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A New PlAyer iN the it gAme SRapidly Growing Thanks to · iN the it gAme SRapidly Growing Thanks to...
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FEBRUARY 2009 Mexico’s AEROSPACE INDUSTRY DESTINATION Big Resorts BUSINESS TRIPS Urban Pleasures Chips Without Salsa Integrated Circuits Interactive Poetics Transforming Communication A NEW PLAYER IN THE IT GAME S Rapidly Growing Thanks to a Qualified and Competitive Staff
Transcript of A New PlAyer iN the it gAme SRapidly Growing Thanks to · iN the it gAme SRapidly Growing Thanks to...
feb
ru
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9M
exico’s
aerospace industry
destination Big Resorts
Business tripsUrban Pleasures
Chips Without SalsaIntegrated Circuits
Interactive PoeticsTransforming Communication
A New PlAyeriN the it gAmeSRapidly Growing Thanks to a Qualified and Competitive Staff
18 Keeping a tight rein on pollution from Mexico to Asia World leader in the development of smog and pollution detection technology
Chips without salsa,integrated CirCuitsSince 1990 Mexico is placed among the top 10 chip producing countries in the world
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Contents
2 Negocios
10 Table of names
24 Mexico’s Partner
11 Briefs
40 Figures
28A very
serious gAmeThe interactive
media development that has reached
international levels
Firms 8Mexico, A Strategic Ally in ITby bruno ferrari
38 Business tips: it industry: where to invest
32
Mexico’s aerospace industry rising thanks to education
It Innovation Sparked by Mexican Company
20
A Business Country
Mexico is one of the countries with the most Free Trade Agreements and Commercial Agreements.
Free Trade Agreements with:
- United States and Canada
- European Union (27 countries)
- Israel
- Chile
- Uruguay
- Colombia
- Bolivia
- Costa Rica
- Salvador, Guatemala and Honduras
- Nicaragua
- European Free Trade Association:
Norway, Swiss, Liechtenstein, Iceland.
Fortification of the Economic Association Agreement between Mexico and Japan.
Complementing Economic Agreements with:Argentina, Brazil, Cuba, Peru.
In addition, the political system in Mexico favors the development of new businesses and offers legal security for investment.
direCtory
proMéxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant companies nor of their economic solvency. title certificate of lawfulness 008404. text certificate of lawfulness 5017. number of title reserve 04-2005-11292235400-102. postal registry pp09-0044. responsible editor: manager in turn of the publications department. printing: Cía impresora el universal, s.a. de C.V. distribution: proMéxico Camino a sta teresa 1679, México d.F., 01900. phone: +52 (55) 5447 7000. negocios is an open space where diverse opinions can be expressed. the institution might or might not agree with an author’s statements; therefore the responsibility of each text falls on the writers, not on the institution, except when it states otherwise. although this magazine verifies all the information printed on its pages, it will not accept responsability derived from any omissions, inaccuracies or mistakes.
The lifestyle Contents
51 The Lifestyle Briefs
42 Designinteractive poetics
Siete / Media Interactive Technologies
Destination:
breathtakingresortsUnforgettable Experiences
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proMéxico ceo Bruno Ferrari proMéxico iMage and coMMunications director ricardo rojo proMéxico Managing coordinatorandrés tamariz
proMéxico advertising and suscriptionsMiguel Ángel [email protected]
proMéxico copy editinggabriela Mejan ganem
publisheralejandro serratos [email protected]
general Manageremmilú lópez [email protected]
taller México copy editing Felipe Zúñiga [email protected]
senior writeremmanuel lópez-ló[email protected]
design directorJorge silva [email protected]
design Ma. elena ló[email protected] Juan pablo [email protected]
staff writersKarla [email protected] orlando santamarí[email protected] sá[email protected]
editorial assistantnaty [email protected]
proof reading and translationlozano translations
contributorsKarla Bañuelos, Carlos Beltrán, Mauricio Ferrer, itziar gómez Jiménez, Juan antonio lozano, alvin Monárrez, rené Valencia, Mauricio Zabalgoitia.
this is an editorial project for proMéxico by taller México
Juana de arco 29a, Col. Vallarta norte. 44690. guadalajara, Jal. México. t +52 (33) 3336.5218 +52 (33) 3336.7478
www.tallermexico.com
4 Negocios
58 Reportbusiness tripsUrban Pleasures
62 Feedbackalas foundationWings for children
44 Entertainment
Mexican beatsgo electricElectronic Culture has blossomed andit continues to thrive and grow
A Competitive Country
is a country of young people. Within the next 30 years, the economically active population will rise to 69 million.
This is how Mexico molds competitive, highly qualified professionals, so it can attend to the needs of the different productive sectors within the country.
Advantages of Investing in Mexico: Access to the North American market, which shares the same time zone.
Qualified personnel in English and Spanish, two of the three most spoken languages in the world.
Universities
2,000
Postgraduate students
250,000
Youngstudents
3 millions
Mexico
6 Negocios6 Negocios
gulf ofmexico
pacificocean
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Baja California 27, 30, 34, 55
Tijuana 34, 46
Baja California Sur
Cabo San Lucas 55
Los Cabos 53, 55
San José del Cabo 55
Chihuahua 12, 34
Ciudad Juárez 53
Coahuila
Piedras Negras 11
Estado de México 24, 38
Guanajuato 18
Guerrero
Ixtapa-Zihuatanejo 56
Jalisco 13, 14, 27, 39
Chapala 30, 39
Guadalajara 14, 24, 28, 39, 44, 50, 58
Zapopan 24, 49
Mexico City 18, 24, 26, 30, 34, 39, 42,
44, 62
Michoacán 51, 58
Morelia 53
Morelos
Tepoztlán 51
Nayarit
Bahía de Banderas 52
Nuevo León 27, 38, 60
Monterrey 30, 34, 38, 53, 58
Puebla 27, 50, 53
Querétaro 30, 34, 38
Quintana Roo
Cancún 56
Coba 56
Playa del Carmen 56
Puerto Morelos 56
Riviera Maya 51
Tulum 56
San Luis Potosí 44
Sinaloa 27, 38, 44
Mazatlán 38, 53
Sonora 27, 38, 44
Guaymas 12
Tamaulipas
Nuevo Laredo 53
Veracruz 27
Yucatán
Chicen-Itzá 56
Zacatecas 53
illustrAtion: oldemar
Map of Cities A Surprising Country
1 out of every 5 automobiles sold in US is made in Mexico.
The Mexican automotive industry grows 11% annually, the country is one of the world’s main producers of vehicles
and its exports in 2008 surpassed 42 billion USD.
Last year Mexico exported 80 million mobile phones worldwide and one out of every four televisions sold in the US was manufactured in the country.
IT in Mexico grew 15% last year and the country isbecoming a hub for Business Process Outsourcing. There are more than 1,370 enterprises and 500,000 professionals specialized in this area.
Mexico is one of the ten most visited countries. Morethan 21 million visitors annually enjoy 7,000 miles of beaches, numerous colonial cities and hundreds of archaeological sites. Currently, important tourism-related infraestructure projects are being undertaken. The country remains the first choicefor the establishment of second or retiree homes inNorth America.
In only one year, Mexican aerospace industry grew 31%, summing
more than 160 companies with operations in the country. Mexico is the fifth
leading provider for the European Union aerospace industry and the ninth for the United States.
Mentioned in this issue
A Surprising Country
1 out of every 5 automobiles sold in US is made in Mexico.
The Mexican automotive industry grows 11% annually, the country is one of the world’s main producers of vehicles
and its exports in 2008 surpassed 42 billion USD.
Last year Mexico exported 80 million mobile phones worldwide and one out of every four televisions sold in the US was manufactured in the country.
IT in Mexico grew 15% last year and the country isbecoming a hub for Business Process Outsourcing. There are more than 1,370 enterprises and 500,000 professionals specialized in this area.
Mexico is one of the ten most visited countries. Morethan 21 million visitors annually enjoy 7,000 miles of beaches, numerous colonial cities and hundreds of archaeological sites. Currently, important tourism-related infraestructure projects are being undertaken. The country remains the first choicefor the establishment of second or retiree homes inNorth America.
In only one year, Mexican aerospace industry grew 31%, summing
more than 160 companies with operations in the country. Mexico is the fifth
leading provider for the European Union aerospace industry and the ninth for the United States.
From the CEO
8 Negocios8 Negocios
Mexico,a strategic ally in it
Doing businesses in Mexico is a good business.
The country offers unique conditions for the
development of global enterprises including
geographic and time proximity with North
American and Latin American markets, both
regions share cultural ties with our country; economic and political stability
and a large network of free trade agreements that reduce production costs and
provide legal security to investors.
In the Information Technology sector, Mexico is a strategic ally to companies
from all over the world. It has proven to be a trusted partner, with innova-
tive solutions and production processes that meet the highest international
quality standards.
Mexico is prepared to take advantage of the largest number of possibilities for
this sector’s growth. With a privileged location that allows direct access to the
United States market, the world’s number 1 consumer of information technolo-
gies; highly qualified personnel and a solid public policy, our country is today
one of the main destinations for the world’s software, Information Technology
and Business Process Outsourcing (BPO) industries.
This is why we have dedicated this issue of Negocios to the Information Tech-
nology national industry. As usual, our latest edition also includes the most
complete information on businesses as well as the country’s social and cultural
lifestyles.
Sincerely,
Bruno Ferrari
ProMéxico CEO
offices abroad
ProMéxico Headquarters+ 52 (55) 544 77070
AmericaSao Paulo Regional [email protected]: Buenos Aires, Bogota, Guatemala, Santiago, Sao Paulo
Buenos [email protected]
Houston Regional [email protected]: Dallas, Houston, Los Angeles, San Francisco, Vancouver
New York Regional [email protected]: Atlanta, Chicago, Miami, Montreal, New York, Toronto
AsiaShanghai Regional [email protected]: Hong Kong, Shanghai, Seoul, Tokyo
Hong [email protected]
Singapore Regional [email protected]: Dubai, Mumbai, Singapore, Sydney, Taipei
EuropeLondon Regional [email protected]: Brussels, London, Madrid, Milan, Paris Brusselsalejandro.saldivar @promexico.gob.mx
Paris [email protected]
Frankfurt Regional [email protected]: Frankfurt, Moscow, Stockholm, Switzerland
10 Negocios10 Negocios10 Negocios
table of names.
ACTRON INC. 18AMD 14ANDROS TECHNOLOGIES 18Azcárraga Jean, Emilio 62BANYAN TREE 59Barragán Torres, León Christian (MATA) 45BOMBARDIER 34Calderón, Felipe 62CAPELLA HOTELS & RESORTS 56CARSO GROUP 62CEIBA DEL MAR 56CESSNA 36CGBOT 30De la Monja, Esteban 49De la Torre, Javier (Píldora) 50DELOITTE 20DIMTV 30Dirand, Joseph 60DJ Azzid 46DJ Calambrín 44DJ Chrysler 44DJ Kemit 46DJ Lucky 46DJ Martín Parra 44DJ Marvin 46DJ Plastik 46DJ Tini-Tun 44DJ Toy 46DJ Vee-Line 46DJ Yodo 46DJ Zenith 46 Eames, Charles 58Eashid, Karim 58EATON 38Emmanuel 62FLEXTRONICS 15, 18Flores, Luis 44Front 242 44GARTNER INC. 25, 28Garza, Rogelio 28GENERAL ELECTRIC 16, 39GENERAL MOTORS 17Gómez, Ricardo 28, 31González Homero (aka H) 49GOODRICH 36Gruner, Silvia 58Hansen, Fritz 58HEBEI BODA INDUSTRY 12
Hendrix, Jan 58HEWLETT-PACKARD 16, 20, 39HITACHI 39Huerta Cano, Dalia 50Hunter, Gordon 11IBM 16, 20, 39IDEAR ELECTRONICS 24IGATE 13IKOR 16IMMERSION GAMES 28INTEL 14, 39Instituto Politécnico Nacional (IPN) 36Instituto Tecnológico y de Estudios Superiores (ITESM) 36, 38JABIL CIRCUITS 16JACKBE 27Jarre, Jean Michel 44Jiménez, Pedro 24Jiménez, Rigoberto 24KODAK 16, 39Kraftwerk 44LA CASA QUE CANTA 56LITTELFUSE 11Los Tigres del Norte 62Lucero 62MABE 16Maná 62MARRIOTT HOTELS 51Martínez, Eduardo (Meiker) 50MERCER HUMAN RESOURCES CONSULTING 39MEXIKOR 16Morales, Jorge 28MOTOROLA 14Murthy, Phaneesh 13NATIONAL SEMICONTUCTOR 14New Order 44Nicklaus, Jack 52Nopal Beat Records 44Nortec 44ON SEMICONDUCTOR 39Onetto, Marc A. 16ORACLE SOLUTIONS 39Ortega, Arturo (Piscis) 49Parga Jiménez, Octavio 14Pink Floyd 44PRAXAIR 18PROGRESS FIVE 18, 27ROSEWOOD HOTELS 52, 60Rubio, Paulina 62
SCI/SAMINA 16Shock Bukara 46SIEMENS 39 SIGNETICS 14Sintek, Aleks 62Slim, Carlos 62SOFTTEK 20, 27SOLECTRON 16Solís, Margarita 31ST. CLAIR TECH 12STARWOOD HOTELS & RESORTS 52TDCOM 16TELEVISA GROUP 62Timbiriche 62Treviño, Blanca 22TURNMIX 16Ultravox 44UNIVERSIDAD AUTÓNOMA DE MÉXICO (UNAM) 36UNIVERSIDAD TÉCNICA DE QUERÉTARO (UTEQ) 36VINOMEX 12
Littelfuse, a leading manu-facturer of electrical fuses, has invested 15 million usd to install its third assembly plant in Piedras Negras, in the northern state of Coahui-la. From Mexican produc-tion plants, the company is
electrical
briefs.
