US companies are increasingly choosing Mexico over India for niche IT outsourcing services, the CEO of Mexican software developer Praxis, Edmundo Robert, told BNamericas.
Robert acknowledged that Mexico will never surpass India in terms of overall outsourcing revenues. Still, he said that the country's proximity to the US and low operation costs are attracting outsourcing business in certain niche services, including solutions based on Java and .Net technology.
"Mexico can be very competitive in those areas," he said. "It's possible to come up with very creative solutions at low costs. There are many financial institutions in the US that have been hit hard by the financial crisis and can take advantage [of the service offering in Mexico]."
Robert added that Praxis is seeking to make the best of the economic slowdown to keep sales going and to increase its presence among US firms.
FORECAST: 5% GROWTH FOR 2009
Praxis is looking to bill US$20mn in operations this year and expects revenues to increase 5% in 2009, Robert said.
The company - which has regional offices in Mexico, Costa Rica, Panama and Chile - is seeing strong demand for its project management solutions, in addition to its software development and maintenance outsourcing services, he added.
Praxis is seeking to launch direct operations in Argentina and Bolivia, where it expects to better target the mining sectors. Still, Robert admitted that the plans are currently in limbo due to the global economic slowdown.
The executive said Praxis also maintains an interest in Chile, Colombia, Costa Rica, and Panama, as the company considers all four countries to have solid economies. Praxis operates through a mix of direct sales and channel partners, and Robert said that the company will maintain that mix in the future.
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