Mexican Companies Increased IT Investment in 2020
By now most know how the COVID-19 pandemic accelerated the business world’s digitalization process but little is known of how Mexican companies attempted to mitigate the risks of implementing new, not fully understood technologies in the light of broadening cybersecurity attacks. A new evaluation report authored by Schneider Electric and Oxford Business Group (OBG) points to a poignant investment in IT as a short and long-term strategic priority in order to protect sustainability and competitiveness.
Although Mexico’s technological transformation had not previously shown dramatic positive growth, after the pandemic threatened to wipe out companies that failed to digitize, domestic companies recognized the need to invest in digital processes and tools to increase their market competitiveness. The joint report detailed that almost 90 percent of companies needed to undergo an important business and technological transformation. With a new found resolve, 76 percent of Mexican companies increased their strategic focus and digital investment efforts.
"The acceleration in digitization has made cybersecurity one of the priorities of companies that seek to avoid financial and reputational risks, which has required greater investments in this type of technology," said Enrique González Haas, president and CEO of Schneider Electric Mexico and Central America. "However, there is still an important need to raise awareness in the business community about the risks associated with the absence of cybersecurity controls within their operation."
Spending is expected to increase in the “Silicon Valley of Latin America” as companies recognize the vitality of digitalization and US technology companies continue to drive demand for qualified talent, as observed in 2020. If Mexico is able to inject the investment required digital maturity, the country stands to boost its GDP between 7-15 percent, adding more than US$240 billion to the economy by 2025, according to projections by consulting firm McKinsey. Before then, however, Mexico needs to increase its ICT exports, which would require upskilling and nurturing the development of a competitive technology ecosystem.