In a context characterized by high inflation, little investment and weak domestic consumption together with high employment, a stable currency against the dollar and the increase in demand for Mexican manufacturing from abroad, the information technology industry Mexico showed a growth in its billing not seen before in a first quarter according to the records of the Select consultancy.
Technology businesses in Mexico invoiced 313,690 million pesos (around 15,684.5 million dollars) in the first quarter of 2022, according to Select, a firm specialized in the information and communication technology industry (TIC).
1. Billing of technology businesses in Mexico grew 9.6% in the first quarter of 2022.
- Manufacturers and channels. Although operators maintain the largest share of the technology market in Mexico, with a turnover of 148,327 million pesos (approximately 8,268.15 million dollars), manufacturers and distribution channels are the ones that show the greatest growth in their turnover.
- Inflation and Capex. Select explains this growth due to an inflationary effect on connectivity services and hardware (devices); in addition to an increase in capital spending (Capex) by telecommunications operators, who have been investing in network infrastructure.
- face-to-face cloud. The growth of cloud services, whose turnover increased more than that of all other technology businesses, and the reactivation of face-to-face events are also causes of this quarterly growth in the sector.
2. AMLO’s government has only spent 10% of the technology budget for 2022.
- 10%. The government of President Andrés Manuel López Obrador has only spent 3,380 million pesos on technology, that is, 10% of the 32,344 million pesos considered in the 2022 Federation Expenditure Budget (PEF) to meet its technological needs, according to Select.
- ICT services. Most of the information technology spending executed by the federal government in the first quarter of 2022 went to software development, data center services and maintenance services, as well as telecommunications services.
- CFE. The Federal Electricity Commission (CFE), the Pemex oil company, and the Ministry of Public Education are the main agencies of the federal government that have spent money on information technology.
Source: Select
3.- Video streaming is the service that grew the most among the different telecommunications services offered by operators to Mexican households.
- Netflix and Disney+. Video streaming went from representing 9% of telecommunications service sales in the first quarter of 2020 to 17% in the same period of 2022.
- Cloud. ICT and cloud services, which give life to video streaming, billed 40,000 million pesos in the first quarter of 2022, a growth of 11% compared to the first quarter of 2021, according to Select.
- public. Public cloud services, such as those offered by Amazon, Google and Microsoft, were the ones that showed the greatest increase in the first quarter of the year, with 26.4% growth compared to 2021. While operation and support and integration and consultancy grew 8.8 and 9.3 percent.
