Mexico's Softtek: Success through Nearshoring

            
 
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Case Details:

Case Code : OPER105
Case Length : 16 Pages
Period : 2009-2012
Organization : Softtek
Pub Date : 2012
Teaching Note :Not Available
Countries : Mexico; Latin America; Global
Industry : Information Technology

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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About Softtek

In 1982, Gerardo López founded a small IT services company in Monterry, Mexico, by name Softtek. At the start, it offered IT services to customers such as Mexico's second largest bank, developing customized software and managing their IT infrastructure. Later, with the passage of the North American Free Trade Agreement (NAFTA) in 1994, Softtek was able to expand its business ties with the firms located in the US. In 1997, Softtek introduced the 'Nearshore' model, and trademarked the term 'Nearshore' to denote one of its primary focuses - the provision of outsourced services to customers in other countries that were in its proximity.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

It also opened its first global delivery center in Latin America. Later in August 2007, it acquired China-based I.T. UNITED 4, extending its services to the Asian market.

Blanca Treviño (Trevino), president and CEO of Softtek, played a key role in the company's growth and in making it the leading information technology services company in Latin America. Trevino was credited with promoting the IT services industry in emerging countries and for helping increase the role of Latin America in the field of IT services by collaborating with various governments. Before this, in the 1990s, Beni Lopez (Lopez), Chief Globalization Officer (CGO), had introduced the Object Oriented Technology Unit practice and Business Intelligence practice, which helped Softtek enter into commercial applications outside the mainframe and midrange environment.

Softtek offered application development, testing, security and support; Business Process Outsourcing (BPO); and IT infrastructure management, security, and support to more than 300 corporations in more than 20 nations. It also acted as a Value Added Reseller (VAR) for SAP, Informatica, Cognos, Business Objects, and other enterprise software products, besides providing training and post-sales support services. Softtek was a preferred service provider for several Fortune 500 organizations...

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4] I.T. UNITED (Information Technology United Corporation) was established in 1998 with global headquarters in Beijing, and was a major China-based provider of software development and outsourcing services. The company served as a technology supplier to global and regional IT companies, and as a solutions provider to corporate and government clients.


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