Beacon of success
able to supply the automoti-ve and electric industries in more than 20 countries.
Company president Gor-don Hunter asserts that con-ditions offered by Coahuila are appropriate to satisfy the growing national and
international demand for his firm’s products. This is why the company has deci-ded to open its new plant, which will directly employ more than 480 people.
www.littelfuse.com
12 Negocios12 Negocios illustrAtions: paola vicencio
spirits
autoMotivestrategy
A reliable partnerMexico is one of the top five countries when it comes to making it easy to carry out businesses in Latin America, according to Worlds Bank report Doing Business 2009.The report stresses that Mexico is one of the best options in the region regarding “handling of construction permits” and “closing a business” at ease.
www.doingbusiness.org
Canadian technology
St. Clair Technologies Inc. the Canadian automobile electronic systems manufacturer is expanding operations in the northern city of Guaymas, Sonora. Their plant will grow from 90,000 to 126,000 square feet. The project is the result of 12 successful years of the company’s trajectory in Mexico.
www.stclairtech.com
In good spirits to China
In the following months, China will taste a new Mexican drink called Sotol. Vinomex, a company headquartered in the state of Chihuahua, will soon export this distilled alcoholic spirit drink made from a wild agave plant
called sereque or sotol. Vinomex will distribute its product through Chinese enterprise Hebei Boda Industry. Exports are expected to reach 18 million usd earnings per year.
www.vinomex.com.mx
e-coMMerce
Experts find fast growth in
online sales
Mexican firms will likely sell 70% more goods and services
over the Internet this year, due mostly to people buying
plane tickets and computers.According to the study “E-commerce 2008,” done by the Mexican Internet
Association (AMIPCI), online sales in Mexico will reach more than $1.6 billion usd in 2008. This year’s expected brisk
growth follows a 78% surge in Mexican e-commerce sales in 2007, when online
sales increased from $537 million usd in 2006 to $955 million usd.
Airline tickets account for about two-thirds of online purchases in
Mexico, followed by computer-related products, according to the study.
briefs.it technology
Opening gate With a 2 million usd investment, the Indian company iGATE has opened a new branch in Guadalajara, Jalisco. The center will be offering technology services and business process outsourcing to clients in the United States and Latin America.
“Mexico’s proximity to the US and its participation in the North American Free Trade Agreement make it a perfect location for a supply center of state of the art technology” said Phaneesh Murthy, iGATE’s CEO.
www.igate.com
14 Negocios14 Negocios Photo: courtesy oF intel
Many of us think that chips are solely used in compu-ters. The reality is that we are surrounded by these
tiny silicon plates. They are present in our cars, washing machines, telephones as well as in some products we buy daily in supermarkets.
The chip, also known as the integrated circuit, was created by Nobel Prize winner Jack Kilby in 1958 when he worked for Te-xas Instruments. In their early years, chips for commercial use were manufactured in Silicon Valley, a production cluster of electronics technology located in northern California in the United States. From there, companies like AMD, Intel, Signetics and National Semiconductor produced chips for the whole world. Nevertheless, the sec-tor demanded an optimization of resour-ces to make more affordable products for the public from these silicon plates. Thus, companies producing these integrated cir-cuits began to invest in the construction of
Chips without salsa,integrated CircuitsIn Guadalajara, known as the MexIcan sIlIcon Valley In the state of jalIsco, the country’s Most IMportant electronIcs Industry cluster can be found. aMonG the coMpanIes located there are VarIous transnatIonal fIrMs that Manufacture InteGrated cIrcuIts and sInce 1990 haVe placed MexIco aMonG the top 10 chIp producInG countrIes In the world.
by itZiar góMeZ JiMéneZ
plants in other countries –such as Mexico, Taiwan, Malaysia and China– which of-fered the best conditions to achieve the greatest competitiveness.
Guadalajara became one of the pre-ferred destinations for transnational com-panies that make electronic products. Firms like Burroughs and Motorola were the first to discover and to make the most of the advantages the city offered. In the 1970s, both companies established ma-quiladora plants, giving birth to what 20 years later would become the Mexican Silicon Valley.
A productive chain strengthens If Guadalajara’s electronics cluster has one special trait, it is the degree of integration that its sector’s firms have achieved.
The role of the production and sup-ply chains is fundamental for the OEMs (Original Equipment Manufacturers) in the electronics sector. Before, these compa-nies manufactured all of their own prod-
ucts. Now they subcontract a large part of the manufactu-ring process but retain the most indispen-sable stages of their prod-ucts’ fabrication and focus on what’s most important for their firm: marketing, sales, customer service, development of new products and research. Therefore, they depend much on their suppliers and stra-tegic partners.
Octavio Parga Jiménez, president of CADELEC, a not-for-profit electron-ics supply chain organization, told Elec-trónico magazine that Mexico has diverse advantages that give OEMs incentives to establish themselves in the country. They include geographic location, a network of free trade agreements, qualified workers and a production chain. “It’s not only about the internal operations of our plants and businesses but about the entire produc-tion chain. Large corporations can take a plant to another country but it would be difficult for them to take our production chain” Parga Jiménez said.
product: integrated CirCuits
the chip
also known as integrated
circuit was created by
Nobel Prize winner
Jack Kilby in 1958.
16 Negocios
The synergy among Jalisco’s govern-ment, universities, design centers and the companies has been fundamental to the consolidation of the electronics produc-tion chain in Guadalajara. Before the rapid increase of investment and the growing interest by transnational firms that want-ed to make the most of the comparative and competitive advantages of this sec-tor, Jalisco’s government promoted the growth of this industry and helped esta-blish an electronics cluster in the city. This cluster integrated OEMs, manufacturing subcontractors (CEMs), design centers, specialized suppliers (SSs) and universi-ties. Currently, this cluster is made up of more than 500 firms that employ approxi-mately 67,800 people and that in 2007 ex-ported more than 12 billion usd.
Local alliances, global competition Intel is one of the biggest OEMs in the Guadalajara cluster that specialize in the fa-brication of chips. The company sold 10.2 billion usd during the first quarter of 2008 and its products equip a large major-ity of the computers sold on the market, as
well as cell phones and radio equipment. The firm is fed by the CEMs, SSs and
the design centers established in town. They have such a close relationship that sometimes it has resulted in Intel acquiring some of these companies. For example, as a part of its program to buy compa-nies with growth potential, in 2000 Intel bought the chip development firm TDCom in Jalisco. It was the same company that established the foundation for Intel’s De-sign Center in this State.
Like Intel, many other large companies have found the right suppliers in Guadala-jara for the development of their businesses. Flextronics-Solectron of Mexico, Jabil Circuit of Mexico, SCI/SANMINA and Mexikor are some of the CEMs that supply OEMs with products and services of the highest quality.
Flextronics –founded in 1969 in Cali-fornia’s Silicon Valley– established itself in Jalisco in 1997. In June 2007, it merged with one of the world’s large producers of chips: Solectron, which also had a pro-duction plant in this area. Flextronics is a big part of the maquiladora system as a majority of its production is exported to the United States for such clients as Motorola,
IBM, HP and Kodak. “The combination of the power of SPS,
vertically integrated enclosure capabili-ties, engineering excellence and the geo-graphic position of Guadalajara bordering the lar-gest electronics market in the world creates a compelling supply chain solu-tion for customers,” said Marc A. Onetto, who was Solectron’s executive vice presi-dent and is now Amazon.com’s senior vice president of worldwide operations.
Another of the important CEMs in Me-xico is Mexikor, created from an associa-tion between the Spanish company Ikor and an investor from Guadalajara. Ikor, es-tablished in San Sebastian, Spain, specia-lizes in the design, research, and produc-tion of electronic materials. Mexikor was born in Guadalajara in 1998, before the growth of the country’s electronics sec-tor. It later became international in scope. Mexikor produces chips for the country’s principal OEMs, like Mabe and Turnmix, which are dedicated to the production of electronic appliances, and Shindler, which produces elevators.
Jabil Circuit, a US company founded in Detroit in 1966, is another large chip man-
Mexico’s chip
producers enjoy a big
demand for their service as well
as great business opportunities
from around the world.
Photo: courtesy oF intel/archive
product: integrated CirCuits
ufacturers that since 1997 has participat-ed in Guadalajara’s cluster. The company is dedicated to the production of electronic spare parts and produces chips for OEMs that serve the automotive industry, mainly General Motors.
Mexico’s chip producers enjoy a big demand for their services as well as great business opportunities from around the world. The demand is so great that even though the main designers and manufac-turers are already established in Guadala-jara, many of the country’s OEMs indicated in the last survey by CADELEC-SEIJAL that a major increase of specialized sup-pliers in the fabrication of integrated cir-cuits is needed. It seems that very soon local production will not be enough to sup-ply its needs. n
clockwise
A “FOUP” is used to transport the first
45nm production lot of 300mm wafers
through Fab 32, Intel’s first high-volume
45nm chip factory. A trasitor acts like a
light switch -switching on and off 300
billion times per second.
18 Negocios Photo: archive
Progress Five is helping the world breathe a little easier. This inter-national high tech corporation focuses on designing and pro-
ducing much needed hardware and soft-ware for many Mexican states’ necessary smog-check programs. The company has its main offices in Mexico City but it con-ducts business worldwide, including a re-cent expansion into the Asian markets.
It designs and manufactures “gas ana-lyzers” and “smoke testers” for Mexico’s government. The company also manu-factures, supplies and designs equipment used to check for smog, including: Digital-tachometers and Digital-interfaces. Its Ra-dio Frequency ID, or RFID program, allows officials, through mini transponders and antennas, to track vehicles and identify if they are current in their smog and pollu-tion tests.
ProductsProgress Five produces hardware and software for the environmental protection industry. Among these products are the equipment and the software for Mexican states’ SMOG-CHECK programs of vehi-cles. This is particularly important in Mexi-co City, which has regulations designed to get rid of the city’s pollution. The compa-ny’s smog-check system specifications are
Keeping a tight rein on pollution FroM MexiCo to asiaProgress Five, a Mexican high tech company, has been an innovator and a world leader in the development of smog and pollution detection technology that is helping the world one breath at a time.
also a vital and efficient solution for small cities or states to help them manage their local SMOG-CHECK programs. Progress Five is the only Mexican company with the most advanced equipment in this area. Its products are designed to meet interna-tional and local regulations in the area of pollution control.
Progress Five has the most advanced, secure and user-friendly software, making it easy for governments and other agen-cies to implement it. The software has self-diagnostic functions such as continuous status monitoring, second-per-second data storage and real time data analysis.
