2012-10-26 14:14:06 - New Computer Technology market report from Business Monitor International: "Mexico Information Technology Report Q4 2012"

BMI View: BMI projects that Mexican IT spending will grow by about 10% in US dollar terms in 2012 to US$15.4bn, despite an uncertain economic outlook. Government spending in 2012, an election year, will be one vendor focus, with a substantial information society budget and the roll-out of national and local projects that were previously delayed because of the economic situation. As Mexico's economy expands over the next five years, some fundamental drivers, including rising PC penetration, and US corporate demand for IT outsourcing, should ensure growing IT demand.

Headline Expenditure Projections

Computer hardware sales: US$6.5bn in 2011 to US$7.1bn in 2012, +9% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment and following stronger than

expected retail sales growth in H211.


Full Report Details at
- www.fastmr.com/prod/464524_mexico_information_technology_report_ ..


Software sales: US$2.6mn in 2011 to US$2.9mn in 2012, +11% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment although much will depend on the success in bringing down illegal software use, which at 63% is well above OECD levels.

IT services sales: US$4.9bn in 2011 to US$5.4bn in 2012, +10% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment with sectors such as government, telecoms and financial services providing the greatest opportunities for vendors.

Risk/Rewards Ratings: Mexico's score was 59.6 out of 100.0. Mexico ranked fifth in the Americas region in our latest RRR table, behind the US and Canada. The country ranked third for its Industry Rewards score, behind the US and Brazil, and joint with Canada, but its overall rating was restrained by a relatively low Country Rewards score.

Key Trends & Developments

* Mexican PC sales were boosted in 2011 by a 4.1% increase in the minimum wage, the first above-inflation increase for five years. This effect was expected to fade, however, in H211 and consumer credit is forecast to weaken in 2012.
* Mexico City and its surrounding area will remain the mainstay of the market. However, Mexico's underpenetrated south east and Pacific regions are expected to offer growth opportunities over BMI's five-year forecast period, particularly in the south east. IT penetration in the public sector remains relatively low in the region and larger Mexican IT distributors have now taken notice of latent demand in this area.
* Interest in cloud computing should continue to grow in 2012. The economic crisis encouraged many organisations to look closer at cloud computing models such as SaaS, and there are estimates that the majority of Mexico's large companies have conducted cloud pilots. Vendors have reported faster-than-expected growth in demand for cloud services in some IT verticals such as finance

Report Table of Contents:

Executive Summary
SWOT Analysis
- Mexico IT Sector SWOT
- Mexico Telecoms Industry SWOT
- Mexico Political SWOT
- Mexico Economic SWOT
- Mexico Business Environment SWOT
Latin America Risk/Reward Ratings
- Table: Americas Risk/Reward Ratings, Q412
Americas IT Markets Overview
- IT Penetration
- Market Growth And Drivers
- Sectors And Verticals
Market Overview
- Government Authority
- Background
- Hardware
- 2012 Outlook
- Segments
- Tablets
- Drivers
- Software
- 2012 Outlook
- Segments
- Cloud Computing
- Verticals
- Services
- 2012 Outlook
- Drivers
- Outsourcing
- IT Services End-User Analysis
- Industry Developments
Industry Forecast
- 2012 Outlook
- Market Drivers
- Segments
- Summary
- Table: Mexico IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2008-2016
Industry Forecast Internet
- Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2009-2016
Competitive Landscape
- Hardware
- Software
- IT Services
- Internet Competitive Landscape
Macroeconomic Forecast
- Table: Mexico - GDP By Expenditure, Current Prices Breakdown
Company Profiles
- Softtek
- IBM
- Sonda SA
Mexico Demographic Data
- Table: Mexico's Population By Age Group, 1990-2020 ('000)
- Table: Mexico's Population By Age Group, 1990-2020 (% of total)
- Table: Mexico's Key Population Ratios, 1990-2020
- Table: Mexico's Rural And Urban Population, 1990-2020
BMI Methodology
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Weighting
- Table: Weighting Of Components
- Sources

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