Hit by rising costs in India, Tata Consultancy Services (TCS) has decided to service US clients from Mexico.
The company said on Wednesday it would hire 5,000 people in Mexico over the next five years.TCS officials said costs were rising because of a strong rupee, making India lose its
edge as a low-cost outsource center.
"We have recently opened a global delivery centre in Mexico. It is in the same time zone as the United States and it is easier for US companies to use near-shore centre," TCS spokesman Pradipta Bagchi said.
He said the centre in Mexico was part of TCS's plans to expand its footprint in the Latin America.
Over the last five years, TCS has set up operations in 14 countries, including major centres in Argentina, Brazil, Chile and Uruguay. It employs over 5,000 professionals in these countries.
"Apart from a strong domestic IT market, Mexico shares a similar time zone with and is within five to six hours flying distance from anywhere in the US, allowing us the ability to provide near-shore services for our large US client community," said Gabriel Rozman, head of operations in Mexico.
The company chose Mexico because of its accessibility, infrastructure and available talent pool. Salaries in Mexico are about 40-50 per cent lower than in the US.