The company is also an authorized dis-tributor for products and services sold by Andros Technologies, a Richmond, Cali-fornia-based leader of NDIR gas analyzers (instruments that measure air samples for carbon dioxide content); Cleveland, Ohio-based Actron Inc. and Mexico City-based Praxair, two manufacturers of specialized gases and mixtures.
Company achievementsIn 1992, Progress Five formally began re-searching, developing, manufacturing and commercializing its trade marked gas ana-lyzers and smoke testers, as well as auto-motive diagnostic tools. That same year, it was running service centers for Andros
gas analyzers and for Actron products, both for Mexico and Latin America.
By the end of 2001, stock holders ex-panded the company’s activities, giving it international businesses presence under the name Progress Five: Progressive Ana-lyzers of Mexico.
In 2006 the company won the bid to design and implement the SMOG-CHECK software program and the government server software program for the Mexican state of Guanajuato. The company installed both software and supplied all the equip-ment to the owners of the state’s 185 of-ficial test centers. The server software was successfully installed and implemen-ted at Guanajuato’s Ecological Institute to config-ure and control the state’s SMOG-CHECK program.
In 2006 the company won another con-tract bid, this time in the Mexican state of Coahuila for the equipment and soft-ware program to be used in its municipal SMOG-CHECK program, in conjunction with the statewide program.
The company has achieved many things and made new business partners due to its advanced technology and the most afford-able prices on the market. Hong Kong and Beijing are two new markets that will soon benefit from the company’s Mexico-based innovation and its competitive prices. n
Mexico’s partner: progress FiVe
progress five
produces hardware and
software for the environmental
protection industry.
20 Negocios infogrAPhic: oldemar
Latin America has just recently started capitalizing on the vast opportunities in the IT services industry, which has typically been
dominated by companies based in India. This had led to a new wave of global IT ser-vices providers. One of these firms is Soft-tek, formed more than 20 years ago when a small group of people sharing a common vision and goals joined forces. Their aim was to create a company that would be-come a benchmark for the region in terms of service, quality, reach and innovation.
On the surface, Softtek is similar to other large IT service providers. It features a com-prehensive portfolio of solutions, a strategy that seeks to identify and remove errors in its business processes, a globally competi-tive workforce, as well as several industry awards. The firm has shown the special abil-ity to learn and recover from not only eco-nomic depressions and market restrictions, but also from sudden shifts in technology trends or new competitive threats. Its aspira-tions to put Mexico and Latin America on the
It Innovation Sparked by Mexican Company
Global technology services –an industry that accounts for more than 500 billion usd of revenue each year– have been the realm of global business titans like IBM, Hewlett-Packard or Deloitte or they have been outsourced to such locations as India. But Mexico is making its mark in the industry and one company in particular, Softtek, has become a leader in Latin America in providing IT services.
by yara sÁnCheZ de la Barquera Vidal
map of global IT service providers seemed far-fetched 11 years ago, when the com-pany first ventured into the US market. But Softtek has found success, as challen-ging circumstances make the company learn, evolve and thrive.
Developing talentOne of Softtek’s attributes is its focus on developing talent. While many firms expect talent to be readily available, Softtek takes the time and effort to develop its own and support it as well.
Each year, hundreds of college stu-dents along with young graduates gain practical and real life experience through Softtek’s “Momentum” program. Young talent is given an opportunity to gain ex-perience by working on real projects un-der the supervision of Softtek associates. Besides “Momentum,” the company offers a wide range of resour-ces and comple-mentary training programs that enable its associates to be competitive, creative and innovative.
a unique partnership
structure and a corporate culture
that promotes employee retention.
itiitititit technology: soFtteK
MexicoCosta Rica
UKASIA
China
North America
United States
Latin America
Argentina
Brazil
VenezuelaPuerto Rico
Chile
Colombia
Peru
The Softtek Expansion
Europe
Spain
Presence with salesand/or operations offices
Near Shore ®Coverage
GlobalDelivery Centres
150
100
50
0
2000Key learning period
RevenueUSD Million
1997Start of
Near Shore® Services
2004Acquisition of
GE’s Ddemesis
2007Acquisition of
China’s IT UNITED
Entrepreneur Multinacional Global
1983Softtek
is founded 1990First International
office (Perú)1985
Four peoplejoin the founder
1 23 4
The Road of an IT Leader
$200
22 Negocios
ed her company’s new service, clients did not know about Mexico’s capabilities and potential. They instead had their sights on domestic providers or outsour-cing their services to such distant locations as India. Market analysts also had little to say, as no providers offering such a service were in place. The idea didn’t even have a name at first. Meanwhile, offshore outsourcing was already in place and increasing in visibility. Softtek at first had to work hard and invest heavily to meet the high quality require-ments of services buyers. At the same time, it had to build Mexico as a quality provider for these types of services.
The firm learned from its success as well as from its mistakes. Initially focused on serving customers throughout North America from Mexico, the Near Shore model has proved to be a success and the United States is now Softtek’s largest market. It also helped shape a market that now complements the global outsourcing landscape and it created a new source of jobs for graduates in Mexico and Latin America.
The term Near Shore has now become mainstream and is regularly used by lead-ing analyst firms and dozens of competi-
tors to describe work performed from nearby locations.
Near Shore leads to greater success Near Shore paved the way for Softtek’s accelerated growth. The company was able to enter markets that were tradition-ally reserved for larger players, particularly India, a major outsourcing hub.
In 2003, Forrester Research, a leading IT industry analyst, highlighted the Near Shore model as an alternative to India, showcasing its differences, its success stories, benefits and future potential. In 2005, Gartner Inc., an IT research firm, identified Softtek as a “Cool Vendor” in IT services, which brought the company at-tention from a larger audience.
In the past five years, the Mexican go-vernment has played an important role in the success of the country’s Near Shore industry through programs such as Prosoft and Mexico IT. This led many players to take advantage of the growing market’s momentum.
In 2004, Softtek became the first Latin American firm to be classified as CMM Level 5 (Capability Maturity Model) a grade scale to rate how an organization man-
Canons of actionSofttek seeks to create a rewarding work environment in which associates are re-garded as partners who share a common culture and way of being. Its “canons of action” are building blocks of this cul-ture, and include such qualities as self-determination, commitment, enthusiasm, perseverance and vision. These canons of action –12 in all– transcend the firm’s organizational life. Thus, to explain them, Softtek writes about them in the first per-son, under the belief that they must be personally adopted.
A good example of how these canons have played an important role in Softtek’s success is the development of its now trademarked Near Shore service delivery model. Near shoring refers to the pro-cess of outsourcing service activities to a foreign country that is fairly close in dis-tance or time zone. The company initially focused its Near Shore service model on serving North American customers from Mexico.
Things were particularly challenging during Near Shore’s initial stage. When Blanca Treviño, president and CEO of Softtek since 2002, and her team promot-
Photo: courtesy oF soFttek
ages its processes. The rating indicated the company was operating at the high-est standards as defined by the Software Engineering Institute. CMM is a model that provides organizations with the essential elements of effective processes. Organiza-tions with a maturity level of 5, the highest grade, constantly evaluate, improve and deploy their processes and technology.
Supporting innovators Mexico faces a series of challenges in terms of increasing productivity, attracting more direct foreign investment, generating opportunities in marginalized regions and overco-ming higher unemployment due to the global financial crisis. Yet, the country is still poised for greatness. It has a young and talented population, hard working and resourceful individuals and plenty resourc-es. In addition, in the last two decades, federal government administrations have embraced globalization and free trade. The North American Free Trade Agree-ment (NAFTA), provide strong IP protec-tion, an area of special relevance in the IT services sector.
To seize these opportunities, Mexico must tap into the vast global professional
services market, a territory where well-pre-pared entrepreneurs can succeed. These entrepreneurs should be the organizations and individuals willing to innovate and to take control of their own destiny by lever-aging the resources the country provides. The challenge for Mexico today lies in providing the support for these innovative firms and individuals.
Gartner, Inc., in a research piece pub-lished in 2005, stated that “Softtek rep-resents a unique combination of being a formidable offshore service provider and being the only non-Indian vendor to pose serious competition.” In another report, they state that “Softtek has a unique po-sition of successfully building a viable strategy around nearshore service provi-sioning that proves to be competitive with an India-based offshore delivery model.” Gartner has also listed Softtek as a “Major North American Application-Outsourcing Service Provider,” and included the firm as a sample vendor in three key reports. Finally, Softtek has been featured for two consecutive years as the only non Indian-centric player in Gartner’s Magic Quadrant for Offshore Application Services (2006 and 2007). n
itiit technology: soFtteK
Softtek Facts
Founded in 1982
Pioneer and leader of the Near Shore Industry.
World class recurrent client base: Preferred Service Provider
for several Fortune-500 companies.
Only Latin American company included in the Gartner’s Magic report
Program, ISO 9001: 2000 Certification.
10 SAP (System Applications Products) Awards of Excellence
and 2 ASUG Impact Awards
Mature Global Delivery ModelOver 10 years of experience
in Near Shore® Services
SAP service partner in the US and 7 Latin American countries
One of the best companies to work for in Mexico, Brazil andArgentina,
according to Forrester Research.
Top Company to Watch South of the Border, according to neoIT
and Global Services Magazine.
Photos: courtesy oF bea
How many passengers travel in public transportation each day and where they get on and off might seem irrelevant informa-
tion to many. But those facts turn handy when designing and planning mass trans-portation or when keeping under control the revenues of these services providers.
In our digital era, the burdens of counting passengers manually are overcome. Techno-logy has allowed the automation of this pro-cess and made it possible to keep records in ways almost imperceptible to passengers.
For the last 15 years, IDEAR Electronics has been developing IT solutions for such matter. Currently, its products are used in about 20,000 transportation units in 94 cities from nine Latin American countries. In 2007 alone, its sales reached 10 million usd.
The company started by selling a pas-senger counter, the BEA System (Elec-tronic Automotive Binnacle) designed by company owner Pedro Jiménez. Today, IDEAR offers several monitoring systems and services for buses.
Under the owner’s watchRigoberto Jiménez, IDEAR’s sales direc-
tor, switches his laptop on, types his user name and password. On his screen ap-pears a route allowing him to monitor a public bus.
This electronic monitoring system de-signed by IDEAR enables clients to find out, among other things, the unit’s speed, the number of passengers getting on and off the route and the average time of every trip.
By clicking the mouse on any point along the route, Jiménez has access to all that information. He can even look at the bus by satellite. From his office in the city of Zapopan –in Guadalajara’s metro area– he can also monitor transportation units in the southeastern state of Tabasco.
Electronic monitoring reduces acci-dents and financial losses for the vehicle owner. The system sells for about 3,000 usd and is used in cities like San Jóse, Costa Rica; San Salvador, El Salvador; Be-lize City; Cali, Colombia; and Lima, Peru.
Monitoring earnings IDEAR has developed two different systems for keeping track of fares in mass transpor-tation units: the prepaid card and the coin counter, a system next to the driver where
passengers deposit their bus fare.The use of prepaid cards has become
popular around the world, including Mexi-co City’s Metrobus. The system is simple: passengers buy a card and deposit as much money as wanted. The card is then slide through a reading device at bus stops and permits access to board the vehicle. IDEAR prepaid card system is being used in three Canadian cities: St. John’s, Brant-ford and Kingston.
Another system, a coin counter, is used in systems like the Pre Tren in Guadalajara. The passenger deposits the exact fare and boards the unit. This prevents the driver from being distracted and reduces the risk of accidents.
The company has also entered the bus operation and administration business. With experience in what it takes to achieve quality and safety in public transportation, IDEAR offers a management service for transportation companies. It helps reduce the company’s costs turning its planning and administration more efficient. Since 2007, IDEAR has provided this service to two mass transportation contractors in Es-tado de México. n
idear, a MexiCan Creation For world transportationFifteen years ago, IDEAR Electronics began marketing its BEA System, an almost homemade invention to monitor local public transportation. Today this Mexican technology is used in more than 20,000 public buses in Latin America. Its inventors report earnings of more than 10 million usd a year.
by MauriCio Ferrer
24 Negocios
Mexico’s partner: Bea systeM
electronic Monitoring by the BEA system, allows the bus owner to know where the unit is located.
fare control systeM
in which the passenger slides a card and fares are deducted from its balance.
