Market Insights Technology IT Services IT Outsourcing

Administration Outsourcing - Mexico

Mexico

The Administration Outsourcing market in Mexico is predicted to witness a significant growth in revenue, with projections indicating that it will reach €0.86bn by the year 2024.
Furthermore, it is expected to maintain a steady annual growth rate of 4.07% (CAGR 2024-2029), resulting in a market volume of €1.05bn by 2029.
In terms of the average Spend per Employee, it is estimated to reach €14.30 in 2024, further highlighting the potential of the Administration Outsourcing market in Mexico.
It is worth noting that United States is expected to generate the highest revenue in the global Administration Outsourcing market, with a projected revenue of €25,040.00m in 2024.
This showcases the dominance of the United States in this market segment.
Mexico has become a prime destination for IT administration outsourcing due to its skilled workforce and cost-effective services.

Key regions: Netherlands, Japan, China, United Kingdom, India

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The demand for Administration Outsourcing services in Mexico has been on the rise in recent years.

Customer preferences: Companies in Mexico have been increasingly outsourcing administrative tasks to focus on their core business activities. This has led to a surge in demand for Administration Outsourcing services. Additionally, outsourcing administrative tasks can result in cost savings for companies.

Trends in the market: One trend in the Administration Outsourcing market in Mexico is the outsourcing of HR functions. Companies are outsourcing tasks such as payroll processing, benefits administration, and recruitment to third-party service providers. This trend is driven by the need for companies to comply with Mexican labor laws and regulations.Another trend is the outsourcing of accounting and finance functions. Companies are outsourcing tasks such as bookkeeping, financial reporting, and tax compliance to third-party service providers. This trend is driven by the need for companies to comply with Mexican accounting and tax regulations.

Local special circumstances: Mexico has a large labor force, but many workers lack the skills and education necessary to perform administrative tasks. This has led to a shortage of qualified administrative personnel in the country. Outsourcing administrative tasks to third-party service providers can help companies overcome this challenge.

Underlying macroeconomic factors: Mexico is the second-largest economy in Latin America and has a growing middle class. This has led to an increase in demand for goods and services, which has in turn led to an increase in demand for Administration Outsourcing services. Additionally, Mexico has a stable political and economic environment, which has made it an attractive destination for foreign investment. This has led to the growth of the Administration Outsourcing market in the country.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.