The Mexican government has allocated 27.930 billion pesos (approximately US$1.4 billion) for its agencies to purchase and deploy ICT solutions, a move analysts say will boost the sector still reeling from the effects of the COVID-19 pandemic.
This is almost a 60% increase compared to the US$800 million allocated last year, according to local media reports. Analysts say the move will ultimately help the ICT sector increase its revenue between 6% and 15% annually.
The Mexican ICT sector is projected to grow in excess of 6% this year after suffering a 3% contraction last year, according to Select, a digital market analyst.
“It is something that we did not expect….. The financial sector, retail, and consumer goods producers accelerated their investment in technology,” said Ricardo Zermeño, Select’s director speaking to the local news portal El Economista.
Much of this money is used by federal agencies for purchasing telecom services, IT solutions, and management of IT services.
The news outlet says the budgetary allocation accounts for 6% of the industry’s annual income.
The budgetary cuts imposed in response to the pandemic last year have left many government agencies struggling to maintain their IT infrastructure.