Electronic monitoring
94 cities and 9 countries in Latin America where IDEAR is operating.
5 people started the company ,15 years ago.
130 employees work at IDEAR.
10 million usd sales in 2007.
3 services offered: electronic monitoring, fare control and route operation.
St. John’s Brantford and Kingston are Canadian cities where IDEAR has implemented its prepaid system.
26 Negocios Photo: archive
Mexico is becoming a major player in the world’s mul-tibillion-dollar Information Technology sector. And the
world is taking notice.In October 2008, Mexico was listed among
the top 50 global outsourcing cities by Global Services E-Magazine.
In a recent survey by Gartner Inc., a US information technology research and advi-sory firm, Mexico was the only country in North or South America that rated “very good” in its “30 Leading Locations for Off-shore Services” survey.
Last year, MexicoIT, a program created to broaden the awareness of the country’s IT in-dustry, was honored by Gartner research ana-lysts and United Business Media for its efforts to successfully promote national industry and help it expand into the US market.
Mexico, A New Player in the It GameMexico’s burgeoning IT industry is gaining worldwide respect, thanks to governmental support and an educated work force that is rapidly growing.
by Juan antonio loZano/ yara sÁnCheZ de la Barquera Vidal
“This award reflects our commitment to the IT industry in Mexico and demonstrates that MexicoIT is achieving its goal of positioning our country as the ideal destination for service outsourcing and IT investments by US compa-nies,” said Rogelio Garza, general director of the National Chamber of Electronics, Telecom-munications and Information Technologies (Canieti), which runs MexicoIT.
Information technology, better known by the shorter term IT, generally describes any technology that helps produce, manipulate, store, communicate, and/or disseminate infor-mation. The term, which first appeared in the 1970s, has its roots in World War II, when the military and industry joined forces to develop electronics and computers.
IT professionals perform a variety of duties that include installing applications; designing complex computer networks, in-
formation databases and engineering com-puter hardware.
IT services have been steadily increasing all around the globe for at least 10 years, due in part to the growing number of mul-tinational companies operating in the mar-ket. It has become an important driver for spending as companies are trying to use computing resources more effectively and better integrate investments made in hard-ware and software.
In 2002, the Mexican government through the Ministry of Economy launched Prosoft, a national program to promote the country’s tech industry. Its goal is to in-crease the size of the Mexican IT industry to 15 billion usd annually by 2013. MexicoIT is among Prosoft’s programs.
Besides Canieti, which runs MexicoIT, some of the other important players in Prosoft’s ef-
special report: it teChnology
forts are universities and other schools, indus-trial and services organizations, state govern-ments as well as the federal government.
Prosoft supports a variety of activities such as education and development of human resources, technological innovation and deve-lopment, as well as promotion and marketing.
Mexico currently has an IT work force of about 500,000 but that figure is rapidly growing.
There are more than 120 universities and technical schools in Mexico that of-fer IT-related programs, which are produ-cing about 65,000 new professionals each year, the largest number of IT graduates in Latin America, according to MexicoIT. In the past 15 years, the number of Mexican students enrolling in IT-related courses has increased eightfold.
Some of the cities and states in Mexico
with large numbers of IT professionals in-clude Mexico City, Jalisco, Nuevo León, Baja California, Puebla, Sinaloa, Sonora and Veracruz.
The future of Mexico’s IT industry is pro-jected to be very bright.
The Mexican IT services industry was ex-pected to have grown in 2008 by 11%, ac-cording to Mexico IT.
As referred in a report by Business Monitor International, the size of the Mexi-can IT market is expected to grow from 10 billion usd in 2007 to around 16.9 billion usd in 2012.
Mexican banks and financial services companies are among some of the coun-try’s most significant IT spenders, shelling out cash for such things as consolidation, competition and compliance with new inter-national guidelines.
According to BMI, other important sec-tors spending big bucks include manufactu-ring, retail, construction and transportation.
Mexico is getting help as it continues to boost its IT industry.
In July 2008, the World Bank approved an 80 million usd to Mexico that will be used to help create jobs in the IT sector by giving companies access to more trained person-nel, marketing networks and financial help.
There are several Mexican companies who have achieved success in the IT mar-ket, including Softtek, Progress Five and JackBe.
Thanks to the federal government’s sup-port through the Prosoft program, as well as help from state governments and an educa-ted and growing work force, Mexico’s IT in-dustry continues to expand and gain respect in the global marketplace. n
Mexico was listed
among the top 50 global
outsourcing cities by Global
Services E-Magazine.
28 Negocios
Companies usually place secu-rity measures on their emplo-yees computers to keep them from downloading video games
that would distract them from their work. Jorge Morales, executive director of Im-mersion Games Mexico, not only allows his employees to install video games, but encourages them to do so and even plays with them.
Every day at 1 pm, Morales and other 20 people working in his office at the Soft-ware Center in Guadalajara stop what they are doing and start playing a game on their computer network for about 30 minutes before taking their lunch breaks.
Gaming is his business, but the com-pany is no game. Morales built his teenage dream video game company after he was captivated by The Legend of Zelda, a suc-cessful adventure game created by Nin-tendo in the 1980s. His company is now part of an industry that globally generates 50 billion usd a year.
Lucrative marketThis attractive market, part of the broader concept of interactive media, grabbed the attention of the tech industry, which has a big presence in the state of Jalisco.
“Three years ago, while trying to support
a Very serious gaMeThanks to entrepreneurs, promoters and governments, an area in western Mexico is turning into an important hub for the development of interactive media that has an international reach.
by rené ValenCia
the IT industry, we noticed there was a lot of talent in these small companies in Mexico. People were creating such things as flash video games and special effects for movies. And no one was paying attention. No one was seeing them,” said Ricardo Gómez, president of the western chapter of the Na-tional Chamber of Electronic Industry and Information Technology (Canieti).
It was then that with the help of the state and federal governments, as well as some universities, they created a strategic plan to develop the interactive media sec-tor in Jalisco. The first step was getting to know those involved in this market, which resulted in the creation in 2006 of an an-nual expo called Creanimex.
“The main goal is to bring them toge-ther so they can get to know each other and at the same time bring in experts from all over the world to provide training in di-fferent niches, from video games to anima-tion and special effects,” said Gómez.
During the third edition of Creanimex –which took place in October 2008– about 50 experts from all over the world took part in the event, held in the convention center Expo Guadalajara. “Everyone from Oscar winners to executive producers of international companies have attended,” he said.
Photos: courtesy oF immersion games
according to the
State Council of Science
and Technology in Jalisco
(Coecytjal), sales are about 30
million usd each year.
technology: Video gaMes
The size of the game
Sources: Canieti, Coecytjal and International Development Group *Projections for 2008
10 hectaresSize of the DigitalArts and InteractiveMedia Park in Chapala
55.9 million pesos(about 4.5 million USD)Government investmentin the Digital Artsand Interactive MediaPark in Chapala
40 million pesos(more than 3 million USD)Government funding forinteractive media in Jalisco
50 billion USDAnnual sales of videogames around the world
30 million USDValue of annual productionof video games in Mexico
10 million USDValue of annual productionof video games in Jalisco
600 million USDAnnual sales ofvideo games in Mexico
30 Negocios infogrAPhic: oldemar Photo: courtesy oF immersion games
card Ageia PhysX. It was a free PC game that has been downloaded a million times. Ageia PhysX was sold to Nvidia in 2008.
Later on, the company put out Monster Madness for Xbox 360 and PC, and they are starting off 2009 by selling to the public Cell-Factor: Psychokinetic Wars for Xbox 360.
Immersion México is currently working on developing a game designed for the Latino market. “This is the first game whose target is Latin America and the Hispanic market in the United States” asserted Morales.
Mexican playersAlthough there is no data on the national video game industry, Morales, who has been a promoter and is member of the Mexican board in the International Game Developers Association (IGDA), has a ge-neral idea of the size of the phenomenon.
“I think there are about 30 companies, but some of them are in an initial state of develop-ment. IGDA has registered 13 studios that are doing more professional work,” he said.
Most of those companies make games for cell phones, Web pages and applications for product launching. Most of them are in Mexico City. Immersion is based in Guadalajara while CGBot is in Monterrey and Gameloft, the big-
gest in Mexico, is located in the northern state of Baja California. There are also some studios in Aguascalientes and Querétaro.
Only three companies develop games for PCs and consoles: Immersion, Dimtv in Mexico City and CGBot, which only focuses on the digital art while the other two create the whole game.
According to the State Council of Science and Technology in Jalisco (Coe-cytjal), sales are about 30 million usd each year. A third of it is generated in Jalisco. The National Chamber of Electronic Industry and Information Technology calculates sales for the video game industry in Jalisco –which has about 20 established developers– at 10 to 15 million usd a year.
Competitive AdvantagesWhen compared to other countries with a video game industry, Mexico has interest-ing and competitive advantages.
“We work with Americans and Cana- dians, who have both worked with Indians and Chinese. They say working with us is beautiful because we are all basically work-ing at the same time” said Morales.
Besides its proximity to one of the biggest IT markets, there are other factors that make
Taking offIt was Creanimex that awakened Jorge Mo-rales’ creative yearnings from hibernation. “Halfway through college I started a business with two friends. We had the idea of starting a studio to develop video games. At that point we lacked knowledge and a lot of money, so we focused instead on the Web, interactive activities and 3D,” Morales commented. “In 2006 we were invited to take part in Creani-mex. We heard its purpose was to promote the development of video games, launch the industry in Mexico and we got interested.”
Taking part in Creanimex helped them become acquainted with the Colombian studios of Immersion Games. “They al-ready had a well developed business and we had ours. We started working as an independent studio for Immersion.” How-ever, Morales initial partners did not want to take part in the new enterprise and they parted ways. Morales then partnered with the Colombian company.
“We decided to keep the name Immersion because they already had something that was established. Immersion México officially opened in October 2007,” said Morales.
That year they developed a game -Cell-factor: Revolution- to launch the graphic
technology: Video gaMes
Mexico attractive: specialized labor and talent.“Immersion Games, being one of the
pioneers in Mexico, has great talents. There are some really good people in the studio” Morales affirmed.
“We are massively training people” said Ricardo Gómez, from Canieti. As an exam-ple, for Batallón 52, a project of animated short films that will be shown during the Bi-centennial Anniversary of the Mexican Revo-lution, Canieti trained 140 people: animators, voice talents, musicians and cartoonists.
Schools and universities in the whole country have also climbed onboard, offering programs on interactive media. These insti-tutions include ITESM (Instituto Tecnológico de Estudios Superiores de Monterrey, UIA (Universidad Iberoamericana), UNIVA (Uni-versidad del Valle de Atemajac), ITESO (In-stituto Tecnológico de Estudios Superiores de Occidente), Universidad de Guadalajara, Universidad de Artes Digitales and 3dmx.
“The first generation of students hasn’t graduated but they soon will. In the mean-time, kids fresh out of college are being trained by Canieti as well as by the fe-deral and local government. One thousand people have taken short-term courses in multimedia,” said Gómez.
Fun park!The cherry that will top Jalisco’s efforts to promote interactive media will be a multi-media park in Chapala.
This is a unique model in Latin America and it plans to promote the development of new media companies with investments from all over the world. “It is an investment of 55.9 million pesos (about 4 million usd) in a 10-hectare piece of land” said Margarita Solís, director of the Jalisco Institute for Information Technologies, and the project leader.
The first stage of the park should be ready by July 2009. “We are buying equip-ment such as computers, servers, digital drawing tablets, hard drives. There will also be a digital recording studio for green screen and special visual effects” said Gó-mez, also a promoter of the project.
Any company or person will be able to rent the studios and equipment. The equip-ment will not be the companies’ property, but will be owned by the park and will be rented at affordable prices to promote the industry’s development.
Even though fun and entertainment is the final goal of this industry, this new endeavor in western Mexico is also serious business. n
the size of the industry
50 billion usd - Annual sales of video games around the world
600 million usd - Annual sales of video games in Mexico
30 million usd - Value of annual production of video games in Mexico
10 million usd - Value of annual production of video games in Jalisco
3 million usd - Government funding for interactive media in Jalisco
4.5 million usd - Government investment in the Digital Arts and Interactive Media Park in Chapala
10 hectares - Size of the Digital Arts and Interactive Media Park in Chapala
Sources: Canieti, Coecytjal and International Development Group* Projections for 2008
every day at 1 pM
Morales and other
20 people working in his
office, stop what their doing
and start playing a game
for about 30 minutes.
