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Building a Better Future Through ICT Services

By Selene Diez Reyes - Forte Innovation Consulting


By Selene Diez | CEO - Tue, 07/18/2023 - 16:00

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Despite being in the information age, we are in the most uncertain and complex era of all time. Foresight is a solution to this imperative need to understand our reality. As a discipline, it can be used in any sector and industry, although it tends to be applied especially in those areas with a greater impact or that are more exposed to volatility, such as politics, economics, geopolitics, technology, security and defense. All these areas are precisely those that define the world in which we live. Therefore, we will address the analysis of information and communication technologies in Mexico, and their role, which is to seek to build a better future. 

Key factors in Latin America

The growing demand for the Internet of Things (IoT) and big data operations is the key factor driving the growth of the ICT services market in Latin America. Trends such as connected cars, connected homes and smart cities are becoming increasingly common. Industries like manufacturing, utilities, e-commerce, automotive and social networking are also using IoT, which requires an energy-efficient network of smart nodes that must always be connected to each other. 

In addition, big data analytics has triggered the high-tech expansion of data centers. Thus, as the demand for predictive analytics and its consumption increases, so does the demand for IT services.

ICT and the Digital Economy in Mexico

The ICT sector and the digital economy are economic drivers that contribute significantly to Mexico's GDP. Mexico's digital economy generates approximately US$60 billion of economic value per year through business process management (IT-BPM), e-commerce, domestic electronics manufacturing, digital payments, digital communication services (including telecommunications) and other ICT-related activities. (Mexicoelnegociodelatecnología)

Mexico is home to more than 4,000 ICT companies and nearly 2.6 million corporate buyers of technology solutions, with an ICT market valued at more than US$43.5 billion. The ICT sector grew faster than the overall economy during the last 12-month period, reflecting the unprecedented demand experienced for digital transformation services across the region. (reportlinker)

This marks the importance of a digital world in which more people can benefit from technology, and the need for rapid and lasting digital development models is more crucial than ever.

Impact on Economy, Education, Health and Others

In recent years, the adoption of new technological tools and solutions has allowed the modernization of business processes, the strengthening of digital infrastructure and the improvement of operational efficiency in Mexico. However, there is still ample room for further progress.

The adoption of technologies, such as artificial intelligence, data analytics, IoT and the cloud, is enabling organizations to improve their processes, make more informed decisions and offer better services to their customers. This digital transformation involves not only the implementation of new technologies, but also changes in organizational culture and the way they work (Gartner).

Another area of opportunity is education. Mexico is working on strengthening technology education, from elementary to higher levels. The incorporation of specialized subjects and programs in information technologies allows the training of future professionals capable of facing the challenges and taking advantage of the opportunities of the digital world. In addition, the training and development of digital skills in the current workforce is promoted to ensure a successful transition to a knowledge-based economy.

In the healthcare sector, information technologies play a key role in improving healthcare. The implementation of electronic medical records, telemedicine and remote monitoring systems allows for more efficient, accurate and accessible care for the Mexican population. In addition, healthcare data analytics helps to identify patterns and trends, facilitating informed decision-making by healthcare professionals.

However, despite the progress and positive outlook, there are challenges that need to be addressed to take full advantage of information technologies in Mexico. Some of these challenges include the digital divide, especially in rural areas and marginalized communities, cybersecurity and data protection, as well as adapting to the ever-changing technological landscape. (TransdigitalReport)

Digital Adoption in Mexico

Mexico has embraced the importance of internet access for all its citizens. By January 2021, there were more than 92 million Internet users in Mexico, representing growth of around 71% of the population (Méxicoylabrechadigital Report).

In rural areas, according to the Mexican Internet Association, only 48% of rural inhabitants have internet access; however, internet users are disproportionately concentrated in metropolitan areas. This is an indicator that Mexico and its population are and need to be increasingly connected. We are eager to take more advantage of the benefits of digital transformations, and to overcome the barriers that still hinder the progress we need so much.

Key Players in the ICT Market

The ICT market in Mexico is moderately competitive and is moving toward the fragmentation phase, as it is currently made up of many players. Several key players in the ICT market are constantly working to make progress. Some major companies are collaborating and expanding their presence in developing regions to consolidate their position in the market. Major players in the country include Nokia Communications, HCL Technologies, Oracle Limited and many others. (researchgate.net)

In July 2022, Nokia confirmed a partnership with AT&T Mexico as they look to accelerate 5G in the country. This partnership would also support the development of a 5G lab aimed at growing Mexico's 5G ecosystem.

In September 2022, Oracle and Teléfonos de México partnered to offer Oracle Cloud Infrastructure services in Mexico. The strategic alliance would enable organizations to leverage Oracle Cloud Infrastructure's enterprise-grade performance, security, and powerful data analytics and multicloud capabilities.

The total transaction value in the digital investment market is expected to reach €58.29 billion by 2023. The total transaction value is expected to register a CAGR of 13.92%, resulting in an expected total amount of €98.19 billion in 2027. (researchgate.net)

Promising Outlook

These advances reflect a global trend in which the ICT sector is booming, not only because of macroeconomic projections, but also because in everyday life it provides solutions and tools that impact the training and development of people. 

However, Mexico must recognize that a solid digital policy requires a more strategic and far-reaching cooperation with allies, private entities and various government agencies to capitalize on these advances, to continue overcoming challenges and to take full advantage of the benefits that technology can offer for the good of people and society.

We must not stop trying to anticipate; as a society, we must draw a master roadmap toward a better future with sustainable growth.

Photo by:   Selene Diez Reyes

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