NATIONAL PROGRAM TO DEVELOP THE IT-ITES INDUSTRY

IVETTE GARCÍAIVETTE GARCÍAMinistry of the Economy Ministry of the Economy -- MexicoMexicoDeputy DirectorDeputy Director--General of Digital EconomyGeneral of Digital Economy

cigarcia@economia.gob.mx

TSP national initiative

NATIONAL PROGRAM TO DEVELOP THE IT-ITES INDUSTRY

Mexico is moving towards a competitive competitive knowledge economy

Global Market = 310 BUSD

Global sourcing = 8%

2005

Global Market = 1.1 TUSD

Global sourcing = 15%

2010

Outsourcing

No single country is going to be able

to serve that size of a market

MexicoIT Industry + Government

Competitive and reliable

IT Human Resources in Mexico

9th Global Pool of IT HR

65,000 IT Professionals join the workforce every year

Source: McKinsey & Co

every year

Under 5% Attrition rate

(IDC)

PROSOFT 2.0 – Strategies and Goals 2013

Exports

Talent

Legal Framework

• 15 BUSD

Production level

• 2.3% IT/GDP

Expenditure

IT usage

Competitiveness

Quality

Funding

• 2.3% IT/GDP

• Latin American leader

Recognition

• 625,000

Employment

IT Firms

2,095

StateGoverments

32

IT industryGrowth rate

16%

TheThe IIT T IndustryIndustry in in MMeexicoxico

20082002 -

4 0 0

2.1342.134

2.195 4 -1%

IT Exports and BPO (BDD)1IT Exports and BPO (BDD)1

2.2

“Integradoras”

IT Firms

“Integradoras”

IT Firms17

IT Universitieslinked toPROSOFT

IT Universitieslinked toPROSOFT 121

IT Firms withQualityIT Firms withQuality

120

IT ClustersIT Clusters23

IT ParksIT Parks12

1: AT Kearney Data 2007

2: Select Data, 2007

3: INEGI Data

4: Includes PTs)

5: August 2007

0.2 0 0

4 0 0

PROSOFT Fund

Budget 2008:

65 MUSD

Type of projects

1. Productive projects

(creation of jobs)

2. Skills (technical, soft-

skills, English, PSP)

$500.00

$1,000.00

$1,500.00

$2,000.00

Total investment (million pesos)2004-2008*

Otros

Academia

Empresas

Estados

PROSOFT

Other

Academia

IT Firms

State Gov

skills, English, PSP)

3. Quality standards

4. IT Usage (matching local IT

vendors and clients)

5. Innovation

2004-2008*

Projects: 1,429

New jobs: 32,694

People trained: 27,540

State goverments : 32

$0.002004 2005 2006 2007 2008*

PROSOFT

0

500

1000

Inversión PROSOFT

PROSOFT annual budget

2004 2005 2006 2007 2008

0 20000 40000

2004-2006

2007-2008*

Employment

Empleos Proyecto Mejorados

Empleos Proyecto Potenciales

Trained or certified

New jobs

04 05 06 07 08

* August 2008

State Gov investing with PROSOFT

Credibility

Accelerate the rate of

improvement

Increase Mexico’s share of the global IT

market

World-class IT industry

�Certification methods to verify performance:� MoProSoft (National Standard)� CMMI� TSP *

Government support - funding

Training and consultancy

Formal Assessment IT project

IT Company IT User

50% 50% 50% 50% 50% 50%

PROSOFT and State Governments

Calidad

0

2

4

6

8

10

12

14

CMMI

2004 2005 2006 2007 2008

11

0

20

40

60

80

MOPROSOFT

MoProSoft

2004 2005 2006 2007 2008

• 120 IT Firms• 78% supported by Prosoft Fund

Mexico + SEI and Dr. Watts HumphreyMexico + SEI and Dr. Watts Humphrey..

Mexico’s National Initiative TSP / PSP

Superior quality

Realtimeinteraction

LowerAttrition rate

Competitiveadvantage

Reduceddevelopment

timeTrust

High performance knowledge workers (PSP) +High performance knowledge workers (PSP) +HighHigh--performance working teams (TSP)performance working teams (TSP)

P PSP Certified Developers

MEXICO

JAPON8%

INGLATERRA2%

INDIA2%

CHINA1%EGIPTO1%

AUSTRALIA1%COREA

1%

Chart Title

NL

PUEBLA

SINALOA

TAMAULIPAS

VERACRUZ

ZACATECAS

13

MEXICO50%

EUA34%

00 2020 4040 6060

CHIHUAHUA

DF

EDO MEXICO

GUANAJUATO

JALISCO

NL

• Self-Disciplined• Personal Performance

Productivity and Quality gains

7.5

6.24

4.73

2.28

1.050.061

2

3

4

5

6

7

8

Defe

cts

/KL

OC

D e fe ct D e nsity of D e liv e re d Software

TSP + CMMI

Team productivity +70%

0.06

0

1

CM M

Level 1

CM M

Level 2

CM M

Level 3

CM M

Level 4

CM M

Level 5

TS P

CMMI

Source: SEI

A TSP team has an error rate in deadlinesto deliver projects of -10% a 5%, whereasthose without TSP/PSP have an error rateof 140%

Enterprise productivity increase

Roll-out

• TSP Company Certification

• Certification of PSP developers

• Authorization of PSP instructors

Integrated government-industry-academic support

• Authorization of PSP instructors

• Certification of TSP coaches

• Certification of TSP mentor coaches

• TSP World-wide recognition

Developing the right skills at an accelerated rate

Universities

IT Firms

Global alliances

Goal: 150,000 people trained and certified

G

alliances

Mexico IT

Investment Exports

Positioning Mexico as a global player

Key Locations

High levelcontacts

Exports

IT VendorsBPO

Vendors

www.mexico-it.com

“In five years, I expect to be asked: asked:

How did Mexico do it?”

Watts S. HumphreyPROSOFT National Event, May 2008

NATIONAL PROGRAM TO DEVELOP THE IT-ITES

IVETTE GARCÍAIVETTE GARCÍAMinistry of the Economy Ministry of the Economy -- MexicoMexicoDeputy DirectorDeputy Director--General Of Digital EconomyGeneral Of Digital Economy

cigarcia@economia.gob.mx

TSP national initiative

NATIONAL PROGRAM TO DEVELOP THE IT-ITES INDUSTRY