32 Negocios Photos: courtesy oF q-400
cover feature: aerospaCe industry
Mexico’s Aerospace Industry Rising thanks to Education Education and training are the keys to the development of Mexico’s burgeoning aerospace industry.
by Carlos BeltrÁn roJero
34 Negocios Photo: courtesy oF bombardier
The world’s aerospace industry, like other businesses, is facing a drop in revenues and higher costs. Moving operations to
countries that offer lower labor costs is an option many in the industry are consider-ing. However, technical skills, industry regulations and military contracts make it difficult for many aerospace companies to relocate their operations from the US, Canada or Europe. But Mexico, with its low costs and the drive to further edu-cate an already well-trained work force, is becoming a viable place for many in the aerospace industry to relocate their pro-duction facilities. North of Mexico City, the growing city of Querétaro is becoming a key player in this effort.
The Bombardier – Queretaro allianceMexico’s aerospace industry has about 125 companies, with most of them performing low skill jobs. The newest to fly in is Bom-bardier, which has landed in Querétaro.
But while most of these companies in Mexico tend to offer low skill jobs, Bom-
bardier, the world’s third largest civil air-craft manufacturer, sees more potential in the country.
Bombardier believes Mexico’s aero-space industry can develop and grow be-cause of three key factors: infrastructure for a demanding industry; improved inter-national aviation regulation; and a national education program for the industry.
Bombardier is investing 200 million usd in its new plant, where it is manufactu-ring electrical harnesses, structural aircraft components and composite fuselages for some of its new state-of-the-art aircraft.
Their investment is attracting other ma-jor suppliers to Querétaro, as well as to other regions such as the northern states of Baja California and Chihuahua. This is helping build up a large infrastructure for the industry.
In 2004, Mexico’s industry entered into a certification program with the US, the Bi-lateral Aviation Safety Agreement (BASA). It allows for the production of aerospace components that can be sold on the inter-national market.
01 the hangar of Bombardier in Querétaro.
02 aMphibious also manufactured
by Bombardier.
03 luxury interior of the LearJet.
030201
Around the World
Mexican fleet has 7,200 aircraft: 1,400 commercial,
5,300 private and 435 official.
Expanding market in helicopters and
executive jets.
84 airports (55 international)
All airports are operated by private companies
Mexico City airport has the largest operation.
Others important airports are: Toluca, Guadalajara, Monterrey
and Tijuana.
The number of passengers in Mexican airports have
a yearly growth of 6 %.
Source: SCT /ASA
cover feature: aerospaCe industry
three key factors
1) Infrastructure for a demanding industry; 2) Improved international aviation regulation; 3) A national education program for the industry
36 Negocios Photos: courtesy oF bombardier/q-400
bardier moved up by two years its training program in Mexico. An aerospace school, the National Aeronautic College of Querétaro, is set to be launched in the next few years.
In the past, aircraft parts manufactu-rers took advantage of the location and the Mexican work force’s technical knowl-edge, developed by different industries such as electronics or automotive. But Querétaro’s alliance with Bombardier is developing a long term education program for advanced manufacturing processes that meet international standards. More-over, this alliance is looking to develop the region as an aerospace cluster with workers that can design, manufacture and maintain complex aircraft components.
Future challenges The Bombardier partnership is key if Mex-ico’s aerospace industry is to succeed. However, other companies such as Cess-na, Eaton, Goodrich and GE also have operations in Mexico, a sign that others recognize business conditions are right for this success.
There is huge potential for growth in an industry that has more than 22 billion usd in aircraft sales and is not expected to be immediately affected by the current world-wide economic crisis.
The next steps in the Mexican aerospace industry’s development include: manufac-turing engine parts in the cluster; developing complete maintenance and repair facilities in
different locations; and having sufficient criti-cal mass to build a complete aircraft.
Education and training are critical for the success of this effort. Thus, Mexico’s best universities will have to take an ac-tive role in this industry. UTEQ has paved the way, but substantial contributions are needed from others. The UNAM (Universi-dad Nacional Autónoma de México), IPN (Instituto Politécnico Nacional) and the ITESM (Instituto Tecnológico y de Estudios Superiores de Monterrey must become key players in consolidating this business in Mexico.
The aerospace industry can be a sus-tainable business model for Mexico and all the factors for its success are there. Key players such as Bombardier are helping its development, needed infrastructure is in place or being created and successful edu-cation and training programs are enhan-cing an already skilled work force. Mexico’s aerospace industry is ready to take off. And its next destination is: success.
Bombardier manufactures electrical harnesses, structural aircraft components and composite fuselages for airplanes in high demand within the commercial and business airline industry.
Bombardier Q400, CRJ 200 and the Global Express Aircraft (in order with the pictures) can fit from eight to 50 passen-gers. The CRJ 200 is a favorite of regional airlines because of its high efficiency and low cost. n
While the education and training of workers involves the long term develop-ment of human capital, local and federal governments are strongly committed to making this happen as soon as possible.
An Aerospace Education HubThe learning curve for producing aircraft parts is long and expensive, and manufacturing suc-cess depends largely on the quality of the work force. While Mexico already has many well-trained workers, particularly in the automotive industry, there have been no training programs focused on the aerospace industry. But Bom-bardier is doing its part to change that.
An agreement between the Canadian and the Mexican governments has created a partnership between Montréal Aerospace Trade School (EMAM) and the Querétaro Technical University (UTEQ). This partner-ship brought together EMAM’s 30 years of experience and UTEQ’s technical expertise, resulting in the training of the first 1,000 tech-nicians for Bombardier facilities in Mexico.
This program is known as the Fast Track Training Program. It was developed for Bom-bardier by UTEQ and it aims to train workers in electrical and structural assemblies during a 16-week program (12 weeks of schooling, 4 weeks on the job training) in its first stage. Based on a school-factory concept, the training quickly provides knowledge and ex-perience related to the manufacture of major parts rather than small sub-assemblies.
This partnership worked so well that Bom-
‘‘67 Aerospace Companies, 10,000 Workers.’’
cover feature: aerospaCe industry
based on
a school-factory concept, the training quickly provides knowledge
and experience related to the manufacture of major parts rather
than small sub-assemblies
Advantages of Manufacturing in Mexico
Mexico has competitive advantages in metalmecanic and electrical sectors,
among others.
Lower operation cost.Less expensive labor cost.
Highly qualified workers (65,000 new engineering majors a year).
Political and economic stability.Proximity to US market.
NAFTA, no export and import duties Protecction of Intelectual
Property Rights.
Fabrication Capacity
US companies working in Mexico in the last 3 years have found opportunities
in the following components:
Turbines:Rings machinning, valves, electronics,
filters, buckets, gears, shafts, air and fuel cooling lines and turbine maintenance.
Components of aircraft dashboards:
Harnesses, printed circuit boards and cabinets.
Other components:
Jigs and fixtures, and special heat treatments.
Fuselage:
Special paints, seats, carpets and other parts.
Manufacturing processes:
Forging, die cast, machining with 4 and 5 axels, stamping
and plastic injection.
Source: Ministry of Economy
38 Negocios
Estado de MéxicoMain cities: Toluca (capital), Naucalpan and Tlalnepantla.Total population: 14,301,996Economically active population: 6,153,272 Total employed population: 5,838,312Total unemployed population: 314,960Road and highway network: 14,188 kmRail network: 1,284 kmInternational airports: 1Higher education: 351 institutions. There are 172 public and private universities, with 72 offering IT related careers.
Graduates from IT-related programs: 5,200 each year.
IT infrastructure: Fiber optic rings infra-structure, high bandwidth communications and Multi-Protocol Label Switching (MPLS), several providers.
IT industry: The IT companies of the Esta-do de México offer a large variety of services including consulting, data centers, infrastruc-ture management, and application develop-ment and testing. Industry solutions focus on manufacturing and technology niches such as automotive, biotechnology, pharmaceu-tical, security and computer ai- ded design and other specialized services.
BPO services -including contact centers, data mining, help desk, market analysis F&A services and loan application processing- are also offered by several service providers.
The government of the Estado de México strongly supports foreign investment in IT and offers a set of incentives and tax exemp-
iT industry: Where to investMexIco offers the It Industry (IncludInG It outsourcInG) exceptIonal condItIons and opportunItIes for doInG busIness In the country. wIth an adVantaGeous GeoGraphIc locatIon rIGht next to world’s larGest It Market, an abundant and qualIfIed labor force and stronG GoVernMent support, the country Is an Ideal destInatIon for Global software, It serVIces and busIness process outsourcInG (bpo) fIrMs.MexIco has 23 reGIonal It clusters In 19 states, whIch Group 33% of It’s orGanIzatIons. the decIsIon of where to conduct busIness In MexIco depends on each fIrM’s strateGy. soMe of the MexIcan states offerInG specIal opportunItIes for It InVestMent are: jalIsco, estado de MéxIco, nueVo léon, querétaro, sInaloa and sonora.
tions for investors, as well as cash grants as part of the PROSOFT program.www.edomexico.gob.mx
SonoraMain cities: Hermosillo (capital), Ciudad Obregón, Nogales.Total population: 2,448,138Economically active population: 1,007,610Total employed population: 972,346Total unemployed population: 35,264Road and highway network: 35,154 kmRail network: 2,014 kmPorts: 2International airports: 3Domestic airports: 5Higher education: 181 institutions. There are 17 universities, including 2 campuses of ITESM (Instituto Tecnológico y de Estudios Superiores de Monterrey).Graduates from IT-related programs: 1,000 per year.
IT infrastructure: Fiber optic rings infra-structure, high bandwidth communications and MPLS, several providers.
IT industry: The industry in Sonora has been oriented to automotive, aerospace and electric/electronic enterprises and is now quickly moving into Information Technology.
In November 2007, a fully operational technology park designed specifically for the IT Industry opened. The second phase is already under development. The state has two other technology parks in the planning stages.
The government of Sonora is support-ing foreign investment in IT through its “Softlanding” program. Sonora has custom made, tax and non-tax built-to-suit packag-es that provide incentives depending on the purpose of the investment, job creation and location within the state. The state also par-ticipates in PROSOFT and provides cash grants to investors in IT technology.www.economiasonora.gob.mx
SinaloaMain Cities: Culiacán (capital), Mazatlán and Los Mochis.Total population: 2,639,442Economically active population: 1,132,955Total employed population: 1,102,122Total unemployed population: 30,833Road and highway network: 16,697 kmRail network: 1,195 kmPorts: 2International airports: 3Domestic airports: 1Higher education: 48 universities.Graduates from IT-related programs: 3,000 per year.
IT infrastructure: Extensive fiber optic IP infrastructure, high bandwidth Internet, VoIP enabled.
IT industry: The technology sector of Si-naloa is growing at a yearly rate of 300%, with the focus on contact centers and near-shoring of application development services.
The state has one of the largest IT clus-ters in Mexico, gathering 55 companies of an
business tips
advanced IT level. Many of the IT companies in Sinaloa are working in state supported IT technology clusters and have extensive ex-perience in developing applications for health care organizations, agriculture related indus-tries, hotels, pharmacies, gas stations, car dealerships and educational institutions.
The state is conveniently located very close to the US and it is in the Central Standard time zone. Daily flights depart from Culiacán to Los Angeles, Houston, Phoenix, Seattle and Denver, with an ave-rage flight time of two hours.
The state government offers incentives for investors in IT technology besides the cash grants provided by the PROSOFT program.www.investsinaloa.org.mx
QuerétaroMain Cities: Santiago de Querétaro (capi-tal), San Juan del Río and Corregidora.Total population: 1,639,629Economically active population: 667,425Total employed population: 642,762Total unemployed population: 24,663Road and highway network: 3,205 kmRail network: 511 kmInternational airports: 1Higher education: 34 institutions. Graduates from IT-related programs: 1,500 per year.
IT infrastructure: Fiber optic rings infra-structure, high bandwidth communications and MPLS, several providers.
