Mexico’s Softtek on the Off-shoring Landscape

by Dave

BusinessWeek

Over the past couple of weeks, I’ve checked in with Indian IT and BPO outsourcing companies on how the global financial meltdown is affecting their businesses. So far, so good—even for those with a relatively high exposure to financial services clients. The near-shore scene is similar. Beni Lopez, CEO of Mexico-based Softtek’s near-shore operations, tells me there are a couple of forces at work. Under pressure because of concerns about the economy, some North American companies are trying near-shoring services for the first time. Meanwhile, some of Softtek’s existing customers have cut back on the services they require because of budgetary pressures. So far, “Softtek hasn’t felt the pain,” Lopez says. The company expects revenues to grow at more than 30% this year, roughly the rate of growth it has experienced for the past five years. One source of stability is its domestic Latin American business, which represents more than 50% of revenues. Brazil is growing fast, for instance.

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