Wednesday, August 08, 2007

The Mexican IT Infrastructure Outsourcing Services Market Aggregated Revenues Worth $464.4 Million in 2006

The Frost & Sullivan research service titled Mexico IT Infrastructure Outsourcing Services Markets provides an overview of the IT infrastructure outsourcing landscape in Mexico, with revenues and forecast for the country, along with a complete analysis of key market drivers, restraints, and trends that are impacting this market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: Co-location, Dedicated Hosting, Storage, Disaster Recovery, and Network Management.

Key Topics:

- Market Overview

- Market Forecasts and Trends

- Competitive Analysis

Mexico Positioned as the Second Largest Market in the Latin American Region

The Mexican IT infrastructure outsourcing services markets have seen significant development in recent times to emerge as the second largest market in the Latin American region. The market aggregated revenues worth $464.4 million in 2006, benefiting hugely from the increasing awareness of the benefits of outsourcing IT infrastructural services as well as international regulations such as Sarbanes Oxley and global standards of best practices. What is more, technological developments, along with reduction in hardware as well as software costs, have allowed service providers to invest firmly in infrastructure and create new storage spaces and datacenters.

Realizing the existent opportunities, global majors such as EDS, IBM, HP, and Unisys are gradually beginning to expand their market presence. These companies employ a strategy wherein they bundle their services as a complete offering and allow negotiable pricing in order to cater to the necessities of their clients. "For instance, IBM has begun implementing its Service Oriented Architecture (SOA) with a view to gaining market share and also changing the markets perceptions of its offerings," notes the analyst of this research service. "At the same time, other companies such as Diveo, Red Uno, Kio, and Triara, although capable of offering diverse services, are focusing and specializing in datacenter services such as co-location, hosting, and storage."

Government Vertical holds Considerable Potential

From the vertical perspective, financial, automotive, and government segments have been the ones driving demand for outsourced services. Opportunities look particularly promising in the government vertical due to the Austerity Agreement stipulated by the president Felipe Calderon in December 2006. The main objective of this is to reduce costs, improve processes efficiency, and become more productive by maximizing the existing infrastructure. Although this decree does not allow the purchase of any hardware or equipment related to IT, it permits the purchase of consulting services as well as solutions related to training, infrastructure outsourcing, and software licenses. Government organizations will hence be looking for providers that can help them manage their complex and high volume systems and databases and tapping this opportunity, providers are beginning to plan consolidated packages for public organizations.

"With regard to the market segment, the network management segment remains the largest, representing 36.5 percent of the total market," says the analyst. "Among others, dedicated hosting is one of the most acquired solutions within the Mexican IT infrastructure outsourcing services market. This is one of the strongest potential services for the medium-sized businesses in the short and medium term."