IT industry: The IT companies of Queré-taro offer a large variety of services inclu-ding embedded software development, IT consulting, data centers, infrastructure man-agement and application development and testing. Industry solutions focus on manu-facturing and technology niches such as biometrics, security, computer aided design and other specialized services. BPO services are also offered by several service providers.
Investors can leverage Querétaro’s cen-tral geographic location and its proximity to Mexico City and the US.
Querétaro has a large number of already established multinational companies (in the aerospace, automotive and consumer goods cluster) and the state’s government is fostering foreign investment in IT, offering investors a set of incentives, cost reductions and tax exemptions, as well as cash grants
that are part of the PROSOFT program.www.queretaro.gob.mx
Nuevo LeónMain Cities: Monterrey (capital), Guada-lupe, and ApodacaTotal population: 4,301,388Economically active population: 1,986,589Total employed population: 1,895,444Total unemployed population: 91,145Road and highway network: 7,361 kmRail network: 1,092 kmInternational airports: 1 Domestic airports: 1Higher education: 76 institutions.Graduates from IT-related programs: 3,000 per year.
IT infrastructure: Advanced high band-width, secure communication network, government supported research and technology parks.
IT industry: Nuevo León is the home of some of the largest Mexican IT services companies. Recently it has become one of the preferred locations for companies that offer nearshore IT services and many large Indian IT service providers have es-tablished their delivery centers in the state.
The IT services offered by local compa-nies include custom software development and deployment, IT consulting, ITO and BPO services, development of video games and support for SAP and Oracle Solutions. The state borders the US. Monterrey was ranked 94th worldwide and 5th in Latin America in terms of quality of life according to Mercer Human Resource Consulting (2006), and was ranked 2nd in 2005 and 4th in 2006, according to America Economia.
The government of the state offers incen-tives and tax exemptions to investors as well as cash grants provided by PROSOFT.www.nl.gob.mx
JaliscoMain Cities: Guadalajara (capital), Chapala and Puerto VallartaTotal population: 6,865,147 Economically active population: 2,998,292Total employed population: 2,889,481Total unemployed population: 108,811Road and highway network: 10,334 km Rail network: 1,109 kmPorts: 1
International airports: 2Higher education: 157 institutions. Guada-lajara is a very important hub for universities and educational centers that have national and worldwide prestige, such as Universi-dad Panamericana, ITESO, Universidad de Guadalajara, ITESM and the Universidad Autónoma de Guadalajara.Graduates from IT-related programs: 18,000 per year.
IT infrastructure: Jalisco supports the creation and acceleration of IT Mexican companies and has developed a robust infrastructure for global companies to con-duct business in and from the state.
The state has several technology centers such as the Software Center, the Software and Integrated IT Services Park, both in Gua-dalajara, and the Media Park in Chapala.
IT industry: Guadalajara is known as the Mexican Silicon Valley. Several international companies are offering advanced IT services including application design, development and testing, embedded software for the au-tomotive industry, wireless applications, prin-ters and medical devices and multimedia.
Jalisco has many leading IT and BPO companies due to its convenient geographic location, qualified IT labor pool and excellent infrastructure.
The state government provides strong support for the IT industry with clear strate-gies that help establish new companies.
Guadalajara is the main software pro-ducer in the country and is a leading pro-ducer of electronic and digital components. Such high tech companies as General Elec-tric, IBM, Intel, Hitachi, Hewlett-Packard, Siemens, Flextronics and Solectron have facilities in the city or its suburbs. The city is home to eight of the world’s top 10 contract electronic manufacturers including Solec-tron, Flextronics and SCI Systems. It is also home to original equipment manufacturers including IBM, ON Semiconductor, Hewlett-Packard and Kodak.
fDi magazine ranked Guadalajara as the top major Mexican city and designated it as having the second strongest economic potential of any major North American city behind Chicago. fDi magazine also ranked it as the most business friendly Latin American city in 2007.seproe.jalisco.gob.mx
40 Negocios
Negocios figures
inf
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ic: o
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THE MEXICAN ITINDUSTRY BY THE NUMBERS
IT Market
ACCORDING TO A REPORT BY BUSINESS MONITOR
INTERNATIONAL, THE SIZE OF THE MEXICAN IT
MARKET IS EXPECTED TO GROW FROM 10 BILLION USD
IN 2007 TO AROUND 16.9 BILLION USD BY 2012.
THERE ARE MORE THAN 120 UNIVERSITIES AND TECHNICAL
SCHOOLS IN MEXICO THAT OFFER IT-RELATED PROGRAMS.
THEY ARE PRODUCING ABOUT 65,000 NEW
PROFESSIONALS EACH YEAR.
MEXICO CURRENTLYHAS AN IT WORKFORCE OF ABOUT
500,000.
PROSOFT IS A NATIONAL PROGRAMTO PROMOTE THE COUNTRY'S TECHINDUSTRY THAT WAS LAUNCHED BY
THE MINISTRY OF ECONOMY. ITS GOALIS TO INCREASE THE SIZE OF THE
MEXICAN IT INDUSTRY TO 15 BILLIONUSD ANNUALLY BY 2013.
MEXICO'S SOFTWAREDEVELOPMENT INDUSTRY
NOW PRODUCES $520 MILLION USD, EMPLOYS NEARLY 20,000
PEOPLE AND IS GROWING AT A RATE OF 8% A YEAR,
ACCORDING TO PRICEWATERHOUSECOOPERS.
MEXICO PRODUCES MORE THAN 110,000ENGINEERS EACH YEAR, WITH AN
INCREASING PERCENTAGE IN
SOFTWARE,COMPUTER SCIENCESAND RELATED FIELDS.
Source: www.mexico-it.com
* Does notinclude cell phones.
** Includes operators' private links: net constructionspent for services are included in Telecom Services.
***Supplies present and adjustment, beforeit included some magnetic storage supplies.
2007 Annual 2008 Annual (MUSD) Growth (MUSD) GrowthHardware $7,210 15% $8,407 17%
Software $1,072 15% $1,234 15%
IT Services** $3,112 17% $3,595 16%
Telecom Services* $25,624 7% $27,012 5%
Supplies*** $938 13% $1,032 10%
Total ICT $37,956 10% $41,297 9%
Total IT $12,332 15% $14,268 16%
The lifestyleT h e C o m p l et e G u i d e of t h e M ex i c a n Way of L i fe .
Alas Foundation
Wings for Children
p. 62
pho
to:
Court
esy
of shock
Buka
ra
Entertainment
mexicAn beAts go electric
Electronic culture has blossomed and it continues
to thrive and grow
Rp. 44
Report
Business tripsurBan pleasures
p. 58
DesignInteractive Poetics
siete i Media
interaCtiVe teChnologiesp. 42
Destination
Breathtaking ResortsUnforgettable experiences
p. 54
42 Negocios i The Lifestyle
For decades now, we have found ourselves in the so-called infor-mation era. In the contemporary world, information has become
one of the most prized goods. Each day we produce it, con-sume it, exchange it and buy it.
The way in which informa-tion is given out and consumed is an area that has transformed with the help of creativity and new technologies into me-thods, practices and means that until recently would have seemed like something out of science fiction.
Within such an interesting framework, which unites forms of production and cultu-ral communication with technological deve-lopment, the work of siete | media takes its place. It is a Mexican company that in record time has won a prominent position in the te-
interactive poeticssiete|Media is Changing the way inForMation is presented, MaKing it an interaCtiVe experienCe that goes Far Beyond the KeyBoard or the CoMputer sCreen
by MauriCio ZaBalgoitia
chnology development market within the area of information exchange and interactivity.
In only two years, this company has demonstrated to the world what it means
to present and transmit information in an intelligent, fun, creative way. Users at exhi-bitions, fairs, and museums in Mexico and other countries have been part of a unique sharing of knowledge through the interac-tive technology designed by siete|media.
Through highly defined concepts, this
firm has established that the communica-tion of information can no longer be res-tricted by keyboards and monitors. It is all part of an incessant search for complete
interactivity.siete | media has developed
various screens and projects for the National Museum of Art in Mexico City; it has also taken part in the conceptual creation of inte-ractive experiences in the Mexico pavilion at 2008 Zaragoza Expo. Also in Spain, the company joi-ned the interactive program pre-sented at the celebration of Mexi-
co City’s Bicentennial in Madrid. All these reasons make siete | media the
only national company exclusively created for developing comprehensive interactive experiences designed specifically to com-municate the very message clients intend to express. n
The way in which information is given out and consumed is an area that
has transformed with the help of creativity and new technologies.
Photos: courtesy oF siete i media
design: siete i Media
01 the interactivity walls designed
by siete I media.
02 siete i Media has developed various
screens projects for the National Museum
of Art in Mexico City.
03 the Muac website developed by siete I media.
02
03
01
44 Negocios i The Lifestyle Photos: courtesy oF nopal beat
Electronic music has transformed the new millennium. Young ge-nerations have grown up with electronic beats and rhythms.
Moreover, music coming out of synthesi-zers and computers is an inevitable part of daily life: from the songs on the radio to the dance floors and even the many forms of advertising reaching thousands of people continuously.
Although the history of music created with synthesizers has the same origins –from Jean Michel Jarre and Pink Floyd’s laser light shows to the first sounds mani-fested by Kraftwerk– Mexico has a distin-guished place in the creation of electronic atmospheres and universes. Such creations have taken unique and capricious forms as Mexicans reinterpret and synthesize them through their own particular vision.
Over the past few years, a series of events have defined the history of electronic culture in Mexico including: the first large rave orga-nized in the outskirts of Mexico City; similar
parties in Guadalajara put together by such young promoters as Luis Flores and festivals such as Orbesonora 2008 organized in San Luis Potosí.
Blends and mixtures are in fact the essence of electronic music, which has passed through multiple genres and sub-genres, from deep house to Detroit techno; from mid 80’s synthesized beats to what in Mexico is called psytrance.
Going back in sound!During the 1980s, a decade of New Wave and the wasted New Romantic movement, bands like Ultravox, Kraftwerk, New Or-der and Front 242 transformed the idea of what it meant to create music chords and themes. Their records were sold in Mexico City’s legendary shops such as “Sub-pop” “Issac’s Imported Records” and “Prosound”; this was also the era of plastic futuristic clothing and, of course, DJs like Calambrín, Martín Parra, Tini-tun, Chrysler and so on.
mexican beats go electricFroM raVes organiZed in the outsKirts oF MaJor Cities to the Creation oF aCid CaBaret sounds, MexiCo’s eleCtroniC Culture has BlossoMed and it Continues to thriVe and grow
by MauriCio ZaBalgoitia
blends and Mixture
are in fact the essence of electronic music, which
has passed through multiple genres and subgenres.
entertainMent: eleCtroniC Beats
46 Negocios i The Lifestyle Photos: courtesy oF nopal beat/ nortec/shock bukara
The musical movement also burgeoned in northern Mexico, particularly in Tijuana, a city that has become a truth creative laboratory that gave birth to Nortec a bold sound band that took everyone by surprise while mixing electrónica with traditional northern Mexican music such as banda sinaloense and tambora. Its genuine music has traveled all around the world.
Mexico City based DJs like Zenith, Ker-mit, Vee-Line, Toy, Marvin, Plastik, Lucky, Yodo and Azzid have created a vital and important scene that has survived among such massive festivals as Technogeist, Love Parade and Mayday, which have gained an international flavor and attendance. In cities such as Guadalajara unique sounds, half-way between being traditional and breaking tradition, between local and global, a new solid electronic scene has merged: a cul-ture that has become an export product.
Nopal Beat Records and Shock Bu-kara are two good examples of the cur-rent rea-lity and activity of the beat sonoro culture. Nopal Beat is a successful record that compounds the best electronic music from western Mexico. Its collection “Acid Cabaret” a joyful Guadalajara sound of “Latin identity” that blends Mexican-Latino sounds with electronic beats, is a classic. It documents a history being written on turntables and dance floors.
As for Shock Bukara, it has been elevated as one of the best examples of this electronic genre. It’s been inspired by nostalgia for the sounds of ancient dance saloons from the 1950s. It emulates the cadence, rhythm and the beat across the electronic language, mixing it with tech-house and configuring a peculiar type of music that can be touched, smelled and tasted.
01 colaboration between Nopal Beat and
The Hoola Hoop Sessions.
