only "good"
AT Kearney
Mexico is ranked 6 in the Global Services Location Index 2011, being the first country in North America, this is due to the availability of human capital and financial attractiveness (costs)
KPMG Mexico is the most competitive location for the activities of Software Design, Back Office / Call Centers, Web and Multimedia.
Subsecretaría de Industria y Comercio
Mexico’s position in the global IT market México occuppies the 6 position in the Global Services Location Index 2011, beeing the first country of North America, this thanks to the disponibility of Human Capital and its finantial atractiveness (costs).
6
Subsecretaría de Industria y Comercio
Cost comparisson with other countries
• According to KPMG1, Mexico is the most competitive location for activities
such as software design, back office / call centers, web building and
multimedia.
Fuente: (1) Elaboración propia con datos de Competitive Alternatives, KPMG 2010
53.4
31.7 34.1
4 12.1 11.2 0
10 20 30 40 50 60
Back Office / Call Centers
Diseño de Software Web y multimedia
Saving percentaje regarding operating in the U.S.
México (lugar 1) Canadá (lugar 2)
Subsecretaría de Industria y Comercio
Type Satisfaction (%) 2008 Sameshore 82.4 Nearshore 81.5
Outsourcing 61.1 Offshoring 33.3
Customersa3sfac3onofITServices
Fuente:TheStateofOutsourcingIndustryReport2008,BrownWilson
• Customers of the companies offering IT services are more satisfied when they are working by companies relatively close (proximity and time zone)
• Therefore Mexico is the ideal supplier to markets such as USA, Canada and Latin America.
Location and customer satisfaction
Subsecretaría de Industria y Comercio
Agenda
1. Diagnosis of Mexican economy
2. Fostering the development of the IT-ITES
Sector
3. Main National Initiatives
4. PROSOFT Grants Found
5. Conclusions
Subsecretaría de Industria y Comercio
MEXICO FIRST
• Objective: Accelerate the availability of human capital with International Skills to proved IT and BPO services globally.
• Catalog includes more than 200 options of International Certifications • 39% average discount on Commercial List Price • Goal per year: 12,000 certifications
Subsecretaría de Industria y Comercio
MEXICO FIRST: Achivements
* cumulative figures per year
3,690 5,800
15,198
1,500
7,500
15,000
2008 2009 2010
Number of certifications Vs. Goal*
Certifications
Goal
Subsecretaría de Industria y Comercio
MEXICO FIRST – 2011
Indicators Technology Business English TOTAL Training persons 11,060 2,667 1,428 15,155
Certified persons 7,348 2,133 0 9,481
RESOURCES (MXP)
Project SE IP TOTAL
Technical $ 102,000,000 $ 189,429,719 $ 291,429,719
English and Softskills
$ 30,000,000 $ 55,716,470 $ 85,716,470
TOTAL $ 132,000,000 $245,146,189 $377,146,189
Subsecretaría de Industria y Comercio
IT Clusters Analysis of competitiveness
Maturity and Competitiveness
Fuente: Estudio de Competitividad de Clusters, 2008
Objetive
Subsecretaría de Industria y Comercio
Certification methods to evaluate the performance of companies:
302 IT Firms with Quality certifications
MEXICO 50% EUA
34%
JAPON 8%
INGLATERR
A 2%
INDIA 2%
CHINA 1%
EGIPTO
1%
AUSTRALIA
1% CORE
A 1%
Chart Title
Worldwide First place in PSP Certified Developers
• Objective:To Accelerate the process to achieve higher levels of quality through high-performance people and high performance teams
TSP/PSP National initiative
Certifications in Quality
Subsecretaría de Industria y Comercio
ü The IT Roadmap is a planning tool with the participation of representatives from
industry, academy and government, whose purpose to develop Mexico’s Global
Expertise
Actions
Players
Milestones
What, where, value, where?
Vertical Expertise
Electric –Electronic Aerospace Automotive Medical Devices
Vision
Mexico as a leading player in advanced manufacturing automation IT solutions
IT Roadmap
Subsecretaría de Industria y Comercio
Electric –Electronic Automotive Medical Devices Aerospace
• The industry expects growth of 12.5% annually through 2013.
R&D Centeres: • General Motors • Chrysler • Delphi technical Center
Global Exports § 2° TV´S § 2° Refrigerate and
Freezer. § 3° Cell Phones
• It´s estimated that by 2014 the market value reaching 9.760 md, which would mean an annual growth of 9.9%
• Tenth global exporter of medical equipment in 2009.
Ninth aerospace industry supplier of U.S. (2009), and the sixth in the European Union (2008).
80%
10% 10%
Manufactura MRO Ingeniería e I&D
Aerospace enterprises by activity(%)
IT Roadmap
Global IT spending in the manufacturing sector for 2011 is estimated at 446.6 BUSD
Subsecretaría de Industria y Comercio
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
21 3
3 axes 3 axes 4 axes
Goal: Mexico as a leading player in advanced manufacturing automation IT solutions
ITRoadmapforadvancedmanufacturing(Model)
Communication Strategy
Supp
ly &
Dem
and
Surv
ey
6 projects
5 projects
4 projects
Axe
s
Act
ions
M
ilest
one
s
Supp
ly &
Dem
and
Surv
ey
Subsecretaría de Industria y Comercio
Agenda
1. Diagnosis of Mexican economy
2. Fostering the development of the IT-ITES
Sector
3. Main National Initiatives
4. PROSOFT Grants Found
5. Conclusions
Subsecretaría de Industria y Comercio
General ojective: Contribute to the development of the information technologies sector, seeking it’s growth in the long term in Mexico favouring international competition.
