Over the last few years, the Indian software industry has been growing at more than 30 per cent annually and expected to cross $40 billion in fiscal 2008 with the domestic market estimated at $23 billion.

At a time when most of the Indian industries are facing great difficulties due to global economic slowdown and a lot of other factors like rising inflation, price hike of raw materials, this kind of performance by the Indian software industry is nothing but extraordinary. No other Indian industry has performed so well against the global competition.

At present, India exports software and services to more than 100 countries from all over the world, with the US and Canada dominating, followed by Europe and Japan. Although Indian software exporters are doing well in these markets, industry experts believe that over dependence on the same markets for over a long time period may proof fatal to the Indian software industry. Therefore, the industry must look for and tap new markets, and that is the only way to continue its amazing success in the coming years.

In this scenario, Mexico can be considered as a new and promising market for Indian software companies. Mexico, the largest trading country in Latin America, is also one of the outreach countries associated with G-8. The IT industry in the country has grown significantly in the last few years and the Mexican government has been laying the groundwork for creating a world-class IT industry in the country. Mexican cities like Monterrey, Guadalajara, Ciudad Juarez and Tijuana have had a considerable increase of software companies, which can be turned into a springboard for development.

Opportunities for Indian SMEs
In the Mexican software industry, the main opportunities Indian SMEs can find are  on business intelligence and security. Other opportunities include-

• Software and technological solutions for SMEs
• Design data bases for companies which want to improve their communication strategies.
• Training of specialised personnel for IT companies

There are abundant of opportunities also in fields like Linux for critical applications, IP technology, tracking services, etc.    

Characteristics of the Mexican software market
The software  industry in Mexico can be divided into two main segments - package of applications and the development of customized applications. The local manufacturers in the country rely on local suppliers and national programmers to maintain the sector as well as to get IT services and create new applications.  

In 2006 the value of the Mexican IT services market reached 2,600 million USD. In 2007, the ICT market in Mexico showed a more positive trend compared to the previous years in almost all ICT sub-sectors.

Piracy is a major problem the Mexican software industry has been facing for over the years. According to Mexican Institute for Industrial Property (IMPI) and Business Software Alliance (BSA), the industry losses over 500 million USD per year. 2 out of 3 copies are illegal in the country- a fact which implies a reduction in the market and the opportunities for technology.

Main regions for software
Organized in clusters, the software industry in Mexico has developed centering around some main areas like Aguascalientes, Baja California, Guanajuato, Jalisco, Morelos, Nuevo Leon, Puebla, Sinaloa, Sonora, Yucatan, and Mexico City. There are a number of software companies (developers) in these areas. In addition, some cities are associated to certain sub sectors: for example, Guadalajara (Jalisco) for software testing; Tijuana (Baja California) for production of TV and VCR.  The number of software domestic and foreign software companies is growing in the country at a rapid rate and it is expected that the Mexican software industry would grow further in the coming years.

Key Methods of doing business
For an Indian exporter who is new to the Mexican software industry, it is recommended to develop product or service information. Market research is very important before entering into the market.

Another important suggestion is that Indian exporters should consider taking help from local Mexican sales representative because they have a deep knowledge of the local market, local law and import procedures. With their help, it would much more easier for an Indian business to find  potential wholesalers and retailers in the IT sector.

Exporters should also keep in mind that price list should be in US dollars or Mexican pesos while technical manuals should be written in Spanish.

The software industry in Mexico has been rapidly growing for over the last few years and there are enough opportunities for Indian exporters of software and services despite the fact that Mexico is gradually becoming a producer and developer of software and provider of IT Services. Between 2006 and 2007, the overall growth of the IT sector in the country was 13% and it was fueled primarily by the government/public sector. The highlights in the Mexican IT sector are production centers and data processing services both of which registered 18% growth between 2006 and 2007 while the biggest gainers during the period were companies implementing IT security solutions.