02 the creative Minds of Shock Bukara,
Daniel Martínez and Manuel Amézquita.
03 nortec collective, Ramón Amezcua
and Pepe Mogt.
030201
entertainMent: eleCtroniC Beats
shock bukara
along with Nopal Beat aretwo good examples of the
current reality and activity of the best sonoro culture.
48 Negocios i The Lifestyle
iMeCa MusiC IMECABOOKINGS reinvents itself after long journeys through the country’s electronic scene. In 2008, it gathered the talent of creators with important things to express...Alexis, Chinix, Chuck Pee, Damian Romero,
Dann Kalter, Don Moy, La Krasso, Memory-man, M.E.N.T.A.L. Metrika, Pau, Puma, Re-bolledo, Sondera, Tatanka, Tato Cado, Toot N´Kman, Uriel.www.imecamusic.com
aBolipop ColleCtiVeIn charge of around five projects in different parts of the country. Drum and Bass, Experimental,Cliks and Cuts, Pop, Rock. www.abolipop.com
sussie 4A project that is on the cutting edge of pop and experimental music. Pop, House, Techno, Drum And Bass, Disco. www.sussie4.com
liCuadora reCordsNew record label that funds Esteban De
Photo: courtesy oF julia cervantes/archive
nortec fuses
electronic with popular local genres finding a unique sound that has
become a musical emblem for an entire generation
Tijuana Sound Machine:Nortec’s New AdventureA decade after creating the sound that defined the border, Nortec has decided to undergo a metamorphosis. Tijuana Sound Machine, a partnership between Bostich and Fussible, is the result of this transfor-mation and another glorious example of the norteño panorama. Nortec fuses elec-tronic with popular local genres, finding a unique sound that has become a musi-cal emblem for an entire generation. It is danceable and 100% Mexican music. With Tijuana Sound Machine, Nortec continues to surprise everyone through experimenta-tion with the latest technologies, the de-finitive consolidation of its rhythm and the use of the emotional density characteristic of Bostich and Fussible. Tijuana Sound Machine is more than just a new album. It is a new metropolis, a city made of pure sound.
Since the appearance of this latest work, Nortec has had more than 75 con-cert appearances around the world in cit-ies in Europe, North and South America and Mexico. They also appeared in loca-tions where Mexican electrónica had never been heard, such as Turkey. In Germany, France, Sweden and Norway, Nortec is considered to be a contemporary classic.
As if this wasn’t enough, Tijuana Sound Machine has been nominated for a Gram-my Award for Best Latin Rock/Alternative Album.
www.norteccollective.com
la Monja, Homero González and Chris-tian Barragán that hosts such projects as MATA, Esteban de la Monja Casar, ION, WESTEMP, PISCIS, TINNITUNS.The Hoo-la Hoop Sessions, León Cesar, The 666 noise Films. www.licuadorarecords.com
Mata
León Christian Barragán Torreswww.densidadneutral.com
www.myspace.com/matasounds
From his base in Guadalajara, he puts his efforts into the friction that sound creates in space. He has a graduate degree in ar-chitecture from the University of Guadala-jara (U de G) and is currently writing his Ph.D. thesis for the Polytechnic University of Catalunya (UPC). The title of his dis-sertation is “Architecture: Articulation and Artifice,” and it’s about architectural proj-ects that are based on the relationships
between space, matter and sound.In 2008, MATA released Lunar
(L001CDR), and PURE ELECTRIC SHIT! (L003DVDR) with his collective project ION. He will release his next record, In-temperie, on Licuadora Records, in 2009. He also works with Esteban De la Monja Casar in the duo León Casar. Recently, he put together a new band with Sinclair Cas-tro from Asunción, and Eduardo Martínez from The Copy Violators. esteBan de la MonJa Casar
www.delamonja.com
www.youtube.com/emonja
www.myspace.com/gatonoise
He was born in Zapopan, where he lives and works. He has a graduate degree in communications and holds several post-graduate degrees in multimedia, art, and digital creation he obtained both in his homeland and abroad. He splits his time
between teaching at a local audiovisual arts school, visual art creation and noise music production. He has released his music on Hacked Tapes (MX), Amp Recs (MX), Licuadora Records (MX) and Fag Tapes (US). He also has many duo proj-ects: León Casar, Tinnitus, The Hoola Hoop Sessions and The 666 Noise Films, all with Licuadora Records. His releases on our label are Telefonema (L002CDR), Lluvia (L006CDR) and one track on Licua-dora’s Vol. 1 (L004CD).
De la Monja bases his artistic endeavors on obsession. He is manic for processes and how the electronic media that has sur-round him since childhood is built. He loses sleep thinking about how things work, how a signal is related to another, how bits are a part of content and meaning, thinking about sound, literature or visual media. And above all, he’s interested in the creation of systems and structures that unveil, trans-
entertainMent: eleCtroniC Beats
between local and globe
Guadalajara’s unique sounds emerged as a solid electronic scene: a culture that has become an export product.
50 Negocios i The Lifestyle Photo: Courtesy oF shoCK BuKara
Radio… “online, baby!”
Radioglobal is a multimedia radio project that uses the Internet as a platform to ex-plore a new and alternative means of ex-pression, entertainment and broadcasting. It originates from Tijuana but is broadcast to the rest of Mexico and all over the world. This radio project creates a space for free expression by building bridges among diverse social and cultural movements. As its name says, its objective is to offer a radio-based option as well as a musical and cultural collective where borders go unno-ticed or fade into the background.
Radioglobal is made up of diverse com-mentators, DJs, journalists and artists involved in cultural, communication and education projects. More than 100 people from various cities in Mexico, the United States and Europe participate on its web-site. Radioglobal’s embassies are located in such cities as Guadalajara, Puebla and San Diego. This collective’s presence has be-come better known in the public through events, concerts, festivals and forums on the media and contemporary art that it has promoted and sponsored throughout the world. “Oh Yeah, baby!”
www.radioglobal.org
late and interpret all these relationships to create pieces where the aesthetic and the conceptual take all the weight.
ion
www.densidadneutral.com
An audiovisual noise trio based in Guada-lajara, it features Eduardo Martínez (Meiker) from The Copy Violators and León Bar-ragán (MATA), both on synthesizers and laptop, and Javier de la Torre (Píldora) on the pixels.
westeMp
Homero GonzalezGonzalez, aka H and Home, is a trained musician and sound engineer who studied in Madrid, where he worked at reputable studios and production houses. He is a fundamental part of Licuadora Records, as he is in charge of the mastering pro-cess for every release and engineers every concert.
As Westemp he has released the album Memoria with BAKTUN RECORDS, and re-cently Toast a Film (L005CD) with Licuadora.
pisCis
Arturo Ortega www.amp-recs.com
www.myspace.com/piscismusica
Based in Guadalajara, he has been work-
ing for film, theater, performance art and advertising. He is also the creator and ad-ministrator of the label Amp Recs. tinnitus
They use tons of field recording sequenc-ing, tape loops, guitars and a few wind in-struments. They have only performed live once, at the Ferroproyección. But they are scheduled to release their first album in 2009.
the hoola hoop sessions
They never repeat a track, an instrument or anything that is pertinent to music for that matter. It is always an improv act that is full of fun.
león Casar
Appears on two tracks of Licuadora’s Vol. 1 (L004CD).
the 666 noise FilMs
It’s a joint project of Dalia Huerta Cano and Esteban De la Monja Casar. It consists of a feature length noise film. The movie has loads of distortion, both with the im-age and the sound. It also has been made with experimental custom made software that creates generative video and sound granulation. It’s scheduled to be finished and released by Licuadora Records in mid 2009.
at the MoMent
Shock Bukara is in thestudio, working on a new project.
worldwide FLIGHT
froM
mexico cityJuarez international
airport
distance7,440 kM
time oF Flight10 hours
The Lifestyle briefs
food
Booking SunnyReservations
to
sao pauloguahrulos international
airport
food
For mexicancuisine Fans
Marriott International will invest more than 1 billion usd to nearly triple its presence in Mexico within the next five years. Some of the developments the company has in the pipeline include: a luxurious 450-room JW Marriott Milla de Oro Resort & Spa and
Good news for people who have always wished to unveil the secrets of Mexican cooking or for those who simply love such dishes as quesadillas, chilaquiles or mole negro. Cocinar Mexicano –a cooking school located in Tepoztlán, Morelos– is offering a special one-week program on traditional and contempo-rary cooking.
Top regional chefs who usually keep close guard of their secrets are in charge of the kitchen!
www.cocinarmexicano.com
the upscale 150-room Renaissance Milla de Oro Resort, both of which are expected to open in the Riviera Maya in 2011.
www.marriott.com
52 Negocios i The Lifestyle
tourisM
Luxury and Exclusivity near Puerto Vallarta
Only 50 minutes away from Puerto Va-llarta International Airport and in one of the most exclusive and attractive beaches in Mexico, the St. Regis Re-sort makes its debut.
This magnificent vacation complex, from the Starwood Hotels & Resorts worldwide chain, has an exquisite, hand crafted touch. It is located over almost nine hectares on Banderas Bay and has
89 luxury rooms, 30 exclusive suites and a grandiose three-bedroom presidential suite.
The development has three high end restaurants that serve international cui-sine, three infinity pools with private ca-bins, a gym, a beach club, tennis courts, a spa and two Jack Nicklaus signature golf courses.
www.stregis.com
Photo: courtesy oF rosewood hotels and resorts
The Lifestyle briefs
the city
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Colonial PatrimonyZacatecas is a historically enchanting city located in north-central Mexico. Dres-sed in baroque and pink stone, this capital city of the state with the same name was declared Cultural Patrimony of Humanity by UNESCO due to its rich history and architecture.
In addition, Zacatecas offers endless recreational activities including: strolls through its uneven streets, concerts, eco-tourism, visits to archaeological sites, culinary delights and its famous tours through historic mines that can be found all around the city.
While mining continues to be the region’s main economic activity, further investments are being made within the increasing tourist and services sectors.
www.zacatecas.gob.mx
Mexico goes duty free
For international tourists, shopping in Mexico can now result in even more savings thanks to a program that allows foreigners to request a tax refund on certified purchases of more than 1,200 pesos (about 90 usd). This is not inclusive of accommoda-tion, food or services expenses.
To request this refund, consu-mers need to fill in a form and present it with a proof of payment at modules installed in ports of en-try and airports around the coun-try. In some instances, it is also re-quired to present the merchandise that was bought.
50% of the refund –up to a maxi-mum of 10,000 pesos (about 750 usd) per person- is reimbursed im-mediately. The rest is transferred electronically within 40 days. This program operates in cities like Monterrey, Los Cabos, Morelia and Mazatlán.
24 Hour Customs
Starting in December 2008, Mexican Customs in Juárez, Chihuahua and Nuevo La-redo, Tamaulipas will be open 24 hours a day from Monday through Friday as part of a pilot program within the framework of the Bilateral Customs Strategic Plan between Mexico and the United States. The program, which will initially last for six months, intends to speed up the processing of commercial cargo and in-creasing com-petitiveness between both countries.
54 Negocios i The Lifestyle Photo: courtesy oF banyan tree
BreathtaKing resorts, unForgettaBle experienCes
destination: resorts
by: eMManuel lópeZ-lópeZ
Preferred by celebrities, politicians and jet-setters Mexican beaches are among the most visited tourist destinations around the world. Luxurious tourist developments offer visitors world-class services along with the opportunity to enjoy unforgettable experiences.
No matter how many times a year taken, vacations never fail to transform people’s routine, especially when the chosen destination guaran-
tees a unique journey. Mexico has everything for visitors to
turn their trips into extraordinary adventu-res. Besides scenery and destinations that have made it a favorite stop for both na-tional and foreign travelers, the country’s tourist industry has luxury resorts com-peting in excellence with top destinations around the world. These properties have been constructed in the right spots, where they harmoniously combine architecture and decoration with natural environments.
They also demonstrate the unbeatable fruition of the country’s tourist market.
A window to paradiseDuring the 1950s, Los Cabos, on the tip of Baja California Peninsula, amazed Ho-llywood stars with its natural beauty, isola-tion and the privacy of its beaches.
Nowadays, in an area known as Cabo Real –between San José del Cabo and Cabo San Lucas and only 20 minutes from San José international airport– a magnifi-cent resort has been erected under a poe-tic name: Las Ventanas al Paraíso.