Specific objectives a) Promote exports and investment attraction. b) Raise the quantity and quality of Human Capital. c) Promote the adoption of a legal framework that contributes use and
production of IT. d) Foster the approach between IT users with enterprises from the IT
sector located in the country. e) Create a broad base of enterprises and IT sector groups, and at the
same time raise their competitivity. f) Promote the enterprises achievements regarding international
levels of process capacity. g) Raise the options and possibilities of access to financial resources
for the IT sector.
Fondo PROSOFT
Subsecretaría de Industria y Comercio
2011 Federal Budget: 677 million MXP
Año 2004 2005 2006 2007 2008 2009 2010 Totales
PROSOFT 139.70 192.49 428.61 438.24 631.98 525.09 624.94 2,981.05
States 42.49 108.03 232.94 283.75 414.12 306.90 297.55 1,685.78
Enterprises 60.42 366.91 763.78 831.81 1,022.51 904.21 951.14 4,900.78
Academy 3.46 13.32 14.62 60.29 125.37 9.28 5.35 231.69 Others 3.45 72.99 31.57 85.56 104.12 8.64 - 306.33
Total 249.52 753.75 1,471.52 1,692.53 2,344.11 1,754.12 1,878.98 10,144.53
Projects 68 181 334 487 494 360 160 2,084
PROSOFT Fund 2004-2010 (Million MXP)
Subsecretaría de Industria y Comercio
PROSOFT Grants Fund: Simplified supports distribution process
Target entities
Intern mechanism of operation of Promoting organisms
DGCIED analizes and sends feedback
Executive Board resolution
Approoved projects
IT enterprises Universities IT Users Banks
Sign Agreement with beneficiaries
Payments to the beneficiaries through the PO’s
Procesess
Subsecretaría de Industria y Comercio
1. Training and certification 2. Technological equipment 3. Enterprise quality certifications 4. Use of IT and related services 5. Innovation 6. Commercialization 7. Studies 8. Professional services 9. Events 10. Creation and strengthening of
financing mechanism 11. Acceleration of public policy
Beneficiary 50% Federal
Entity 25%
PROSOFT 25%
Project investment
PROSOFT Grants Fund: support areas and investment
Basic mix of contributions
Subsecretaría de Industria y Comercio
Rela3veimportanceofexpenseareaswithinthePROSOFTgrantsfund
PROSOFT grants fund. Relative importance of expense areas
Training
Technological equipment and fitting
Profesional services
Events
Use of IT and interlinked services
Subsecretaría de Industria y Comercio
Parametric model
The score of the different variables, and the integrated score of every support application will help the executive board to prioritize the projets in it’s aprobation process.
Subsecretaría de Industria y Comercio
Element
Is it found in the project?
Si=1 No=0
Value adjustment
Final value
Innovation 0.200
Certifications of Human Capital
0.150
Specialized jobs created 0.150
Productive project 0.100
Organizational certifications
0.100
Promoting Organism investment
0.100
IT users projects 0.075
Successful continuity 0.075
Academy – Industry linked projects
0.050
Sum (total score) (value 0 and 1)
X Score calculation
Subsecretaría de Industria y Comercio
Element
Is it found on the project?
Si=1 No=0
Value adjustment
Final Value
Strategic vocation 0.50 Strategic action 0.50 Sum (total points) (value
between 0 and 1)
Subsecretaría de Industria y Comercio
Element
Is it found in the project?
Si=1 No=0
Value adjustment
Final Value
Is the project linked to the World Bank project
0.40
Industry projects 0.35 Strategic vocation 0.25 Sum (total points) (value
between 0 and 1)
Subsecretaría de Industria y Comercio
Agenda
1. Diagnosis of Mexican economy
2. Fostering the development of the IT-ITES
Sector
3. Main National Initiatives
4. PROSOFT Grants Found
5. Conclusions
Subsecretaría de Industria y Comercio
1. The global outsourcing market of IT services continues to grow, and Mexico has the qualifications and potential to increase it’s share in such market, where today it competes strongly.
2. The efforts and strategies on the years to come will be focused on the specialization in strategic subsectors that could foster the country’s positioning among the global supply.
3. Mexico seeks to cooperate in regional strategies that would allow to foster international practices through the use of the IT personal data protection, investments in the productive sectors, Knowledge transfer and investments.
Concluding Remarks
Subsecretaría de Industria y Comercio
Mexico’s Public Policy to Develop the IT-ITES Sector
CLAUDIA IVETTE GARCÍA ROMERO Director General for Domestic Commerce and Digital Economy [email protected] Tel. 52296100 Ext 34100 SUBSECRETARIA DE INDUSTRIA Y COMERCIO May 19 2011