IT Services and Solutions Provider UST Global is setting up an IT services and solutions facility in the city of Leon in Guanamato, Mexico. The expansion will see the facility employing up to 10,000 professionals. Sajan Pillai, CEO of UST Global, said that the expansion to new locations such as Mexico will contribute to increasing the supply of IT services at more affordable costs, thus setting off a chain reaction that will significantly boost the world economy.
The new move by the company involves its expansion to the continent ofLatin Americain accordance with the rapidly evolving near-shoring strategy widely acknowledged as the need of the hour in the industry.
Vicente Fox, former President of Mexico and noted social entrepreneur, who was present on the occasion, said the knowledge capital of UST Global in IT and allied services would play a huge role in strengthening the economy of Mexico, thereby helping to create jobs and alleviate poverty.
Vicente Fox is the key promoter of the non-profit Centro Fox foundation, which is facilitating UST Global’s entry into the continent of South America. “Mexicois a leading engine which is moving the world economy, together with India and China”, he said referring to the country’s robust presence in technology manufacturing, as well as the time-zone and proximity advantages in the context of prime markets like theUnited States of America.
In response to questions about whether Mexico would eat into India’s share of the global outsourcing pie, Sajan Pillai replied that as of now India is the undisputed leader in terms of volume of IT services outsourcing. He pointed out that major companies around the world are now looking at a “plus one” strategy, where a complementary outsourcing destination is identified, such as Mexico to support India operations. This location is never a replacement toIndia, but is in fact beneficial in many ways. For instance, Mexico has signed the NAFTA agreement which facilitates free trade withNorth America.