India’s largest software exporter Tata Consultancy Services (TCS) announced that it had won a $200-million outsourcing contract from the Social Security Institute of Mexico (IMSS), which runs pensions, public health and social security for the Mexico government.
With over 370,000 employees, IMSS provides coverage to over 50 million Mexican citizens.
The deal, the company’s largest ever deal in Latin America, would be spread over four years. TCS would maintain, manage and provide support for hardware and software related applications for IMSS and its affiliates across systems that run medical insurance, pensions, birth certificates and other services.
TCS won the contract following a public bid process and an assessment based on technology and financial parameters over three other leading global and local technology companies, a company release said.
Impressed by the level of technical education and skilled workforce in Latin America, Indian software companies have made a beeline to set up delivery centres in Latin America to service American as well as global clients.
Infosys set up The New Growth Engines’ business unit recently to focus on countries in Latin America. Its centre at Monterrey, Mexico employs 1,000 people. Earlier this year, TCS also expanded its Mexican operations by setting up a global delivery centre in Guadalajara with plans to hire 500 people.
N. Chandrasekaran, executive director, TCS, said: “Mexico is emerging as a key market for TCS in Latin America.” Its recent deals in Latin Ameica include those with ABN Amro Bank in Brazil, Registro Civil in Chile and Banco Pichincha in Ecuador.
Like TCS and Infosys, even BPO major Genpact set up a new facility at Juarez in Mexico in September. Companies say that apart from skilled technical manpower, another reason for companies seeking to aggressively expand in Latin America was its proximity to North America.
Pramod Bhasin, president & CEO, Genpact said: “This expansion is due to the positive response we’re seeing from our North American and global clients who want high-quality and cost-effective solutions.”
The growing Latin American economy and the quality of manpower coupled with rising wage costs here and growing client demands are forcing Indian companies to set up bases in South America,” said Apurva Shah, IT analyst, Prabhudas Leeladhar.