IT Services Help Usher in the Digital Revolution

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

A: T-Systems complements the offering of IT outsourcing services that was dominated by US companies for several years. We provide an alternative, with a different DNA and with an important focus on high-quality technology, procedures and predictability. We are an alternative to help companies begin their process of digital transformation. 
T-Systems provides assistance to companies in these two areas, ensuring the maintenance of their traditional operations while accompanying them in their business transformation process toward new technologies that include the cloud, mobility and IoT. When it comes to IT services, if you provide good services, no one notices and that is what is all about. 

Q: Why has the country become a hub for T-Systems’ operations?

A: Mexico is the 12th-largest economy in the world. But more importantly, its prospects are even better. According to several sources, the Mexican market and economy will scale the world’s rankings by 2025, when the country is expected to be among the Top 10 economies in the world. 
Among our clients in Mexico are companies that are also clients of Deutsche Telekom in other parts of the world, such as Volkswagen, Daimler, Shell and Heineken. The original reason for being in a market is that there are several clients that require services in that specific location, which is why we came to Mexico in the first place. 

Mexico has contributed heavily to our growth. In 2015 and 2016, revenue here expanded an average 30 percent annually. Repeating this pace in the 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 a significant but selective presence in the public sector. In the health and financial industries we have a very small presence. However, we expect to increase our share in both sectors and thus continue growing. 

Q: What is your view of the pace at which Mexico is adopting digitalization?

A: Mexico needs to speed up its transformation. At first, it was hard for the business community in Mexico to understand certain concepts such as the cloud. However, the cloud is the entry ticket to digital transformation. It is impossible to conceive this transformation without it.
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, IT has become a variable, rather than a fixed, 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 related to 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 more limited conditions cannot be compared.

Q: Is the country’s workforce prepared to face the challenges of the digital era?

A: Human capital is a critical issue. Mexican technicians are extraordinarily good and competitive worldwide. The fact that we provide services from Mexico to more than 30 different countries means that our human capital can perform world-class services. Universities are producing competitive professionals and technicians. While the technical skills of graduates are at a good level, the English level students have needs improvemen. In the telecoms industry, people must be able to at least read in English and interact with clients in English.