Mexico: A Land of Opportunities for SaaS Business
The SaaS solutions continue to gain worldwide popularity among the companies of all size. More and more businesses are venturing into the cloud, instead of hosting their software onsite.
SaaS has become a crucial part of how modern businesses operate. According to the Computer Economics Report, approximately 60% of all the businesses in the U.S. have now integrated at least some SaaS solutions into their operations (mainly email services, file sharing, and CRM). Nearly 36% of businesses plan to increase their investment in SaaS solutions in the nearest future.
Experts predict that the SaaS market will continue to flourish in the years to come. Gartner forecast that by 2022, the percentage of U.S. organizations utilizing SaaS applications will grow to 90%.
It comes without saying: the SaaS market is growing by leaps and bounds. Interestingly enough, a large portion of that growth is happening in the LatAm region, specifically in Mexico. The expectation is that Latin American SaaS market will reach the $5.31 billion in 2022.
Read more about SaaS in Latin America: “Latin America’s Status as Worldwide SaaS Business Hub“
In this article, we will be talking about:
– Mexico’s SaaS Landscape.
– Cloud Call Centers SaaS Opportunities in Mexico.
– The Challenges of Expanding Your SaaS Business Into Mexico.
Saas in Mexico: Landscape overview
Just a few years ago, when we thought about SaaS mainly users, we thought about the U.S. and Europe markets. Nowadays, we have a whole new scenario. Given Mexico’s strong growth in adoption of information technology, emerging startup scene (there are 170+ SaaS startups in the country) and stable economy, there is very little doubt that the country will become a significant cloud computing player very soon.
Being the Latin America’s second largest economy with $1.26 trillion GDP, Mexico has become a very attractive market for international SaaS vendors.
Over the last few years, the cloud services market in Mexico has been witnessing major changes in the SaaS consumers mindset. Almost 84% of Mexican companies have adopted cloud services of some type: SaaS communication tools, subscription-based accounting software, cloud-hosted collaboration software, document management software – you name it! Cloud-hosted CRMs are also increasingly popular among Mexican businesses. In fact, México is the second fastest growing market in CRM software adoption in Latin America.
The micro, small and medium businesses are the biggest SaaS users – both in Mexico and globally. The cloud computing gives SMB access to the professional support and the latest technology previously available exclusively to bigger organizations.
Given that SMBs in the country collectively make the biggest contribution to Mexico’s GDP, the opportunities for international SaaS companies are limitless.
Cloud Call Center SaaS opportunities
Many international businesses are moving their customer service to Mexico to take advantage of geographical and cultural proximity to the States.
Mexican call centers are very different from Filipino, India, or any other global outsourced facility for that matter. Because Mexican call centers employ mostly bilingual professionals, U.S. customers can barely notice they’re talking to someone abroad.
According to the Global Call Center Location Trend Report, call centers expansion in Latin America grew 53% over the last year.
Demand for call center SaaS solutions also saw an increase lately.
Most of the call centers are powered by cloud software, rather than hardware systems nowadays. So if you are in the call center SaaS business, a billion-dollar LatAm call center industry should definitely be on your radar.
The Challenges of Expanding Your SaaS Business Into Mexico
Even though, the opportunities are very promising, scaling your SaaS business into Mexico does not come without challenges.
A huge hurdle for many SaaS companies entering the Mexican market is the language barrier. Even with the proximity to the United States, not every Mexican speaks English fluently and adapt the platform for their native language can take your business to the next level.
Keep in mind that your system, emails, website, apps, and even customer services team should be able to serve the local customer in Spanish.
Marketing strategy, social media campaigns, promotions, and content cannot be implemented uniformly either. All communication and the SaaS itself should be culture-specific.
Local competition has to be taken into account as well. The Latin American SaaS market is booming like never before. There are currently 172 SaaS startups in Mexico, and the local market has seen more IPOs in 2019 than over the past 20 years combined.
To be able to succeed in this market, you’ll need to be aware of your competition. Partnering with Mexican SaaS businesses might be another great strategy to expand your business. By working closely with local SaaS companies, you can have them help you reach more customers.
Now you have it: the biggest opportunities in Mexico for SaaS companies
SaaS businesses are naturally well-positioned for worldwide growth. However, while the opportunities are auspicious, such growth does not come without challenges.
Successful expansion into the Mexican market requires strategic planning, cultural awareness, and of course, smart investment strategy.