Digitalization Underway but Acceleration Needed

Q: What role does Mexico play in your global strategy?

A: We have been in the Mexican market for over 20 years. When we first started in the country, we operated under the name Gedas, providing services to the automotive industry. Our focus is now on providing services to the premium segment of companies and public-sector entities.

Mexico has contributed heavily to our global growth. In 2015 and 2016, we grew in revenue on average 30 percent annually in the country. Repeating this growth in coming years will be complicated but we expect to continue growing at an accelerated rate. We have a strong presence in the industrial sector and we have an important but selective presence in the public sector. In the health and financial sectors we have a very small presence. However, we expect to increase this in both and thus continue growing.

Q: How has digitalization been received in Mexico?

A: Companies are already undergoing the transformation of the digital revolution but it is a change that needs to be accelerated in the country. At first, it was hard for the Mexican business community to understand certain concepts such as the cloud. However, the cloud is like the entry ticket to digital transformation. It is impossible to conceive this transformation without a model such as the cloud.

Up until a few years ago, companies in Mexico thought that having control or exclusivity of their technological resources was of extreme importance since it belonged to their core business. Today, few companies have their own data center, since it makes no sense for them to have one. From a cost perspective for IT, instead of being a fixed-cost model as it used to be, it has now become a variable cost, which has viability repercussions, particularly for investment projects.

One of the most common concerns for the business community regarding the use of the cloud was security. The truth is that the level of information security companies can have when using our services versus the security level they can have in an in-house data center with limited conditions cannot be compared.

Healthcare is a strategic industry for T-Systems, with a very important market penetration in Europe but with a low participation in the Mexican market because the digitalization of the Mexican health sector is slow. However, we have high growth expectations for it. We are investing heavily in the sector.

To push and accelerate a change in the digitalization of the Mexican healthcare system there are two verticals: one comes from the government through the National Digital Strategy and the other from the industry itself. The digitalization of health services is a race against time. Digitalization is something that is not being questioned, it either happens or companies will not have a chance of survival. Regardless of what politicians may say, the world is already digitally connected. It is imminent and it needs to be done now, we cannot think of doing it in the coming years.

Q: In terms of human capital, is the country’s workforce prepared to face the challenges the digital era will bring?

A: Human capital is a critical issue that deserves to be a top priority. Mexican technicians are extraordinarily good and competitive worldwide. The fact that we provide services from Mexico to more than 30 countries means that our human capital can perform world-class services. Universities are producing professionals and technicians with competitive levels. While the technical skills of graduates are at a good level, an element to improve is the students’ English level. Especially in the telecoms industry, people must be able to at least read in English and interact with clients in English. However, besides this and given the transformation dynamic of the industry, companies must invest a lot of money in training, which is understandable given the characteristics of our business. We invest heavily in training and certifications. It is a matter of creating a processes culture, which requires time and effort.