Mexico’s Emergence as a Nearshoring Leader
Mexico is poised to become a natural leader for nearshoring, boasting specialized labor, competitive costs, and the ability to adopt advanced technology. Companies like Tricentis are investing in Latin America, including Mexico, to bring cutting-edge AI to complex processes such as software testing.
Tricentis’ Success with AI
In an interview, Tonatiuh Barradas, Vice President of Tricentis for Latin America, shared how his company has reduced processes that once took 18 months to just two weeks using AI for automated testing without programming. This not only increases efficiency but also complements human talent rather than replacing it.
The Contrast: Regulatory Challenges in Mexico’s Telecommunications Sector
Despite the technological advancements, Mexico faces regulatory challenges in its telecommunications sector. A proposed reform to the Telecommunications Law threatens years of institutional development, potentially eroding competition, scaring off investment, and violating international treaties.
Expert Insights on Regulatory Concerns
Miguel Calderón, an expert in regulation and former Vice President of Telefónica, expressed concerns about the reform initiative circulating in Congress. The diagnosis was bleak: total uncertainty, lack of open parliament, contradictions with T-MEC, and an attempt to make the regulator a mere appendage of the Executive.
The draft allows for content blocking without a court order, imposes costly actions on operators without compensation, and favors state actors over private ones. Competitive neutrality would disappear, undermining the autonomy of the regulator, which was once a global reference.
The Paradox: Technological Progress vs. Regressive Legislation
The paradox lies in the fact that while technology companies elevate Mexican talent and integrate into global value chains using AI, blockchain, and automation, the discussed legal framework pushes towards the past.
Without competition, there are no incentives for innovation, improving tariffs, or protecting consumers. Moreover, without legal certainty, there can be no sustainable investment.
Mexico’s Potential vs. Current Challenges
Mexico should be competing with Brazil and Chile for leadership in 5G, preparing for the revolution of 6G, quantum computing, and satellite connectivity. Instead, there’s a risk of becoming a closed economy where the state accumulates functions without accountability, while the private sector adapts from the trenches or leaves.
A Glimmer of Hope: Dialogue and Policy Opportunities
There are signs of dialogue between legislators and sector actors. The challenge is to ensure this dialogue leads to a genuine opportunity for building a modern, technology-focused public policy aligned with international commitments.
Key Questions and Answers
- What is nearshoring? Nearshoring refers to the practice of hiring or relocating business processes to companies in nearby countries, often for cost efficiency and access to skilled labor.
- Who is Tricentis, and why are they relevant? Tricentis is a software testing company that has successfully implemented AI to automate testing processes, reducing time from 18 months to just two weeks. Their investment in Mexico highlights the country’s potential for nearshoring.
- What are the concerns regarding Mexico’s telecommunications reform? The proposed reform to the Telecommunications Law raises concerns about eroding competition, discouraging investment, and violating international treaties. It also threatens the autonomy of the regulatory body, which has been a global reference.
- How does this regulatory issue impact Mexico’s technological progress? Despite advancements in technology and talent, the regressive legal framework could hinder innovation, investment, and Mexico’s potential to lead in emerging technologies like 5G, 6G, quantum computing, and satellite connectivity.
