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Mexico Is a Growing Destination for Information Technology Services

Global Inflation and Currency Fluctuations Shake Up Sourcing Market

Many U.S. companies are experiencing unexpected cost increases in their IT services from offshore sourcing providers or their own offshore subsidiaries, called captives. The reason? Global inflation is combining with declining exchange rates for the U.S. dollar, resulting in drastic shifts and variability in costs when finally reflected on financial reports. The lack of predictability makes it difficult for CIOs to project costs accurately, an unpopular practice among CFOs and CEOs.

"Looking at changes in exchange rates and IT labor rates, it is easy to identify economic shifts of 30 percent or more between some serving and receiving country pairs," said Nicholas Brigman, Director of Market Research at Getronics. "For U.S.-based companies, Mexico and other Latin American countries are more suitable and stable destinations for IT services based on exchange rate variability and similar inflation rates."

Getronics has long made it a point to identify and establish multiple nearshore service centers to protect clients from volatility. For instance, the company recently celebrated the 6th anniversary of launching its Global Service Center (GSC) in Mexico City. Through these and similar initiatives, Getronics' global service delivery model can meet clients' cultural needs and create global resilience.

"Where India has been a top sourcing location in recent years, Mexico is leaping forward as a stable alternative for U.S. businesses," said Luis Sanchez, Director of Mexico GSC for Getronics. "Our location is closer to the clients we serve and our people are committed to world-class excellence. We consistently earn high marks for our services and just recently we were selected as one of the best places to work in Mexico."

Getronics has partnered with the "Tecnol├│gico de Monterrey" (largest private university in Mexico) to drive IT curricula and certifications -- an important step in producing top quality IT professionals to meet growing demand.

Getronics executives from the United States and Mexico will be available in the Mexico IT Pavillion to discuss the wide range of sourcing options and services it offers.

About Getronics

Getronics is a leading international provider of Information and Communication Technology (ICT) services and solutions, focusing on workspace management, application services and consulting & transformation services. Getronics helps organizations raise their performance and increase the productivity of their people, by enabling them to share information and to work together efficiently, securely and effectively, wherever and whenever they need. Getronics is a subsidiary of KPN ICT Services with headquarters in Amsterdam. For further information about Getronics, visit www.getronics.com/us.

Author: Dan Keeney
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