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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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.
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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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