In the third quarter of 2023, Mexico’s information technology sector experienced a 5.7% growth, largely due to the expansion of cloud services.
Consulting firm Select reports that the sector’s revenue reached $57.168 billion by September, with expectations to exceed $57.862 billion by year’s end.
Ricardo Zermeño, CEO of Select, links this growth to the post-pandemic recovery. It aligns with Mexico’s overall economic growth, predicted to be over 3% in 2023.
Zermeño highlights the strong performance of technology service providers, particularly in cloud computing and storage services, as a key growth driver.
“This sector’s growth counters the slowdown in mature markets like connectivity, hardware, and traditional software,” Zermeño explains to local media.
Cloud services, he notes, are boosting provider growth more than manufacturers.
The sector’s positive trend has raised optimism for future growth, as reflected in the Select ICT Business Expectations Index.
IT service providers, including cloud services, saw the highest revenue increase in the third quarter.
This segment grew by 8%, reaching $5.099 billion. Telecommunications providers followed with a 7.8% increase, achieving $28.33 billion in revenue.
IT manufacturers grew by 4%, with $14.014 billion in revenue. Finally, IT channels recorded a 2.3% rise, totaling $9.735 billion.
President Andrés Manuel López Obrador‘s administration significantly increased ICT spending in the same period.
The federal government allocated $1.093 billion, 56% of the 2023 federal budget, for ICT, surpassing the allocations of the previous three years.
Zermeño attributes the budget increase to the government’s recognition of the need for timely technology investments.
This decision follows lower expenditures in preceding years, which led to security issues and service gaps.
More: Mexico news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error