Mexico's Tech Startups Look To Overcome Barriers To Growth
In the past decade, Mexico's tech industry has flourished, growing three times faster than the global average. Most of that growth has been fueled by demand from the United States. But as Mexico's startups strive to make it in foreign markets, they say they need more engineers and ways to finance their growth.
Softtek, Mexico's biggest technology services company, spans four continents and provides software support to a client base that includes Fortune 500 companies. The business sector is growing rapidly in Mexico, thanks in large part to the country's proximity to the United States.
"I think it's safe to say that without the U.S., the Mexico market would not be doing very well," says Morgan Yeates, an analyst with the IT consulting firm Gartner.
A Focus On The U.S. Market
Yeates says three-quarters of Mexico's tech services are focused on the U.S. and large, global companies — such as Wal-Mart or Coca-Cola — that need help managing massive computer databases. For years, India and China have been the main providers, but that's changing.
"More and more partnerships are happening between the U.S. and Mexico," Yeates says.
U.S. companies tend to mesh better with Mexican providers. Time zones are more compatible, and Mexico is better able to serve a growing Hispanic market within the United States.
But it's not all about IT support and services. It's also about creating original software. Publish 88 is one of many tech startups popping up across Mexico. The company licenses software to print publishers seeking a multimedia presence.
“ We are driving with our hand brake on.