This is one of the most acclaimed ultra-luxury resorts in the world, known for its beauty, serenity and private, stylish rooms. It is an idyllic atmosphere of relaxation and exquisiteness, bursting with flowers and ponds right in the middle of the desert.
Las Ventanas al Paraíso offers its guests exclusivity in every detail. In each suite, a ja-cuzzi awaits, as well as a terra-cotta chim-ney, a sparkling pool, handmade artisan crafted decorations, a telescope and even an iPod that guests can upload with their favorite music. In addition, services inclu-de attractions such as a world-class spa, fine cuisine, a wine cellar with around 2,400 bottles and an 18-hole golf course created by famed designer Robert Trent Jones II.
silky beaches
days in private paradises,gourmet cooking with
the finest regional ingredients and hours of relaxation
in ultra-luxurios environmentsare some of the experiences
Mexico offers to welcome its visitors.
56 Negocios i The Lifestyle Photos: courtesy oF banyan tree/rosewood hotels and resorts/capella hotels
Banyan Tree MayakobaFused among natural wells, animal life, ve-getation and the gorgeous Mayan Riviera landscape, Banyan Tree Mayakoba can be found. This is an intimate, relaxing at-mosphere immersed in an exclusive com-munity-resort. Located between Playa del Carmen and Cancún, this is an authentic paradise inspired in Asian trends.
This resort has 132 private villas, 50 of which are currently for sale. The resort also offers its guests an exquisite spa with holistic therapies and a gallery where the finest artisa-nal products by local artists can be bought.
La casa que cantaCarved out from a cliff in the scenic route to Playa la Ropa and only 20 minutes from Ixtapa-Zihuatanejo International Airport, this tiny and cozy resort ranks among the best of its kind worldwide. There are only
25 rooms, 11 of which have a private pool. The atmosphere is of maximum intimacy along with a view of Zihuatanejo Bay. In addition, this “piece of the sky” has a pair of private residences called El Murmullo y El Ensueño, which are served by a butler, a housekeeper and a chef. With a tradi-tional Mexican style, every corner of this hotel on the edge of the Pacific is filled with artisanal details and flower motifs. Since it is a hotel conceived with a romantic touch, accommodation is restricted to adults.
Ceiba del marSurpassing the limits of comfort and luxury, this big resort is located on the edge of Puerto Morelos, 20 minutes south Cancun’s international airport. Ceiba del Mar has 88 luxury rooms, 37 suites and seven pen-thouses located in front of the Mayan Riviera. Its terrace lounge, bars and two restaurants
are perfectly complemented by the soft and white sand beach, the resort’s tranquil envi-ronment and a great variety of spa therapies and various activities going from yoga and pilates to snorkeling or kayaking.
Capella Bahía MaromaIn spring 2009 luxury resort corporation Capella will be inaugurating its third des-tination in Mexico. Capella Bahía Maroma will be located in the Yucatán Peninsula on 245 acres housing the unique private golf course in the Mayan Riviera.
Memberships to the ultra-luxurious Golf Clubhouse will be limited to 300 people, from guests and residents. The complex will have 85 suites and 130 private resi-dences, all with magnificent views to the Caribbean and located very close to vi-brant Mayan archaeological such as Tu-lum, Coba and Chichen-Itzá. n
01 dinner at the beach is one of the many
pleasures that this resorts have to offer.
02 las ventanas al paraiso entrance.
03 banyan tree Mayakoba private
residences offer privacy and luxury.
030201
destination: resorts
this is a intiMate
relaxing atmosphere immersed in an exclusive
community-resort.
rooftop terrace
whit an infinity poolis one of the many features at the Banyan Tree Mayakoba Residences
58 Negocios i The Lifestyle Photo: courtesy oF habita mty
Business trips are most likely to lack of spare time to have a look around the city and enjoy its cul-tural and entertainment options.
However, a business trip can turn into a pleasant experience by choosing the right accommodation and enjoying a delicious dinner after a hard day work.
Mexico City, Guadalajara and Mon-terrey have become the main business destinations in the country. Each one of these cities has a wide variety of hotel and restaurants that not only satisfy the most discerning tastes, but also are authentic attractions that guarantee delightful mo-ments for any business traveler.
Mexico City The city that blossoms in every corner. Ex-citing, contrasting and with all the possibi-lities found in a metropolis, it is one of the main business destinations in the country.
HotelsLocated in a fancy neighborhood where art- nouveau buildings are reminiscent of the old times, Condesa DF is an avant-garde
Business trips, urban pleasures
Business traveling doesn’t need to be boring. Mexico’s main cities offer a wide range of boutique hotels that make the stay quite an experience. When it comes to food, the country offers some of the most sophisticated restaurants with cuisine from all around the world.
by Karla Bañuelos sÁenZ
hotel with the capital city’s style. The inte-riors of this space, which at the beginning of the twentieth century was an apartment building, are the creation of Paris based de-signer India Mahdavi, whose work is widely known for its elegance and fluidity.
In the heart of Polanco, the glass walls of Hotel Habita achieve a futuristic vision, as if out of a science fiction film. Habita is known for the contemporary look of its 32 luxury rooms, 4 junior suites, a spa, a climate-controlled pool, jacuzzi, solarium and business center. The environment surrounds guests with the art of Jan Hen-drix and Silvia Gruner and the furniture of Charles Eames, Karim Eashid and Fritz Hansen.
Hotel W combines innovative design with all the necessary services for a busi-ness trip, which is the hotel’s specialty. It has a business center, 237 rooms with natural light and equipped with everything needed for a virtual office. Hotel W ensures that guests get all they ask for at any time of the day simply by pressing the “what-ever/whenever” button, a concept that has distinguished the chain worldwide.
habita Mty
is one of the most exclusive places of
this northern city.
report: Business traVel
Photos: courtesy oF rosewood hotels and resorts/habita mty60 Negocios i The Lifestyle
RestaurantsIvoire is a trendy restaurant with a style and decor that transports restaurant-goers to the South of France. Among the delicacies on the menu are royal couscous or shrimp curry.
For those into Mexican cuisine, Paxia is a must. Chicharrón lasagna or pulque shrimp are some of the restaurant’s signature dishes.
Sud 777 has become one of the latest favorites, with a menu of international cuisine and an environment filled with jazz music and open spaces.
Other great options the city has to offer are: Au Pied de Cochon, Porta Pescara, Pujol, Jaso, Tori Tori and Brássica.
MonterreyCapital city of the northeastern Mexican state of Nuevo León, known as Sultana del Norte, is a modern industrial and business center.
HotelsThe newly opened Hotel Habita, located in the O2 Vasconcelos business center, is one of the most exclusive places of this northern city. French designer Joseph Di-rand created a bright space with clean and simple architectural lines, minimalist decor and fresh air. It has 39 rooms, a lounge, res-taurant, bar, business center, spa and other
facilities that make for a perfect stay.Quinta Real is considered one of the
most classy business hotels in the city. It is a popular option among politicians and important businessmen. Surrounded by gardens and fountains, this colonial style building has 125 suites with small living and dining rooms. The common areas are filled with art pieces that highlight the clas-sic contemporary style of its decoration.
Other lodging options include Anta-risuite Cintermex and the President Inter-continental Hotel, which has more than 200 rooms in a building with a fantastic view of the Sierra Madre mountain range.
RestaurantsMonterrey’s famous cabrito (roast goat-kid) is something not to be missed. There are also other gastronomic options that range from fine cuts of steak to fusion and international cuisine.
With a menu that includes glazed salmon and filet with port sauce, 11:11 is well known for its amazing wine cellar with more than 300 varieties from 15 countries.
The flavor of Italy can be savored at Bianco, that includes among its specialties Alferri salmon, duck a l’orange and a variety of pasta dishes.
01
02
report: Business traVel
A great place for Oriental food is Mandarin. Their dishes invite to splendid Asian journeys from Japan to Malaysia, Thailand or China.
GuadalajaraMexico’s second biggest city and a major force in Mexico’s economy, culture and re-ligion. It exerts significant influence on the rest of the country, and has the most signifi-cant and ambitious infrastructural projects in Mexico.
HotelsIn the last few years, the future site for the Pan American Games has become one of the country’s most dynamic cities. For those traveling on business to the Perla Tapatía, as Guadalajara is known, there are plenty renowned international hotel chains and several new boutique ones.
Located in what used to be an old house from the 19th century, Hotel Gardet combines luxury and modernity. Guests will find such details as Bvulgari amenities and delicious dishes prepared with organic ingredients in Arrayán Restaurant.
Based on a minimalist concept, Hotel Clarum 101 is located in Parque Juan Diego Street, a beautiful green path considered the prettiest street in the city. The white walls
of the nine rooms contrast with the color-ful paintings by local artists. This gives every space a distinctive environment. Another at-tractive quality is the Asian influenced menu and a wide selection of wines.
Villa Ganz is located in a residence built in 1930 and was recently remodeled. It has a warm and elegant environment. This hotel is part of Mexico’s Boutique Hotels Collection and its attractions include: nine rooms, a ter-race with a chimney, a garden and proximity to the best restaurants, museums and book-stores in town.
RestaurantsI Latina is a classic in Guadalajara. Its menu offers a fusion of Italian, Thai, Japa-nese and Chinese cuisines; along with a kitsch-style décor, this is no doubt one of the most visited restaurants in the city.
The menu at María Bonita is an exam-ple of the best high end Mexican cuisine. With dishes like duck in tamarind sauce, lobster al pastor and gusanos de maguey (worms), María Bonita’s flavors merge tra-dition with modern creativity.
The much talked about De Santos, now has a location in Guadalajara where restaurant-goers can taste such delicious specialties as lamb chops in almonds. n
01 indoor relax pool at the W Hotel.
02 a Modern and chic bar at the
W in Mexico City.
03 wheels waiting area
at the looby of the W Hotel.
04 the restaurant at the Habita MTY.
03
04
62 Negocios i The Lifestyle Photo: courtesy oF Fundación alas
Mexico and the rest of Latin America’s coun-tries face a challenging time. With weak world economies and food prices going unexpec-tedly high in the last months, support for the less privileged is needed more than ever.
ALAS (Spanish for wings) is a philanthro-pist organization dedicated to helping im-proving the lives of Latin American children. It is funded by well known celebrities, so-cialites and businessmen; including moguls like billionaire Carlos Slim, CEO of Carso Group and Emilio Azcárraga Jean, president of Televisa Group; as well as entertainment personalities like singers Paulina Rubio, Aleks Sintek, Lucero, Emmanuel and bands from all music genres such as Timbiriche, Los Tigres del Norte or Maná. The positive spirit surrounding this cause has inspired them all. In 2008, their efforts included staging simultaneous concerts in Mexico City and Buenos Aires that were attended by thou-sands of people who made donations to of-fer children a better life.
ALAS Foundation works as a vehicle for change by creating effective education, health and nutrition programs for children during the most important years of their upbringing.
Artists, businessmen and other suppor-ters of ALAS are using their influence to en-courage the public to commit to this cause and work together as tools in the fight against poverty and inequality. n
Alas Foundation, Wings for Childrenby alVin MonÁrreZ
clockwise
The President of Mexico, Felipe Calderón and Shakira at a ALAS
event, Maná during a concert for the ALAS foundation,
Some of the artist and entreprenuer working with
the ALAS foundation,
Alas Facts32 million children under 5 to help in Latin America.
110 million usd donated by Carlos Slim.
December 12, 2006, was the date of ALAS creation.
85 million usd donated by businessman, Warren Buffett.
feedback: alas
64 Negocios i The Lifestylein
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Since its beginning,the foundation hasworked with more than40 Latin American artists,academics and businessmen.
December 12, 2006: when ALAS was founded.
On Sept. 24, 2008, the ALAS foundationorganized the help and assistance of five Latin American presidents at ahistoric event held at Columbia University.
More than
200 million USD
to eradicate childhood
poverty in Latin America.
ALAS Facts
$110 millionUSD donated
by Carlos Slim.
32 MILLIONChildren Under 5
to help in Latin America.
$85 millionUSD donated byWarren Buffett
The ALAS foundation counts on the support of 16 companies as well as governmental assistance.
