In the post-NAFTA world, Mexico has pitched itself to American companies and business associations as a logical outsourcing alternative to more distant locations like India and China, stressing its close cultural as well as geographic proximity.
It appears that not only U.S. companies but also Indian outsourcing providers have been listening. As PCWorld reports, Wipro is opening a software development facility in Monterrey, Mexico that is expected to employ 100 people. Infosys Technologies just established a similar facility, which will able to accommodate up to 250 engineers in a single shift. (Wipro is also boosting its presence within U.S.borders, with a plan to employ up to 1,000 workers at a development center in metro Atlanta over the next three years.)
In addition to providing nearshore services to the U.S. and Canada, such facilities can help Indian firms go after growing business opportunities in Latin America, the PCWorld article points out.
Reinforcing the ties between Mexico and India, Mexican President Felipe Calderon recently paid a visit to India, hoping to convince more of its firms to consider locating operations in his country. During Calderon's visit, government officials agreed to a goal of more than doubling trade between the two countries, to $5 billion by 2010, according to an Associated Press report on newsvine.com.
While the economies of both countries have taken off in recent years, they have largely ignored each other. Two-way trade totaled only $1.8 billion in 2006 -- less than 1 percent of each country's trade with the rest of the world -- reports the AP, and it's been more than two decades since a Mexican president has visited India.